Property transfer by way of love and affection depends on who you are transferring the property to. Usually, it is the transfer of property between wife and husband (and vice versa) and a parent and their child (and vice versa). There may be stamp duty charged but at the end of the day it depends on who you are transferring to.
How do you transfer property by way of love and affection?
You will need to first establish who you will want to transfer the property to. You may want to transfer to your spouse. Or you may want to transfer to your child. Sometimes you may want to transfer to your parents. The reasons for transfer may vary but it all depends on what your motives are.
The reasons for such property transfer may differ. The parents may be getting older so they wish to transfer their properties to their children before the parents passed away. Or maybe the spouse will no longer be around any time soon, so they’d wish to transfer their properties to their spouse and children before their time ends.
Scenario may differ as well. If the property is owned by the dad and he wish to transfer it to his son, he may do so. If the dad is the 100% owner of the property, he may transfer 100% of his property to his child.
Alternatively, if the dad owns 50% of the property and the mom owns 50% of the property, the dad may transfer his 50% of the property to his child. That means the mom will still own 50% of the property whereas the child will own the other 50% of the property.
Similarly, if the husband holds 50% of the property and the wife owns 50% of the same property, the husband can transfer his 50% to his wife. In the end, the wife will have 100% ownership of the property.
Stamp duty rates
Just because you can transfer your property to a family member does not mean that it is entirely free of charge. There will be stamp duty that you will need to pay too. The stamp duty is not a fixed amount of money as it depends on the property’s price. It’s a charged a percentage. Note that there will be a difference in the stamp duty charged depending on who you are transferring to. The rates are as follows according to Stamp Duty (Exemption)(No 10) Order 2007:
Table via H S Lim
Note that when we say child, it does not just include biological children. It can also include children who are legally adopted with all the legal documents in place to proof. Before you jump on the boat and say adopted children couldn’t enjoy such rights, they actually do. Just remember that they have all the legal documents to show for.
Property transfer by live and affection is a pretty common occurrence within Malaysia. People have various reasons to transfer their properties to their spouse or children and are valid reasons.
If you need help and advice with property transfer by way of love and affection, feel free to reach out to us. We will be more than happy to assist.