The Hands-Down Best Guide on How to Buy Land in Sabah

STEP 1

Identify your purpose of buying 

Generally, you need to ask yourself the purpose of buying land and consider all possible future plans or development on that land. Are you going to use the land for farming, building a house, or renting it out? Identifying your purpose will help you to determine which category of land to purchase and develop a long-term management plan for it.

STEP 3

Do a title search

You can start doing a title search to investigate more about the land. Request a photocopy of the land title from the seller, as the Register of Deeds will require information such as the title number and the owner's name. Fill up a Title Search Request Form and request for a copy of the Land Title from Sabah Lands and Surveys Department. The Register of Deeds should be able to provide you a “Certified True Copy” of the title to ensure its authenticity. 

Next, check whether there is any caveat, prohibitory order, or acquisition registered against the land title. On top of that, check for the tenure of the land and the lease expiry date. For future reference on extensions of tenure premium:

1. Formulas for assessment of premium for lease renewal / extension of tenure in Sabah
2. Formulas for premium assessment of conversion and subdivision of land titles in Sabah 

You may also hire a professional and properly accredited land surveyor to do a land survey if needed. The land surveyor will conduct feasibility research or ecological tests on potential sites to evaluate whether the land is suitable for your intended purpose. Another advantage of having the land properly surveyed is getting them to mark the exact boundaries of the area; land title is often obsolete, and the terrain's borders have a tendency to change over time.

On top of that, you'll also need to budget for additional costs such as  broker fees, valuation fee, land surveyor fee, legal fee, and stamp duty.

STEP 5

Sign agreement with the landowner and payment

All relevant documents should be well-prepared and submitted to the respective agent and conveyancing lawyer before signing any documents or agreement. This will help the signing process go as smoothly as possible. The following documents are required for the purchase: 

1. Copies of both the purchaser's and seller's NRIC or Passport; and company forms (for company purchase)
2. Original Land Title
3. Sale and Purchase Agreement
4. Sign Memorandum of Transfer upon the payment of the full purchase, which later needs to be sent to the stamp office for adjudication.
5. As for NT land purchase, you will need additional documents like Birth Certificate, Sijil Anak Negeri, Surat Pengesahan from Hal Ehwal Department, and Surat Mahkamah Anak Negeri certifying you are native.
6. Existing financier’s detail (if any)

Do note that for subsale cases, there will normally be a clause in the agreement indicating that the purchaser buys on 'as is, where is' basis. For this reason, it is important for you to inspect the condition of the property. Any unsatisfactory conditions or repair costs should be discussed prior to signing the SPA.

The seller and purchaser are responsible for notifying Lembaga Hasil Dalam Negeri about the purchase, and failure to do so may result in a penalty. Land Registry is not required to be notified, as you would need to present documents and original title to the Land Registry for transfer.

To transfer the property to the purchaser, the following necessary documents must be presented to the Land Administrator to enter the purchaser’s name into the Register Document of Title, which will be held in the strong room at the Registry. In Sabah, it will take a period of time to register your name in the title.

1. Stamped Memorandum of Transfer
2. The original Issue Document of Title
3. Copies (certified) of the purchaser’s and seller’s NRIC or Passport 
4. OR Company Memorandum and Articles of Association
5. Companies Commission of Malaysia (CCM) Company Search
6. Company Resolution
7. Return of Allotment of Shares – Form 24
8. List of Register of Directors
9. Managers and Secretaries – Form 49
10. All fees necessary
11. A copy of current Quit Rent and Assessment