Subsale Due Diligence in Malaysia: Title Search, Caveats, Arrears & Inspection
Subsale due diligence in Malaysia starts with a land title search, which shows who owns the property, whether it is charged to a bank, and whether any caveat or restriction sits on the title. In Johor, the land office charges about RM40 for a private search and RM120 for an official one, both available online. Then check the outgoings for arrears and inspect the unit properly. Here is the checklist I give buyers before they pay an earnest deposit.
Short answer
Subsale due diligence in Malaysia starts with a land title search, run before you pay the 2-3% earnest deposit. In Johor a private search (National Land Code s.384) costs about RM40 and an official search (s.385) about RM120, both available online through iTanah Johor. The search shows the registered owner, tenure and expiry, land-use category, any restriction in interest, and encumbrances such as bank charges and caveats.
Key numbers at a glance
| Private search (carian persendirian) | About RM40 in Johor; NLC s.384; from about 1 working day |
|---|---|
| Official search (carian rasmi) | About RM120 in Johor; NLC s.385; from about 7 working days |
| Where to apply online | iTanah Johor (itanah.johor.gov.my), FPX or card |
| What you need to search | Title and lot numbers (HS(D)/GRN, Lot/PTD), not the street address |
| Encumbrances on a title | Charge (Form 16A), private caveat (Form 19B), registrar's caveat, lien |
| Quit rent (cukai tanah) | Due by 31 May each year; JohorPay in Johor |
| Tenancies exempt from registration | 3 years or less (NLC s.213); never shown on the search |
| Johor levy on foreign buyers | 3% of the price or RM30,000, whichever is higher (from 1 Jul 2025) |
Key points in 30 seconds
- There are two title searches: a private search (carian persendirian, NLC s.384) and an official search (carian rasmi, NLC s.385); Johor’s government fees are about RM40 and RM120.
- A search shows the registered owner, tenure and expiry, land-use category, express conditions, any restriction in interest, and encumbrances such as charges and caveats.
- Run your own private search before paying the 2–3% earnest deposit; your lawyer will search again before the SPA.
- Get written statements for quit rent (due by 31 May each year), assessment tax (two instalments a year), maintenance fees and sinking fund before signing.
- If there is a tenant, the SPA must say whether the sale is with vacant possession or subject to tenancy; tenancies of 3 years or less need not be registered.
What is a land title search? Private vs official search
A land title search (carian hakmilik) pulls the current entries on the land office’s register document of title for the land or unit. Subsale purchases do not come with the statutory HDA contract that protects new-home buyers, so the search and your lawyer’s due diligence do much of the protective work.
| Private search (carian persendirian) | Official search (carian rasmi) | |
|---|---|---|
| National Land Code | Section 384 | Section 385 |
| What you get | A search report, not signed or sealed | A certificate of search signed and sealed by the Land Registrar |
| Johor government fee | About RM40 | About RM120 |
| Turnaround | From about 1 working day | Longer, from about 7 working days |
| Best for | Your own check before the deposit | Lawyers’ conveyancing and official submissions |
Johor’s Land and Mines Office (PTG Johor) runs iTanah Johor (itanah.johor.gov.my), where you can buy private and official searches online and pay by FPX or card. Other states have their own e-systems, or a law firm or search agent can do it for a service fee.
What to look for in a title search result
| Entry | What to confirm | Common issues |
|---|---|---|
| Registered proprietor (tuan punya berdaftar) | Name and IC match the seller | Co-owners not all signing, a deceased owner, company ownership |
| Tenure | Freehold (selama-lamanya) or leasehold (pajakan) and the expiry date | Short remaining lease limits loan tenure |
| Category of land use (kategori penggunaan tanah) | Building/residential or commercial | Commercial titles can mean higher assessment and utility tariffs |
| Express conditions (syarat nyata) | Use matches the category | A commercial unit being used as a home |
| Restriction in interest (sekatan kepentingan) | Whether transfer or charge needs state consent; Bumiputera-only | Consent adds time; non-Bumi and foreign buyers may be barred |
| Encumbrances (bebanan) | Charge (gadaian), caveat (kaveat), lien | Seller’s loan must be redeemed; caveats must be withdrawn |
For the title types themselves, see land titles in Malaysia; for tenure, see freehold vs leasehold.
What if there is no individual or strata title yet?
Some older condos still sit under a master title with no strata title issued. A search then shows only the master land. The deal relies on the developer’s or proprietor’s consent and a chain of SPAs and deeds of assignment, which your lawyer must trace unbroken. Some banks also apply different lending terms to these units.
A private search costs about RM40. Skipping it risks the deposit. On a RM600,000 home a 2-3% earnest deposit is RM12,000 to RM18,000, and it is hard to recover if the title turns out to be Bumiputera-only, Malay Reserve land, or carries a caveat nobody can clear. A consent-restricted title also pushes completion back by months. See making an offer on a subsale.
Ask Louis directly
Send me a copy of the title, or just the title and lot numbers, and I will go through the owner, the tenure and any restriction with you before you put money down.
