If you're considering passing down your property to a family member, you might already know about the Memorandum of Transfer (MOT) fee. This fee can be really expensive, especially if you’re transferring valuable property. But don’t worry! There’s a way to avoid paying a high MOT fee. Here’s a clear guide on how you can transfer property in Malaysia, without breaking the bank on fees.

1. What is the Memorandum of Transfer (MOT) Fee?

The MOT fee is usually required when a property is transferred from one owner to another. In most cases, it's calculated based on the property's value and can end up being a significant expense. However, Malaysia allows exemptions for direct family transfers under certain conditions.

2. Who Qualifies for the MOT Fee Exemption?

The MOT fee exemption is available for close family members, specifically for transfers:

• From parent to child

• From child to parent

• Between husband and wife

Other family relationships, like between siblings or extended family members, typically don’t qualify for this exemption.

3. Steps to Transfer Property Without the MOT Fee

Here’s a step-by-step guide to transferring property between close family members in Malaysia without paying the MOT fee:

a. Prepare Your Documentation. Gather documents that prove the relationship between the current property owner and the family member receiving the property. For example, for a parent-child transfer, you may need birth certificates, identity cards, and proof of property ownership.

b. Visit a Lawyer. A legal professional can help ensure the documents are properly prepared. They’ll also draft the necessary forms and ensure all documents comply with local requirements. Make sure your lawyer knows you are applying for the MOT exemption!

c. Apply for the Exemption. Submit the necessary documents to the Land Office. The application process generally includes providing evidence of the family relationship and proving that the transfer qualifies for an exemption. This application lets the authorities know you’re eligible for the fee waiver.

d. Complete the Transfer Process. Once approved, the transfer can proceed without the MOT fee. There will still be some minor legal or administrative fees, but they’re far less than the typical MOT.

4. Additional Tips

• Make Sure Both Parties Are Aware of the Costs: Even though you’re avoiding the MOT, transferring property can still have minor fees for document processing.

• Check for Other Taxes: Though the MOT is waived, be mindful of any other taxes or fees that may apply depending on your situation.

5. Benefits of the MOT Exemption

This exemption can save you a lot of money, making property transfers between close family members more affordable and accessible. It’s also a great way to simplify the process for family members who want to pass down property as part of their inheritance planning.

With these steps, you’ll be able to transfer property to a family member without worrying about the MOT fee. Always consult a lawyer to make sure you’re meeting all legal requirements and saving as much as possible on transfer costs.