Transfer of Property Ownership After Death in Malaysia, 7 Key Processes

Kali terakhir diperbaharui November 17, 2023 oleh Shafiq Wahab
Transfer of Property Ownership After Death in Malaysia, 7 Key Processes

Lack of understanding of how to execute the transfer of property or transferring the name of the homeowner’s home is one of the contributors to the increasing case of unintended properties in Malaysia. Hence, it is important for you to know the processes involved for transfer of property ownership after death in Malaysia. What happens to a house when the owner dies?

How to Change House Owner Name? Here’s What You Need to Know About the Transfer of Property

There is no agreement and conflict between the beneficiaries to change the name of the owner’s home or feel that the process of claiming the estate is too complicated to be managed is one of the reasons why the estate is not claimed.

The problem of inheritance is not managed in Malaysia. According to Utusan Malaysia’s report, it is estimated at almost RM90 billion in total and unintended property. In fact, almost 90 percent of the total unemaculated property belongs to the Malays. How can the process of changing the homeowner died?

When the property owner dies without leaving any will, the beneficiaries are advised to discuss their best to get a verdict. Appoint a representative of the deceased’s heirs as property administrators. The appointment of the property administrator is intended to manage the distribution of the deceased to the heirs in accordance with the mutual agreement.

In the event that the consent to the distribution of the property left unsuccessful between the deceased’s heirs, the property administrator must file an application in the Syariah Court to obtain a faraid order. However, if all the beneficiaries agree with the distribution of the property, then the property administrator will need to file an application at the Small Inheritance Office (for a total property value of less than RM2 million). Or, you can also file an application for the Heirloom and Property Administrator in the High Court if the total value of the property exceeds RM2 million.

1. Property Value of Less Than RM2 Million

For categories of immovable property (such as homes or lands) less or less than RM2 million, all related matters to obtain the right to administer property can be done at the Land Office (Sub-Land Division) in their respective districts or at any land office nearby or according to the location of the property.

The approved administrator or approved representative must file an application at the Sub -Office of the Inheritance Office to obtain the inheritance order and the Property Administrator Order. This is to enable the abandoned properties to be divided into the heirs as agreed or in accordance with their respective parts.

2. Property Value Exceeds RM2 Million

However, if the total value of the property is worth more than RM2 million, any administration or sale of the property must be made in the High Court. Appointed representatives must file an application for an inheritance order and property administrator in the High Court.

After the inheritance order and the property administrator are received, the appointed property administrator must submit a transfer application under Section 346 (1) of the National Land Code at the relevant Land Office. During this submission process, you will need to include a copy of the original or a valid certified copy of the inheritance order and the property administrator.

The purpose of this transfer application is to enable the property left in the name of the deceased (the registered owner) to be transferred to the property administrator as the administrator or trustee of the property. It allows the property to be transferred from the name of the property administrator to the names of the deserves as stated in the inheritance order.

Therefore, you need to appoint a trustworthy, honest and responsible representative to avoid any difficulties during the process of changing the homeowner’s name.

transfer of property ownership after death in malaysia

7 Steps How to Change House Name

Once the property owner dies, the Land Office will usually freeze or block any transactions or decrease the name after receiving the information. This means that after the death of the original owner, the heirs need to make a name change by dealing with the land office according to certain procedures.

In short, how to change the name of the deceased owner is as follows:

  1. Appoint property administrators among the heirs of the deceased;
  2. File an inheritance claim at the Land Office (Small Inheritance Division) or Civil Court (if the value of the property exceeds RM2 million) to dilute the property;
  3. After the transfer is filed, the Land Office or the High Court (any relevant) will issue an inheritance order by setting the section of each heirs entitled to the abandoned property and entering the name of the property administrator in the property ownership letter (land grant);
  4. Once the name of the property administrator is included in the land grant, the property can now be transferred to the beneficiaries who are eligible for their respective sections and are subject to the inheritance order;
  5. Bring the inheritance order to the Land Office for the downturn;
  6. The names of the beneficiaries will be printed on the grant;
  7. Done.

If the distribution of the property involves faraid, the Land Office will usually continue to enter the name of the property administrator and the heirs as the new registered owner on the land grant according to their respective sections. After all the names of the beneficiaries are recorded in the grant, a new land grant will be released by the Land Office.

If the owner is registered in the grant more than one person, the Land Administrator will usually be held responsible for holding the original grant of the land. For more detailed procedures or any questions regarding this process, you are advised to refer to the Small Landing Office for more info.

What Else Do You Need to Do?

Home ownership or change the name of the deceased owner should be done immediately as soon as the property owner dies. It is best to have this process after reaching a mutual agreement. Discuss with other beneficiaries to reach an agreement to avoid misunderstandings or disputes.

Basically, consent can be reached with the following three methods including faraid, unique or tolerant methods (give to the heirs or siblings in need). However, upon completion of the process of changing the home of the owner or the sale of the property, the heir must resolve all the expenses related to the deceased with the proceeds of the sale before distributing to the beneficiary including:

  • Dead’s burial expenses;
  • Paying all the debts of the deceased;
  • Payment to the agent, lawyer or any other delayed payment related to the deceased.

Hope the owner of the homeowner’s home name has helped you. Also, if you are planning to get home insurance coverage, visit the Qoala website for more info. Qoala is the best insurance comparison platform in Malaysia with cheap and affordable insurance prices.

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