The process of buying and selling a house is tricky when the owner has passed away. You need to know the procedures, documents required, and the parties involved in the deceased property transfer in Malaysia.
This article was translated from Cara jual rumah bila pemiliknya telah meninggal dunia by Damia Norwin.
The process of selling a house when one owner is deceased can be bumpy for inexperienced individuals. This is because the procedure is quite complicated if you do not do it the right way. It will cause an endless issue and at the end of the day, the process will get delayed. This time around, let’s look at how to sell a house when the owner passed away.
Can a house be sold if the owner dies
Yes, a house of a deceased owner can be sold and transferred to someone else.
Do all heirs have to agree to sell the property
Yes, you must first obtain the unanimous consent of the heirs of the deceased.
How do you sell a house if the owner is deceased
If you are planning to sell a house where the owner is deceased, make sure you get a court order as well as necessary documents so that the transfer of deceased property goes smoothly.
Get a court order to administer and sell the house
You will need to get a court order for administering and selling the property if the owner is deceased. For immovable property such as land and houses, it is categorised into two parts, a value of less than RM2 million (Small Estate) and a value exceeding RM2 million (Large Estate). Management of a Small Estate is subject to the Small Estates Distribution Act 1955 (Act 98) whereas management of a Large Estate is subject to the Probate and Administration Act 1959 (Act 97).
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Immovable property of less than RM2 million
For immovable property with a value of less than RM2 million, the transfer of ownership can be done at the Estate Distribution Unit of the Department of the Director-General of Lands and Mines (JKPTG). The cost is affordable too. To do an official search, you can contact the District Land Office where the deceased property or house is located.
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Immovable property exceeding RM2 million
As we mentioned earlier, the management of a Large Estate is subject to the Probate and Administration Act 1959 (Act 97). Applications are to be submitted to the Civil High Court through a lawyer or authorised body such as AmanahRaya or a Trust company. The cost can be relatively high but per the value of the property. Once you have done the official search, take note of the important documents needed in managing the process of selling the house. There are several documents required in the matter of administering and selling the home of a deceased owner.
Documents that you need for administering and selling the house of the deceased owner
The process of buying and selling a house of a deceased person cannot be done without these documents.
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Grant of Probate/ Letter of Probate and Grant of Letter of Administration (LOA)
In the sale of a house belonging to a deceased person, the required document is FORM F (BORANG F) which is a Letter of Administration. The Letter of Administration grants the authority to sell a house or property whose owner has died. So, make sure all the information filled in during the application is accurate to avoid any issues. If not, you have to take some time to get it right, then the process will be delayed.
Also, make sure that the beneficiary authorised in the Letter of Administration agrees to sell the house, then the Power of Attorney Letter will be obtained within one (1) to two (2) years. Without this letter, the house is not eligible for sale.
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Memorandum of Sales (MOS)
The Memorandum of Sales (MOS) or Agreement to Purchase (ATP) needs to be signed together with the new buyer along with the deposit money. After that, it will be processed to meet the conditions that the house can be sold to buyers by applying for a letter of Administration. However, you should know that this process might take time if it involves property insurance claim proceedings.
Transfer of property after death without a will in Malaysia
The transfer of property after death without a will in Malaysia for Muslims and non-Muslims fall under a different jurisdiction.
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Muslim
The administrator is required to obtain a Faraid Certificate from the Syariah High Court if the deceased is a Muslim. The Estate Distribution may be carried out according to Faraid Law or consensus.
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Non- Muslim
For non-Muslims, if a legitimate will has been made (testate), the property distribution is carried out according to the will. However, the distribution shall be made per the Distribution Act 1959 (Act 300) or per the consensus of the beneficiaries if there is no will (intestate).
In conclusion, the process of selling the home of a deceased owner can be very time-consuming and may take up to many years if there are disputes with the heirs of the deceased. Hence, unanimous consent from the heirs must be obtained beforehand to avoid roadblocks in the selling and transfer of deceased property.
This article was originally published as Cara Jual Rumah Di Mana Pemiliknya Telah Meninggal Dunia by Majalah Labur is written by Eza.
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Edited by Rebecca Hani Romeli