How to buy a subsale property in Malaysia
Facts checked 22 October 2026 · 12 sources
A subsale is a property bought from its current owner rather than from a developer. You see exactly what you are buying, you can usually move in within months, and you can negotiate the price.
Unlike a new launch, there is no standard government contract: the deposit, completion period and other terms are agreed between you and the seller in the sale and purchase agreement (SPA). The figures below are the usual market practice unless a law is cited.
- Earnest deposit (usual)
- 2–3% with the offer
- Total at SPA (usual)
- 10% of the price
- Completion (usual)
- 3 months + 1 month extension
- Stamp duty on transfer
- 1–4% by band
- First-home stamp duty
- Exempt up to RM500,000 (SPAs to 31 Dec 2027)
- Legal fees (scale)
- 1.25% of first RM500k, discount up to 25%
On this page
1.Work out your budget and get loan pre-approval
Banks lend on the lower of the price and their valuation. If the bank values the home below your price, you pay the gap in cash, so budget for it. If you already have two or more outstanding housing loans, Bank Negara caps a further housing loan at 70% of the value.
Budget for costs on top of the price: for a RM500,000 home with a 90% loan, stamp duty, legal fees and valuation come to about RM24,000 before any discount, or about 5% (much less if you qualify for the first-home stamp duty exemption). The cost table below has the breakdown.
2.Find the home and check the agent
Only registered real estate agents (REA) and negotiators (REN) working for a registered firm may act for a fee. Check the name and number against the Board of Valuers’ (LPPEH) public register, and pay deposits only into the agency firm’s client account or the seller’s lawyer, against an official receipt.
Agent commission is usually paid by the seller, not the buyer.
3.Make an offer and pay the earnest deposit
You sign a letter of offer and pay an earnest deposit, usually 2–3% of the price. No law fixes this amount; it is negotiable. Ask a lawyer to check the offer letter first, and make it subject to loan approval so you don’t lose the deposit if your loan is rejected.
4.Checks before you sign
Your lawyer does most of these, but it pays to know what to ask for:
- Land search: the registered owner, title type, charges and caveats, and whether the land is Malay Reserve or a Bumiputera lot (which limits who can buy).
- Leasehold: how many years remain. Banks are cautious about short remaining leases.
- Strata homes: whether the strata title has been issued, and a certificate of arrears from the management under s.73 of the Strata Management Act. Unpaid maintenance and sinking fund can be recovered from the new owner.
- Restrictions in interest: leasehold or restricted land needs state consent to transfer, which adds time.
- The property itself: renovation approvals, defects, and that the seller can give vacant possession.
5.Sign the SPA and pay the balance deposit
You sign the SPA and top the deposit up to 10% of the price, usually within a couple of weeks of the offer. The SPA sets the completion period and the late-payment interest, so read those terms carefully.
If the seller is subject to real property gains tax, the law requires the buyer to hold back part of the price (3% if the seller is a citizen or permanent resident, 7% otherwise) and pay it to LHDN within 60 days. Your lawyer normally handles this.
6.Loan, valuation and consents
The bank sends a valuer, issues the letter of offer and prepares the loan agreement. Meanwhile your lawyer applies for any consents: state consent for leasehold or restricted land, and the developer’s or management’s consent for strata units without individual titles.
State consent times vary by state. Penang, for example, aims for 14 working days for most residential transfers.
7.Completion and handover
The balance (usually 90%, mostly from your loan) is paid within the completion period, commonly 3 months with an automatic 1-month extension. Late payment usually carries interest of around 8% a year, calculated daily, under the SPA.
The memorandum of transfer (Form 14A) is stamped and registered at the land office, and you get the keys once the seller is paid in full.
8.After you move in
Tell the local council about the change of owner within 3 months, so assessment bills come to you, and transfer the utility accounts and quit rent into your name.
9.Costs on top of the price
Stamp duty is charged on the transfer and on the loan agreement, and the buyer pays it. Malaysian citizens buying their first home at RM500,000 or below pay none on either, for SPAs signed up to 31 December 2027. Budget 2027 proposes extending this to 2030 with a partial exemption up to RM750,000, once the Finance Bill passes.
Lawyers’ fees follow the Solicitors’ Remuneration Order 2023, for the SPA and again for the loan. For subsales the lawyer may discount the scale by up to 25%.
| Cost | Rate | Example: RM500,000 home, RM450,000 loan |
|---|---|---|
| Stamp duty on transfer | 1% of the first RM100k, 2% to RM500k, 3% to RM1m, 4% above | RM9,000 |
| Stamp duty on loan agreement | 0.5% of the loan | RM2,250 |
| Legal fees: SPA | 1.25% of the first RM500k, then 1% (up to 25% discount) | RM6,250 before discount |
| Legal fees: loan | Same scale on the loan amount | RM5,625 before discount |
| Valuation | Set by the Board of Valuers’ scale (often paid via the bank) | About RM1,000 (industry estimate) |
| Disbursements | Searches, registration, consents: no fixed scale | Ask your lawyer |
Questions people ask
How much deposit do I pay for a subsale property?
Usually 2–3% as an earnest deposit with the offer, topped up to 10% when you sign the SPA. No law fixes these amounts; they are agreed with the seller.
How long does a subsale take in Malaysia?
Usually 3 to 4 months from signing the SPA: a 3-month completion period plus a 1-month extension is common. Leasehold or restricted land can take longer while state consent is obtained.
Who pays the agent’s commission on a subsale?
Usually the seller. Make sure your agent is a registered REA or REN, and pay any deposit only to the agency firm’s client account or a lawyer, against an official receipt.
How much is stamp duty on a subsale property?
1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million and 4% above that, plus 0.5% of the loan. A RM500,000 home with a RM450,000 loan pays RM11,250, unless you qualify for the first-home exemption.
Do I have to pay the seller’s RPGT?
No, but you must hold back 3% of the price (7% if the seller isn’t a citizen or permanent resident) and pay it to LHDN within 60 days. Your lawyer normally does this.
Am I liable for the previous owner’s unpaid maintenance fees?
Possibly: strata management can recover arrears from the new owner. Ask for the management’s s.73 certificate of arrears before completion, and make sure the seller settles them.
Sources
- LHDN guideline on stamp duty under the First Schedule, Stamp Act 1949 (30 Jun 2026)
- LHDN: introduction to stamp duty (loan agreement example; self-assessment) (29 Dec 2025)
- Budget 2027 tax measures (Ministry of Finance), appendix 16: first-home exemption (tabled Oct 2026)
- Solicitors’ Remuneration Order 2023 (Bar Council circular 185/2023) (13 Jul 2023)
- LHDN: RPGT retention and remittance by the buyer (updated 25 May 2026)
- Bank Negara Malaysia: 70% LTV for third housing loan (3 Nov 2010)
- PTG Pulau Pinang: state consent guideline (undated)
- PTG Selangor: transfer (Form 14A) checklist (undated)
- MBSA: notifying the council of a change of owner (accessed Oct 2026)
- Section 73 certificate under the Strata Management Act (EdgeProp) (2 Oct 2020)
- Subsale cash flow and deposits (DNH, law firm) (undated)
- Valuation fee scale (EdgeProp, industry source) (accessed Oct 2026)
General information, not legal or financial advice. Rules and rates change; confirm with your lawyer, bank or the relevant authority before you commit.