What is the difference between a freehold title and a leasehold title?
A freehold title enables the owner to hold the property forever. On the other hand, the owner of a leasehold title can only hold the property for a fixed period of time (usually 99 years from the date of the state government issued the title to the first owner) and upon the expiry of leasehold tenure, the property is required to be surrendered to the state government if the owners does not apply to the state government to renew the leasehold tenure of the property.
What are “category of land use / kategori tanah”, “express condition / syarat nyata” and “restriction in interest / sekatan kepentingan” found in a title or title search?
Category of land use / kategori tanah – type of usage of the land and there are only 3 categories of land use in Malaysia, i.e. agriculture, industry and building.
Express condition / syarat nyata – it specifies the condition imposed by the state government as to the nature of usage of the land. For example, if the category of land use is “building” and the express condition specifies that the land can only be used for residential purpose, it means that only the residential building like landed property or condominium can be built on the land.
Restriction in interest / sekatan kepentingan – this part will usually specify the restriction as to any dealings involving the land, e.g. the land cannot be transferred without obtaining the state government’s consent to transfer.
What are the typical consents / approvals required from the relevant authorities in transferring a property?
The typical consents / approvals are as follows:
- State government’s consent to transfer due to the restriction in interest endorsed in the title, i.e. the owner cannot transfer to any third party without the state government’s consent to transfer.
- State government’s consent to transfer due to the acquisition of property by foreigner (individual or company).
- Economic Planning Unit’s approval to transfer pursuant to the Guideline on the Acquisition of Properties.
What is the difference between individual title, master title and strata title?
An individual title is the title for a piece of land and it is usually issued for landed properties. A master title is akin to an individual title but it is a title issued for the land where high-rise building or mixed-used development is built on. A strata title is the title issued on a subdivided parcel within a high-rise building.
What is the difference between a private land title search and an official land title search?
A private land title search is usually conducted to verify the details and ownership of a property whereas an official land title search is a title search certified as true by the land registrar or land administrator and an official land title search is typically required for any official dealings with the land office.
How to conduct a land title search?
A land title search can be conducted over the counter at the relevant land office. However, the land title details are required for the purposes of conducting a land title search. Similar to the types of title, a title search can be conducted on individual title, master title and strata title.
Can a land title search be conducted based on the address of a property?
Yes, a land title search may be conducted based on the address of a property. Firstly, the applicant is required to extract the assessment bill of the property based on the address and thereafter conduct a land title search based on the land title particulars of the property stated in the assessment bill.
How much is the legal fee for a sale and purchase agreement or loan agreement?
The rates of legal fee are the same for a sale and purchase agreement and loan agreement and the rates are as follows:
|Consideration/ adjudicated value/ loan amount
||Scale of Fees
||1.0% (subject to minimum fee of RM500)
|In excess of RM7,500,000
||Negotiable on the excess but shall not exceed 0.5%
How much is the stamp duty payable on the memorandum of transfer to transfer the property?
|Purchase Price / Market Value (whichever is higher)
|From RM100,000 to RM500,000
|From RM500,000 to RM1,000,000
|In excess of RM1,000,000
How much is the stamp duty payable on the loan agreement?
0.5% of the loan amount.