1. Identify whether it is a Low Cost property
2. Buyer apply to the Lembaga Perumahan Hartanah Selangor (LPHS) for a Low Cost Consent.
3. Check whether the Buyer and/or Buyer’s Partner owns any Property
This is a subsale property where it was sold below market value. It was bought by the owner at RM555,000.00 in year 2009, and subsequently sold at RM310,000.00 in year 2014.
The owner is willing to let go at a loss.
However, what turns interesting is that the buyer, was assessed at RM360,000.00 stamp duty. it means that the property value may have drop but still retains it value at RM360,000.00 and not at RM310,000.00. the buyer has to top up the stamp duty assessment at RM360K.
The conclusion we can get from this property is that the value has drop when it was bought 10 years ago at RM555K, to RM310K, so property buyer has to take into account the environmental factors of the property something like (whether the particular property has been auctioned off).
4. Prepare CCRIS Report for LPHS
This is a property where the Buyer purchase at RM420,000.00 and gets a stamp duty exemption. FYI, if you are a buyer, you should look for residential property below RM500,000.00 to buy as it allows you to get a stamp duty MOT exemption on fixed rate RM10.
The Property has to be residential in nature and not commercial as stated in the land search. You can literally save RM7,000- RM8,000 of stamp duty.
5. Pay a small application fee to LPHS
6. Get LPHS Approval Letter
The above article is for general information only and does not constitute legal advice. For advice on your specific circumstances, speak to us.
