In Malaysia, when the owner has passed away, the process of buying and selling a house is tricky and troublesome. You need to know the procedures of selling and buying, the documents required, and the parties involved in the deceased property transfer.
If you do not do it the right way, it will cause an endless issue and the process will get delayed. Let's look at how to sell a house when the owner passed away.
Can a property be sold if the owner dies?
Yes, a property 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 consent of the heirs of the deceased.
How do you sell a house if 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.
If the owner is deceased, you will need to get a court order for administering and selling the property. 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).
Immovable property 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). To do an official search, you can contact the District Land Office where the deceased property or house is located. For instance, if the property is located in the Kedah area, you need to contact the Kedah District Land Office for further information to deal with the selling process.
Immovable property more than RM2 million
As we mentioned earlier, the management of a Large Estate is subject to the Probate and Administration Act 1959 (Act 97). Applications need to be submitted to the Civil High Court through a lawyer or authorised body such as Amanah Raya or a Trust company. 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 needed
The process of buying and selling a house of a deceased person cannot be done without these documents.
Grant of Probate/ Letter of Probate and Grant of Letter of Administration (LOA)
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.
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. With this letter, the house is eligible for sale.
Memorandum of Sales (MOS)
The new buyer needs to sign the Memorandum of Sales (MOS) or Agreement to Purchase (ATP) and give the deposit money of the property. 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.
What if the owner of the property did not have will in Malaysia?
The transfer of property after death without a will in Malaysia for Muslims and non-Muslims are different, look at the below details:
For Muslim
If the deceased is a Muslim, the administrator is required to obtain a Faraid Certificate from the Syariah High Court. The Estate Distribution may be carried out according to Faraid Law or consensus.
For Non - Muslim
If the deceased is non-Muslim and a legitimate will has been made (testate), the property distribution is carried out according to the will. However, if there is no will, the distribution shall be made per the Distribution Act 1959 (Act 300) or per the consensus of the beneficiaries.
In conclusion, it is time-consuming and may take up to many years if there are disputes with the heirs of the deceased in the process of selling the property. Hence, unanimous consent from the heirs must be obtained beforehand to avoid roadblocks in the selling and transfer of deceased property.
If you have any inquiries about real estate, feel free to chat with us.
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