Memorandum of Transfer (MOT) in Malaysia: Form 14A, Fees and Steps for a Factory

Key Takeaways

• A Memorandum of Transfer (MOT) is Form 14A under the National Land Code 1965, the instrument that moves a registered title from seller to buyer. Ownership passes only when the land office registers it, not when the SPA is signed (National Land Code, s.215).
• The MOT carries the main stamp duty in a factory purchase: 1%, 2%, 3% and 4% in bands on the higher of price or market value, or a flat 4% for a foreign buyer. On the JPPH-registered median Klang terrace factory price of RM850,000 that is RM19,500.
• Selangor's registration fee for a transfer runs from RM50 to RM1,500 depending on the value, so RM500 for a deal between RM500,001 and RM1 million.
• Leasehold industrial titles often carry a restriction in interest, so the State Authority must consent before the MOT can be registered. In Selangor the consent is applied for online through e-Tanah, at RM50 per title.
• No title yet means no MOT: a factory still under a master title is bought by deed of assignment, and the MOT follows only when the separate title is issued.

People search "memorandum of transfer" or "MOT meaning" when their lawyer sends a bill with a line called MOT stamp duty, or when a seller asks them to sign Form 14A. This guide explains what the MOT is, who signs it, what it costs for a factory, warehouse or industrial land in Selangor, the documents the land office wants, and the mistakes that delay registration.

This is general information, not legal or tax advice. Your lawyer should confirm the documents and duty for your own transaction.

What is a memorandum of transfer (MOT)?

Under section 215 of the National Land Code, "the transfer under this Act of any alienated land shall be effected by an instrument in Form 14A", and the transferor's title "shall pass to and vest in the transferee upon the registration" of that transfer (NLC). The same Form 14A is used for an undivided share in land and for a registered lease (sections 217 and 218).

In plain words, the MOT is the one page form that the land office acts on. The sale and purchase agreement (SPA) is a contract between buyer and seller; the MOT is the instrument that changes the name on the title. Until it is registered, the seller is still the legal owner, whatever has been paid.

MOT, SPA and deed of assignment compared

Many new factory schemes and older strata factories are still under a master title, so they change hands by deed of assignment. This guide covers the MOT, and our step by step guide on how to buy a factory in Malaysia shows where it fits in the whole purchase.

Who signs the MOT and who must witness it?

The transferor (seller) and the transferee (buyer) both sign Form 14A. The PTG Selangor checklist for transfers (Senarai Semak Pindahmilik Tanah) requires that:

1. The form is printed or typed in black, or written clearly in black or blue black ink.
2. Each signature is attested by a Land Administrator or an Advocate and Solicitor.
3. A party signing overseas has the signature attested at a Malaysian embassy or mission, or by a notary public.
4. A company signs by its common seal or the execution method its constitution allows, with certified copies of its SSM documents (constitution, directors, registered office) or an SSM QR search valid for 30 days from the date of the instrument, plus a board resolution where needed.

Most factories in the Klang Valley are owned by a Sdn Bhd, so item 4 matters: an outdated SSM search is one of the simplest reasons for the land office to raise a query.

How much does an MOT cost for a factory?

Three items make up the MOT cost: stamp duty, the land office registration fee and the lawyer's fee. Use the legal fees and stamp duty calculator for your own price.

MOT stamp duty

Item 32(a) of the First Schedule to the Stamp Act 1949 charges the transfer on the price or the market value, whichever is greater (LHDN First Schedule guideline):

A foreign company, or an individual who is neither a citizen nor a permanent resident, pays a flat 4% under item 32(aa). The 8% rate from 2026 applies to residential property only, so it does not touch a factory. The buyer pays the duty on the MOT. Our Stamp Act 1949 guide covers exemptions and the other instruments in a deal.

Land office registration fee in Selangor

PTG Selangor charges for registering a transfer by value (PTG Selangor fees; Klang district fee list):

The same Klang list sets RM120 to register a bank charge and RM70 to register a discharge of charge, which come up when the buyer borrows and the seller's loan is redeemed.

Worked example at Klang registered prices

Using JPPH-registered medians for Klang and Port Klang over 24 months to August 2026:

The terrace figure is RM1,000 on the first RM100,000, RM8,000 on the next RM400,000 and RM10,500 on the remaining RM350,000. The lawyer's fee is set by the Solicitors' Remuneration Order and is separate.

What are the steps from signing to registration?

