What is Perfection of Transfer and Perfection of Charge

[Pizza illustration of Master Title / Big Title of a piece of property land condominium and Strata Title/Individual Title for a unit of a condominium]
After your condominium management inform you that Master Title is out and you’ll need to go and collect it, it’s time for you to contact your lawyer to transfer the strata title to your own name since you’re the new owner of this unit. Because without this strata title you can’t sell your house unit in the future.
[According to the Strata Titles Act 1985, the homeowner or purchaser is liable to a fine of RM1,000 – RM10,000 per property if they fail to complete the transfer within 12 months from the date of the Developer’s Notice.] source
These 2 payments namely: Perfection of Transfer and Perfection of Charge (or Preparation of Charge)  you’ll  need to pay to lawyer after your Housing Developer issued a letter to you informing you that the Strata title for the property has been issued.
Perfection of Transfer
After you get the letter from developer about strata title being issued. You’ll have to proceed with arrangement with your lawyer for the transfer of this title to your name – This document is called “Perfection of Transfer”.
Legal fees on Sale and Purchase Agreement: RM300
6% service tax: RM18
Nominal stamp duty on Memorandum of Transfer: RM10
Registration fees on Memorandum of Transfer: RM100
Misc, Printing & Postage: RM50
Travelling: RM100
Total: RM578

Perfection of Charge
And you’ll also need to proceed with your previous owner’s lawyer to do the “Perfection of Charge”. We need to bring latest quick rent assessment, signed the charge document and also bring cheque of course to pay for this charge document.
Total: RM1100
[For your information, i’m the 2nd house owner for this condominium unit, i have my own lawyer and the previous owner also has their own lawyer]
After payment for Perfection of Transfer and Perfection of Charge
After you make all the payments to both lawyers for these 2 documents. Follow up with both lawyers.
Developer will forward this strata title to lawyer (usually the housing loan bank lawyer) who is in charge of “Perfection of Charge” in my case it’s my previous owner’s lawyer whom i had contacted. The said lawyer will  proceed with “Perfection of Charge” and after that forward the Original Strata title bearing my name to my housing loan bank, and forward a copy to me (the purchaser).
Completion of payment for your housing loan
After you have settle or make full payment for your housing loan. You’ll need to hire a lawyer to do a “Discharge of Charge” , it’s around rm100++ with your housing loan bank.
This website provides a detail definition on Strata Title, kindly proceed here and also here and here

2 thoughts on “What is Perfection of Transfer and Perfection of Charge

  1. Hi Rosamundwo,
    I have a confusion legal jargon
    What is Perfection of Memorandum of Transfer & Perfection of Charge in favour of XXX Bank?
    I bought a second hand house.
    Law firm A = SPA process
    Law firm B = Loan process
    MOC already settle in Law firm A. Now i would like to have a quotation from Law Firm B but they sent me quotation Perfection of Memorandum of Transfer & Perfection of Charge in favour of XXX Bank.
    Are both MOT and MOC?
    Kindly advice.
    Thank you

    1. Hi,
      I’m also no legal person :), From my own understanding.
      Law firm A settle SPA while
      Law firm B settle loan processing.
      Memorandum of Transfer (pindah milik nama) settle by Law Firm A, Law firm B should sent you a quotation of Perfection of charge (gadaian to the bank because until we finish paying our housing loan, this house belong to the bank).
      MOT and MOC are 2 different process.
      Law firm A handle changing title, while Law Firm B on behalf of bank handle loan processing. So there are 2 different legal firm handling your case.
      Perfection of charge meaning to say your house now charge to that bank who loan you money to buy house. Until you settle your housing loan, then you have another Discharge of charge where you need to pay certain amount to discharge your house from the bank. Before you finish settle your housing loan, the house is still under the bank property.
      Usually law firm A who settle your transfer will communicate with Law firm B on perfection of memorandum of transfer, after law firm B get the MOT then only law firm B now can do perfection of charge. Did your law firm A ask you to personally submit this transfer to your law firm B or they settle on their own? Usually they communicate very well with each other.
      So you will need to pay for both legal firms A & B who prepares these MOT and MOC for you.
      As for your questions, it could also have this kinda of situation:
      “Now i would like to have a quotation from Law Firm B but they sent me quotation Perfection of Memorandum of Transfer & Perfection of Charge in favour of XXX Bank.”
      Legal Firm A ONLY process your SPA hand over to Legal Firm B, then Legal Firm B take your transfer together with charge to land office. I don’t know how both legal firms make their payments to each other. If you haven’t pay for transfer to legal firm A, could be legal firm B charge transfer and perfection of charge hand to land office. Then later legal firm B pays legal firm A for his service in preparing SPA.
      Call legal firm B to ask further.

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