What Is MOT and Why Does It Matter?
When you buy property in Malaysia, ownership is officially transferred through the Memorandum of Transfer (MOT), also called Form 14A. To register this transfer, you must pay a stamp duty fee — commonly known as the MOT fee.
The MOT fee is one of the largest upfront costs in property transactions, alongside legal fees and loan-related charges.
MOT Fee Rates in Malaysia (Nationwide Standard)
The MOT fee is calculated on a tiered basis according to the property’s value:
| Property Value Range (RM) | MOT Fee Rate |
|---|---|
| First RM100,000 | 1% |
| RM100,001 – RM500,000 | 2% |
| RM500,001 – RM1,000,000 | 3% |
| Above RM1,000,000 | 4% |
Worked Examples of MOT Fee Calculation
Example 1: RM300,000 Property
- First RM100,000 × 1% = RM1,000
- Next RM200,000 × 2% = RM4,000
Total = RM5,000
Example 2: RM600,000 Property
- First RM100,000 × 1% = RM1,000
- Next RM400,000 × 2% = RM8,000
- Remaining RM100,000 × 3% = RM3,000
Total = RM12,000
Example 3: RM1,200,000 Property
- First RM100,000 × 1% = RM1,000
- Next RM400,000 × 2% = RM8,000
- Next RM500,000 × 3% = RM15,000
- Remaining RM200,000 × 4% = RM8,000
Total = RM32,000
Johor’s New MOT Fee Structure (Effective July 2025)
Johor introduced a fixed-tier registration fee to replace the ad valorem percentage for certain property brackets.
| Property Value (RM) | Fixed MOT Fee (RM) |
|---|---|
| RM500,001 – RM600,000 | 2,500 |
| RM600,001 – RM700,000 | 3,000 |
| RM700,001 – RM800,000 | 3,500 |
| RM800,001 – RM900,000 | 4,000 |
| RM900,001 – RM1,000,000 | 4,500 |
| Above RM1,000,000 | 4,500 + RM250 per additional RM50,000 |
Example: A property worth RM1.1 million in Johor = RM4,500 + RM500 = RM5,000 MOT fee.
Exemptions and Special Cases
Not all buyers pay the full MOT fee. Common exemptions include:
- Transfers between parents and children (full exemption).
- Transfers between husband and wife (full exemption).
- First-time home buyer incentives (government programs may provide partial exemptions).
Always confirm eligibility with your lawyer or check the LHDN (Inland Revenue Board) portal.
How and When to Pay the MOT Fee
- Your lawyer prepares the MOT (Form 14A).
- The form is submitted to LHDN for stamping.
- Payment can be made via:
- Online e-Stamping portal.
- Licensed banks.
- Through your solicitor’s firm.
- Once stamped, the MOT is lodged at the Land Office for registration.
See More: Malaysia Property Affordability Calculator
FAQs About MOT Fees in Malaysia
1. What is the MOT fee in Malaysia?
It is the stamp duty charged when property ownership is transferred via the Memorandum of Transfer.
2. How much is the MOT fee for a RM500,000 property?
About RM9,000, based on tiered calculation.
3. Is MOT fee the same as stamp duty?
Yes, the MOT fee refers to the stamp duty payable on the transfer document.
4. Who pays the MOT fee?
The buyer is responsible for paying MOT fees, unless exempted.
5. Are there MOT fee exemptions?
Yes, for family transfers and under certain government housing schemes.
6. Is Johor’s MOT fee different from other states?
Yes, Johor now uses a fixed-tier fee structure effective July 2025.
7. Can I pay the MOT fee in instalments?
No, the fee must be paid in full upon stamping.
8. When must the MOT fee be paid?
It must be paid during the stamping process, before registration at the Land Office.
👉 To understand other ownership costs, see this guide to property tax in Malaysia.
Fredrick is the creator behind houseloancalculatormalaysia.online, dedicated to helping Malaysians easily understand and calculate their home loan payments. With a focus on accuracy and simplicity, Fredrick develops reliable tools and clear guides to empower users to make informed financial decisions. His goal is to provide trustworthy, user-friendly resources that save time and reduce confusion in the complex world of home loans.