Purchasing property in Malaysia as a foreigner involves several legal and procedural steps. Below is a step-by-step guide to help navigate the process smoothly.

1. Understanding Foreign Ownership Rules

• Foreigners are allowed to buy property in Malaysia but with certain restrictions.

• Minimum purchase price varies by state, typically ranging from RM600,000 to RM1,000,000.

• Some properties, such as Malay Reserve Land and low-cost housing, are restricted to locals.

• Approval from the state authority may be required.

2. Choosing the Right Property

• Decide on the type of property: landed house, condominium, serviced apartment, etc.

• Verify whether the property falls under foreign ownership restrictions.

• Engage a registered real estate agent for guidance.

3. Engaging a Lawyer

• Appoint a qualified property lawyer to handle legal matters.

• The lawyer will ensure compliance with Malaysian property laws and draft the Sale and Purchase Agreement (SPA).

4. Signing the Sale and Purchase Agreement (SPA)

• Pay a deposit (usually 10% of the purchase price).

• The lawyer will conduct due diligence, including checking land titles and encumbrances.

5. Obtaining State Authority Consent

• Foreigners need state authority approval, which may take 1-3 months.

• The lawyer will submit the application on behalf of the buyer.

6. Completing the Payment & Stamping the SPA

• Upon approval, the balance of the purchase price is paid within the agreed timeline.

• Stamp duty and legal fees must be paid.

7. Title Transfer & Ownership Registration

• Once payment is completed, the lawyer will facilitate the transfer of ownership.

• The new owner’s name is registered with the land office.

8. Finalizing the Transaction

• The buyer receives the original land title (if applicable).

• Additional costs such as maintenance fees and utility connections should be settled.

9. Financing Options (if needed)

• Foreigners can obtain financing from Malaysian banks, but loan-to-value ratios may be lower than those for locals.

• Typically, banks provide loans of up to 70% of the property value for foreigners.

By following these steps, foreigners can successfully purchase property in Malaysia. It is highly recommended to seek professional legal and real estate advice to ensure compliance with regulations and a smooth transaction.