Perfection of Transfer

What is Perfection of Transfer (POT)?

The Perfection of Transfer (POT) in Malaysia is a crucial step in the property purchase process that involves registering the property title under the buyer’s name. This typically occurs when the property has been bought without an individual title, often while it is still under construction. The property remains under a Master Title until it is subdivided and registered to individual buyers.

Key Steps in the Perfection of Transfer Process

Costs Involved

Legal Fees: Legal fees are calculated based on the property’s value and are regulated by the Solicitors Remuneration Order (SRO). For instance, if the same lawyer who handled the initial sale is engaged, the fee is capped at 25% of the standard fee. If a new lawyer is hired, the fee can go up to 50% of the standard fee.

Stamp Duty: Stamp duty is paid once, either at the Sale and Purchase Agreement (SPA) stage or during the POT. The rates are tiered, starting at 1% for the first RM100,000 and going up to 4% for amounts above RM1,000,000.

Importance of Perfection of Transfer

Completing the POT ensures that the property can be legally transferred without delays. It is essential for obtaining financing, as banks often require a perfected title before approving loans. Failure to complete the POT can lead to complications, especially if the developer goes bankrupt before the transfer is finalized.


The Perfection of Transfer is a vital process in securing property ownership in Malaysia. It not only provides legal certainty but also facilitates smoother financial transactions and protects the buyer’s interests. By engaging professional legal assistance and adhering to the stipulated procedures and costs, property purchasers can ensure a hassle-free and secure transfer of their property titles. Understanding the intricacies of POT helps avoid potential pitfalls and ensures that the property purchase is legally sound and fully compliant with Malaysian laws.

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