Buying a Subsale Property in Malaysia: 6 Things to Check Before You Sign

A subsale property in Malaysia is bought from the owner, not the developer, so there is no Schedule G or H statutory agreement and no stage-payment protection. That makes the checks before signing more important: what the title says, whether it is charged or restricted, whether state consent is needed to transfer it, and whether the seller owes maintenance fees or taxes.

1. Start with an official land search

Order an official search (carian rasmi) of the title at the land office. The Johor land office charges RM150 per title (2026 fees), with up to five titles per counter form; searches can also be ordered online through iTanah Johor, after a one-time fingerprint verification at a land office for official searches. An official search carries the Registrar’s seal; a private search does not.

What to look at: whether the registered owner is the person you are dealing with, the title type and tenure (and when a lease expires), the category of land use, any restrictions on the title, and any charge (gadaian) or caveat (kaveat).

2. Is it charged to a bank, or caveated?

The federal lands department (JKPTG) states that a transfer needs the caveator’s consent if there is a caveat, and the chargee’s consent if the land is charged. Sellers often still have a mortgage; the sale agreement should set out how your purchase money redeems it.

3. Does the transfer need state consent?

If the title carries a restriction in interest (sekatan kepentingan), for example that it may not be transferred without State Authority approval, the state’s consent must be obtained before the transfer.

In Johor the owner applies to relax the restriction; once approved, the transfer must be registered within 6 months, extendable to no more than a year in total. The application fee is RM100 per title, plus an approval fee by category, for example RM500 per unit for low-cost or affordable homes. A Bumiputera lot sold to a non-Bumiputera needs the original newspaper advertisement, run three times in three months. Foreign buyers face a separate state approval, minimum price threshold and approval fee.

4. Strata units: get an arrears certificate

• While a JMB or the developer manages the building: an owner or intending purchaser can apply for a certificate of the charges and sinking fund payable, how they are paid, and any arrears, for a fee of no more than RM50 (Strata Management Act 2013, s.31).
• Once a management corporation (MC) exists: Form 19, a certificate of sums payable by an owner or intending owner, must be issued within 21 days of the application and fee; failing to issue it is an offence with a fine of up to RM50,000 (Strata Management Regulations 2015, reg. 30).

The previous owner’s arrears do not pass to you. In practice, everything outstanding is settled before vacant possession is handed over; the certificate tells you exactly how much has to be cleared.

5. Is quit rent or assessment tax unpaid?

Johor quit rent bills and payment history can be checked on the state land office’s Hasil Hub, and Johor Bahru assessment tax through the city council’s MyBill. The Johor land office’s transfer checklist asks for the current year’s quit rent and assessment receipts, so arrears hold up the transfer. For late penalties, see our guide to late payment interest.

6. RPGT retention and stamp duty

• RPGT: the buyer must withhold part of the price and pay it to the Inland Revenue Board within 60 days: 3% if the seller is a citizen or permanent resident, 7% if a foreign national, and 5% (held up to 3 years) or 3% (year 4 onward) for a Malaysian company. The buyer also files Form CKHT 2A within 60 days, and a late remittance costs an extra 10%. See our RPGT guide.
• Transfer stamp duty (MOT): see our buying costs guide for the rates. The Inland Revenue Board has announced that stamp duty on property transfers moves to self-assessment from 1 January 2027.

Related

• RPGT in Malaysia
• How much it costs to buy property in Malaysia
• Strata title vs individual title

Sources

1. Johor land office, Form C2 (2026): official search fee and application. Document
2. iTanah Johor public user manual v1.0: online private and official searches, fingerprint verification. Document
3. Penang land office FAQ (registration): official searches carry the Registrar’s seal. Page
4. JKPTG, "Pemilik Tanah": state consent for restrictions in interest; consent of caveator and chargee. Page
5. Johor land office, "Pindahmilik / Longgar Sekatan" and transfer checklist (2026): relaxation of restriction, 6-month window, fees, Bumiputera lot advertisement, tax receipts. Page
6. Strata Management Act 2013 (Act 757), s.31 (copy hosted by Perbadanan Putrajaya). Document
7. Strata Management (Maintenance and Management) Regulations 2015, P.U.(A) 107/2015, reg. 30 and Form 19. Document
8. Johor land office Hasil Hub; Majlis Bandaraya Johor Bahru assessment tax page (updated 24 September 2026). Page
9. Inland Revenue Board: RPGT duties of disposer and acquirer, retention rates and 60-day deadline (updated 26 June 2026); stamp duty self-assessment phases (updated 28 August 2026). Page

Search fees and state consent rules and fees are for Johor; other states follow their own land office. Last verified: 11 October 2026.