1. What is Home Ownership Campaign (HOC) 2019?
- HOC 2019 is an initiative by the Minister of Finance, YB Mr Lim Guan Eng, during the tabling of Budget 2019 last November to address the property overhang issue in the country, and to further stimulate the housing sector.
- As such, the Government offers stamp duties exemptions on
a) Instrument of Transfer
b) Instrument on Loan Agreement
a) Instruments of Transfer ( Stamp Duty For MOT - Memorandum of Transfer )
b) Instruments on Securing Loans ( Stamp Duty For Loan Agreement )
2. What is the duration of the Campaign period?
- The Home Ownership Campaign 2019 period is from 1 January 2019 to 30 June 2019.
3. What are the eligibility criteria for exemption?
- The Campaign is open to ALL Malaysian individuals.
- The Sale and Purchase Agreement (SPA) must be signed within the Campaign period from 1 January 2019 to 30 June 2019.
- Exemptions are applicable only for residential properties (including houses, condominium units, apartments and flats including service apartments built and used as dwelling houses) that are completed or under construction.
- Residential properties must governed by the Housing Development Act with valid developer’s license (DL) and advertisement and sales permit (AP) and/or Certificate of Completion and Compliance (CCC).
- Only residential properties in the primary market are eligible for the stamp duties exemptions, thus sale must be from a developer to a purchaser.
- Property price : RM300,001 to RM2.5 million (before discount)
- A minimum 10% discount must be given by the developer, provided that the residential units are not subject to Government price control.
- The discount is given based on approved APDL pricing and must be reflected in the SPA.Eligible properties in Peninsular Malaysia must be registered with the Real Estate and Housing Developers’ Association (REHDA) Malaysia, while eligible properties in Sabah and Sarawak must be registered with Sabah Housing and Real Estate Developers Association (SHAREDA) and Sarawak Housing and Real Estate Developers’ Association (SHEDA) respectively.
4. What is the amount of the exemption on Instrument of LA ( Loan Agreement )? Is it based on house price or loan amount?
- The amount of exemption on Instrument of LA ( Loan Agreement ) is 0.5% of the loan amount.
Frequent Q & A by Purchasers
1. Is there a list of registered projects under HOC?
- Once the registration process commences, REHDA will publish the list of participating developers and projects on www.mapex.com.my/hoc2019.
2. I have signed an SPA in January 2019, and I have paid the stamp duties on Instrument of Transfer and Instrument on Loan Agreement. Can I get a refund?
- Yes, provided that the 10% discount is reflected in the SPA and the developer registers the project/unit with REHDA for HOC.
3. What if the developer did not give me a 10% discount?
- Not all residential projects/units by a developer are required to register under HOC. As such, we advise that purchasers speak to the developers involved for clarification before proceeding with your purchase.
4. Are there any fees that purchasers need to pay to be able to buy a house under HOC?
- No, purchasers are not imposed with any fee either by the developer, REHDA or the Government. Only developers are imposed with the registration and certification fees.
5. Can I purchase under a company name?
- No, purchases are for Malaysian individuals only.
6. Can I purchase more than one residential unit and get stamp duties exemptions on all of them?
- Yes, there is no limitations on number of units that can be purchased.
7. Am I entitled for the HOC waiver if I purchase a house from my friend (secondary market)?
- No, the stamp duty waiver is only applicable for residential properties purchased from a developer (primary market) that are registered with REHDA, SHAREDA or SHEDA.
Frequent Q & A by Developer
1. Is the Campaign open for all developers?
- Yes. All developers whether REHDA members or non-members with residential properties in Peninsular Malaysia are invited to participate in the Campaign.
- For developers in Sabah and Sarawak, registration must be made with SHAREDA and SHEDA respectively.
2. I am a developer and I am interested to participate. What should I do?
- Developers who are interested to participate must register their properties with REHDA Malaysia.
3. What do I need to submit to register with REHDA?
- Once registration opens, developers must submit:
- i) Completed registration form in softcopy Microsoft Excel format. Any other formats or hardcopy will be rejected;
- ii) A copy of APDL and/or CCC
- iii) Registration fee – made payable to REHDA Malaysia
- Registration fee differs between REHDA members and non-members and can be either by unit or project basis as follows:
4. What is certification process?
- Certification by REHDA Branches is required to be presented at any branches of the Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri, or LHDN) for the adjudication of stamp duties exemptions on Instrument of Transfer and Instrument on Loan Agreement.
- Upon successful HOC registration, developers will be given a template of the certificate. The process begins following the purchase of registered unit(s), where among others, developers are required to submit four (4) copies of the certificate for each unit sold to the respective Branches where the project is located, along with relevant pages of the SPA.
- Following approval, two (2) copies will be sent back to the developer, which will then be used as proof to LHDN that the unit transacted is entitled for the exemption.
5. What do I need to submit for the certification process for the unit(s) I have sold?
- For the certification process of each units you have sold, you are required to submit:
- i) Four (4) copies of the HOC certificate;
- ii) Relevant pages of the SPA; and
- iii) Certification fee to the respective REHDA Branches, depending on project location.
- The fee for certification of properties sold and eligible for exemption is as follows:
- i) House priced between RM300,001 to RM500,000 : RM100 per unit;
- ii) House priced between RM500,001 to RM750,000 : RM150 per unit;
- iii) House priced above RM750,000 : RM200 per unit.
- * Based on the selling price (before discount)
6. I am a REHDA member of Penang Branch with a development project in Kedah. Which Branch would undertake the certification process for my project?
- REHDA Kedah/Perlis would do the certification, as certification by Branch is based on the project location.
7. Can I offer the 10% as a rebate to buyers instead of a discount?
- No. The SPA must clearly reflect the 10% discount. However, developers can offer other additional incentives on top of the discount to purchasers.
8. I have unsold Bumiputera units and will be giving a Bumiputera discount. Should I give another 10% discount on top of the Bumiputera discount?
- Developers do not have to give the additional 10% discount provided that the Bumiputera discount is set at a minimum of 10%.
9. Can I offer the 10% discount to purchasers prior to registering my projects/units with REHDA for HOC?
- Yes. However, please ensure that the sold unit(s) are registered once the registration process begins and that the SPA is signed within the Campaign period.
10. My project is a serviced apartment complex (residential) with commercial title. Is it eligible for the stamp duties exemptions?
- The stamp duties exemptions for Instrument of Transfer and Instrument on Loan Agreement is applicable for all residential units governed by the Housing Development (Control and Licensing) Act 1966 (Act 118) and Regulations.
- If your service apartment project possesses APDL, it is entitled for the stamp duties exemptions.
11. Are purchasers still eligible for stamp duties exemptions on the Instrument of Transfer and Instrument on Loan Agreement if the SPA is signed within the Campaign period, but stamped in July 2019?
- The deadline for stamping of SPA is one month after the SPA is signed. Should the stamping take place after the deadline, a penalty will be imposed by LHDN for late stamping.
- However, purchaser will still be eligible for the stamp duties exemptions, provided the developer registers the unit by Wednesday, 19 June 2019 at 6:00pm and submits the necessary documents for certification by Monday, 15 July 2019.
