Leasehold/Freehold

Land Status

All properties should have a Document of Title as proof of ownership. Generally, all Titles fall under two categories, namely either freehold or leasehold.

What is Freehold property?

• You own the property and gives the owner perpetual ownership.

What is Leasehold property?

• You own the property for only a certain period. Once the lease has expired, you have to renew it, otherwise the ownership will revert to the State Authority.

Restriction of Interest in the Document of Title

Some land is subject to certain limitations of interest in the Document of Title.

These limitations could be found on land which:

• Require State consent or/and Executive Committee Board consent; commonly found in leasehold properties
• Require Ruler of the State in Council approval for Malay Reserved Land
• Are classified as Customary Land in Malacca and Negeri Sembilan
• Are held by natives in Sabah and Sarawak

Buying from Owner/Developer

Before deciding to buy a house from a developer, it is essential to ensure the track record of the developer. the developer should be capable to complete the construction of the property according to the schedule stipulated in your Sale and Purchase Agreement.

Here are some questions to assist you:

• Is the developer a reputable company with a proven track record? - experience, quality of their product, timely completion of project
• Is the developer financially strong and capable of completing the project?
• Is the company registered with REHDA Malaysia? ( Real Estate and Housing Developers' Association - www.rehda.com )

Buying From Individuals (Sub-sale)

If you are buying a property from individuals, it is important to ensure that the owner is the owner of the property. You can obtain all relevant information on the property by conducting a search on the property at the relevant land office/Registry and get confirmation of the registered owner and as to whether the said property has any encumbrances.