Complete Checklist for local and foreign Buyers in Kuala Lumpur and Selangor
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Malaysia Property Buying Guide for Local & Foreign Buyers
Buying property in Malaysia involves several legal, financial, and procedural steps. Whether you are a local buyer or a foreign investor, understanding the correct process helps you avoid risks and make better investment decisions.
Financier Preparations
Before buying any property, ensure you check your loan eligibility, credit score (CTOS/CCRIS), and monthly affordability through Debt Service Ratio (DSR). Most banks in Malaysia finance up to 70–90% depending on buyer profile.
- Credit score (CTOS / CCRIS)
- ✔ Loan eligibility (DSR 30–70%)
- ✔ Down payment (10%)
- ✔ Extra costs (3–5% legal + stamp duty)
Property Selections
Choose properties based on location, accessibility, developer reputation, and rental demand. Popular areas like Kuala Lumpur and Selangor offer strong investment potential.
- ✔ Freehold vs Leasehold
- ✔ Developer track record
- ✔ Location demand (rental + resale)
- ✔ Transport access (MRT/LRT/highways)
Viewing & Evaluation
Inspect the actual unit, surrounding infrastructure, traffic conditions, and building facilities. Avoid relying only on show units.
Buying & Legal Process
Once satisfied, pay a booking fee and sign the Sales & Purchase Agreement (SPA). Appoint a lawyer to review all terms including payment schedule and defect liability period.
- Submit loan application
- Provide income documents / bank statements
- Property valuation done by bank
- Loan approval received
- Sign loan agreement
- Pay stamp duty for loan agreement
Loan Process
- View property
- Pay booking fee (1–3%)
- Sign SPA
- Apply bank loan Loan approval & valuation
- Sign loan agreement
- Wait for completion / VP
Submit income documents and bank statements for loan approval. The bank will conduct valuation before releasing financing.
Completion & Handover
After completion, you will receive vacant possession. Check for defects and ensure utilities are properly connected before moving in.
- Receive vacant possession (VP)
- Inspect unit for defects
- Submit defect report within DLP
- Check utilities connection (TNB, water, internet)
- Receive strata title (if ready)
- Register ownership transfer
Handover Stage ( Newly Build )
- ✔ Vacant Possession (VP)
- ✔ Defect checking (within DLP period)
- ✔ Utilities setup (TNB, water, internet)
- ✔ Maintenance registration
Post – Handover (sub-sale unit)
- ✔ Connect utilities:
- TNB (electricity)
- Water
- Internet
- ✔ Pay maintenance fees
- ✔ Register management access card
- ✔ Track strata title status
Foreign Buyer Rules
- Minimum price (RM1M+ in KL/Selangor typical)
- State consent required
- Max loan ~60–70%
- Passport + income proof required
Extra Checklist
- Check minimum purchase price (varies by state)
- Obtain State Authority Consent
- Confirm eligibility for bank loan (usually max 70%)
- Prepare passport & income documents
- Lawyer handles approval submission
- Check restricted property categories (low-cost units not allowed)
Eligibility check
- ✔ Minimum purchase price: KL – RM1M / Selangor – RM2M (varies by state)
- ✔ Confirm property type allowed: Condos allowed
- Low-cost / Malay reserve land NOT allowed
Foreigners must meet minimum property price thresholds (usually RM1M+ in KL), obtain state consent, and typically receive lower loan margins.
State Consent Process
- ✔ Lawyer submits application to state authority
- ✔ Approval time: ~2–6 months
- ✔ Cannot fully transfer ownership until approved
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