Transfer of Property Between Family Members in Malaysia – Love and Affection Property Transfer 2023

Recently, we received lots of queries about the transfer of property between family members.

So today we’re going to share some insight on this topic and hopefully will give you clarity and answer your questions.

We are going to touch specifically the transfer of property between parent and children, and husband and wife.

So, we have come across many scenarios from our clients, and we’re going to share some of the scenarios here.

Property owned by Father. Father is getting older. And son wants to take over the property.
Property owned by the father (50% share) and mother (50% shares). Father will transfer his 50% shares to son. The mother remains the 50% ownership.
Property owned by Husband. Husband wants to transfer his property to wife.
Property owned by Husband (50% shares) and Wife (50% shares). Husband wants to transfer his 50% shares to wife. Wife will own 100% shares after the transfer.
Sister wants to transfer property to her brother.

All above are a few quite common scenarios that we got asked a lot.

First, we must understand this.

Parents to children and spouses can transfer property without money consideration by way of love and affection.

The consideration stated in the Memorandum of Transfer (MOT) or Deed of Assignment will be ‘love and affection’.

Other family members can transfer property to another family member without money consideration by using a normal memorandum of transfer.

This consideration of love and affection applies only when the transfer is from parent to children and not from sibling to sibling or between any other family members. The Memorandum of Transfer (MOT) or Deed of Assignment still must be adjudicated and stamped.

The law does provide for a stamp duty exemption for a transfer of property by way of love and affection.

In contrast, pursuant to the Stamp Duty (Exemption) (No. 10) Order 2007, the law provides for stamp duty exemption for a transfer of property between family members by way of love and affection as follows:

Transferor Transferee Exemption Rate

Husband Wife 100%

Wife Husband 100%

Mother and/or father Child 50%

Child Mother and/or father 50%

In another way, it’s mean that if you are going to transfer the current property from your parents’ name to your own name, the stamp duty will be given 50% rebate. Between spouses will be given 100% rebate, which is so great because stamp duty fees can be painful.

Note that ‘Child’ means a legitimate child, a stepchild or child adopted in accordance with any law. Also, stamp duty is typically paid by the transferee, unless agreed otherwise by parties.

Let’s have some example.

Property owned by Father. Father is getting older. And son wants to take over the property.

Property market value is RM400,000.

The actual stamp duty is RM7000.

If by way of love and affection, the stamp duty is RM3500 (50% x RM7000)

Property owned by the father (50% share) and mother (50% shares). Father will transfer his 50% shares to son. The mother remains the 50% ownership.

Property market value is RM400,000.

The property transfers on 50% shares. So, RM400,000/2 = RM200,000

The actual stamp duty for RM200,000 property is RM3000.

If by way of love and affection, the stamp duty is RM1500 (50% x RM3000)

Property owned by Husband. Husband wants to transfer his ownership to wife.

Property market value is RM400,000.

The actual stamp duty is RM7000.

If by way of love and affection, the stamp duty is RM0.00 (100% waived)

Property owned by Husband (50% shares) and Wife (50% shares). Husband wants to transfer his 50% shares to wife. Wife will own 100% shares after the transfer.

Property market value is RM400,000.

The property transfers on 50% shares. So, RM400,000/2 = RM200,000

The actual stamp duty for RM200,000 property is RM3000.

If by way of love and affection, the stamp duty is RM0.00 (100% waived)

Sister wants to transfer property to her brother.

According to the law, from sibling to sibling or between any other family members there is no stamp duty exemption. Therefore, the stamp duty will be charged in full amount.

Property market value is RM400,000.

The actual stamp duty is RM7000, and this is the amount to pay.

So, that was my insight of memorandum of the transfer by way of love and affection, and I hope it helps.

As always if you need to know more about the topic I wrote or any question about the home loan, you can WhatsApp or call us at 012-6946746.

See you in my next article!

P.S. We have a new article that you might interested to read:

Transfer Property To Family Member

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For more Home Loan information and enquiry, please call/ Whatsapp us at +6012-6946746 or visit our website www.malaysiahousingloan.net or www.malaysiahousingloan.com

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Transfer of Property Between Family Members in Malaysia – Love and Affection Property Transfer 2023