What is Perfection of Transfer and Perfection of Charge
[Pizza illustration of Master Title / Big Title of a piece of property land condominium and Strata Title/Individual Title for a unit of a condominium]
After your condominium management inform you that Master Title is out and you’ll need to go and collect it, it’s time for you to contact your lawyer to transfer the strata title to your own name since you’re the new owner of this unit. Because without this strata title you can’t sell your house unit in the future.
[According to the Strata Titles Act 1985, the homeowner or purchaser is liable to a fine of RM1,000 – RM10,000 per property if they fail to complete the transfer within 12 months from the date of the Developer’s Notice.] source
These 2 payments namely: Perfection of Transfer and Perfection of Charge (or Preparation of Charge) you’ll need to pay to lawyer after your Housing Developer issued a letter to you informing you that the Strata title for the property has been issued.
Perfection of Transfer
After you get the letter from developer about strata title being issued. You’ll have to proceed with arrangement with your lawyer for the transfer of this title to your name – This document is called “Perfection of Transfer”.
Legal fees on Sale and Purchase Agreement: RM300
6% service tax: RM18
Nominal stamp duty on Memorandum of Transfer: RM10
Registration fees on Memorandum of Transfer: RM100
Misc, Printing & Postage: RM50
Perfection of Charge
And you’ll also need to proceed with your previous owner’s lawyer to do the “Perfection of Charge”. We need to bring latest quick rent assessment, signed the charge document and also bring cheque of course to pay for this charge document.
[For your information, i’m the 2nd house owner for this condominium unit, i have my own lawyer and the previous owner also has their own lawyer]
After payment for Perfection of Transfer and Perfection of Charge
After you make all the payments to both lawyers for these 2 documents. Follow up with both lawyers.
Developer will forward this strata title to lawyer (usually the housing loan bank lawyer) who is in charge of “Perfection of Charge” in my case it’s my previous owner’s lawyer whom i had contacted. The said lawyer will proceed with “Perfection of Charge” and after that forward the Original Strata title bearing my name to my housing loan bank, and forward a copy to me (the purchaser).
Completion of payment for your housing loan
After you have settle or make full payment for your housing loan. You’ll need to hire a lawyer to do a “Discharge of Charge” , it’s around rm100++ with your housing loan bank.