How much do you know about stamping of documents? How much does a purchaser need to pay when buying a property? Here are some of the things that you should know:
1. It costs Rm10 for a Sale and Purchase Agreement (SPA) and Deed of Mutual Covenants to be stamped (DMC).
2. The stamp duty payable for the Memorandum of Transfer (MOT) varies. For every RM100 or fractional part of RM100 of the contract price or the market value of the property, whichever shall be greater:
(a) RM1 on the first RM100,000.00;
(b) RM2 on any amount in excess of the RM100,000.00 but not more than RM500,000.00; and
(c) RM3 on any amount in excess of RM500,000.00
3. Some purchasers take loan to finance the purchase of the property, so it is vital that the Loan or Facility Agreement is stamped. The principal instrument will be charged with ad valorem duty and the subsidiary instrument will be at RM10.
As for the principal instrument, the duty is calculated at RM5 for each RM1,000 or part thereof.
4. The abovementioned documents have to be stamped within 30 days of their execution. Otherwise, purchasers will have to pay for the penalty.
5. It is extremely important that documents are stamped, as they may be needed in Court as evidence.