Budget 2023 – Transfer of Properties between family members and siblings

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

Transfer of Property Between Family Members in Malaysia – Love and Affection Property Transfer 2023 fixed at RM10/-

 

At the budget 2023, it stated that the government will set a nominal rate of just RM10 for transfer of properties “based on love”. This includes transfers between spouses, parent and children, as well as grandparents and grandchildren.

We are going to list down some scenarios of some of  the transfer of property between parent and children, sibling and husband and wife.

  1. Property is owned by Father/Grandfather and want to transfer to son/grandson the property (RM10).

  2. Property owned by the father and mother (50% shares each). Father will transfer his 50% shares to son. The mother remains the 50% ownership (RM10).

  3. Property owned by Husband and wants to transfer to his wife.(RM10/-)

  4. Property owned by Husband and Wife (50% shares each). Either party wants to transfer his/her 50% shares to wife/husband. Wife/husband will own 100% shares after the transfer (RM10/-).

  5. Sister wants to transfer property to her brother (sibling) (Standard rate).

Parents to children (scenario 1 & 2) and spouses (3 & 4) 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’.

However, other family members (scenario 5) can transfer property to another family member without money consideration by using a normal memorandum of transfer. The Memorandum of Transfer (MOT) or Deed of Assignment still must be adjudicated and stamped.

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.

Note that ‘Child’ means a legitimate child, a stepchild or child adopted in accordance with any law.

Also, the stamp duty is typically paid by the transferee, unless agreed otherwise by parties.

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