1. What is Strata title?
Strata title refers to title that is issued to individual parcel in a multi-storeyed building.

2. What do I need to do when the Strata titles are issued by the Land Office?
You as the owner of the parcel must instruct a solicitor (lawyer) to prepare the Memorandum of Transfer (MOT) for execution by the Developer and yourself (Form 14A).

The MOT is an instrument of transfer. It is a form prescribed by the National Land Code (NLC) to effect the registration of transfer of ownership.

3. What is the benefit of having the strata title registered under my name?
Currently the Strata Title is still under the Proprietor’s name. This means that the Proprietor is the registered owner of the parcel (property that you bought from the Developer i.e Faber Union Sdn Bhd with the consent of the Proprietor, Fleet Group Sdn Bhd).

When the ownership of the parcel is transferred to you (strata title registered under your name), only then you will be recognized as the proprietor of the parcel. The Sale and Purchase Agreement entered by you and the Developer/Proprietor will not automatically make you the owner of the parcel. Legally you are just the beneficial owner of the parcel until you get the Strata Title registered under your name.

After the Strata Title is registered under your name, you can sell the parcel without the consent of the Developer. You can also charge the parcel to the bank for a loan.

4. What documents do the solicitor need to prepare the MOT?
If you are the first purchaser, you need to provide the solicitor the following documents:

(i) A photocopy of the Strata Title (can be obtained from the Developer)
(ii) A letter issued by the Land Office for consent to transfer
(iii) A photocopy of the Sale and Purchase Agreement (SPA) between the Developer and you
(iv) A copy of your NRIC
(v) A copy of the Deed of Receipt and Assignment (if you have taken a loan from bank but fully repaid)
(vi) A copy of the Deed of Assignment between you and the bank (if you have taken a loan but have not fully repaid the loan)

If you are the sub-purchaser, you need to provide the following documents:
(i) The Deed of Assignment between you and the first purchaser
(i) A photocopy of the Strata Title (can be obtained from the Developer)
(ii) A letter issued by the Land Office for consent to transfer
(iii) A photocopy of the Sale and Purchase Agreement (SPA) between the first purchaser and you
(iv) A copy of your NRIC
(v) A copy of the Deed of Receipt and Assignment (if you have taken a loan from bank but fully repaid)
(vi) A copy of the Deed of Assignment between you and the bank (if you have taken a loan but have not fully repaid the loan)

5. What happen next after the MOT is executed by the Developer and the owner?
After the MOT is executed, your solicitor will send the MOT to the Stamp Office for adjudication. Adjudication is done by the government’s own valuers to assess the market value of the property for the purpose of imposing the correct amount of stamp duty that is payable. It takes about 3 weeks to 2 months from the date the MOT is sent for adjudication for the Stamp Office to issue a notice of assessment to inform the solicitor of the stamp duty payable.

6. How is the stamp duty calculated?
Stamp duty is levied on the document of transfer (i.e. the memorandum of transfer if the title has been issued, or the deed of assignment if the title has not been issued) based on the purchase price as follows:-

a. 1% on the first RM100,000.00
b. 2% on the next RM400,000.00
c. 3% on the nest RM1,500,000.00 and
d. 4% on the remainder

For example if your property is valued at RM175,000.00, then the stamp duty payable is RM 2,500.00 (RM100,000 x 1% + RM75,000.00 x 2%).

7. What if I am a second purchaser or subsequent purchaser, do I need to pay the stamp duty on the MOT also?
You need to pay only a nominal stamp duty of RM10.00 for the MOT as you would have already paid the ad valorem stamp duty for the Deed of Assignement when you purchased the parcel from the first purchaser.

8. What happen next after I paid the stamp duty?
Your solicitor will present the MOT which is endorsed by the Collector of Stamp Duties that the full stamp duty ad valorem has been paid at the Land Office.

The Land Office may take up to 6 months or more to return the Strata Title to you where your name will then appear on the Strata Title as the registered proprietor.

9. How much is the legal fees for preparing the MOT?
The Solicitors’ Remuneration Order 2006 provides the following with regards to the fees for preparing the MOT:

In a case where a solicitor has had the conduct of a transaction and no individual document of title or strata title had been issued when the transaction was first completed—
(a) a fair and reasonable remuneration for the solicitor drawing up and completing the subsequent instrument of transfer or charge shall be a fee not exceeding 25% of the applicable scale fee specified in the First Schedule or the Third Schedule, as the case may be, subject to a minimum fee of RM200; and
In a case where a solicitor has conduct of a transaction after the issuance of the individual document of title or strata title, but he did not have conduct of the transaction when it was completed before the issuance of the individual document of title or strata title—
(a) a fair and reasonable remuneration for the solicitor drawing up and completing the subsequent instrument of transfer or charge shall be a fee not exceeding 50% of the applicable scale fee specified in the First Schedule or the Third Schedule, as the case may be, subject to a minimum fee of RM200; and
FIRST SCHEDULE of the Solicitor Remuneration Order 2006 Sale & Transfer
Consideration or Ajudicated Value Scale of Fees
For the first RM150,000 1.0% (subject to a minimum fee of RM300)
For the next RM850,000 0.7%
For the next RM2,000,000 0.6%
For the next RM2,000,000 0.5%
For the next RM2,500,000 0.4%
Where the consideration or adjudicated value is in excess (but shall not exceed of RM7,500,000 Negotiable on the excess (but shall not exceed 0.4% of such excess)

10. Besides stamp duty and legal fees, do I need to pay anything else to the solicitor?
Beside stamp duty and legal fees, the following disbursements are to be paid to the solicitor:

1. Registration fee on Transfer in Wilayah Persekutuan Land Office is fixed at RM100.00 which is valid for presentation for three (3) months from the date of the Transfer, after which, a penalty of RM100.00 will be imposed every three (3) months.

2. Other incidental expenses:

Adjudication fees RM10.00
Travelling expenses RM130.00
Power of Attorney RM20.00
Registration fee on consent to transfer RM50.00
Search on Strata Title RM30.00
Search on Master Title RM30.00
Miscellaneous expenses RM50.00

* For any further enquiries or clarification, you can contact:
(i) Mr Chan Pooi Heng at 013-340 3898 or
(ii) Mr Calvin Low at 012-678 3361

Both of them are the EXCO members of Danau Permai Owners’ Association and they also provide legal advice to the Association.