1. Type of title
This is to determine whether you eligible to buy or not. In Sabah, land title divided into 2 types that are non-native & native titles.
Non Native – It’s known as Country Lease (CL) which can be purchase by anyone around the world as long as they have the money and approval from local authority. You will be surprise to know that a lot of beach front land along Tuaran to Kudat has change ownership for the past few years mostly to outsider like Sarawakian, Singaporean, Korean and British.
Native Title – Native land only can be own by Sabahan Native or for those who have the legal Anak Negeri certificate. But of course you still can buy NT title even if you are not Native Sabahan. How? Ask lawyer on how to do it. I don’t really love doing it as there is some risk element that can’t be avoid.
2. Location
Land office has divided every area in Sabah into different code. You can differentiate it by reading the first 3 digit from the title number. Example:
CL 015 888 888 – Kota Kinabalu
CL 055 888 888– Kudat
Beside the code, the titles also mention the District of the land and the kampung name. It will be good if you double check the title at the land office and search for big map to find the actual location. So watch out carefully before you make any commitment as different code will cost you different pricing.
3. Land Tenure
The country lease land Tenure is ranging from 99 years to 999 years. Only certain location like Kelombong Industrial area granted 60 years of land tenure. Most of the owners are extending the land tenure by paying premium to land office as Bank dislike short land tenure. For those who love buying land to keep, try accumulating more 999 years land title as it’s worth more in the future. While Native Sabahan should be very grateful as the land tenure is held in perpetuity. Not only that, they are also exempted from stamp duty for any property transacted. Instead of buying more, they keep selling. Sometimes I also don’t understand why. If such opportunity given to me, I will even sell my personal belongings to buy more land.
4. Encumbrance of the title
The last pages of the title will be the most crucial as its show whether the title is clean or not. Most the town area land is charge to the bank as it’s a good form of security compare to outside town land like Keningau or Tenom which is clean and free from any encumbrances. But whatever it is, please get another latest land search copy from local land office to confirm the status of the land.
All the above is the most basic information I learn when I purchase my first property. Of course by knowing the information above is not enough to find a good deal but it’s good general knowledge for beginner who intend to add property into their wealth portfolio.
Happy Investing
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Dear CK,
Your approach and success in real estate investment is very admirable. You mentioned that there is some element of risk that cannot be avoided if a non-native buys a NT land. Appreciate it if you could share what are these risks. Thank you.
Hi,
The topic is too wide for me to discuss here and its too legal. You better seek lawyer advice on this. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
We are interested to buy a completed house (sub-sale) in Penampang. The house is a bumi lot and will buy under my wife name (sino-kadazan).
Can the house converted to non-bumi status? Have asked few lawyer but answer are confusing (i.e. can, cannot, depend, not-sure etc).
Do you have any ideas for the conversion procedure?
HI..there
“Can the house converted to non-bumi status?”
No..the house is always under bumi status..
but non-bumi can buy after 5 years by applying to L&S office for “one transfer” subject to term and condition, some premium to be paid..
correct me if i am wrong…
Hi,
Bumilot can be neutralise after 5 years subject to the approval from land office. I just did one… The 5 years is calculated from the date of name appear in the subdivided individual title. So normally its about 10 years from the first SPA with developer. Read the condition in the land title first as some title might have different condition. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
HI,
Bumilot can be transferred to non-bumi after 5 years of the title issued depending on the condition in the land title. Pls contact Shelley Yap experience staff Mr Wong for the whole process. He is experience on this..Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
Hi CK, Just Curiosity, Can Government (Land & Survey) refuses to extend the near expired lease tenure of a particular land title? e.g. Kolombong Industrial Estate has only 20+ years left, can they refuse to extend the lease tenure, and take back the land and change the zoning for other purpose, such as make it a residential area?
HI,
Government wont do it. The reason:
1. You need to pay RM15psf (avg) to extend the tenure up to 99 years.
2. Industrial land is more expensive than residential..why they want to take back and convert into less expensive zoning?
Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
what or how is the procedure to own a native land in sabah and sarawak???can u mention in the flow chat form???is that the procedure to own native land in sabah and sarawak is different ???if yes ,show me two flow chat……..and how the native land can be owned…???
HI,
Pls contact lawyer in town. They will assist you. Happy Investing.
You cannot Grow Land..CK Wong & MY DAD
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