About US
Introduction
Buying or selling property is one of the biggest financial decisions most people will make. In Malaysia — especially in areas like Penang and the Northern region, legal nuances in conveyancing can make a big difference to how smooth the process is and how well you’re protected. At CP Tang & Partners (Bukit Mertajam), we’ve helped clients for over 30 years with property transactions, so we’ve seen what works, and what traps to avoid. In this guide we’ll walk you through the key steps of the conveyancing process, highlight common pitfalls, and explain how engaging a specialist conveyancing lawyer can save you time, cost and stress.
What is Conveyancing?
Conveyancing refers to the legal and administrative steps needed to transfer property ownership from seller to buyer. In Malaysia it typically includes draft sale & purchase agreements (SPA), tenancy matters (for rentals or transfers), foreign buyer approval (where relevant), discharge and reassignment of charge, and perfection of transfer.
Because property law and land registration laws vary by state in Malaysia, and because of foreign ownership restrictions and financing situations, having an experienced lawyer can make a big difference.
Key Steps in The Conveyancing Process
- Negotiation of terms and preparation of SPA (Sale & Purchase Agreement) Payment of deposit and signing the SPA
- Application for state and foreign-buyer consent (if applicable)
- Legal due diligence (searches, title checks, encumbrances, mortgage/discharge)
- Financing / bank approval and charge/discharge matters
- Execution of transfer documents and registration at land office (Pejabat Tanah)
- Stamp duty, taxes, and final payment/tranfer of keys Each of these steps has potential timing, cost and legal pitfalls — for example delays in registration, hidden encumbrances, or failure to complete due diligence.
Common Pitfalls & How To Avoid Them
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Foreign buyer approvals: If you’re a foreigner buying property in Malaysia, you’ll often need state-level consent and must comply with minimum price thresholds and other rules. Failing to do so can invalidate your purchase or delay registration.
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Unclear title or encumbrances: A title that looks clean may still have undisclosed charges, caveats or restrictions. A lawyer can check searches and ensure you get a “clean” title.
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Unrealistic financing assumptions: Many buyers assume their bank financing will go through smoothly; delays or refusals can delay the transfer and cost money.
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Stamp duty and tax surprises: Stamp duty is often underestimated; also, for developer projects or subsales there may be other fees such as real property gains tax (for sellers) that affect the deal.
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Timing and registration delays: In busy land offices, delays can happen — which impact possession, rentals, project handovers etc. An experienced lawyer anticipates and manages those risks.
Common Pitfalls & How To Avoid Them