Selling a Property You Inherited in Malaysia: RPGT, Consent of Executor, and Probate Steps
Edited by Teh Kim Guan, ACMA, CGMA · Updated 2026-06-24
Selling a property you inherited in Malaysia requires two things before any sale can proceed: the legal authority to sell (obtained through the probate or letters of administration process) and an understanding of how Real Property Gains Tax (RPGT) is calculated from the date the original owner died, not the date you inherited.
This guide walks you through every step, from the court application to the LHDN tax filing, so you know what to expect and how to avoid costly mistakes.
Key takeaways
- Malaysia has no inheritance tax, but RPGT still applies when you eventually sell the inherited property.
- The RPGT acquisition date is the date of the deceased’s death, not the date of the transfer to you.
- If the deceased died more than five years ago, a Malaysian citizen selling the property owes 0% RPGT.
- You cannot sell inherited property until the estate is legally administered: either through a Grant of Probate (if there is a will) or Letters of Administration (if there is no will).
- The stamp duty for transferring property from an estate to a beneficiary is a nominal RM10.
- From January 2025, RPGT returns must be filed via the e-CKHT portal on MyTax (online filing is mandatory).
Step 1: Establish your legal authority to sell
Before a buyer, a lawyer, or the land registry will deal with you, you must hold a court-issued document proving you have authority over the estate.
If the deceased left a valid will
The executor named in the will applies to the Malaysian High Court for a Grant of Probate. This document grants the executor formal legal authority to administer the estate, including the right to sell or transfer property.
Timeline: typically three to six months, depending on court workload and whether the estate is contested.
If there was no will (intestate)
The family applies for Letters of Administration from the High Court. Any eligible next-of-kin (spouse, adult child, parent) can apply, but they must provide a surety bond. Alternatively, the estate can be referred to Amanah Raya Berhad (ARB), the government-linked estate administrator, which handles smaller or uncomplicated intestate estates.
Timeline: generally six to twelve months, sometimes longer if there are disputes over who should administer.
Why this matters for the sale
You cannot sign a Sale and Purchase Agreement (SPA), transfer title at the land office, or collect sale proceeds on behalf of the estate until one of these documents is in hand. A buyer’s lawyer will require a copy before proceeding.
Step 2: Transfer the property title (or sell directly from the estate)
Once you have the Grant of Probate or Letters of Administration, there are two practical routes.
| Route | What happens | When to use it |
|---|---|---|
| Transfer to beneficiary first, then sell | Title is transferred to the heir under a Memorandum of Transfer (MOT); beneficiary then sells as registered owner | Multiple heirs who want to hold the property, or where the beneficiary plans to keep it for some time |
| Executor sells directly | Executor sells on behalf of the estate; proceeds distributed to beneficiaries after sale | Faster process; avoids a double transfer; common when all heirs agree to sell immediately |
The stamp duty on the transfer of property from a deceased estate to a beneficiary (under an MOT) is RM10, regardless of property value. This concession is specific to estate transfers, not to a subsequent sale.
Step 3: Understand your RPGT position
The acquisition date rule
This is the most important RPGT concept for inherited property. Under the RPGT Act 1976 (Act 169), LHDN treats the executor’s acquisition date as the date of the deceased’s death.
So if your mother bought a house in 2010 and passed away in 2018, your RPGT holding period started in 2018, not 2010.
RPGT rates for Malaysian citizens (effective from 1 January 2022)
| Holding period from acquisition date | RPGT rate (Malaysian citizens and permanent residents) |
|---|---|
| Up to 3 years | 30% |
| More than 3 years, up to 4 years | 20% |
| More than 4 years, up to 5 years | 15% |
| More than 5 years | 0% |
Source: LHDN RPGT Rates schedule, effective 1 January 2022.
For companies, the rate remains 10% even after five years. For non-citizens and non-permanent residents, the rate stays at 30% for the first five years and drops to 10% thereafter.
Practical example
Scenario: Your father passed away on 1 March 2019. You inherited his Petaling Jaya semi-detached house. You sell in July 2026.
- Acquisition date (RPGT): 1 March 2019
- Disposal date: July 2026
- Holding period: more than 5 years
- RPGT payable: 0% (Malaysian citizen)
The once-in-a-lifetime RPGT exemption
Malaysian citizens are also entitled to one lifetime exemption from RPGT on the gain from selling a residential property. This exemption applies per individual, and it can be used on an inherited property sale. If you have already used this exemption on a previous property sale, it is no longer available.
To claim the exemption, indicate it on the RPGT return form. You can only claim it once across your entire lifetime.
Step 4: File the RPGT return forms
Even if your RPGT rate is 0%, you must still file the required LHDN forms within 60 days of the date of disposal (date the SPA is executed). Failure to file on time incurs a penalty.
From 1 January 2025, all RPGT returns must be submitted online via the e-CKHT portal on MyTax at mytax.hasil.gov.my. Paper submission is no longer accepted for disposals made from 2024 onwards (LHDN, 2025).