I will send you my subsale due diligence checklist for free, and list exactly which bills and documents to ask the seller and the management office for on this particular unit.
Charges, caveats and liens: dealing with encumbrances
An encumbrance on the search is not automatically a deal-breaker: most subsale homes are charged to the seller’s bank. What matters is that every encumbrance is cleared at completion.
| Encumbrance | What it means | Usual handling |
|---|---|---|
| Charge (Form 16A) | The seller borrowed against the property | Your lawyer gets the seller’s bank’s redemption statement; the redemption sum is paid from your loan or balance, and the bank releases a discharge |
| Private caveat (Form 19B) | Someone (another buyer, a lender) claims an interest | Must be withdrawn by the caveator or removed through the land office or court before transfer; be wary of unexplained ones |
| Registrar’s caveat | Entered by the land office to protect an interest | Find out why; usually needs official removal |
| Lien-holder’s caveat | Title deposited as security for a loan | Must be released before completion |
On your side, your lawyer or bank will usually lodge a private caveat after signing to protect you until the transfer is registered. See caveats and perfection of transfer.
How to check quit rent, assessment and maintenance arrears
Unpaid outgoings that are not settled at completion tend to land on the buyer. Before the SPA, ask the seller for the latest bills and receipts:
| Outgoing | Paid to | How to check |
|---|---|---|
| Quit rent (cukai tanah) | State land office; in Johor via JohorPay | Due by 31 May each year; check this year’s is paid with no penalty |
| Parcel rent (cukai petak) | State land office (units with strata title) | As above |
| Assessment tax (cukai taksiran) | Local council, e.g. MBJB, MBIP, MBPG, DBKL | Billed in two halves a year; check both |
| Maintenance fee and sinking fund | JMB/MC or management office | Ask management for a written statement of account |
| Water, electricity, sewerage (IWK) | Each utility | Most recent bills |
How apportionment works
The usual approach splits each outgoing at the completion date: the seller bears the period before, the buyer the period after. Example: annual quit rent is RM120, the seller paid it in May, and completion is on 1 October. The seller’s share is 1 January to 30 September, 273 days: RM120 × 273 ÷ 365 ≈ RM89.75. The buyer refunds the balance of about RM30.25 at completion. Assessment and maintenance are apportioned the same way over their billing periods.
For how maintenance and sinking fund are calculated, see maintenance fees and sinking fund. For moving the accounts into your name, see the after-keys checklist.
Inspecting a subsale property: condition and unauthorised renovations
Subsale homes are generally sold ‘as is where is’. Problems found after completion are hard to recover from the seller, so inspect before the deposit, ideally once in daylight and once after heavy rain.
- Water stains or mould on ceilings and wall corners (leaks from above or the roof)
- Cracks in walls and floors, especially diagonal structural cracks
- Bathroom waterproofing: hollow-sounding tiles, damp wall bases
- Old wiring or DB box, or unapproved added circuits
- Water pressure, heater and drainage: run every tap
- Windows, locks, grilles and aircon drain pipes
- Termite traces (door frames and roof timbers in landed homes)
- Approved council plans for any extension (rear kitchen, added floor, enclosed balcony)
Unauthorised extensions are common in landed homes. The council can order removal, and they can affect the bank’s valuation. Ask for approval documents and price in the risk if there are none. For condos, ask management whether facade, window or balcony changes breach the by-laws. See renovation permits and rules.
Buying a property with a tenant in place
If the property is let, decide which deal you want:
| Option | Meaning | Watch out for |
|---|---|---|
| Vacant possession | The seller must get the tenant out and hand you an empty unit by completion | Put it in the SPA; the lease must end before completion or you will be delayed |
| Subject to tenancy | You take over the existing tenancy as the new landlord | Read the full tenancy: rent, deposit handover, term and renewal options |
Under s.213 of the National Land Code, a tenancy of 3 years or less is a ‘tenancy exempt from registration’ and will not appear on the search. A clean search does not mean there is no tenant. Visit, and have the seller declare any tenancy in the SPA.
If you take over a tenancy, the deposits the seller holds (typically 2+1 months) should be handed over or deducted from the price at completion. For tax and tenancy stamp duty, see renting out property.
What if the search shows state consent is needed?
If the title carries a restriction in interest, or is leasehold with a consent condition, the transfer and the charge both need state consent first (in Johor, from PTG Johor or the district land office). That changes your timetable and cash flow:
- The SPA’s 3+1 month completion period usually starts only once consent is granted.
- Banks generally will not release the loan until consent is in, so plan your deposit and balance earlier.
- If the title is Bumiputera-only or Malay Reserve land, non-Bumi and foreign buyers cannot buy at all. The search tells you this before you risk a deposit.
- Foreign buyers need state approval under s.433B of the National Land Code even on unrestricted titles; Johor has charged a levy of 3% of the price or RM30,000 (whichever is higher) on residential purchases since 1 July 2025.
