Step 2: Engage a Real Estate Agent or Developer

• Choose a reputable real estate agent or developer.
• They help you find properties within your budget and provide legal guidance.
• If buying from a developer, check if the project is government-approved.

Step 3: Select the Property

• Decide on the location, type, and price of the property.
• Check the Title Type:
  
  • Freehold: Permanent ownership.
  • Leasehold: Limited ownership (typically 99 years).
  • Strata Title: Shared ownership in high-rise buildings.
• Visit the property and confirm its condition before proceeding.

Step 4: Make an Offer & Sign the Letter of Offer

• Once you select a property, make an offer.
• If accepted, sign a Letter of Offer and pay a 2-3% earnest deposit (part of the total 10% down payment).
• The seller takes the property off the market.

Step 5: Hire a Lawyer for Legal Due Diligence

• Appoint a lawyer to:
  
  • Conduct a title search (verify ownership and encumbrances).
  • Draft and review the Sale and Purchase Agreement (SPA).

Step 6: Sign the Sale & Purchase Agreement (SPA)

• The SPA is a legal document outlining:
  
  • Property details and selling price.
  • Payment schedule and responsibilities of both parties.
  • Legal conditions for the transaction.
• Upon signing, pay the remaining 7-8% of the down payment (to complete 10%).
• The balance (90%) is usually paid through a housing loan or cash.

Step 7: Apply for State Government Consent (Foreign Buyers Only)

• Foreigners must obtain State Authority Consent to own property.
• The application is submitted by your lawyer and takes up to 6 months (varies by state).
• If rejected, the transaction is canceled, and your deposit is refunded.

Step 8: Secure Financing (If Needed)

• Foreigners can apply for a loan (up to 70%) from Malaysian banks.
• Banks will assess your:
  
  • Income and employment status.
  • Credit history and financial commitments.
• Loan approval can take 2-3 weeks.

Step 9: Pay Stamp Duty & Legal Fees

• The buyer must pay Stamp Duty for property transfer:
  
  • 1% on the first RM 100,000.
  • 2% on RM 100,001 - RM 500,000.
  • 3% on RM 500,001 - RM 1 million.
  • 4% on amounts exceeding RM 1 million.
• Legal Fees:
  
  • 1% for properties up to RM 500,000.
  • 0.8% for RM 500,001 - RM 1 million.

Step 10: Final Payment & Property Transfer

• Upon full payment, your lawyer submits documents for title transfer.
• The seller’s name is removed, and you receive a land title or strata title.
• If buying a new property from a developer, you may receive a Certificate of Completion and Compliance (CCC).

Step 11: Take Possession & Register Utilities

• Inspect the property before receiving the keys.
• Register utilities like electricity (TNB), water (Syabas/PBA/etc.), internet, and assessment tax.
• If buying a condominium, register with the Management Office for maintenance fees.