Buy House Procedure Malaysia: The Complete Checklist (2026)

A printable checklist that covers every document, cost, and deadline in a Malaysian property purchase. Bookmark this. Most buyers miss at least one item on this list — and missing the wrong one means forfeited deposits, delayed loan approvals, or unexpected five-figure bills at the lawyer's office.

The reason property purchases feel overwhelming is not complexity. It is the sheer number of discrete tasks spread across multiple parties — you, your agent, your lawyer, the bank's lawyer, LHDN, the land office. Nobody gives you a single document that tracks all of it. Until now.

This checklist is organized chronologically. Each section maps to a phase of the transaction. Tick them off in order. If you want the full narrative walkthrough of each step, read our step-by-step house buying guide.

Phase 1: Pre-Purchase Checklist

Before you view a single property or speak to an agent, complete every item in this section. This is the phase most buyers skip. It is also the phase that prevents the most expensive mistakes.

• [ ] Calculate your DSR (Debt Service Ratio)

  • Formula: (Total Monthly Debts / Net Monthly Income) x 100%
  • Target: below 65% including proposed new mortgage
  • Include: car loan, personal loan, credit cards (5% of limit), PTPTN, existing mortgages, ASBF
  • See our DSR guide for full calculation method

• [ ] Confirm downpayment funds

  • 1st and 2nd property: minimum 10% of property price (90% loan margin per BNM LTV guidelines)
  • 3rd property onward: minimum 30% (70% loan margin per BNM macroprudential rules)
  • Funds must be in accessible accounts — not locked in FD with penalty, not in unit trusts that take 7 days to redeem
  • EPF Account 2 withdrawal is available for property purchases — but processing takes 2-4 weeks

• [ ] Get bank pre-approval letter

  • Apply to 2-3 banks simultaneously
  • Documents needed: IC, 3-6 months payslips, 3-6 months bank statements, EA form, EPF statement
  • Self-employed: 2 years tax returns (Form B/BE), business registration, audited accounts
  • Timeline: 3-7 working days for pre-approval

• [ ] Budget for stamp duty + legal fees

  • Rule of thumb: add 4-6% of property price on top of downpayment
  • For a RM 500K property, budget approximately RM 22,000-28,000 in transaction costs
  • This is separate from downpayment — many first-time buyers forget this
  • Use our stamp duty calculator for exact figures

• [ ] Check CCRIS and CTOS reports

  • CCRIS: free from Bank Negara via eCCRIS
  • CTOS: one free report per year at MyCTOS
  • Clear any outstanding defaults or disputes before applying
  • Even a RM 50 telco default can complicate your loan application

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Phase 2: Offer and SPA Checklist

You have found your property. You have pre-approval. Now the legal process begins. Deadlines in this phase are strict. Missing them has financial consequences.

• [ ] Sign Letter of Offer / Booking Form

  • Subsale: Offer to Purchase (OTP) through agent or direct
  • New launch: Booking form at developer sales gallery
  • Read every clause — especially cancellation and refund terms

• [ ] Pay earnest deposit

  • Typically 2-3% of purchase price
  • Subsale: paid to seller's agent or lawyer (held as stakeholder)
  • New launch: RM 1,000-10,000 booking fee to developer
  • Get an official receipt. Always.

• [ ] Appoint your lawyer

  • Can use bank's panel lawyer (saves cost — one lawyer handles both SPA and loan agreement)
  • Or appoint your own + bank's panel lawyer separately (higher cost, more independence)
  • Lawyer should be experienced in property conveyancing, not a generalist
  • Confirm fees upfront in writing

• [ ] Sign SPA within 14 days of booking

  • This is a hard deadline for most transactions
  • Your lawyer must have the SPA ready for review before this deadline
  • Read the SPA. Every clause. Especially: purchase price, payment schedule, VP date, LAD penalty, defect liability period, loan rejection clause
  • For SPA details, see our SPA agreement guide

• [ ] Pay balance downpayment

  • Due within 14-21 days per SPA terms (varies by agreement)
  • For 90% loan with 3% earnest deposit already paid: balance is 7% of purchase price
  • Pay to seller's lawyer (subsale) or developer (new launch)
  • Bank transfer preferred — get proof of transfer

• [ ] Stamp SPA at LHDN within 30 days

  • Your lawyer handles this
  • Late stamping: penalty of RM 25 or 5% of stamp duty (whichever is greater) if stamped within 3 months late, increasing to 10% and 20% for longer delays
  • MOT stamp duty rates under the Stamp Act 1949: 1% (first RM 100K), 2% (RM 100K-500K), 3% (RM 500K-1M), 4% (above RM 1M)

Phase 3: Loan Checklist

Your loan application is the most time-sensitive part of the process. A rejected loan after SPA signing creates complications — you may lose your deposit if there is no loan rejection clause in the SPA.

