What should a foreigner know when buying property in Malaysia

Foreigners looking to buy property in Malaysia should be aware of the following:

1. Currency Exchange Requirements and Fluctuations: Understand the impact of currency exchange rates on financial commitments.

2. Payment Stages and Amounts: Be informed about the typical payment stages, including deposit, down-payment, total payment, and progressive payments. Know the payment milestones, the party to which payment is made, the currency used, and whether payments are progressive or upon completion. Also, understand the payment schedule and refund policy.

3. Taxation: Be aware of the various taxes that may be imposed, such as stamp duty, capital gain tax, withholding tax, and estate duty.

4. Other Payments, Fees, and Costs: Consider additional costs like property management fees, security arrangements, and insurance.

5. Legal Advice: Seek legal advice before signing any agreement or document. Know whether the legal advice is arranged by the vendor or needs to be sourced independently. Ensure the lawyer represents your interests.

6. Representation: Clarify whether the estate agent and salesperson represent you or the vendor.

7. Building & Regulatory Approvals: Verify the building and other regulatory approvals obtained by the vendor.

8. Details of Foreign Property: Understand the property tenure, area, address, title deed, property features, amenities, transportation, building type, built-in area, and furnishing.

9. Rules and Restrictions on Foreign Ownership: Be aware of any restrictions on the purchase of properties by foreigners, such as property types, minimum property price, or location. Also, check for any restrictions on reselling in the secondary market.

10. Written Advisory Message: Acknowledge the risks involved in purchasing foreign properties and that the transaction is subject to foreign laws and policy changes.

11. Adverse/Potentially Adverse Findings: Be informed of any adverse or potentially adverse findings related to the vendor, the property, or claims made about the property.

12. Financing and Payments: Understand any restrictions on loans for purchasing the property and the applicable rules and restrictions, such as the Total Debt Servicing Ratio (TDSR) framework.