Malaysia Land Chapter 4: Summary of Conditions and Restrictions

Chapter 4: Summary of Conditions and Restrictions

Normally in land dealings, there are things that we need to be aware of, that is its conditions and restrictions that is attached to the land title. So an official search at the land office will give us accurate information about its conditions and restrictions.

Below are some examples:
a) Agriculture restrictive convenant (taken from real title sample)

Normally on agriculture land, the land are given covenant to cultivate agricultural crop of economic value. (coconut, padi, oil palm, rubber etc.)

Transfer, sublease and subdivision of this title is prohibited without the written permission of the Director.

b) Building convenant (taken from real title sample)

Normally on land title which is alienated for residential, commercial or industrial usage will be require to erect house, commercial shoplot or industrial building. The owner have to complete the say buildings within certain time frame, then only with the completion of the building, the land is transfer-able and sublease-able.

Subdivision of the title is prohibited without the written permission of the Pengarah Tanah dan Ukur.

So, in order for you to buy land, it would be incumbent for the land owner to ensure that the transfer of ownership can be done. In order to do this, the owner has to fulfill the restriction or conditions in the land title (e.g. Planting rubber trees) then he can obtain permission from the Pengarah Tanah dan Ukur. If the restriction or conditions is not fulfill (the land still full of jungle), he also can obtain permission from the Pengarah Tanah dan Ukur to transfer the title to you but with a penalty (it can be bear by the owner or by you).
If the convenants or conditions is not fulfill and expired (e.g. To complete a unit of industrial building before year 2001), the land owner needs to write in to the land office to ask for extension of the time for fulfillment and a premium will be charge.

Tips : If conditions and restrictions is not fulfill by the land owner, you as a buyer can bargain for a lower price due to the penalty needed to be paid for transfer and premium for extension of conditions and restrictions

Author: Edyek

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