Thinking of buying a home or property in Johor? Good move!

With its strategic location and growing development potential, Johor continues to be a strong choice for property investment.

However, starting 1 September 2025, the Johor Land Office will implement new changes to the Memorandum of Transfer (MOT) process and Levy Rates, affecting both local and foreign buyers.

This move is part of the state’s efforts to streamline property registration, increase revenue, and ensure better compliance. Here’s what you need to know:

What is Memorandum of Transfer?

The Memorandum of Transfer also known as MOT is a legal document that officially transfers ownership of a property from a seller (or developer) to a buyer.

It’s one of the final, and most important, steps in the property purchase process.

Once the MOT is stamped and registered at the land office, you legally become the owner of the property.

New Fixed MOT Fees in Johor 2025

Previously, MOT registration fees were calculated based on a percentage of the property value.

Under the new Johor ruling, a new MOT fee structure will be implemented.

Here’s how it will look:

This means that buyers now have greater cost clarity upfront especially for those purchasing homes near the RM1 million mark.

Please take note as for industrial land transferred under love and affection, a levy of 2% based on the JPPH valuation, or a minimum of RM20,000 applies, whichever is higher.

Levy Rates for Foreign Buyers in Johor 2025

Foreigners looking to own property in Johor will face higher costs under the new ruling.

The new Levy Rates registration fees for non-Malaysians are set to increase significantly across all categories:

Are There Any Exemptions?

Yes. These include:

• Spouse-to-spouse: 100% stamp duty exemption
• Parent-child / Grandparent-grandchild: First RM1 million exempt, 50% off the rest
• Siblings or distant relatives: No exemption
• Inheritance or will-based transfer: Exempted from MOT fees

Just keep in mind: MOT documents still need to be stamped, even if stamp duty is waived.

**Important Note: With the new deadline in place, buyers should work closely with their lawyers and agents to submit all documents by 29 August 2025 to avoid new charges.

Will These Changes Affect Johor Market?

With the introduction of the new MOT fee structure and updated levy rates for foreign buyers in Johor in 2025, the market is likely to experience a subtle shift.

While we don’t anticipate significant changes, the increased costs may slightly dampen foreign investment. However, Johor’s strategic location and ongoing development projects are expected to keep overall demand steady.

In short, growth among overseas buyers may slow, but the domestic market is likely to remain robust.

Final Advice

Whether you’re a first-time buyer or a seasoned investor, it’s best to speak with your lawyer and banker now to understand how these new charges could affect your budget or timeline.

If you’re purchasing before September, it may be worth speeding up the MOT registration to avoid the new fees.

Interested in Johor’s property market? We’d love to guide you! Come chat with our friendly team today.

Continue Reading:

1. Everything You Need To Know About The Memorandum Of Transfer (MOT) (2025)
2. Johor Real Estate Boom: Revolution, Growth & Hottest Career Ever
3. Johor ART: The Future of Public Transportation with 32 Planned Stations

The post Johor’s NEW Property Fees 2025: What Every Buyers Should Know appeared first on IQI Blog.

Purchasing a property, especially for first-time homebuyers, can be overwhelming with all the paperwork involved.

Out of the many documents that enable the sale of a property, one of the most important is the Memorandum of Transfer (MOT).

However, starting 1 July 2025, major changes to MOT fees and foreign buyer rates in Johor could cost you thousands more if you’re not prepared.

In this post, we’ll outline everything you need to know about the MOT (Form 14A) and the upcoming updates so you can plan wisely.

1. What is a Memorandum of Transfer?

A Memorandum of Transfer (MOT) is a document that stipulates the transfer of ownership from the developer or seller to the buyer.

The MOT consists of the details of the buyer, seller, and land title details for the state authorities’ reference. 

In short, this is the document that represents a significant step on your journey to becoming the legal owner of this property.

Once this is duly registered with the relevant state authority, the property is officially yours! 

i. [Updated]: New MOT Registration Fees (Effective 1 July 2025)

*Applies to properties valued above RM500,000

ii. [Updated]: Foreign Buyer Rates Also Increased

Foreign buyers purchasing property in Johor will face higher MOT charges, especially for residential and serviced apartments.

Note:

• Love & Affection Transfers: Remain at 2% (min RM20,000).

• Inheritance / Beneficiary Transfers: Still exempt.

iii. [Updated]: Expanded Sales and Service Tax (SST) Coverage

Starting 2025, the SST scope has expanded to include more service sectors. Providers must register if their taxable services exceed RM500,000 per year.

Note:

*Exemptions apply to Malaysians, OKU (Persons with Disabilities), selected B2B services, and other relief services.

