Malaysia Land Chapter 1: Classification of Land title and Land usage

Chapter 1: Classification of Land title and Land usage

As we all know, there are two type of land title which is Freehold and Leasehold.

The common land title in Malaysia is:
a) Town lease (TL) – Generally the land classified within town area. Leases are to be 99, 60 or 30 years.

b) Country lease (CL), also know as mixed zone – Land classified outside town area. Leases are to be freehold, 999, 99 or 60 years.

c) Native title (NT) – Land classified for native own and is perpetual in basis. Their practical bankable value for financing purposes are lower than other form of leases due to their restriction of dealing limited between natives.

d) Malay Reserve – Land classified for Malay own and is perpetual in basis, their practical bankable value is as what NT is.

e) Field Register (FR) – Land classified under NT. It is a temporary title which land office has yet to issue the final title.

f) Provisonal Lease (PL) – Provisional title issue during the time of Her Majesty. Any land with PL are to be recommended to be re-surveyor prior to development and normally converted into CL.

g) Temporary Occupation Lease (TOL) – As stated, it is a lease granted by state goverment to lease the land to you for certain amount of years with certain amount of annual rent.

All of the above land title contains such information:

a) Land type (TL, CL, NT, etc)
b) Title number
c) The date that this title is register and expires
d) Annual rent
e) Special terms if any
f) Land size and site plan
g) Owners name

Generally, land are being categorised for usage as below before the title was issued.

a) Agricultural
Falls into the title of Native Title, Malay Reserve, Country Lease and Provisional Lease. Generally agricultural usage is the major category.

b) Residential
Falls into Malay Reserve, Country Lease and Town Lease. This has higher bankable value than agricultural but less than both below.

c) Commercial
Falls into Country Lease and Town Lease.

d) Industrial
Falls into Country Lease and Town Lease.

e) Others
Usage such as extraction of timber, sand, rock, minerals etc. Falls into Temporary Occupation Lease.

Author: Edyek

Disclaimer: The article above is solely for reference purpose and any legal issue please consult a lawyer for proper legal advices.