• [ ] Submit loan application within 14 days of SPA

  • If you had pre-approval, this is a formality — but still submit promptly
  • Apply to your pre-approved bank plus one backup bank

• [ ] Provide all required documents

• [ ] Bank valuation arranged

  • Bank appoints their panel valuer
  • Valuation fee: RM 200-500 (paid by buyer, usually deducted from loan)
  • If valuation comes in below SPA price, you have a shortfall — see our valuation guide
  • Consider getting an independent valuation before signing SPA to avoid surprises

• [ ] Letter of Offer from bank received and accepted

  • Review: interest/profit rate, tenure, lock-in period, penalty for early settlement, MRTA requirement
  • Compare offers if you applied to multiple banks
  • Accept within the stated validity period (usually 14 days)

• [ ] Sign loan agreement

  • Executed at the bank's panel lawyer's office
  • Both borrowers must sign (if joint application)
  • Your IC and the bank's letter of offer are required

• [ ] Stamp loan agreement at LHDN

  • Stamp duty: 0.5% of loan amount
  • For RM 450,000 loan: RM 2,250
  • First-time buyers: may qualify for 100% exemption on loans up to RM 500,000
  • Your lawyer handles this

• [ ] MRTA / MRTT policy (if required by bank)

  • MRTA: Mortgage Reducing Term Assurance (conventional)
  • MRTT: Mortgage Reducing Term Takaful (Islamic)
  • Some banks require this. Some make it optional. Negotiate.
  • Cost: RM 5,000-20,000+ depending on loan amount, age, and tenure
  • Can be financed into the loan (increases loan amount) or paid upfront

Phase 4: Post-Loan Checklist

The money is moving. Now it is about completing the legal transfer and getting your keys.

• [ ] Loan disbursement to seller/developer

  • Subsale: bank disburses to seller's lawyer (stakeholder)
  • New launch: progressive disbursement based on construction stages
  • Timeline: 2-4 weeks after loan agreement signing

• [ ] MOT (Memorandum of Transfer) stamping

  • This is the official transfer of ownership document
  • Stamp duty already paid in Phase 2
  • Your lawyer files this at the land office

• [ ] Title registration at land office

  • Your lawyer registers the transfer
  • Timeline: 1-6 months depending on land office backlog
  • For strata without individual title: Deed of Assignment is used instead
  • Bank's charge is also registered (your property is collateral for the loan)

• [ ] Collect keys (VP — Vacant Possession)

  • Subsale: per SPA timeline (typically 3-4 months from SPA)
  • New launch: 24 months (landed, Schedule G) or 36 months (strata, Schedule H) from SPA date per the Housing Development Act 1966
  • Inspect the property thoroughly at handover
  • Document everything with photos and video

• [ ] Defect inspection within 24 months (new property)

  • Defect liability period: 24 months from VP date per the Housing Development Act 1966
  • Report all defects to developer in writing — email with photos
  • Common defects: cracked tiles, water seepage, uneven walls, faulty electrical points, poor drainage
  • Developer must repair at their cost
  • If developer fails to repair: lodge complaint with KPKT or file a claim at the Tribunal for Homebuyer Claims (filing fee RM 10, max claim RM 50,000)

• [ ] Set up utility accounts

  • TNB (electricity): apply at nearest TNB office with SPA copy and IC
  • Water (state water authority): varies by state — Syarikat Air (SAJ, SPAN, etc.)
  • Indah Water: sewerage services, usually auto-registered
  • Internet: apply with preferred provider

• [ ] Pay assessment rate and quit rent

  • Assessment rate (cukai pintu): paid to local council, twice per year
  • Quit rent (cukai tanah): paid to state land office, annually
  • For strata: maintenance fees and sinking fund to management corporation (JMB/MC) per the Strata Management Act 2013
  • Set up auto-debit or calendar reminders — late payment incurs penalties

Complete Cost Breakdown: RM 500,000 Property

Here is every ringgit you will spend on a RM 500,000 subsale property with a 90% loan (RM 450,000).

As a percentage of property price: ~16.2%

Key takeaway: The 10% downpayment is only 62% of your total cash outlay. The other 38% goes to legal fees, stamp duty, insurance, and registration. For a RM 500K property, that is approximately RM 31,000 in "hidden" costs on top of the RM 50,000 downpayment.

For first-time buyers purchasing properties under RM 500,000, stamp duty exemptions can reduce total costs by RM 9,000-11,250. See our stamp duty guide for eligibility details.

Legal Fees Breakdown

Legal fees in Malaysia are regulated under the Solicitors' Remuneration Order 2023 (which replaced the SRO 2005, effective 15 July 2023). They are calculated on a sliding scale based on the property price.

For a RM 500,000 property: legal fee = RM 5,000 + 6% SST = RM 5,300 (approximate — disbursements like search fees, registration fees, and photocopying add another RM 500-1,500).

You pay legal fees twice — once for the SPA/conveyancing and once for the loan agreement. Using the same lawyer for both (if they are on the bank's panel) can reduce total costs. For complete details, see our legal fees guide.

Document Checklist Summary

Keep these documents organized in a folder. You will need them repeatedly throughout the process.

Print this checklist. Tape it to your wall. Check off each item as you complete it. The difference between a smooth property purchase and a stressful one is not luck — it is preparation.

Use our stamp duty calculator to get exact figures for your specific property price before committing to any purchase.

Sources

• Housing Development (Control and Licensing) Act 1966 — KPKT
• Strata Management Act 2013 (Act 757) — KPKT
• Bank Negara Malaysia — LTV Ratio Guidelines
• Solicitors' Remuneration Order 2023 — Malaysian Bar
• Stamp Act 1949 — MOT Stamp Duty — LHDN
• EPF Housing Withdrawal — KWSP
• eCCRIS — Bank Negara Credit Report
• Tribunal for Homebuyer Claims — KPKT