The short answer
The MOT, memorandum of transfer, is the document that moves the legal ownership of a property into your name. You sign the SPA to agree the sale; the MOT carries it out at the land office.
It is also the document that attracts the main stamp duty on a purchase. As at October 2026:
| Buyer | Rate on the MOT |
|---|---|
| Malaysian citizen or permanent resident | 1% on the first RM 100,000, 2% on the next RM 400,000, 3% on the next RM 500,000, 4% above RM 1,000,000 |
| Not a citizen and not a permanent resident, or a foreign company, buying residential property | Flat 8%, for transfers from 1 January 2026 |
| The same, buying other property such as a shop or office | Flat 4% |
Duty is worked out on the price or the market value, whichever is higher. On a RM 500,000 home, a citizen or permanent resident pays RM 9,000 on the MOT. The loan agreement is a separate document: its duty is 0.5% of your loan. The stamp duty guide has the full breakdown, and the loan calculator shows the loan side.
What the MOT is, in plain words
In Malaysia, the land office keeps the register of who owns each piece of land and each strata unit. You are the legal owner only when your name is registered on the title.
The SPA is a promise between buyer and seller. The MOT is the formal instrument of transfer under the National Land Code. For land and strata units in Peninsular Malaysia, the transfer form is commonly called Form 14A. The seller signs it to transfer, you sign it to accept, it is stamped, and then it is presented at the land office for registration.
Three steps, in order:
- Signing. Seller and buyer sign the MOT, usually at their lawyers' offices.
- Stamping. The MOT is assessed and stamped with LHDN, and the duty is paid.
- Registration. The stamped MOT is presented at the land office, and your name is registered on the title.
Subsale vs new home: when the MOT happens
| Point | Subsale (from an owner) | New home (from a developer) |
|---|---|---|
| Title exists? | Usually yes, already issued | Often not yet; strata title may be issued around VP or later |
| When the MOT is signed | Usually around the time the SPA is signed | After the strata title for the unit is issued |
| Bank security | A charge over the title, registered with the MOT | Arranged through the loan documents until the title is ready |
| Who prepares it | The lawyers for buyer and seller | The developer delivers a valid transfer, under the standard Schedule H agreement |
For a new strata unit, the Schedule H agreement says that once the separate strata title is issued, the developer shall deliver a valid and registrable instrument of transfer, with the title, at no additional cost to you. After registration, the developer must hand over the original title in your name within 30 days, or pay damages at the same rate as for late vacant possession.
Worked example: a RM 500,000 home
Same assumptions as the DSR guide: a RM 500,000 home, a 90% loan of RM 450,000, 30 years, an assumed 4.2% a year. The rate is for illustration only.
Duty on the MOT for a citizen or permanent resident
| Slice of the price | Rate | Duty |
|---|---|---|
| First RM 100,000 | 1% | RM 1,000 |
| Next RM 400,000 (RM 100,001 to RM 500,000) | 2% | RM 8,000 |
| Total on RM 500,000 | RM 9,000 |
Duty on the loan agreement: 0.5% of your loan, so RM 2,250 on RM 450,000.
Together: RM 11,250, before legal fees and disbursements.
First-home exemption. A Malaysian citizen buying a first home at RM 500,000 or less pays no stamp duty on either document, for SPAs signed from 1 January 2021 to 31 December 2027, if the conditions are met. On this example, that turns RM 11,250 into RM 0. The stamp duty guide sets out the conditions.
Other price points (citizen or permanent resident, MOT only)
| Price | Duty on the MOT |
|---|---|
| RM 400,000 | RM 7,000 |
| RM 700,000 | RM 15,000 |
| RM 1,000,000 | RM 24,000 |
Foreign buyer (example). A foreign buyer of a RM 1,000,000 residential unit pays a flat 8%, so RM 80,000 on the MOT, plus 0.5% of any loan. In Kuala Lumpur a foreign buyer also needs consent from the land authority before the transfer can be registered, and the price must meet the minimum for foreigners. See minimum price for foreigners by state.
