Malaysian land title system operates under three distinct land codes: the National Land Code (NLC) for Peninsular Malaysia and Labuan, the Sarawak Land Code/Ordinance for Sarawak, and the Sabah Land Ordinance for Sabah.
These land codes outline specific regulations and procedures for land ownership and registration, resulting in different types of land titles across the country.
This article aims to provide a comprehensive and well-presented overview of Malaysia’s land titles, explaining key terminology and processes to facilitate a more profound understanding for both residents and foreigners.
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1. Type of Land Titles Tenure |
1. Types of Land Title Tenure
i. Freehold/Perpetuity
Freehold land titles in Malaysia grant perpetual ownership rights to the land, with no time limit on ownership, as long as the owner pays the required quit rent.
This offers long-term security and complete control over the property.
ii. Leasehold
Leasehold land titles, in contrast, come with a maximum time limit of up to 99 years.
In such cases, the land is leased or rented from the government, and upon lease expiration, the land typically reverts to the state unless the owner applies for lease renewal.
2. Types of Land Titles
i. Qualified Title (Hakmilik Sementara)
A qualified title is issued before a final title and is considered provisional. It cannot be subdivided, partitioned, or amalgamated.
However, the proprietor of a qualified title has the authority to lease, charge, or transfer the land.
Eligible titles are divided into two types:
- Hakmilik Sementara Pendaftar (H.S. (D)), registered in the State Land Office
- Hakmilik Sementara Pejabat Tanah (H.S. (M)), registered in the District Land Office for “Country Land” or smaller parcels.
ii. Final Title (Geran)
A final title is issued after a survey conducted by the state authority.
The type of final title given depends on the land’s classification.
Geran and Geran Mukim are designated for freehold land, while Pajakan Negeri and Pajakan Mukim are for leasehold land.
These titles are registered either with the State Land Office or the District Land Office, corresponding to the qualified title category.
3. Significance of Final Title
- Certifies ownership of the property.
- Essential for conducting any land-related transactions.
- Contains a detailed record of all trades for easy reference by the owner.
4. Master Title
A master title refers to the land title held by a developer for a specific project before it is divided into individual titles for purchasers.
The developer retains the master title until a strata title or specific land titles are issued to the property parcels.
5. Strata Title
A strata title is issued for each building or land parcel, signifying ownership rights. Once issued, the developer notifies the respective lawyers to initiate the transfer process to the purchasers.
Strata Title is not limited to buildings; it can also apply to landed properties within gated and guarded housing projects with shared facilities.
6. Deed of Assignment
When a landowner does not possess a land title, a deed of assignment transfers land interest to another party. This enables landowners to convey land even without a title, typically accompanied by a power of attorney granting authority to act on behalf of the owner.
7. Categories of Land Use
All alienated lands in Malaysia fall into three categories: agriculture, building, and industry. Landowners must adhere to the specific category of land use stated in their title and comply with any express conditions.
Applications to change the land use type can be made to the State Authority, subject to additional premiums and approval.
Conclusion
Understanding Malaysia’s land titles is crucial for residents and foreigners seeking to navigate the land ownership system effectively.
By familiarizing oneself with freehold and leasehold titles, qualified and final titles, master and strata titles, and land-use categories, individuals can ensure compliance with legal requirements and make informed decisions regarding land transactions and management.
This comprehensive guide aims to clarify and promote a deeper understanding of Malaysia’s land title system.
This article was written by Clement Sim.
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