Non Bumi Purchasing Bumi-lot Property

First and foremost, we need to determine what do you mean by “Bumi-lot” property because property could actually mean land, land with building as well as a strata unit. If it is a Malay-reserved land or a Native Title land or any building including strata built on it, you cannot purchase unless you are a Bumiputra or a native.

If the said “Bumi-lot” means the specific units in a development set aside for preferential Bumiputra purchaser as a requirement of a Development Order issued by the local authority, the general understanding is that such requirement only effect the first purchaser from the developer and not the sub-sale situation.

Notwithstanding the general understanding, there are land officers that make a specific endorsement of “Bumi-lot” when issuing the separate/strata title. In these cases, the land officers will not process any effective transfer unless the buyer is a Bumiputra. There is no law that allows a proper conversion in this regard because land matters under the Federal Constitution are within the absolute discretion of the respective state.

We would advise any buyer to avoid this “Bumi-lot” property especially those with specific endorsement on the title.