Step 1

Purchaser pays an earnest deposit of 2% of PURCHASE PRICE upon signing of the letter of offer or acceptance.

Step 2

The Sale and Purchase Agreement (SPA) to be drawn up by the solicitor and executed by both parties within 14 days from the date of the letter of offer. Upon signing of SPA, pays 8% Purchase Price being the balance of 10% of the sale price. (The purchaser then proceed to apply for the bank financing, if required).

Step 3

Pay 90% of the remaining PURCHASE PRICE within the next 3 months from the signing date of the SALE and PURCHASE agreement.  An extension of 30 days is allowed, subject to an interest of 5 % per annum on the balance sum.

(NOTE: For developer sale or property under construction, there is a progress payment schedule).
 

Step 4

Take possession of property upon full payment and handover of keys.

New ruling for foreigner purchaser:

1) From 1st January 2010 for foreigner purchaser ; the value purchased has to be RM500,000 or above. 

2) MM2H participants can buy up to 2 units below RM500,000 with good reason & letter of support from the Tourism Ministry.

3) The real property gains tax (RPGT) announced during the 2010 Budget will now only apply to property sold less than five years from its purchase. The 5% tax would now only be imposed on property sold within five years of the date of purchase.  If owner has owned property for 5 years or more, No tax.

Important points to note for foreigner before buying a property in Penang Malaysia

The following particulars are necessary for the preparation of legal documentations:

    1.    Copy of passport(s)  - owner and co-owner(s), if any
    2.    Correspondence address
    3.    Contact  -  house telephone no., mobile no., fax no., office no., e-mail address
 

Should the need arises, we can also assist to recommend you some of the bankers and solicitors that have been liaising with us on the sale & purchase matters. Once the agreements are ready for signing, the solicitors will either courier or e-mail to you for signing and at your convenience. If you have any questions on the sale and purchase transaction, or if you wish to take a loan to facilitate the purchase, or have any queries on any related topic, please do not hesitate to contact us and we will be very pleased to assist.

 

If you wish us to assist / arrange a banker or a lawyer to contact you drop us a note.

Got a question? Speak to our friendly, informative and efficient lawyer or banker.

Note: In Penang, all highrise apartment "condo rules" do not allow pets dog, cat, etc. If you really need to move in with your family pet, then you have to be aware of the management rules. If there are compliant, you will have to relocate your pet, so it is advisable to look consider a landed residential house.

View other related topics available

SALE & PURCHASE AGREEMENT (SPA) GUIDELINE

Frequently Asked Questions About Buying Property In Penang, Malaysia

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Disclaimer The information provided are for information only and does not constitute a basis for any offer or contract of sale. No part of this document may be construed as a statement or representation of fact based on which a contract is created. Interested parties are advised to carry out their own independent investigation.