Sunday, March 21, 2010

Stamping Your Tenancy Agreement

After you have signed the tenancy agreement, you need to get it stamped. The tenant pays for this. Usually, I have got the lawyers, the real estate agent or sometimes, the tenant themselves to get the document stamped. So years of getting people to do things for me has made me ignorant of this process until now.
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Suddenly, I have found myself in the stamping office last week. It is basically the Inland Revenue Board's office - same place where we submit our income tax before the online format is used. Like all government departments, there is a queue and you need to be there during designated times. I was extremely lucky that I got there 10 minutes before they closed for lunch at 12.30pm. If I missed that, I would have to go back at 2.30pm. 2 hour lunch time??
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Fortunately the queue moved very quickly. First one has to fill in a form. All the details required are in the tenancy agreement. After submitting the form at the counter, one has to pay the stamping fees which is computed as follows:
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1. Monthly rental minus 200
2. Multiply by the number of months rental
3. Divide by 250
4. Add RM10 for the duplicate
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So, if you are renting your place for RM2000 over 1 year, the stamp fees is as follows:
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1. RM2000 - 200 = 1800
2. RM1800 x 12 = 21,600
3. RM21,600/250 = 86.40
4. RM86.40 + RM10 (1 copy) = RM96.40
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Apparently they round the figure up to the nearest Ringgit which explains why I never got any coins change back.
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Immediately after the stamping fee is paid, the document is passed into a window beside it. There a lady checks the document and passes it to a guy who operates a stamping machine. He runs your documents through the machine and voila.... it is stamped!
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The whole episode was over in less than 15minutes. Only after the tenancy agreement has been stamped, it becomes a legal document.

24 comments:

Anonymous said...

Hi,

Can you hire or ask somebody to submit the tenancy agreement for stamping on behalf of you? Because sometime you maybe very busy and you have to ask or pay for someone to do it for you.

btw do you included some strict clause like if the tenant change his or her mind to move out within one year contract, he or she will have to pay for the compensation something like that. I was thinking the pro and con of this clause. It may scare away some tenant....

sinleong said...

u can find the answers right here in this blog ;)

Anonymous said...

Yes yes,miss see it lol..... btw how much normally did an agent charge you to stamping the tenancy agreement for you?

I have ask an agent today, he told me that i should use his tenancy agreement template and he only charge me for rm50 together with the stamping service as well....

sinleong said...

if agent do for you supposed to be free cos u already pay him his commission

Anonymous said...

Hi, just posted a comment in your ss15 blog.

Anonymous said...

I have a question, if your tenant is below 18 years old. He or she is a foreigner student. How did you get his or her parent signature in tenancy agreement? Coz in malaysia only those who r above 18 years old only allow to sign the tenancy agreement.....ask their lecturer to sign for them?(just joking)

sinleong said...

get their parents to sign la

Anonymous said...

Hi, just posted a comment in your ss15 blog.

Anonymous said...

Do you know how much legal fees and stamp duty shall we pay if we bought a property at the price rm330k?

KH Lin said...

Like your blog alot
Just want to know, normally if you let the rooms separately to different tenants, do you prepare separate tenancy agreement?
Just wondering if such tenancy agreement exists.

sinleong said...

yes, that's right... one agreement for each room tenant. of course, the agreements are much more simple. you just need to cover the main details about the deposit, when rent is payable to which account, termination conditions and what happens if rent is not paid on time.

KH Lin said...

Thanks for the reply.
Can we include in the agreement that it is compulsory for all tenants to share the monthly utility bill equally without any dispute?
Does the agreement covers mishandling of furniture/ electrical appliances in common area such as living hall, toilet or kitchen? Appreciate your comment.

sinleong said...

you are the landlord, u can put whatever u want in the contract. but whether u can follow it through is another issue. choose a lead tenant and give him or her a RM50 to RM100 discount off rent to handle the bill collection for u. also, it might be worthwhile to install meters in the rooms so u can divide the usage accordingly

sinleong said...

dont worry so much about your furniture.. but expect wear and tear. i experienced that expat tenants will trash your furniture just as much as students. so make sure you choose hardy materials which is robust and also easy to replace. but if you treat your tenants well, they will more likely take care of your property for you

KH Lin said...

Thanks for all the suggestions. Actually I'm not too worry about the furniture. My concern is the electric bill as each room has aircond.

I heard installing separate meter could be costly (few thousands???), though it is useful in long term. Im trying to see if there is any cheaper alternative to this option.

Might consider giving discount to the lead tenant. Hopefully he/she is a reliable person to carry out the duty accordingly. Else, would be headache ;)

sinleong said...

not high thousands la..,, a 4 room unit maybe total about RM1200. thats good investmnt considering electric bill an go up to RM800 for 4 aircons

KH Lin said...

oh.. that's average RM300 per room. Can the tenant mess around with the meter after installed? You have any recommended contractor?

sinleong said...

yup, i can recommend a contractor for you - gimme a call 0192220262. and it costs them too much money to tamper with the meter to make it worthwhile doing.

KH Lin said...

TQVM for the offer! Will keep your num! At the moment, still undecided... and the vacant apartment still messy and need to be clean first, before putting up rental ad... lotsa homework to be done. Very excited here :D

Maybe in future, we can start up a private club for landlords to meet up for teh tarik session

KH Lin said...

Hi... it's me again :)
Want to ask:
1. how many copy of tenancy agreement normally do we need to submit for stamping? is it 2? one for landlord, one for tenant?

2. if 2 copies, is the stamping cost just add another RM10? based on your sample calculation above:
RM86.40 + RM10 (1 copy) = RM96.40
RM86.40 + RM20 (2 copies) = RM106.40

3. will the officer read the agreement or they just stamp without looking the details in the agreement?

Thanks...

sinleong said...

hi,
1. yes, 2
2. something like that...
3, they look at the contract value

KH Lin said...

Sin Leong,
If we have a tenancy agreement sample, can we print it out ourselves, get the tenant to sign and get it stamped, without going thru lawyer? Because lawyer charges few hundred legal fees to handle the tenancy agreement process.

If can get everything done without lawyer, who can become the "witness" for the signatories? Because the agreement has the the clause "in presence of", which requires witness for tenant and landlord. Can the witness be the same or different persons for both the tenant and landlord?

Thx!

sinleong said...

yes u can..i think i have a draft somewhere in this blog. the witness is not compulsory but u can get anyone to be it

Yau Guan Leong said...

Hi..Good Day..

May I know where can i get the Tenancy Agreement stamped in PJ or Shah Alam? Appreciate if you could provide me with the address..TQ very much!