2. What are the Stages Involved Before the Registration of MOT?

Before registering for the MOT, there are a few stages that a buyer needs to go through. 

i. Finding a suitable home loan and lawyer

As a buyer, it’s important that you find the best mortgage loan (in the event you need to finance your purchase of property) for you, and a lawyer is required to assist you in the whole transaction, including:

• Drafting the Sales and Purchase Agreement (SPA)
• Loan documents
• Stamping of the relevant documents
• Filing to LHDN
• Application for state authority’s consent approval (if any)
• Registration of your new ownership with the relevant state authority

The appointment of a representing lawyer is required by the banks and you don’t have to go through all the hassle and headache of documentation, especially if you’re in the dark about it. 

ii. Letter of Offer (LO)/Booking Form/Letter of Confirmation for Sale

This document is the first step in your property purchasing journey.

This is the document that indicates the buyer’s desire to purchase and the seller’s willingness to sell.

This letter accounts for the relevant furnishings that come with the property, the agreed selling price, the agreed earnest deposit, the timeframe on when the SPA should be signed and any other pre-agreed conditions between the buyer and the seller. 

iii. Sales and Purchase Agreement (SPA)

The SPA is an important document that lists down the terms and conditions of the sale and purchase transaction such as the timeframe of transfer, condition of the property’s title, ownership of the property, guarantees and warranties by the parties, as well as other terms relevant to the sale of the property. 

iv. Facility Agreement

The Facility Agreement is the main loan agreement that you sign with your bank to confirm your mortgage loan.

This would be separate from the SPA and may require the involvement of a different lawyer.

We recommend checking with your designated bank for their panel lawyer list before making an appointment.

v. Memorandum of Transfer

Finally, you get to sign the Memorandum of Transfer (MOT), also known as Form 14A! The MOT is the official instrument for transferring ownership of the property on the title deed to your name.

Upon successful registration of the MOT with the relevant state authority, a new title deed reflecting your ownership will be issued.

This process legally confirms your ownership of the property. 

3. What if the Individual or Strata Titles are Not Ready Yet at the Time of Purchase?

In case the Master title has not been divided into individual title or strata title at the time of purchase, a Deed of Assignment (DOA) will be signed by the seller and buyer as a transfer of beneficial ownership.

Kindly keep all the principal agreements that you have signed prior to the issuance of individual title or strata title as they served as the supporting proof of the transfer of beneficial ownership.

Failure to keep the chain of beneficial ownership complete may result in failure of registration with the relevant state authority when the individual title or the strata title has been issued.

Upon issuance of the individual title or strata title, both the seller and buyer would need to sign the MOT prepared by the lawyer.

The MOT will then be registered with the relevant state authority.

4. What are the Fees Associated with the MOT?

As with everything, the MOT comes with a cost. Being one of the most important documents in the property purchase process, the MOT comes with an ad valorem stamp duty charge.

The stamp duty is payable upon stamping of the MOT, which will happens before transfer of the title deeds to your name. 

Here’s a breakdown of the stamp duty fees due upon stamping of the MOT:

To paint a clearer picture of the calculation, let’s say a property was purchased at RM800,000. What will be the stamp duty fee imposed on the buyer? 

For the first RM100,000 = RM100,000 x 1% = RM1,000

For the next RM400,000 = RM400,000 x 2% = RM8,000 

For the remaining amount = RM300,000 x 3% = RM9,000 

Total stamp duty imposed: RM1,000 + RM8,000 + RM9,000 = RM18,000 

In this case, the buyer has to pay RM18,000 for the stamp duty. 

As evident, the stamp duty fee can be quite a hefty sum.

Luckily, the government currently provides stamp duty exemption, which is also given for the transfer of property by way of love and affection, which will be briefly mentioned below.

5. When Do I Pay The Stamp Duty Fee For The Memorandum of Transfer?

In most cases, the MOT is prepared alongside the Sales and Purchase Agreement (SPA) and relevant loan documents when a bank loan is taken out to purchase a property.  

However, it is important to note that if you are purchasing from a developer and the property is still under construction, the developer may not issue this MOT at the time of purchase until the land titles have been issued.

The buyer is responsible for the stamp duty fee, and not the seller.

If the stamp duty is not paid, the transfer of ownership cannot be executed. 

i. Property Transfer Between Family Members

Although it sounds romantic, the transfer of ownership of property between family members is legally recognized in Malaysia under the consideration of ‘love and affection’.

In this case, stamp duty fees can either be partially or fully waived!

Property transfers between spouses get to benefit from a 100% stamp duty exemption.

Transfers between (i) parents and child, and (ii) grandparents and grandchild, are subject to a different exemption.

The first RM1,000,000 of the property value is exempt from stamp duty, the remaining balance receives a 50% exemption.

Unfortunately, there is no stamp duty exemption for transfers between siblings and/or relatives. 

The MOT is still required to be stamped and adjudicated in these cases, just as it would in a property purchase.  

Learning about the Memorandum of Transfer can be a lot to take in, but once you’ve gone through the process, you’ll find that it’s simpler than you think.

If you’re interested to become a successful real estate negotiator, don’t hesitate to be a part of our amazing team!

Continue reading:

1. 10 Simple Steps to Buy a New House in Malaysia – Your Ultimate Guide
2. Tenancy Agreement in Malaysia: Fees, Stamp Duty and More!
3. How To Do a REN Check Before Appointing them to Sell or Rent your Property

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