Perfection of Transfer and Charge
Perfecting the transfer and the charge once the individual or strata title issues, so the property is registered in your name at the land office.
If you bought from a developer, your name is not necessarily registered as owner even though you have lived in the property for years. When the individual or strata title finally issues, the transfer has to be perfected. Where the property is charged, the charge is perfected at the same time.
Many owners who bought from a developer do not realise that their name is not yet registered as owner at the land office, even after living in the property for years.
The reason is simple. At the time of purchase the property was still under the developer master title. There was no separate title capable of being transferred. You hold contractual rights under the sale and purchase agreement, but not registered ownership.
When it needs to be done
When the land office issues an individual title for a landed property, or a strata title for a condominium or apartment. Developers normally notify owners when this happens.
Some owners receive that notice and set it aside, assuming it is not urgent. It is not urgent until you want to sell, to refinance, or until there is a death in the family. At that point a matter that should have been simple becomes complicated.
Deferred stamp duty
For most developer purchases the transfer stamp duty is only paid at this perfection stage. That means you need funds available for stamp duty some years after the purchase.
The amount is calculated on the scale in the Stamp Act 1949 and is subject to valuation. This is something to plan for rather than be surprised by.
What your lawyer handles
- Checking the newly issued title and confirming the particulars match the original sale and purchase agreement
- Obtaining the relevant documents from the developer or the bank
- Preparing the transfer instrument and attending to stamping
- Calculating transfer stamp duty on the applicable valuation
- Presenting the transfer for registration at the land office
- Perfecting the charge at the same time where the property is still financed
- Delivering the title registered in your name, or to the bank where it is charged
Timeline
Documents you need to prepare
- Copy of the identity card of every purchaser
- The original sale and purchase agreement with the developer
- Receipts for any stamp duty already paid
- The notice or letter from the developer regarding issuance of title
- Current loan details if the property is still financed
Costs people often overlook
- Transfer stamp duty, which is usually not paid at the time of the original purchase from the developer
- Legal fees for the transfer and the charge, calculated separately
- Land office fees for registration of the transfer and the charge
- Service tax of 8% on legal fees
When to stop and get advice first
- The original sale and purchase agreement cannot be traced, making it difficult to evidence the original purchase price
- The original purchaser has died and the estate has not been administered
- The property has been sold on to a third party without the transfer being perfected first
- The name in the sale and purchase agreement differs from the name on the current identity card
Frequently asked questions
I have lived here for years, why is my name not on the title?
Because the property was sold before the individual title issued. You hold rights under the sale and purchase agreement, but registration of ownership can only happen once a separate title exists.
Do I have to pay stamp duty again?
For most developer purchases the transfer stamp duty is only paid at this stage. It is not a second payment, it is a deferred one.
What happens if I do not do it?
Your name will not be registered as owner. That makes a sale, a refinancing, and any later estate matter more difficult.
How long does it take?
Usually three to six months, depending on how quickly the developer releases documents and on the valuation timeline.
My property still has a loan, can this be done?
Yes, and it should be done at the same time. The transfer and the charge are perfected together.
Ready to start your property matter?
An initial consultation with no obligation. Tell us about your matter and we will explain what is involved and what it is likely to cost.
No. 4, Jalan Setia Impian U13/3D, Setia Impian 3, Seksyen U13, Setia Alam, 40170 Shah Alam, Selangor
014-9723468 · 014-4004293 · Monday to Friday, 9:00am to 6:00pm