Legal & SPA

Lewis verdict

I always ask developers for the nett price in writing and confirm the bank is financing against that number, not the gross figure on the SPA cover page.

Lewis verdict

I've seen too many buyers look only at the gym and pool, ignoring the sinking fund. Under the Strata Management Act, this fund is mandatory. For subsale, I check the AGM minutes to see if owners are default-happy — a 30% default rate on maintenance fees means the building is slowly dying. For new launches, if the developer offers a suspiciously low RM0.25/sqft fee, expect a rude 40% jump within two years of JMB takeover.

Lewis verdict

Under SAS, speed increases but so does risk. Previously, LHDN gave you the final number. Now, you calculate, pay, and they can audit you later. First-time buyers under Budget 2026 get a full exemption up to RM500k until end of 2027. However, if you are buying with a hidden rebate side-letter that inflates the SPA, LHDN can audit that valuation. I advise all buyers to keep clean transaction records and avoid side agreements that can trigger a tax penalty 3 years down the line.

Lewis verdict

I often see foreigners get excited about properties under RM1 million in Kuala Lumpur or Selangor, only to realize the state threshold blocks them. Remember, MM2H does not exempt you from the flat 8% stamp duty or state consent rules. Also, don't expect a 90% loan margin; most banks will cap foreign financing at 70% to 80% LTV, requiring a much higher cash downpayment. Talk to me to check the specific state list before booking.

Lewis verdict

I often see buyers get confused when they bought a RM500,000 unit with a 10% rebate, thinking their LAD is calculated on the net RM450,000 price. As established in the landmark PJD Regency and Sri Damansara cases, the Federal Court held that the calculation must strictly follow the gross SPA price of RM500,000. Under HDA Schedule G (landed) or Schedule H (strata), you are entitled to the full 10% per annum on the gross price. Do not let developer representatives tell you otherwise when you file a claim at the Homebuyer Tribunal.

Lewis verdict

In my 10+ years as an agent, I've seen many buyers treat the DLP like a casual warranty, only to realize too late that the clock never pauses. Let's get one thing straight: the DLP is exactly 24 months from the day you get your keys (Vacant Possession) under HDA Schedule G or H. It doesn't reset or extend just because you submitted a report. If you report a leak in month 23, and the developer drags their feet until month 25, you are in a very difficult spot. I always advise my clients to hire a professional building inspector immediately upon VP — it costs around RM500 to RM1,200 but saves thousands in future repair bills. Remember, verbal complaints don't exist in the eyes of the law; everything must be in writing with photo evidence. Don't start any major renovation until the primary defect list is resolved, or the developer will blame your ID contractor for the damage and void your warranty.

Lewis verdict

I've handled many subsale transactions where the buyer didn't check the title status early, only to get stuck during the loan stage. Let me give you the hard truth: buying a property that has been completed for 10 years but is still under the master title is a massive hassle. Yes, banks will finance new launches under a master title — that is normal. But for subsale units older than 10 years, many banks will reject loan applications if the developer hasn't issued the strata title or if the developer has gone bankrupt, which is unfortunately common in older projects. Always check if the strata title has been issued and registered in the seller's name. If it's still under the master title, expect the transaction to take 6 to 9 months instead of the standard 3 months, because you'll need to obtain the developer's confirmation for every step.

Lewis verdict

In today's market, walking up to a seller and asking for a random 10% discount doesn't work. Sellers get defensive. Instead, I show my buyers how to build a case. With NAPIC Q1 2026 reports showing 32,801 completed unsold homes sitting on the market, sellers in high-supply corridors like Seri Kembangan or Johor Bahru know they are competing with a massive pool. Go to the negotiation table armed with actual transacted prices from the building in the last 12 months — not portal asking prices, which are always inflated. If the unit has RM5,000 in outstanding maintenance arrears or needs a complete repiping due to leaks, those are facts, not opinions. Bring your pre-approval loan letter too; in a slow market, showing a seller that you have the money ready and can close the deal in 3 months is often worth more than a slightly higher offer from an uncertain buyer.

Lewis verdict

Too many buyers calculate their expected returns on a flip without factoring in RPGT. If you sell within the first 3 years, you are hit with the highest tax rates. Understating your gain or using inflated SPA prices to get higher loans will backfire at disposal because your acquisition price baseline is distorted. My advice is simple: think about your exit strategy before you sign the SPA. If you are an individual citizen, try to hold past the 5-year mark to hit the 0% rate. And please, buy a dedicated folder to keep every single renovation receipt and legal invoice from day one — poor documentation is the number one reason Malaysian sellers pay more tax than they legally need to.

Lewis verdict

I tell all my clients: don't play games with tax avoidance. Understating property values is a crime, and with LHDN's new Stamp Duty Self-Assessment System allowing audits up to 3 years back, the chance of getting caught is higher than ever. Legitimate tax planning is very simple. If you are selling your own home, use your lifetime private residence exemption. If you are transferring property to your children or spouse, register it as a love-and-affection transfer. If you have the flexibility, delay your sale until you cross the 5-year line to drop the rate to 0%. Combine these with proper receipts for every renovation and agent commission, and you can reduce your tax burden to a minimum completely legally.

Lewis verdict

A lot of landlords think rental income doesn't need to be declared, or they can just report the gross rent and ignore deductions. That is a costly mistake. If you are a resident, you are taxed on progressive rates. If you are a non-resident or foreigner, you are taxed at a flat rate of around 30% — this makes a massive difference in your net yield calculation. The gap between your gross rent and taxable net rent is determined by your documentation discipline. LHDN allows you to deduct strata maintenance fees, cukai pintu, quit rent, building insurance, and mortgage interest — not the principal loan repayment, only the interest. If you cannot produce the Bank Interest Statements or the maintenance invoices, LHDN will reject your claim. Do yourself a favor: set up a digital folder, scan every maintenance receipt and contractor invoice as they come, and keep a clean spreadsheet. It is your job to claim these deductions; LHDN will not prompt you.

Lewis verdict

I see many people read online articles saying 'buy under a company to save tax' and rush to set up a Sdn Bhd for their first investment unit. Let me give you some real math: companies do not qualify for the 5-year RPGT exemption that individual citizens get. You will pay a flat higher tax even if you hold the unit for 10 years. In addition, you must pay for accounting, auditing, corporate secretarial fees, and tax submission fees every single year. Banks also apply stricter commercial lending rules to company loans, often demanding lower LTV margins and requiring you, as the director, to sign a personal guarantee anyway. Unless you are building a large portfolio with significant rental volume, or require asset protection from other business risks, buy under your personal name. Most importantly, decide this before booking: transferring your property from your own name to a company later is treated as a full transaction, triggering full stamp duty and RPGT costs.

Lewis verdict

I have seen many families break apart because a property owner passed away without a will. If you die intestate, your property is frozen, and it can take years for your family to get the Letters of Administration. For non-Muslims, the Distribution Act 1958 splits your assets in a fixed ratio between spouse, children, and parents — which might not be what you wanted. For Muslims, Faraid rules apply. Also, remember that the mortgage doesn't disappear when you die. The bank will demand payment, and if you don't have MRTA or MLTA coverage to pay off the outstanding balance, your family might have to sell the property in a rush just to pay the bank. A simple will and a proper mortgage insurance policy are not extra expenses — they are part of responsible homeownership to protect your family from years of court delays.