MOT, stamp duty & legal fees 2026 — what you'll actually pay in Malaysia

The stamp duty bill is the single biggest “surprise” cost for first-time buyers in Malaysia. The headline price of the property is what you remember; the additional 4–8% in entry costs is what you forgot to budget for. This file lays out the real numbers for 2026, with worked examples across the four price bands that matter most.

What you’ll actually pay — the four buckets

Every Malaysian property purchase generates four cost lines, no matter buyer status:

1. Stamp duty on the SPA (Memorandum of Transfer / MOT instrument)
2. Stamp duty on the loan instrument (Deed of Assignment / charge)
3. Legal fees for both — usually one law firm handles both for new launches
4. Disbursements — registration, search, courier, PI, and the long tail

Let’s break each one down.

1. Stamp duty on SPA / MOT — the main bill

This is the largest of the four. Computed on a tiered scale based on purchase price or market value, whichever is higher (your developer’s discounted price doesn’t help if JPPH valuation comes in higher).

The 2026 base rates (subject to the latest Budget revision):

Worked example — RM 600,000 unit:

• First RM 100k × 1% = RM 1,000
• Next RM 400k × 2% = RM 8,000
• Next RM 100k × 3% = RM 3,000
• Total stamp duty: RM 12,000

For a first-time buyer with full exemption up to RM 500k, the same calculation looks like:

• First RM 500k = exempt
• Next RM 100k × 3% = RM 3,000
• Total stamp duty: RM 3,000 (saving of RM 9,000)

2. Stamp duty on loan instrument

Computed at 0.5% of the loan amount — flat, no tiers.

Worked example — RM 500,000 loan:

• 0.5% × RM 500,000 = RM 2,500

For first-time buyers on properties up to RM 500k purchase price, this is also exempt. Above that, full rate applies.

3. Legal fees — the SRO scale

Legal fees in Malaysia are set by the Solicitors Remuneration Order (SRO) on a scale. You can negotiate down (most firms accept 25–50% discount on second-hand deals or for repeat clients) but not up. For a new launch, expect close to scale rates.

The 2026 SRO scale, abbreviated:

Same scale applies to the loan agreement — meaning two sets of fees. Some firms quote a small discount when handling both for the same client.

Worked example — RM 600,000 unit, RM 500,000 loan, both with the same firm:

• SPA legal fee: 1.25% × 500k + 1% × 100k = RM 6,250 + RM 1,000 = RM 7,250
• Loan legal fee: 1.25% × 500k = RM 6,250
• Combined legal: RM 13,500 (often discounted to RM 11,500–12,000 for the package)

4. Disbursements — the quiet additions

The line items most buyers don’t see until invoice day:

Total disbursements: RM 800 – RM 1,500 depending on transaction complexity.

Putting it all together — three sample buyers

Buyer A: RM 400,000 condo, first-time buyer, RM 360,000 loan

• Stamp duty SPA: RM 0 (exempt under HOC extension)
• Stamp duty loan: RM 0 (exempt)
• Legal fees SPA: 1.25% × 400k = RM 5,000
• Legal fees loan: 1.25% × 360k = RM 4,500
• Disbursements: ~RM 1,200
• Total entry costs: ~RM 10,700
• % of purchase price: 2.7%

Buyer B: RM 750,000 terrace, first-time buyer, RM 675,000 loan

• Stamp duty SPA: First 500k exempt; next 250k × 3% = RM 7,500
• Stamp duty loan: First 500k of loan exempt; next 175k × 0.5% = RM 875
• Legal fees SPA: 1.25% × 500k + 1% × 250k = RM 8,750
• Legal fees loan: 1.25% × 500k + 1% × 175k = RM 7,750
• Disbursements: ~RM 1,500
• Total entry costs: ~RM 26,375
• % of purchase price: 3.5%

Buyer C: RM 1,200,000 sub-sale semi-D, second purchase, RM 1,000,000 loan

• Stamp duty SPA: 1% × 100k + 2% × 400k + 3% × 500k + 4% × 200k = RM 1k + 8k + 15k + 8k = RM 32,000 (no exemption)
• Stamp duty loan: 0.5% × 1,000k = RM 5,000
• Legal fees SPA (sub-sale, full scale): 1.25% × 500k + 1% × 500k + 0.7% × 200k = RM 12,650
• Legal fees loan: 1.25% × 500k + 1% × 500k = RM 11,250
• Disbursements: ~RM 2,000 (more searches needed for sub-sale)
• Total entry costs: ~RM 62,900
• % of purchase price: 5.2%

Where the costs sneak up

Two areas to budget extra:

Sub-sale transactions require additional searches (consent of state authority for leasehold, encumbrance check, second valuation if loan is involved) — usually adds RM 500–RM 1,500. Also, the seller’s stamp duty exemption (if any) doesn’t transfer to you.

Bumi-allocated units in Selangor / Negeri Sembilan / WP require state consent for transfer to non-bumi buyer, which carries a separate state-imposed stamp duty (the “release fee”) — varies wildly by state, but budget RM 5,000–RM 30,000 for borderline cases. Talk to your conveyancer at LO stage, not at SPA stage.

What to ask your conveyancer in the first call

Three questions that get you actionable answers:

1. “Based on my purchase price, can you give me a written estimate of total entry costs — split into stamp duty, legal fees, and disbursements?”
2. “Am I eligible for any first-time buyer or HOC exemption, and what documents do I need to claim it?”
3. “Will the same firm handle both the SPA and the loan, and if so what’s the package discount?”

Any conveyancer who can’t answer these in the first 30-minute consultation is a bad fit.

What this dossier doesn’t cover

This file is about the entry costs at purchase. Once you take possession, separate cost categories kick in: assessment (cukai pintu), quit rent (cukai tanah), management fees and sinking fund (strata), insurance — all tracked in a separate file in this section.

Always verify the latest exemption regime with your conveyancer. Budget night announcements can change exemption thresholds with effect from the next quarter, and the headline news rarely captures the fine print.