Old Land Titles, Beware !

Buying land in Malaysia, can be a risky decision if not careful and lack of investigating the land information in detail before purchase.

How do you avoid this risk of losing money ? Or making a wrong land purchase that doesn't suit you're purpose of buying this land.

You can minimize costly mistakes by following this steps

1) Get a copy of the land title.

2) From the copy of land title, do relevant searches by obtaining the latest title to verify if the information given is accurate.

3) Verify and include the relevant searches cost factors.

4) Check with relevant government departments about the land you intend to purchase.

1) Get a copy of the land title.

Ask the agent or land owner to forward you their copy of land title. Make sure its the latest land title by looking at the date written on the title.

2) From the copy of land title , do relevant searches to verify if the information given is accurate.

Once you have the copy of title, you can either engage a lawyer to do a private search (carian persendirian) or do it yourself at the relevant land office at the respective state.

3) Verify and include the relevant searches cost factors.

With a private search done. You can then verify if the copy of title is actually correct.

Details to watch out for ;

a) Land area - Land area maybe different then whats written in the the land title, Best way to verify the actual area is do a search at the survey department (JUPEM) for the certified plan, CP or Pelan Akui, PA.

COMPARE the Area from land title and the Certified Plan, sometimes there is area difference and that is a huge factor that could cost you a huge difference in your decision to buy the land.

Sometimes the land title has not been updated about the land area due to surrendering of land for road, drainage or any other circumstances.

Meaning you may pay for the land with e.g 100,000 sq feet but actually the land is subjected to surrendering or a final title survey has not been conducted and after the final title survey conducted the land maybe 90,000 sq feet thus you lose 10,000 sq feet when you plan to develop the said piece of land.

4) Check with relevant government departments about the land you intend to purchase

After you have the copy of title from the land office and the copy of certified plan from the survey department. You can go to the local council and find out what is the Zoning implemented on that piece of land by asking for a copy of the zoning implemented of that area. This will determine the land use and future land use that will help you plan the feasibility study of the development plans you have or the chances of land appreciating based on the zoning of the area.

Details such as road surrendering or drain/river reserved will also be revealed with these details obtain from local council.

Further information can be gathered at JKR (Jabatan Kerja Raya) or DID (Department of Irrigation and Drainage). Once you have paid a visit to these department, you can safely decide and estimate what will be the future planning on the area and if any surrendering of land will be imposed on your land.

Big Tip: Try to make friends with Settlement Officer at the Land Department of the area in question. He or She will know the latest happenings of the area, and if they are willing to share information about your land and its surrounding will proved valuable information relevant to your area and land in question.

This will be able to give you points to negotiate with the land owner or see into the future developments surrounding your area this providing you valuable information about the land in question.