What is Memorandum of Transfer (MOT)?

 

Hi again, my friend, 

Happy month of March!

Well, whether you are a first-time property buyer, seasonal buyer or professional investor, you will come across the term Memorandum of Transfer or fondly known as MOT. 

What exactly is MOT?

....and 

why do you need it?

The MOT is a legal document (Form 14A) that certifies the official transfer of real estate ownership from the seller to the buyer. It contains the particulars of both parties and the land title details. The MOT is signed by both parties and stamped by the land authorities.

The MOT is required when the property has an individual or strata title issued. If the property is still under construction or does not have a title yet, a Deed of Assignment (DOA) is used instead to transfer the beneficial interest of the property.

The buyer is responsible for paying the cost of the MOT, which includes legal fees, stamp duty, disbursement fees, and sales and service tax. The stamp duty rate for MOT depends on the value of the property and ranges from 1% to 4%.

The MOT is one of the most important documents in property purchase as it confirms your legal ownership of the property. Without it, you may face difficulties in selling, renting, or refinancing your property in the future.

Hope you find this post informative and helpful to you.

Happy selling or hunting a place you call home!

Signing off for now, 

Ashlin REN01427