Forms involved in an inherited property sale
| Form | Who signs it | Purpose |
|---|---|---|
| Borang CKHT 1A | Executor or administrator | Declares the estate transfer; exempts the executor from RPGT on the devolution itself (the transfer from deceased to estate is not a taxable disposal) |
| Borang CKHT 2A | Acquirer (buyer) | Buyer’s RPGT return |
| Borang CKHT 3 | Executor or administrator | Consent to transfer property to beneficiary; also used when executor is the disposer on behalf of the estate |
The key principle: the devolution of property from a deceased person to the executor is itself not a taxable event. RPGT is only triggered when the executor or beneficiary later sells the property to a third party.
The 2% retention sum rule
The buyer is required to retain 2% of the purchase price from the payment to the seller and remit it to LHDN within 60 days. This acts as a withholding mechanism. If your final RPGT liability is lower than the retained sum (for example, 0% after five years), you apply to LHDN for a refund of the retained amount.
Step 5: Settle outstanding property obligations
Before the sale can complete, clear the following from the estate:
- Quit rent (cukai tanah): check for any arrears with the relevant state land office.
- Assessment tax (cukai pintu): check with the local council (majlis perbandaran) for any outstanding balance.
- Utility bills: settle any outstanding TNB, Syabas/Air Selangor, or gas accounts that are in the deceased’s name.
- Strata management fees (if applicable): confirm no arrears with the joint management body or management corporation.
Buyers’ lawyers will conduct due diligence searches; unpaid charges will surface and delay the sale.
How long does the whole process take?
A realistic timeline from death to completed sale, where all parties cooperate:
| Stage | Approximate time |
|---|---|
| Applying for and obtaining Grant of Probate / Letters of Administration | 3 to 12 months |
| Engaging an agent, marketing, negotiating | 1 to 3 months |
| SPA execution to vacant possession | 3 to 6 months (standard SPA period) |
| LHDN RPGT filing and refund (if applicable) | 1 to 3 months after filing |
Total: expect 8 to 24 months from the date of death to cash in hand, depending on estate complexity and market conditions.
Common mistakes to avoid
Signing a letter of offer before probate is granted. An offer signed by a beneficiary who does not yet have legal authority is unenforceable and can expose you to a claim for breach of contract if the probate process is delayed.
Using the wrong acquisition date. Some sellers mistakenly calculate RPGT from the date of the Memorandum of Transfer to them, rather than the date of the deceased’s death. LHDN uses the death date.
Missing the 60-day filing deadline. Even at 0% RPGT, the return must be filed. Late filing attracts a penalty under Section 29A of the RPGT Act.
Skipping the estate transfer stamp duty (RM10). The RM10 stamp duty must be paid and the instrument adjudicated at LHDN before the title can be registered at the land office.
Frequently asked questions
Q: Do I pay RPGT twice, once on the transfer to me and again when I sell? No. The transfer from the deceased estate to the beneficiary is not a taxable disposal under the RPGT Act 1976. RPGT is only payable once: when you sell the property to a third party.
Q: What if there are multiple heirs and we cannot agree on whether to sell? If heirs who hold joint title cannot agree, any co-owner may apply to the High Court for an order for sale under Section 145 of the National Land Code. The court can order the property to be sold and proceeds divided proportionally. This is a last resort and can be costly and slow.
Q: Can I sell an inherited property that is still under a home loan (the deceased’s mortgage)? Yes, but the outstanding loan balance must be settled from the sale proceeds before the title can be transferred to the buyer free of encumbrance. The estate lawyer and the bank will coordinate the redemption process. Check whether the deceased had a MRTA (Mortgage Reducing Term Assurance) policy, which may settle the balance automatically on death.
Q: Is there a difference between a will and no will for RPGT purposes? No. LHDN applies the same RPGT acquisition date rule (date of death) regardless of whether there is a will. The probate pathway affects how long it takes to gain legal authority to sell, not how RPGT is calculated.
Q: What if the property was bought by the deceased before 1 January 2000? Properties acquired before 1 January 2000 are treated under RPGT as having a notional acquisition date of 1 January 2000 for the purpose of calculating the base cost. This is relevant when computing the chargeable gain. Check with an LHDN-registered tax agent for the specific computation in this scenario.
Where to get help
- LHDN (Hasil): RPGT forms, rates, and exemptions at hasil.gov.my
- MyTax e-CKHT portal: mytax.hasil.gov.my for mandatory online filing from 2025
- Amanah Raya Berhad (ARB): estate administration for intestate cases or where no executor is available at arb.com.my
- Your state land office (Pejabat Tanah): for title searches, quit rent arrears, and consent to transfer applications
For more on property ownership costs and rights, see our guides on property selling and owning and stamp duty when buying a house in Malaysia.
Malaysia-based chartered management accountant (ACMA, CGMA) and embedded executive who has worked across finance, operations, and product roles with Malaysian companies. Every WangWise guide is checked against official Malaysian sources. How we review · About the editor
Educational content only, not financial advice. Verify current figures with official sources.