Transfer of Deceased Property in Malaysia
When a property owner passes away, the property does not automatically become registered in the name of the beneficiary. The deceased's estate must first be properly administered and the necessary probate, transmission and property transfer procedures completed. TEH & YU assists with both estate administration and the subsequent transfer of deceased estate property.
What Happens to Property When the Owner Dies?
Property registered in a deceased person's name forms part of the deceased's estate.
Even if the deceased left the property to a particular person in a Will, the beneficiary does not simply become the registered owner immediately upon death.
The appropriate estate authority must first be obtained. Depending on the circumstances, this may involve a Grant of Probate, Letters of Administration or another applicable estate administration process.
Further land or conveyancing procedures are then required to deal with the deceased's registered interest in the property.
A Common Example
A parent passes away and leaves a condominium to one of the children under a Will.
The child's name does not automatically replace the parent's name on the title.
The executor will generally first need to obtain the necessary probate authority and then attend to the transmission and transfer of the property.
From the Deceased Owner to the Beneficiary
Where an estate is administered through a Grant of Probate or Letters of Administration, dealing with titled property commonly involves several distinct stages.
Obtain Estate Authority
Obtain the appropriate Grant of Probate, Letters of Administration or other relevant estate order giving authority to administer the deceased's estate.
Transmission
The executor or administrator is registered in respect of the deceased's interest in the property as the personal representative of the estate.
Transfer or Other Dealing
The property may then be transferred to the appropriate beneficiary or otherwise dealt with as permitted by the Will, estate administration and applicable law.
What Is Transmission of Property?
Transmission is different from an ordinary sale or gift of property.
In the context of a deceased estate, transmission generally refers to the process by which the deceased's personal representative is registered in respect of the deceased's interest in the land.
The registration does not necessarily mean that the executor or administrator receives the property personally as a beneficiary.
Rather, the executor or administrator is registered in the capacity of personal representative so that the estate can be properly administered.
Transmission ≠ Final Distribution
This distinction is important.
Transmission places the property into the name of the executor or administrator in the capacity of representative of the estate.
A subsequent transfer or other dealing may then be necessary to put the property into the beneficiary's name or otherwise administer it.
What Do You Need Before the Property Can Be Transferred?
The first question is usually how the deceased's estate is being legally administered.
Grant of Probate
Generally relevant where the deceased left a valid Will and an executor is appointed to administer the estate.
Letters of Administration
Generally relevant where the deceased died without a valid Will or an administrator is otherwise required.
Small Estate Order
Some estates may be administered through the applicable small estate procedure, in which case the property registration route may differ.
Foreign Grant
If probate was obtained overseas, the foreign grant may first need to be resealed or another Malaysian estate procedure may be required.
General Process for Transferring a Deceased Property
The exact procedure depends on the estate, title and intended distribution, but a matter may generally involve the following.
Review the Estate and Property
We review the Will or intestacy position, the applicable grant or estate order and the documents relating to the property.
Obtain the Necessary Estate Authority
If this has not already been completed, the executor or administrator may first need to obtain the appropriate Grant of Probate, Letters of Administration or other estate authority.
Check the Property Title
The title, ownership share, restrictions in interest, existing charge and other relevant title particulars are reviewed before the land registration work proceeds.
Register the Personal Representative
Where applicable, the executor or administrator is registered in respect of the deceased's interest in the property as representative of the estate.
Prepare the Subsequent Transfer
If the property is to be distributed to a beneficiary, the necessary transfer documentation and supporting estate documents are prepared.
Attend to Relevant Consents and Requirements
Depending on the property, further requirements may include consent, redemption of an existing financing, taxation or stamping procedures and other land office requirements.
Register the Transfer
Once the applicable requirements have been satisfied, the transfer or other appropriate dealing is presented for registration.
What Can Happen to the Property After Probate?
The appropriate outcome depends on the Will, the beneficiaries, the estate liabilities and the circumstances of the administration.
What If the Deceased Owned Only a Share of the Property?
Many properties are registered in two or more names.
If the deceased owned an undivided share in the property, the estate generally concerns the deceased's registered share rather than automatically transferring ownership of the entire property.
