When Should a Tenancy Agreement Be Stamped

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    As a tenant, you may feel that getting a tenancy agreement is all that is needed to secure your tenancy, but have you ever given a thought to the stamping of your agreement? Stamp duty in Malaysia is a tax paid to the government for the legal recognition of your tenancy agreement. Stamping of tenancy agreements is mandatory in Malaysia by law. So, when should a tenancy agreement be stamped?

    A tenancy agreement must be stamped within thirty days after it is signed. Failure to stamp the agreement within this timeframe is a violation of the Stamp Act 1949. If you don`t follow the stipulated time frame, you may face legal consequences that involve hefty fines and penalties.

    The process of stamping a tenancy agreement is straightforward. You can either complete the stamping process yourself or engage a lawyer to handle the process on your behalf. In Malaysia, you can get your tenancy agreement stamped at any branch of the Inland Revenue Board (LHDN) or their authorized agent offices.

    What happens when you don`t stamp your tenancy agreement?

    When you fail to stamp your tenancy agreement, your agreement becomes “inadmissible as evidence in a court of law.” This means that you won`t be able to use your tenancy agreement as evidence in the event of a dispute with your landlord. It also means that you won`t be able to seek legal action against your landlord in the event of a breach of contract. Therefore, getting your agreement stamped is crucial to protect yourself as a tenant.

    It`s essential to note that the landlord is responsible for the cost of stamp duty. However, it`s not uncommon for landlords to shift the cost to their tenants. You should discuss who will bear the cost of stamp duty with your landlord before signing the tenancy agreement.

    In conclusion, a tenancy agreement should be stamped within thirty days after it is signed. If you don`t stamp your agreement within the stipulated timeframe, you may face legal consequences that involve hefty fines and penalties. Getting your agreement stamped is crucial to protect yourself as a tenant. It`s also essential to discuss who will bear the cost of stamp duty with your landlord before signing the tenancy agreement.