1. Sign the SPA and the MOT. The buyer's lawyer prepares Form 14A, usually signed around the same time as the SPA or at completion.
2. Get consent if the title needs it. See the next section.
3. Submit the MOT for stamping within 30 days of signing. Transfers are still under formal assessment: the lawyer files the stamp duty return (BNDS) with Form 14A on MyTax, an LHDN officer assesses the duty, and it is paid within 30 days of the notice of assessment. From 1 January 2027, transfers that do not need a JPPH valuation move to self-assessment, and all other instruments follow on 1 January 2028 (LHDN STSDS).
4. Retain and remit RPGT. The buyer must hold back 3%, 5% or 7% of the price (or all the cash consideration, whichever is lower) and pay it to HASiL within 60 days from the date of disposal, and both sides file their CKHT forms on e-CKHT within 60 days (HASiL, disposer and acquirer duties).
5. Present the MOT at the land office. The buyer's lawyer lodges the stamped Form 14A with the original title, the original notice of assessment and stamp certificate, current quit rent and assessment tax receipts, and any consent letters, together with the bank's charge if there is a loan (PTG Selangor checklist).
6. Registration. Once registered, the buyer's name is endorsed on the title and ownership has legally passed.

When does a factory MOT need State Authority consent?

A title shows its conditions on the front page. If it carries a restriction in interest (sekatan kepentingan), such as a rule that the land cannot be transferred without State Authority approval, the land office will not register the MOT without that consent. PTG Selangor's checklist lists the consents it expects: State Authority consent for a restriction in interest, consent of a caveator, chargee or lessee where those are registered, and State Authority consent where the buyer is a non-citizen or a foreign company under section 433B of the NLC (PTG Selangor circular 3/2011).

Since 26 October 2023, Selangor consent applications run end to end on the e-Tanah public portal, from upload to payment and the decision letter, with an application fee of RM50 per title (PTG Selangor).

Why this matters more for industrial property

Many industrial estates in Klang, Pulau Indah and Shah Alam were alienated as leasehold with transfer restrictions. A residential buyer of freehold land may never see a consent step, while a factory buyer often does. Partner site klangindustrial.com walks through the checks for buying a leasehold factory in Klang or Pulau Indah, from title to completion. Ask your lawyer to run an official land search before the SPA, so the consent is planned into the completion period rather than discovered late.

What are the common MOT mistakes?

• Stamping late. Late duty costs RM50 or 10% of the unpaid duty within three months of the deadline, then RM100 or 20%, whichever is higher (LHDN penalties).
• Quit rent or assessment tax in arrears. The land office wants current year receipts, and the assessment receipt should be in the latest owner's name.
• Company papers out of date. An SSM search older than 30 days from the instrument date, or a missing resolution.
• Declaring a low price. Duty is on the higher of price or market value, and LHDN can refer the transfer to JPPH for valuation.
• Forgetting the RPGT retention. A buyer who does not remit within 60 days can face a 10% increase on the amount due.

Frequently Asked Questions

What does MOT mean in property?

MOT stands for Memorandum of Transfer, the Form 14A prescribed by the National Land Code 1965 to transfer a registered title. Once the land office registers it, the title vests in the buyer. It is used for factories, warehouses and land alike, whenever the seller already holds an individual or strata title.

What is the MOT fee for a factory in Malaysia?

The MOT cost is mainly the stamp duty: 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million and 4% above, on the higher of price or market value. A foreign buyer pays a flat 4%. Selangor also charges a registration fee of RM50 to RM1,500, and the lawyer's fee is separate.

How much is the fee for transfer of ownership of a factory?

For a factory at the JPPH-registered Klang terrace median of RM850,000, the MOT stamp duty is RM19,500 for a local buyer and the Selangor registration fee is RM500. Add the lawyer's fee and, if there is a loan, stamp duty and registration for the bank charge.

Who pays the MOT stamp duty, buyer or seller?

The buyer, as transferee, pays the stamp duty on the Memorandum of Transfer. The seller pays for redeeming any existing loan and bears any real property gains tax, which the buyer partly retains from the price and remits to HASiL.

What is the difference between an MOT and a deed of assignment?

An MOT transfers a registered title at the land office. A deed of assignment transfers the seller's contract rights when the property has no separate title yet. When the title is later issued, ownership is registered by MOT.

Can a foreign company sign an MOT for industrial land in Selangor?

Yes, but the land office needs State Authority consent under section 433B of the National Land Code before it registers the transfer, and the stamp duty is a flat 4%. Many foreign investors buy through a Malaysian incorporated company instead.

How long does it take to register an MOT?

It depends on consent, stamping and the land office queue. Stamping must be submitted within 30 days of signing and paid within 30 days of the assessment, and the transfer is presented once the stamp certificate and any consent are ready. Ask your lawyer for a timeline that fits your SPA completion period.

FactoryHub is dedicated to helping every client find the right factory or warehouse. To buy or sell a factory in Klang or anywhere in Selangor, contact Peter Tan (REN 12771) at 016-666 6872 or Jason Low (PEA 1478) at 012-288 1834.