Malaysia Property Market News and Guides

Tenancy Agreements!

09 Oct 2015

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After both parties sign the tenancy agreement, it needs to be stamped. Stamping fees are usually borne by the tenant. Getting your tenancy agreement stamped - How do you actually do it? Read on...


I have found myself in the stamping office last week without a single clue as to what I'm doing, because I usually have the agreement stamped by agents, the tenants themselves or runners. I got to the Inland Revenue Board's office - same place where we submit our income tax before the online format is used. Like all government departments, there is a queue and you need to be there during designated times. I was extremely lucky that I got there 10 minutes before they closed for lunch at 12.30pm. If I missed that, I would have to go back at 2.30pm, government divisions practice 2 hour lunchtimes. 


Fortunately the queue moved very quickly. First one has to fill in a form. All the details required are in the tenancy agreement. After submitting the form at the counter, one has to pay the stamping fees which is computed as follows:

1. Monthly rental minus 200

2. Multiply by the number of months rental

3. Divide by 250

4. Add RM10 for the duplicate copy


Taking RM2000 monthly rent over a period of 1 year for example, the stamp fees would be as follows:

1. RM2000 - 200 = 1800

2. RM1800 x 12 = 21,600

3. RM21,600/250 = 86.40

4. RM86.40 + RM10 (1 copy) = RM96.40


Apparently they round the figure up to the nearest Ringgit which explains why I never got any coins change back. Immediately after the stamping fee is paid, the document is passed into a window beside it. There a lady checks the document and passes it to a guy who operates a stamping machine. He runs your documents through the machine and voila.... it is stamped! The whole episode was over in less than 15 minutes. Only after the tenancy agreement has been stamped, it becomes a legal document.

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sinleongng
This guide is written by sinleongng. Send message to this author for further discussion on this article.