Picture this, it’s time for you to hit that all important milestone: finally owning a house. You’re getting ready to sign all the necessary documents, trying to make sense of the huge heap of papers in front of you, when you stumble across the term MoT. Well, for your information, the meaning of MoT is Memorandum of Transfer.

MoT is basically a document that indicates the property is yours, and it is used to transfer ownership of the house from the developer to you, or in the case of secondary market purchases, transfer ownership of the house from the seller to you.

In some cases, when purchasing from a developer, the MoT may not be issued at the time of purchase because properties which are still under construction may not have had their titles issued yet. However, fret not, as the developer will contact you to sign the MoT once the title is issued.

MoT in property transfer

Of course, there are situations which do not involve a buyer and a seller as well. Let’s take transfers of property between family members as an example.

Family transfers of ownership are different. Specifically, parents to children or spouses.

There is a consideration stated in the MoT for this particular type of transfer, called “love and affection”. This consideration only applies when the transfer is from parent to children, vice versa, or from spouse to spouse. The MoT must still be adjudicated and stamped in these cases.

The MoT breakdown

Malaysiahousingloan.com explained it pretty well, so we’ll be using these scenarios and examples to better visualize the process of property transfer where MoT is involved.

Congratulations, you now know the basics! The details in this article are basically all you need to know about Memorandum of Transfer (MoT). Now you’re well on your way to owning your very own home!

Article & infographics contributed by Property Advisor.