How much is the ancillary cost of buying a property (subsale)?
We have paid for the house say RM500k. What are the other costs that you need to pay? Buying a house includes the below costs:
Stamp duty on purchase of property – MOT* (paid by purchaser)
Stamp duty on SPA Document (shared by purchaser and vendor – not much)
Legal fee on SPA (shared by purchaser and vendor – or negotiated)
Legal fee on Loan agreement (paid by purchaser)
Stamp duty on Loan agreement (paid by purchaser)
MRTA or other insurance charges (paid by purchaser)
Valuation fee (if required for loan paid by purchaser)
Estate agency fee (if engaging an estate agent to look for house)
* MOT = Memorandum of Transfer
Stamp duty on MOT is calculated based on 1% for first 100k, 2% for next 400k. (Some exemption for 1st time housebuyer)
Legal fee is by advocates remuneration charges, usually can be negotiated to a discount if you know the lawyer well. Around 0.5% of the entire selling price.
Legal fee on Loan agreement is usually 0.5% of the entire loan.
Stamp duty on loan also around 0.5% of the entire loan.
MRTA depends on the type of coverage and length of loan tenure. You may take shorter than who loan tenure.
Valuation fee usually RM900 for property around RM500K. Refer table linked below.
Estate agency fee maximum 3% of transacted price (usually seller pay, not buyer pay, however in certain states like Penang and Melaka, 50%-50%)
Stamping fee for legal documents of SPA & Loan Agreement is around a few hundred RM.