On 29th May 2013, we received 1 question from Mr. George Lim:-
To buy a leasehold property which is still under master title, apart from Developer consent, do we still need state consent ? In the sub-sale market, can a non-bumi buys from a bumi owner who bought it from developer’s bumi reserved unit with bumi discount given to him and what are the differences for such transaction under freehold and leasehold land ? Thanks.
- For Kuala Lumpur and Selangor, there is no need to get the State Authority’s consent until and unless the separate title is issued. This is a recent practice implemented.
However not all leasehold property required consent for transfer, you are advised to examine the specific restriction stated under the master title.
Normally, it is acceptable to buy these bumi reserved unit in a sub-sale transaction especially when the separate title has been issued. If the land search on the separate title don’t reveal any bumi restriction, non-bumi buyer can safely buy these units.
However, it is little bit more complicated if these units are still under the administration of the developers and pending issuance of the separate title. The developers might be reluctant given that his first obligation is to comply with the quota prescribed under the development order.