For completion periods and late-payment interest, see the subsale SPA. Foreign buyers should also read who may buy what and where.
Subsale due diligence in Malaysia: the full checklist
Before the earnest deposit (you)
- Get a copy of the title and run a private search (iTanah Johor for Johor)
- Check the owner, tenure, land-use category and restrictions
- Note any charge or caveat and ask what it is
- Ask for the latest quit rent, assessment and maintenance receipts
- Inspect in daylight and after rain for leaks, cracks and extensions
- Ask whether there is a tenant and when the lease ends
- Check nearby transacted prices (see valuation and transacted prices)
Before the SPA (your lawyer)
- Official search and bankruptcy search on the seller
- Confirm whether state consent is needed and set the completion period accordingly
- Obtain the seller’s bank redemption statement
- Obtain management’s confirmation of arrears
- Put the fixtures and fittings list in the SPA
For deposits and negotiation, see making an offer on a subsale. After signing, see the subsale SPA and the subsale transfer process.
Related questions
How long does a subsale purchase take from offer to keys?
A typical subsale SPA gives three months to complete, plus a one-month extension. If the title carries a restriction in interest or a leasehold consent condition, that clock usually starts only once state consent is granted, which can add months, and banks generally will not release the loan until consent is in. So the moment a search shows consent is needed, redo your cash-flow timetable. See the subsale SPA and completion period.
What if the title shows more than one owner, or an owner who has died?
Where a property is jointly held, every registered proprietor has to sign: one missing signature stops the SPA and the transfer, and anyone signing for another needs a valid power of attorney. If a registered owner has died, the property must pass through the estate to the beneficiaries before it can be sold to you, and that is usually measured in months. Match every name on the search against the seller’s identity documents. See wills and property inheritance.
What checks are needed if the seller is bankrupt or is a company?
Besides the title search, lawyers run a bankruptcy search on an individual seller with the Malaysian Department of Insolvency, because an undischarged bankrupt cannot sell the property personally. If the seller is a company, they add a winding-up and SSM search and confirm that whoever signs the SPA is authorised by the company. All of this belongs before the SPA, not after you have parted with a deposit.
Does a land search show unauthorised renovations or flood history?
No. The search is a register of ownership and interests, not a report on the building’s condition. For extensions, ask the seller for the council-approved plans, and for a strata unit ask management whether the change breaches the by-laws. For flooding you have to visit, ideally again after heavy rain, ask the neighbours and look at the roadside drains. See renovation permits and rules.
Frequently asked questions
How much is a land title search in Malaysia?
Fees vary by state. In Johor the land office charges about RM40 for a private search (carian persendirian) and about RM120 for an official search (carian rasmi), which you can buy online through iTanah Johor. Law firms and search agents charge a service fee on top. Check the current fee with the land office before applying.
What is the difference between a private and official land search?
A private search under s.384 of the National Land Code is quicker and produces an unsigned report, which is fine for your own checks before paying a deposit. An official search under s.385 produces a certificate signed and sealed by the Land Registrar. It takes longer and is what lawyers rely on for conveyancing.
Can I buy a property with a caveat on the title?
Possibly, but the caveat must be withdrawn or removed before the transfer can be registered. First find out who lodged it and why. Caveats linked to the seller’s bank or a normal transaction can be handled by the lawyers. An unexplained private caveat may mean someone claims an interest in the property, so take legal advice before paying.
Who pays maintenance fee arrears on a subsale property?
Most subsale SPAs require the seller to clear outgoings up to the completion date, with the buyer responsible afterwards. Get a written statement of account from the management office before signing so your lawyer can deal with any arrears out of the transaction money, rather than you being chased after handover.
Does a title search show if a property is tenanted?
Not necessarily. Tenancies of three years or less are exempt from registration and do not appear on the title. Inspect the property, ask the seller to declare any tenancy in the SPA, and decide whether you are buying with vacant possession or subject to the tenancy.
Can I buy a condo without a strata title?
Yes, but the transaction relies on the SPA and deed of assignment chain under the master title, plus the developer’s or proprietor’s consent. Your lawyer must trace every link in that chain. Some banks lend on stricter terms for these units, so check with the bank before committing.
Sources & verification
- iTanah Johor — PTG Johor online searches
- ASCO — Carian Persendirian Tanah (fees by state, NLC ss.384–385)
- Easy Law — Online land search in Johor
- Tay & Partners — Common Due Diligence Searches in Malaysia
- Malaysian Bar — The difference between a lease and a tenancy (NLC ss.213, 316)
- MBJB — Assessment tax
- JohorPay — Johor quit rent payment
- The Star — Johor to raise levy on property bought by foreign interests (2025)
Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.
More in this stage
Louis Koh
11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文
I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.
Stuck on this step? Ask me directly
Send me your situation — new or subsale, budget, state, and where you are in the process — and I will tell you what to do next and what to watch for.
I will send you my subsale due diligence checklist for free, and list exactly which bills and documents to ask the seller and the management office for on this particular unit.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT