Many of us are confused with the land titles that we have in Malaysia probably because there is too many. Worry no more because the types and the description of the land titles will be discussed briefly in this article.
It’s a property acquired under a lease/a tenure under a lease. Leasehold tenures in Malaysia usually last for 30, 60, 99 or in some cases, 999 years. If the lease ended or expired, the land ownership goes back to the State authority. However, a tenure can extend the leasehold by applying new renewal, but one has to pay an amount of money depending on the type of property such as commercial, residential, etc.
When a plot of land is given by the authority to an individual, it will become freehold property. Developers purchased the land to build freehold bungalows, private housing such as villas and condominium. Freehold owners have unlimited rights to subdivide and allocate the land. Nevertheless, State government can claim the land if it’s for economic development or public purposes such as building the train station.
This title is reserved for Bumiputera only as it is in line with the government’s economic policies. Apparently, it is open for sale or leases only to Bumiputera. Owner of Bumi can transfer ownership to another Bumis. But, if they want to move the ownership to non-Bumi it will be a lot harder due to the long process which might take up to years.
Moreover, it is not encouraged for investment purposes because the future capital is low and also has limited potential buyers. Note that not all Bumiputera wants to buy or rent from Bumiputera reserve.
As for the master title, the developer is the landowner. The landowner also has the rights to control all transactions concerning the land, including to sell it. As the developer owns the land, according to the government’s rules, the ownership of land to the house owner will be approved in 6 months. Before the existence of Strata and Individual title, the developer is the landholder in Master title.
The one who purchases this property is the landowner. It is applicable mostly to condominiums, apartments, flats, etc. As for a condominium or other high-rise residential properties, the buyer owns a stake in the condo by way of the unit, but the developer still owns the land. In this case, the developer will distribute the ownership via Strata Title.
It is allocated to each landed property unit such as bungalows, terrace, semi-D, etc. If one has a land on their own, usually the land itself belongs to the house owner. Landholders are the owner of the landed property. It is known as an individual title. All the landed property like terrace house, bungalow, semi-D, etc. will have separate landholders.