Lelong property cost calculator: deposit, stamp duty and legal fees
A bank auction asks for money in two steps: a deposit of usually 10% of the reserve price by bank draft before the sale, then the balance within 90 to 120 days. On top of the price you pay transfer stamp duty, lawyer fees and, with a loan, loan stamp duty and the loan lawyer fee. Enter the reserve price and your bid to see each amount.
- Deposit on auction day (bank draft)
- RM40,000
- Balance due within 90 to 120 days
- RM380,000
- Paid by your loan
- -RM336,000
- Stamp duty on transfer (MOT)
- RM7,400
- Lawyer fee for the transfer, incl. 8% SST
- RM5,670
- Stamp duty on loan (0.5%)
- RM1,680
- Lawyer fee for the loan, incl. 8% SST
- RM4,536
Cash on auction dayRM40,000
More cash needed after the auctionRM63,286
Fees and taxes on top of the priceRM19,286
Total cost of the purchaseRM439,286
Estimate only. Stamp duty is charged on the higher of the price and the market value, so ask your lawyer which value applies; lawyer fees follow the SRO 2023 scale and can be discounted.
Worked examples (Malaysian buyer, residential, 80% loan, bid at reserve)
- Deposit
- RM30,000
- Stamp duty (MOT)
- RM5,000
- All fees and taxes
- RM13,490
- Total cash needed
- RM73,490
RM300,000
- Deposit
- RM50,000
- Stamp duty (MOT)
- RM9,000
- All fees and taxes
- RM23,150
- Total cash needed
- RM123,150
RM500,000
- Deposit
- RM80,000
- Stamp duty (MOT)
- RM18,000
- All fees and taxes
- RM39,452
- Total cash needed
- RM199,452
RM800,000
- Deposit
- RM150,000
- Stamp duty (MOT)
- RM44,000
- All fees and taxes
- RM81,860
- Total cash needed
- RM381,860
RM1,500,000
Frequently asked questions
- How much deposit do I need to buy an auction property?
- Usually 10% of the reserve price, paid by bank draft; some auctions ask for 5%, as stated in the Proclamation of Sale. For a unit with a RM500,000 reserve, the deposit is RM50,000.
- How long do I have to pay the balance on a lelong property?
- Usually 90 to 120 days after the auction, as set in the conditions of sale. Miss it and the deposit can be forfeited, so get loan approval before you bid.
- How is stamp duty calculated on an auction property?
- Malaysians and PRs pay on a scale: 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million and 4% above. A RM500,000 unit carries RM9,000 transfer stamp duty. Foreign buyers pay a flat 4%, or 8% on residential property. Duty is charged on the higher of price and market value; confirm with your lawyer.
- What is the total cost of buying a RM500,000 auction property?
- For a Malaysian buyer, residential, 80% loan: deposit RM50,000, transfer stamp duty RM9,000, transfer lawyer fee about RM6,750, loan stamp duty RM2,000, loan lawyer fee about RM5,400; fees and taxes about RM23,150 and total cash about RM123,150.
- Does the buyer pay outstanding maintenance fees on an auction unit?
- It depends on the conditions of sale. Some auctions settle arrears from the sale price, others put them on the buyer. Check before you bid and enter the amount in the calculator. Crispina Ng can help you read the conditions of sale.