Changing the name of a land title is a transaction of property ownership from one individual to another. If you want to change your name in a land grant to a family member such as a child or a wife, or you want to change the name of the grant because you sell a home or buy a new home, the process of changing the name of the land grant is a mandatory process to be done. Otherwise, the name of the new property owner cannot be registered in the land grant at the Land Office.
Land Title Malaysia: 6 Steps
There are some situations that require you to change the name of the land grant. Changing the name of a home grant usually occurs due to divorce, faraid distribution, sale of home assets and so on. Here is how to change the name of the land grant in Malaysia for your reference and guidance:
1. Go to the Land Office
You need to go to any land office near you. Make sure you bring the documents and the important things needed to facilitate the landowner’s name change process such as:
- Home grant or original land grant along with copies;
- The new buyer/owner must attend including all relevant (if the name is more than one);
- Identification cards of both old and new owners (and all related);
- Black Pen ink (Pen Ballpen is not allowed).
2. Fill in the Required Form
Fill in form 14a using a black ink pen. Form 14a is a land transfer form, division or inheritance that the home nominee, buyer and seller must fill out in front of a lawyer or administrator. Therefore, all relevant parties must be present when this form is filled. The completed form can be submitted to the Land Office Counter.
3. Land Administrator Verification
Then, you need to take a turn number to deal with the Land Administrator. If all the required information is complete, the Land Administrator will ask you to lower the old owner’s fingerprint and the new owner on Form 14A. The Land Administrator then signed Form 14A in any of the relevant parts.
4. Pay a Stamp Duty
Next, you are then required to go to a nearby IRB counter to make a stamp duty payment. You will need to fill out the PDS 15 form completely and submit the form with five copies of the following documents:
- Form 14A;
- Original land grant;
- Older Identity Card;
- New Owner Identity Card;
- Birth certificate/birth certificate.
The IRB will usually call you within 30 from the date of receipt of the form to inform you that everything has been completed.
5. Land Office Registration/Administration Division
After both processes related to the form are completed, you will need to sign up for a real estate grant. If you have not yet explained any tax arrears such as door taxes, land taxes and so on, it is advisable to pay for the current year’s tax arrears. You need to attend the Land Office and take it with the following documents:
- Form 14a original;
- Original land grant;
- Note of the original IRB assessment;
- Copy of Identity Card of all relevant parties;
- IRB stamp duty;
- Copy of land tax receipt and door tax.
Then, submit Form 14A with the necessary documents and wait for the letter to get your grant home.
6. The Transfer of Land Title Name completed
It will usually take some time for about one to two months before you receive your land title.
Land Title Malaysia: Transfer Cost (2022)
Basically, the process of changing the name of the land grant is subject to certain costs. If you intend to move the land ownership, here are some of the things you need to pay attention to:
1. Purchase Agreement Duty Duty (SPA)
Stamp duty is payable if you buy real estate in Malaysia. The percentage of stamp duty is based on current properties and is calculated based on the following table:
Price | Duti Setem (%) |
First RM100,000 | 1 |
Next RM400,000 (RM100,001 – RM500,000) | 2 |
The next amount of up RM1 million (RM500,001 – RM1 million) | 3 |
Next amount (RM1 million and above) | 4 |
For example, Ali would like to change the name of the land grant to the buyer with an estimated value of the property of RM400,000. The amount of stamp duty payable is as follows:
(RM100,000 first x 1%) + (RM300,000 next x 2%)
= (RM1,000) + (RM6,000)
= RM7,000.00
2. Housing Loan Stamp Duty
Basically, you will be subject to a stamp duty of 0.5 percent of the total housing loan. You can refer to how to calculate a housing loan stamp duty as follows:
(Percentage of Stamp Duty 0.5%) x Total Loan
= (0.5%) x RM400,000
= RM2,000
3. SPA Legal Fee/Housing Loan
In addition to stamp duty, you are also subject to legal fees if you buy real estate in Malaysia. The following are the rates of legal fees payable in the process of changing the name of the land grant according to the home price level:
Price | Legal Fee Rate (%) |
The first RM500,000 | 1 |
The next RM500,000 | 0.8 |
The next RM2,000,000 | 0.7 |
The next RM2,000,000 | 0.6 |
The next RM2,500,000 | 0.5 |
For example, Ali would like to change the name of the land grant with an estimated current property value of RM400,000. The amount of legal fees payable is as follows:
= (RM400,000 first x 1%)
= RM4,000
4. Land Search Cost
Land search costs are divided into two categories: private search and official search. As a home buyer, you have the right to make a land search before making a home. You can do a private search either through the Land Office or appoint a lawyer to assist you in this regard.
For official searches, the process is the same as private search, only the official search is included with the land registrar’s stamp and the signature of the relevant officer. In Malaysia, land search costs vary by state. Here is the cost of land search in several states in Malaysia:
State | Official Search Fee (RM) | Private Search Fee (RM) |
Johor | 150 | 60 |
Selangor/Kuala Lumpur | 50 | 30 |
Perak | 80 | 40 |
Negeri Sembilan | 40 | 20 |
Pahang | 100 | 50 |
Kedah | 73 | 30 |
Note: This search cost fee is as stated on the State Land Office website as far as the date of this article is released.
5. Other Costs
In addition to the costs mentioned above, you may be subject to other costs such as registration fees and so on. The following are some of the costs involved in the land grant name change procedure:
- Stamp Duty Payment (per document): RM10
- Affidavit: RM50
- Registration fee: RM100
Hopefully this guideline for changing the name of the land grant and the costs involved can help you plan your finances better to ensure that the land grant name process is smoother. Also, if you are considering the best and comprehensive home insurance for your new home, visit the Qoala website for more info. Qoala is an insurance platform in Malaysia with a guarantee of safe, affordable and easy insurance process.