Land Search In Malaysia

Land search is one of the procedures that needs to be complied with when buying a property especially prior to the making of payment of deposit ie before signing the Sale and Purchase Agreement. It shall be noted that land search is governed under National Land Code 1965. Therefore, this article shall canvass further on the scope of land search in Malaysia for you to acknowledge the importance of it.

In this article, we shall discuss these following points:-

1. What is a land search

2. Who can conduct a land search

3. What information that you can obtain from a land search

4. Where do we do a land search

5. What is the importance of conducting a land search

6. How much does it cost to do a land search

7. How long does it takes for the land search to be done

1. What is land search

In general, a purchaser is entitled to have a land search to be conducted before the purchase price is paid. Furthermore, land search is categorized into two types, namely Private Land Search and Official Land Search. You may refer to the National Land Code 1965, Section 384 and 385 respectively. The only key difference between these two is when you conduct a private land search as compared to official land search, you will not get a certificate of an official land search which is provided with Land Registrar stamp and officer’s signature.

2. Who can conduct a land search

You may conduct the land search on your own at the respective Land Office/Land Registry. Besides that, you may also appoint a solicitor/lawyer to assist you on this matter. In order for you or your lawyer to do a land search, you must first contact with the Vendor’s Solicitor/lawyer and obtain particulars of the property that will allow it to be search and identified by the land office.

3. What information that you can obtain from a land search

Among the information that you can obtain from a land search are;

• Particulars of the title

• Title No.

• Lot No.

• District, Mukim & State

• Particulars of the Vendor/Owner

• Name & Identification No. (in order to verify that the property belongs to the owner)

• Status of the Title

• Status here is referring as to whether the property is a freehold or leasehold

• Charge

• It is important to check whether the said property is charged to a bank/financier.

• Caveat

• If the property is subjected to a caveat, you may ask your lawyer to remove the caveat. This is because, when there is a caveat attached to the property, it will prevent any dealings related to the property. On top of that, placing a caveat means securing someone’s interest in it.

4. Where do we do a land search

As for both types of land search; official and private, this application shall be done at the respective Land Office subjected to the location for the issuance of the title. For this reason you may want to double check with a lawyer or allow a lawyer to do the land search on your behalf so as to safe your time.

5. What is the importance of conducting a land search

First and foremost, the importance to conduct a land search is to ensure that there will be no obstacles in obtaining the land title for yourself. Nonetheless, there are other importance that will help you understand further on reasons of conducting a land search which are as follows:-

• To ascertain the status of the land and the registered proprietor. This is to make sure that the registered proprietor is the transferor/vendor. Nonetheless, in a case where the registered proprietor is the developer, it must be ensured that the developer is the registered proprietor as mentioned in the Sale and Purchase Agreement (SPA);

• To ascertain whether the land is subjected to any encumbrances or any forfeiture proceeding;

• To ascertain whether there are restrictions in interests which may affect the transfer of title to the purchaser. If there is a restriction in interest, the lawyer/solicitor must first obtain the consent from the relevant authority (ie State Authority) to transfer the property to the Purchaser. In another situation where the Strata Title has not yet to be issued, the Purchaser’s Solicitor may either insert a clause in the SPA that the Vendor/Owner has to apply consent from the relevant authority to transfer the property to the Purchaser or the Purchaser’s Solicitor may get a letter of undertaking from the Developer to apply to the State Authority for consent to transfer when the Strata Title is issued;

• Where the property is still subject to a charge, the purchaser’s solicitor should request for a bank statement from the vendor (redemption statement);

• To determine whether the land is subject to any caveat or prohibitory order; and

• To determine whether the land is subject to an acquisition by the government under the Land Acquisition Act;

Conducting a land search will enable the purchaser’s solicitor/lawyer to acquire as much knowledge as possible with regards to the land. Therefore, the solicitor/lawyer has to use reasonable care and skill in discharging his duty as a competent and prudent practitioner. This is because, the Purchaser’s Solicitor will be guilty of negligence if the Vendor’s representation that the Vendor is the registered owner or proprietor is untrue.

6. How much does it cost to do a land search

The cost to pay for the land search varies in every state, subjected to the official land office charges. The table below shows the price that the state charges and that has to be borne by the purchaser according to each State’s Land Office/Land Registry:-

Kuala Lumpur

RM30 (Private Land Search)

RM50 (Official Land Search)

Selangor

RM30 (Private Land Search)

RM50 (Official Land Search)

Perak

RM40 (Private Land Search)

RM80 (Official Land Search)

Pahang

RM50 (Private Land Search)

RM100 (Official Land Search)

Perlis 

RM20 (Private Land Search)

RM50 (Official Land Search)

Terengganu

RM10 (Private Land Search)

RM20 (Official Land Search)

Kelantan

RM40 (Private Land Search)

RM120 (Official Land Search)

Kedah

RM30 (Private Land Search)

RM75 (Official Land Search)

Johor

RM40 (Private Land Search)

RM120 (Official Land Search)

Melaka

RM30 (Private Land Search)

RM50 (Official Land Search)

Negeri Sembilan

RM20 (Private Land Search)

RM40 (Official Land Search)

Penang

RM30 (Private Land Search)

RM100 (Official Land Search)

7. How long does it takes for the land search to be done

This is actually depends on the Land Office/Land Registry itself. However, it can be estimated as follows:-

• Private Land Search : As minimum as 1 working day

• Official Land Search: As minimum as 7 working days