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Pt. 3: Land Titles

Category: Pt 1: The Basics of Homebuying | Tags: basics, education

Malay Reserved Land X Bumiputera Lot:

What Are The Differences?

I see that you’re here to research certain property titles since these two are the ones that garner the most attention and misunderstanding. But fret not, Myra’s here to clear it all up. So let’s get started!

Bumiputera Lot

So it all goes back to a small part of history. Now, Bumiputeras are known to be the “sons of the soil”. Hence, Bumiputera is inclusive of Malays, Sabahans, Sarawakians, and also non-Malay Muslims. So for all property developments, there has to be a certain % of the development that has to be allocated to Bumiputeras and it ranges from 30% to 50% depending on each state. Additionally, Bumiputera lots are offered a discounted rate of 5% to 15% as well! This was set by the government in order to boost the Bumiputera shares in property. Thus, there is a list of conditions that developers must adhere to if they are looking to release the Bumiputera units to non-Bumiputera buyers and it’s not easy to do so! Because if they don’t adhere and sell these homes to non-Bumiputeras, developers would face fines. 

Malay Reserved Land

Malay Reserved Land, otherwise known as “Tanah Rizab Melayu”  is often mistaken for Bumiputera lots. But they’re actually very very different! Now, while Bumiputera lots are open to Malays, Sabahans, Sarawakians, Orang Aslis, and non-Malay Muslims, Malay Reserved Land is only for Malay Muslims. That means, any development that is built on a Tanah Rizab Melayu can only be sold to a Malay Muslim. Sabahans, Sarawakians, and non-Malay Muslims are not eligible to purchase any properties if it’s on a Malay Reserved Land. 

So I have the inside scoop..

Now, these regulations all play a part in the home that you’ve bought and it’ll also play a huge part if you ever decide to sell your home too. Who you can and can’t sell to is stated in your home’s Original Title Document and Consent Document. The restrictions on what you can and can’t do will be stated in these documents. So it’s very important to check before you put your house up for sale. 

For example, Freehold properties pretty much give you unlimited freedom to do what you will with the sale of your home. However, if you have bought a freehold property BUT a Bumiputera lot, some Land Offices, depending on each state, are much stricter on who you can sell your home to as their regulations firmly state that the land/home can only be sold to a Bumiputera. Leasehold homes also hold the same weight as they too are strictly regulated by the Land Office. 

Furthermore, you also need to remember that just because a Bumi lot has been sold to a non-Bumi, it does not make it a non-Bumi lot. Say, a non-Bumi owner of the Bumi lot chooses to sell his home to a non-Bumi, he would still need to reapply for the Land Office’s consent for the transfer of ownership. 

All in all, everything dates back to your Original Title document and Consent document. So go home, dig your file up, and double check the restrictions (if there are any) that are listed on the Original Title Document and Consent Document! If it’s a lil too mind boggling, check with your lawyers and ask them to read up your Title consent and Land office records. Although Bumi lots are great, restrictions are restrictions and they can be hard to sell in the future if the Land Office is strict. So keep this in mind: It’s really important to be informed of the various land titles and what its characteristics are! Do your research, check your documents and the Land Office on the various matters of your home.

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