Agent Guide: Types of Land in Malaysia

Have you ever wondered what the different types of land in Malaysia are? As a property agent, it is important to be familiar with these different types of land so you can advise your clients accordingly.

There are various types of land in Malaysia that property agents should be aware of. Each title has its own set of rules as designated by the Malaysian government, which is why it is important to understand the differences.

Types of Property Titles in Malaysia

The most common types of property titles are the freehold and leasehold, but there are also individual and strata. This section will explain the differences between each type of property title, so you can make an informed decision when buying or selling property in Malaysia.


An everlasting right in the property is known as a freehold, and an inheritor can inherit the property following the owner’s death. Freehold ownership is gaining full control of the property, both the unit and the land it sits on, and having your name listed as the landowner. 

As a result, the property remains practically in the same family and they also have the right to make any changes or improvements to the property they own. The transactions in the sale of freehold properties are more convenient and straightforward.

If clients want to stay in a place for a long time and discover a house that they love and want to keep in the family, a freehold property may be the ideal option for them.


The owner of the land on which the property is built is leased to the developer for a set period of time, as the term implies. The lease length typically ranges from 30 to 99 years.

In technical terms, you are purchasing the right to occupy or reside in a property for a set length of time in exchange for paying ground rent to the landowner. After the lease time ends, however, ownership will revert to the landowner.

A leased property can be sold, utilised, or rented much like a freehold property and they can also keep the property once the leasing time has ended. Because there is less demand for leasehold properties than for freehold residences, they are less expensive.

Leasehold may be the ideal option for your clients if they aim to sell their house within 10 years of purchase or if they are seasoned property investors who base their selection on predicted profits.

freehold and leasehold and bumi and non-bumi lot and malay reserved land in malaysia

Bumi Lot

Bumi lots were implemented in the 1970s as part of Malaysia’s new economic policy to boost Bumiputra real estate ownership with a statutory minimum quota of 30% and a minimum 7% discount which is called Bumi Discount on property.

This means that developers must set aside at least 30% of all residential and commercial property units for Bumiputeras. Only Bumiputera can purchase or lease Bumi Lots. Malays, Sabahans, and Sarawakians, as well as non-Malay Muslims, are all considered Bumiputera.

Because the market is restricted to Bumiputeras, Bumi lots may be more difficult to sell. In general, these properties will be offered and sold only to Bumiputeras, and the state would have complete control over them.

The State Government is in charge of Bumi Quota rules. The quota was put in place to encourage more Bumis to own homes and to foster more contact among Malaysia’s diverse ethnic communities.

Non-Bumi Lot

A property that is not a Bumi lot is classified as a ‘Non-Bumi Lot’. Non-Bumi Lots are open to all races, meaning that non-Bumis and Bumis can purchase and own these types of properties.

Non-Bumi Lots make up the majority of the properties in Malaysia and are easier to sell than Bumi lots. Non-Bumi residents can enjoy the same rights as Bumi residents, except for the 7% Bumi Discount which is only applicable to Bumiputeras.

Malay Reserved Land

Malay Reserved Land titles are sometimes confused with Bumi Lots, however, they are somewhat different.

Whereas Bumi lots are available to Malays, Sabahans, and Sarawakians, as well as non-Malay Muslims, Malay Reserved Land, or ‘Tanah Rizab Melayu’, is reserved exclusively for Malay Muslims.

Non-Malay Muslims, as well as Sabahan and Sarawakians, are not allowed to own property on Malay Reserved Land.

master title and individual title and strata title in malaysia

Master Title

A Master Title covers all the lots within a development, and it belongs to the developers, not to anyone specific lot owner and they can then sell, lease, or develop the land as they see fit. This gives them more control over the project and can make it simpler to get things done.

There are a few disadvantages to Master Titles. First, it is more difficult for lot owners to get mortgages. Second, if the developer goes bankrupt or decides to sell the development, it can be more difficult for lot owners to get title to their property.

Master titles are not as common in Malaysia as they are in other countries, but they are becoming more popular as developers find them to be a more efficient way to manage their projects.

If your clients are interested in buying a property in a development that uses a Master Title, make sure you ask the developer about it.

Individual Title

Individual Titles refer to the titles given to each landed property unit, such as terrace homes, bungalows, semi-Ds, factories, and shops. Each individual unit will have its own Individual Title in this situation.

When buying from a developer, make sure the developer files an application with the Land Office to subdivide the Master Title into Individual Titles. For new projects, the developer is given six months from the moment the development receives its Certificate of Fitness (CF).

Property owners in Individual Title projects often receive their titles in a reasonable amount of time. When purchasing a landed property, the sole exemption to the Individual Title is if the development contains community utilities.

Strata Title

Strata titles are typically used in high-rise buildings. However, because landed properties share communal services and even roadways, it is becoming increasingly prevalent. Condominiums, apartments, serviced suites, flats, and townhouses are often covered by the Strata Title.

Property purchasers in new Strata Title projects, like those in Individual Title developments, must ensure that the developer makes an application to the Land Office to partition the Master Title into Strata Titles.

Strata Title developments, like Individual Title properties, have a six months period provided to the developer once the development receives its CF. Individual Title properties differ from Strata Title properties in that Strata Title is frequently applied by the floor in high rises.

However, unlike Individual Title properties, where the title may be obtained reasonably fast, Strata Titles are normally only awarded after 7 years, with the longest duration being 20 years previously.

Get Started as a Property Agent in Malaysia

Malaysia is a great place to purchase property, with a variety of types and styles of houses available. Whether your buyer is looking for a traditional landed home to a modern high-rise building, it is sure to find a property that fits your buyer’s needs.

At IQI Elite Legacy, we make sure to research the different types of land titles available before helping buyers make a purchase, as this can affect their ownership rights and future resale value. With careful planning, buying property in Malaysia can be an excellent investment.

If you are not an agent yet and are interested in becoming a property agent, please register with us at IQI Elite Legacy to learn more about how you can get started in this exciting industry.

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