MOT Calculation Malaysia (2020)


You will hear someone says the term MOT during the process of buying your home. What is MOT then? How to calculate MOT? Today, I will thoroughly cover this topic for you.


Throughout this article, you will learn:

  • The meaning of MOT
  • When do you need to pay MOT
  • How to calculate MOT
  • MOT Quick Calculation Formula (BONUS)
  • First-time Homebuyer get stamp duty exemption

So, let's get started!



What is MOT?
MOT stands for (Memorandum of Transfer)You are required to pay the stamp duty to the government for transferring ownership of a property from the developer/seller to you when the individual title is issued.


When do you need to pay MOT?
Let's assume that you are:


A) Buying a house under construction from the developer (Master Title)
You don't need to pay your MOT first until your property is completely built (CCC/CF issued) subsequently the Individual Title will be applied by the developer towards the state government.


B) Buying a house under construction (Individual Title)
You are required to pay your MOT first after signing the SPA by the developer and you.


C) Buying a Sub-sale House (Individual Title)
You need to pay your MOT after the Seller and you have signed the SPA.


How to calculate MOT?
The following is the calculation of MOT (2020)

MOT Calculation Malaysia (2020)


There are 3 examples I listed below for your ease of understanding:

Example A: Calculated with the house price at RM 350,000
MOT Calculation Malaysia (2020) Example A



Example B: Calculated with the house price at RM 550,000
MOT Calculation Malaysia (2020) Example B



Example C: Calculated with the house price at RM 1,500,000
MOT Calculation Malaysia (2020) Example C


After understanding the calculation, do you think that there are too many steps? Rest assured, I am here to share a quick calculation formula with you, you can directly omit from the above-mentioned calculation steps.




MOT Quick Calculation Formula (BONUS)

MOT Quick Calculation Formula


Reviewing the above example A: Calculated with the house price at RM 350,000. 
It is (Category 2)
RM 350,000  X  2%  -  (1,000)  =  RM 6,000
(Previous calculation is also at RM 6,000)


Reviewing the above example B: Calculated with the house price at RM 550,000. 
It is (Category 3)
RM 550,000  X  3%  -  (6,000)  =  RM 10,500
(Previous calculation is also at RM 10,500)


Reviewing the above example C: Calculated with the house price at RM 1,500,000. 
It is (Category 4)
RM 1,500,000  X  4%  -  (16,000)  =  RM 44,000
(Previous calculation is also at RM 44,000)



It is easier to calculate, Right?

Certainly, you can use the online calculator, but I would like to share with you what I have learned so that you will learn something new.


For example,

I want to buy a house with a selling price of RM 500,000. So, How much do I need to pay my MOT? The quick calculation formula can be utilized to calculate on the spot. Since the selling price is at RM 500,000 so it is (Category 3) then.

RM500,000  X  3%  -  (6,000)

Quickly open the calculator app on your mobile phone to calculate, the MOT fee is at RM9,000. Just remember the formula, and you can calculate it at any time.



First-time Homebuyer get stamp duty exemption

First-time homebuyer get stamp duty exemption 2020

From 1 July 2019 to 31 December 2020, the stamp duty on MOT can be exempted up to the first RM300,000 for first-time homebuyers who purchase a house price below RM 500,000.

*People who have a house before / purchase the house price above RM 500,000 will not be exempted


Reproduction is prohibited.