Compiled by: Tharmini Kenas firstname.lastname@example.org
Ask Me Anything is a platform for all readers to ask about all things property. If you have any inquiries, key in your questions at http://bit.ly/AskMeAnythingProperty .
This week, Messrs Eunice Tan & Partners founder Eunice Tan answered the readers’ questions regarding auction property and stamp duty issues.
Q 1: I bought a house from a second auction at RM550K. However, During the first auction, the bank set the market price at RM650K. Now, should the stamp duty payment follow the bank’s market price of RM650K or the second auction price of RM550K? Is the auction price more accurate than market price?
A 1: The stamp duty of the transfer of the property either by way of Memorandum of Transfer or Deed of Assignment shall be sent to the Stamp Office for adjudication to determine whether the stamp duty is chargeable based on the contract price i.e the 2nd auction price (RM550,000) or the market value of the property, whichever is higher.
The fact that there is no one is willing to buy the property at that price does not mean that the auction price is more accurate than the market price. The Stamp Office will determine the market value of the property by taking into consideration the recent transacted price, launch prices of any new and upcoming surrounding projects and other factors.
Q 2: If I want to appeal against the stamp duty market price, do I need to pay extra lawyer fees? Can I do it on my own without involving my lawyers?
A 2: Yes, the purchaser may object to the assessment of the Collector of the Stamp Duties by giving written notice to the Collector of Stamp Duties within 30 days from the date of the assessment. The law clearly states that any person who is dissatisfied with an assessment of the Collector of the Stamp Duties may object to the assessment by written notice and furnish further particulars and information in relation to the grounds of the objection.
However, the purchaser, in the process of making the objection to the original assessment, is not relieved from paying the stamp duty based on the original assessment. The purchaser is advisable to pay the duty based on the original assessment within 30 days from the date of the original date of assessment while pursuing the objection at the same time. If the appeal is conducted by the solicitors, additional cost may be incurred.
To Read More: Hide and Seek of Property Auction
To Read More: Property Auction – The Good and The Bad
To Read More: 10 steps to buy an auction property
How long does it take for a sale and purchase agreement of a property to be completed? Read the full article.