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Transfer of Property in Malaysia

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asked on Jun 22, 2006 at 19:12
by   JJCC
edited on Feb 23, 2018 at 01:39
 
Just a curious question. The scenario is this:

A friend's dad owns the house they are living in now. Dad wants to transfer house title to son in case he passes away soon! Dad said he's afraid that his siblings (dad's) will contest in the event that house title is not transferred to his only son.

Question: Wouldn't a Will be sufficient in this scenario? If dad is full owner of house, can't he just state in his Will that he leaves the house to only son? If dad is sole owner of house, his siblings has no right to contest to will, right? Why then does son needs to do house title transfer now? Unless dad is NOT sole owner? Dad is in sound mind to make legal will...

Any genius out there to help me with my curiosity? Thank you.
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6 Answers

answered on Jun 22, 2006 at 23:19
by   TKLY
edited Feb 23, 2018 at 01:42
 
Firstly whose siblings do you refer to here. The son's or the fathers? Secondly what are their ages? A Will can be a good way to transfer the property to the favorite child this son, but if others are still of an age of dependence or otherwise dependents (disabled) then there is an obligation on him he cannot get away from by using the device of a will.

What he can do is to sell it to the son now for a peppercorn value (meaning for a nominal token sum) that way the property is settled and that's the end of it. The other siblings can p*iss on his grave for his showing favoritism. But they will not have a claim to the property unless of course they are dependents and they challenge the will before the grant of probate.

If they challenge not so much the will but his estate they can claw back the transaction and render it void.
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answered on Jun 24, 2006 at 06:47
by   JJCC
edited Feb 23, 2018 at 01:44
 
To answer your questions;

1. My friend is the ONLY CHILD (SON)

2. I am referring to DAD's siblings, they are already in their 50s & 60s, and there are 4 of them excluding DAD.

3. So far, my info is that DAD wants to transfer house title to SON. Lawyer fees plus stamp duties are about RM 11,000. These are very high. That's why I am curious if a WILL will suffice instead of going thru with the transfer.

4. If house belongs entirely to DAD, won't a WILL suffice? Unless DAD is NOT SOLE owner of house, right? Unless DAD owns house with his DAD's siblings, WILL will be invalid, right? Anyway, DAD's siblings NOT living in the house. Only DAD, SON, Daughter-in-law and grandchildren staying in the house.

Hope these give you a better understanding. Thanks...
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answered on Jun 24, 2006 at 06:57
by   JJCC
edited Feb 23, 2018 at 01:47
 
Sorry, addition to the last message:

1. DAD's siblings are not disabled or dependants on DAD.

2. If house belongs entirely to DAD, doesn't a WILL stating that DAD leaves the house entirely to ONLY CHILD (SON) enough? Is it ABSOLUTELY necessary to go thru a house title transfer?
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answered on Jun 24, 2006 at 07:57
by   NWSA
edited Feb 23, 2018 at 01:50
 
@TKLY,

What is peppercorn value eh? What is 'Nominal' token? What do you mean 'claw back'? Please put in easy and simple explanation. Please enlighten.

Thanks.
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answered on Jun 25, 2006 at 14:33
by   TKLY
edited Feb 23, 2018 at 01:53
 
First things first. If he is the only child where is Mama? Because she too will have an entitlement when the old man dies. If the son is bequeathed the house, what provisions would be made for Mama? She is entitled to claim from his estate for her living as well. What he may wish to do is to give her a life estate and the remainder to the son. Meaning that for her life she will be entitled to the use and occupation of the house but the legal title to the house will vest in the son.

Alternatively and the better approach for me is to transfer title now to him. In certain situations there may not be liability to pay stamp duty. Certain family not at arms length transactions do not attract stamp duty.

A Will can be challenged but not by the fathers siblings. They can sing hum and dance no chance unless they can prove debts against his estate. That's why it is best to transfer it now.

As for the other posters. The answers to your questions is .... more reading and more enlightenment.
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answered on Jan 30, 2018 at 18:50
by   RAC LW
Because after your Dad dies, you will have to appoint a lawyer get a court order to validate your dad's will and then get the same lawyer to execute the transfer! Both procedures involves legal fees. Despite there being a will, you will still need a lawyer to apply for a court order before any transfer is allowed. So why don't you do it now!
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