When it comes to buying or selling a property, there are a lot of things to consider. One of these things is the stamping fee for the sales and purchase agreement (S&P agreement).
Stamping fee for S&P agreement is a legal requirement in many countries, including Malaysia. It is a form of tax that is paid to the government to legalize the property transaction. The amount of the stamping fee varies depending on the property price and the state in which the transaction is taking place.
In Malaysia, the stamping fee for the S&P agreement is calculated based on the property price as follows:
– RM1 for the first RM100,000
– RM2 for the next RM400,000
– RM3 for the next RM500,000
– RM4 for the next RM1,000,000
– RM5 for the next RM2,000,000
– RM10 for any amount exceeding RM3,000,000
For example, if the property price is RM500,000, the stamping fee for the S&P agreement would be RM2,300. This is calculated as follows:
– RM100 (for the first RM100,000)
– RM800 (for the next RM400,000)
– RM1,400 (for the remaining RM500,000)
It is important to note that the stamping fee for the S&P agreement must be paid within 30 days from the date of signing the agreement. Failure to do so may result in penalties and legal complications.
In addition to the stamping fee, there are other costs associated with buying or selling a property, such as legal fees, valuation fees, and real estate agent fees. It is important to budget for these costs and factor them into the overall cost of the property transaction.
In conclusion, the stamping fee for the S&P agreement is an important and necessary cost when buying or selling a property. It is a legal requirement in many countries, including Malaysia, and failure to pay it within the specified timeframe can result in penalties and legal complications. As a property buyer or seller, it is important to understand and budget for all the costs associated with the transaction to avoid any surprises down the road.