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Guide for Foreign Property Investor in Malaysia<br />

Property Terminology of Malaysia<br />

Properties in Malaysia can be:<br />

1. Freehold Properties - land ownership<br />

held in perpetuity<br />

2. Leasehold Properties – land owned by<br />

State Government for a term of usually<br />

of 99 years. Renewal of leases is usually<br />

accepted with payment of premium to<br />

the State Government.<br />

Property Titles:<br />

Property ‘title’ usually refers to property<br />

ownership rights. Malaysia operates<br />

under the ‘ Torrens Titl e System" of land<br />

registration, which is common amongst<br />

most Commonwealth Nations.<br />

In Malaysia, one typically needs to be<br />

aware of three types of titles: Master<br />

Title, Strata Title, and Individual Title.<br />

A Master Title usually refers to the<br />

‘top-level’ title held by a property<br />

developer, which a ords the<br />

developer full control and rights<br />

over the land they own. Typically<br />

you’ll nd references to the Master<br />

Title when new properties are being<br />

constructed before Individual or<br />

Strata Titles are granted.<br />

A Strata Title is usually granted to a<br />

property owner who buys a<br />

property in a shared building or<br />

non-landed property. So, for<br />

example, owners of Condominiums<br />

usually have Strata Titles.<br />

An Individual Title is similar to a<br />

Strata Title, but it typically refers to<br />

landed properties like houses,<br />

bungalows, semi-detached houses<br />

and so forth - where the property<br />

owner has a discrete piece of land,<br />

usually below the property.<br />

As a rule of thumb,<br />

typically landed properties have an<br />

Individual Title, and nonlanded<br />

properties tend to have Strata<br />

Title. Although, some landed properties<br />

(speci cally in gated and guarded<br />

developments) may have Strata Titles.<br />

www.richland.com.my

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