The title should therefore be checked carefully to determine the deceased's registered interest and the appropriate estate and conveyancing steps.
What If the Property Still Has a Housing Loan?
The existence of a bank charge or outstanding financing does not remove the property from the estate.
However, the financing position must be considered together with the estate administration. Depending on the circumstances, this may involve communication with the financier, insurance or other repayment arrangements, redemption or refinancing.
The appropriate solution depends on the loan, estate and intended treatment of the property.
What If the Property Has No Individual or Strata Title Yet?
Not every property is held under a separate individual or strata title at the time of death.
For a property still held under a master title, the deceased's interest may instead be evidenced through the Sale and Purchase Agreement, assignment and related documentation.
The appropriate procedure may therefore differ from a property where a separate title has already been issued and registered in the deceased's name.
We Will First Check the Property Status
If you are unsure whether the property has a title, you can provide us with the deceased's Sale and Purchase Agreement, title documents or other available property papers.
We can then determine the appropriate conveyancing route.
Documents We May Need
- Death certificate
- Grant of Probate or Letters of Administration
- Will of the deceased, where applicable
- Property title or title particulars
- Previous Sale and Purchase Agreement
- Loan or charge information
- Identification documents of the executor or administrator
- Identification documents of the beneficiary
- Relevant estate or distribution documents
Already Obtained Probate?
If the Grant of Probate or Letters of Administration has already been obtained, you do not necessarily need to start the estate process again.
Send us a copy of the Grant together with the available property documents. We can review what remains to be done to deal with the deceased's property.
This may involve transmission, subsequent transfer, consent, discharge or redemption of financing, or another property registration procedure depending on the circumstances.
Probate and Conveyancing Under One Firm
A deceased property matter commonly involves both estate administration and property law. TEH & YU practises in both areas.
Grant of Probate
High Court probate applications where the deceased left a valid Will and appointed an executor.
Letters of Administration
Estate administration applications where the deceased died without a valid Will or an administrator is required.
Transmission
Property registration work involving the executor or administrator as personal representative of the estate.
Transfer of Property
Subsequent transfer, registration and related conveyancing work for estate property where appropriate.
Related Estate & Property Services
Frequently Asked Questions
Can I transfer my deceased parent's house directly into my name?
Generally, the deceased's estate must first be properly administered. The appropriate estate authority must be obtained and the necessary transmission and property registration procedures completed before the property can be registered in the appropriate beneficiary's name.
Does a property automatically pass to the beneficiary named in a Will?
No. A Will determines how the deceased intended the estate to be distributed, but it does not by itself change the registered ownership shown on the property title.
What is the difference between transmission and transfer?
Transmission generally refers to registration of the executor or administrator in the capacity of personal representative of the deceased's estate. A subsequent transfer may then place the property into the name of the beneficiary or otherwise complete the intended dealing.
Can the executor sell the deceased's property?
Whether an estate property can or should be sold depends on the terms of the Will, the powers and duties of the personal representative, estate liabilities, beneficiaries and the circumstances of the administration. The particular estate should be reviewed before a sale is entered into.
What if the property is jointly owned?
The deceased's registered share or interest must be identified from the title. The estate administration generally concerns that deceased person's interest rather than automatically transferring the other co-owner's share.
What if there is still a bank loan on the property?
The outstanding financing and registered charge must be considered as part of the estate and conveyancing process. The appropriate steps will depend on the financing, insurance position and intended treatment of the property.
What if the property does not have a strata title yet?
The procedure may differ where the property remains under a master title and the deceased's ownership is documented through an agreement and assignment rather than a registered individual or strata title. The property documents should first be reviewed.
I already have the Grant of Probate. Can you just handle the property?
Yes. If the relevant estate grant has already been obtained, you may provide us with the Grant and available property documents so that we can review the outstanding transmission and conveyancing work.
Can TEH & YU handle both probate and the property transfer?
Yes. Our practice covers probate and estate administration as well as conveyancing and property matters. Depending on the estate, we can assist from the probate or administration application through to the subsequent property-related work.
Need to Deal With a Property After a Family Member's Death?
Send us brief details of the deceased, whether a Will exists, whether a Grant has already been obtained and the available property documents. We can identify the estate and conveyancing steps required to deal with the property.