Question

Mr. Abash has agreed to sell a two-storey intermediate terrace house in pontian, Johor to Ms. amelia. A sale and purchase agreement was signed between the two parties on 3 January 2021 and the transfer instrument 14A was signed on 4 March 2021 with a consideration price of RM650,000.00 After analysed the market value from comparable properties in the sourrounding area, the opinion by the valuer that the fair and reasonable market value is RM800,000.00.

i) Identify the date of valuation in valuing that subject property. 

ii) Identify the responsible person to paying that stamp duty and explain your answer. 

iii) Determine the rate of stamp duty to be paid by the buyer 

Answer 1

The detailed answer for the above question is provided below:

i) Date of Valuation in valuing the subject property must be between 3 January 2021 and 4 March 2021 as Valuation have to be done before the transfer of property for consideration price.

ii) Buyer of Property, Ms. Amelia is responsible to pay the stamp duty on transfer of the property. Usually, buyer's legal authorized signatory will pay it on the behalf of buyer as part of the purchase process. Buyer usually bear all the burden of transfer of property.

Stamp duty has to be paid on Consideration amount of property. Stamp duty rate vary from place to place and country to country. Like in India, the rate vary from 3% to 8%-9%.

In Malaysia, the stamp duty rates are as follows:

Upto RM 100,000- 1%

RM 100,001- RM 500,000- 2%

RM 500,000- RM 1,000,000- 3%

Above RM 1,000,000- 4%

Calculation:

Consideration Price= RM 650,000*3% = RM 19,500

RM 19,500