Price or market value: why it matters
Duty is charged on the price or the market value, whichever is higher. In a subsale between family members, or a sale well below market, LHDN may assess duty on a higher market value than the price you agreed.
Example only: if a home is sold for RM 450,000 but valued at RM 500,000, the duty for a citizen would be worked out on RM 500,000, so RM 9,000, not RM 8,000.
Your lawyer usually prepares the stamping submission. Ask whether a valuation report is needed.
Timing and penalties
Under the Stamp Act 1949, an instrument signed in Malaysia should be stamped within 30 days of signing. After that, late stamping penalties apply on top of the duty. Your lawyer normally handles the timing, but delays in getting your share of the money can push you past it.
Registration at the land office comes after stamping, so a late stamp also delays the day your name goes on the title.
What to check
- The right buyer category. Citizen, permanent resident or foreign: the rate differs a lot.
- The first-home exemption, if you are a Malaysian citizen buying your first home at RM 500,000 or less. Ask your lawyer to claim it.
- The value used. Price or market value, whichever is higher.
- Names and shares. For joint buyers, the MOT should show each name and the share each holds, as agreed in the SPA.
- Consent. Some land, such as leasehold land with a restriction in interest, needs state consent before transfer. A foreign buyer in Kuala Lumpur needs consent from the land authority.
- Timing. Make sure funds for the duty are ready so stamping is not late.
- For new homes: ask when the strata title is expected, and keep track of the 30-day handover of the original title after registration.
Mistakes buyers make
- Mixing up the SPA and the MOT, and thinking ownership passes when the SPA is signed.
- Budgeting only for the loan agreement duty and forgetting the MOT duty, or the other way round.
- Assuming a foreign buyer pays the same 1% to 4% tiers.
- Assuming a family sale at a low price means low duty.
- Not following up for the title in your name after registration.
Related terms
- Stamp duty
- SPA (sale and purchase agreement)
- VP (vacant possession)
- Margin of finance and loan-to-value
Check before you sign
This page explains how the MOT and its stamp duty generally work in Peninsular Malaysia as at October 2026. It is not legal or tax advice, and rates and exemptions can change with each Budget. Ask your lawyer to confirm the duty before you sign. For help with a specific property, WhatsApp Shyan Yee (REN 46305, IQI Realty) at +60 17-279 8932.
Frequently Asked Questions
What is an MOT in Malaysia?
MOT stands for memorandum of transfer. It is the instrument that transfers the registered ownership of land or a strata unit from the seller to the buyer. Once it is stamped and registered at the land office, your name goes on the title.
How much is the stamp duty on the MOT?
For a Malaysian citizen or permanent resident, 1% on the first RM 100,000, 2% on RM 100,001 to RM 500,000, 3% on RM 500,001 to RM 1,000,000 and 4% above RM 1,000,000, worked out on the price or market value, whichever is higher. On RM 500,000 it is RM 9,000.
What do foreign buyers pay on the MOT?
A buyer who is not a Malaysian citizen and not a permanent resident, and a foreign company, pays a flat 8% on the transfer of a residential property, for transfers from 1 January 2026. For other property, such as a shop or office, the flat rate is 4%.
Is the MOT the same as the SPA?
No. The SPA is the contract to buy and sell. The MOT is the document that carries out the transfer of the title. You sign the SPA first; the MOT is signed when the title can be transferred.
When is the MOT signed for a new condominium?
Only when the strata title for the unit has been issued. Under the standard Schedule H agreement, the developer must then deliver a valid transfer at no extra cost to you. Before that, your bank's security is usually arranged in another way, through the loan documents.
Who pays the MOT stamp duty?
The buyer, as a rule. In the standard Schedule H agreement, the buyer bears the stamp duty and registration fee for the agreement and the later transfer. In a subsale it is normally the buyer too, as set out in the SPA.
Written by
REN 46305 · IQI Realty Sdn Bhd · Kuala Lumpur
Licensed real estate negotiator focused on new launches in Kuala Lumpur, Selangor and Johor Bahru. Articles draw on developer material and site visits; prices and rules change, so confirm the latest before you buy.
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