Buying Property in Malaysia: 7 Legal Mistakes to Avoid

Purchasing property is one of the most significant financial decisions most Malaysians will ever make. Whether you’re buying your first home, growing your business, or investing in real estate, it's crucial to ensure that the transaction is legally sound. At Chan & Chia, we are experienced in conveyancing and property matters, we’ve seen how costly legal mistakes can derail what should be a smooth process.

Here are 7 common legal mistakes to avoid when buying property in Malaysia:

1. Not Verifying the Land Title

Before signing anything, ask for a copy of the title to ensure that the seller is the registered owner of the property. Check the title for any restrictions, category of land use, or any other encumbrances endorsed on the title.

Ensure that the property is not tenanted or leased out and that the seller is able to deliver vacant possession to you.

Tip: Perform an official land search or appoint a conveyancing lawyer to conduct due diligence.

2. Ignoring Encumbrances

An encumbrance (such as a bank charge, lease, caveat or any other endorsement on the title restricting land dealings) registered on the property can prevent the transfer of ownership.

Buyers must ensure that the property is free from such legal burdens, or that they are addressed during the purchase process.

Tip: Always include a clause in your Sale and Purchase Agreement (SPA) requiring the removal of all encumbrances before completion.

3. Choosing To Be Unrepresented In The Sale & Purchase Agreement

The SPA is a legally binding contract that outlines the terms of your purchase. Relying solely on a standard template or letting agents handle the paperwork without legal review exposes you to potential loopholes and unfair clauses.

The breach of certain terms under the SPA may lead to hefty penalties or significant delays.

Tip: Engage a trusted conveyancing lawyer to review or draft your SPA to protect your interests.

4. Relying Solely on Property Agents

While property agents can help with listings and negotiations, they are not qualified to advise on legal issues. Some may even downplay potential red flags to close a deal quickly.

Tip: Treat agents as facilitators, but always consult a lawyer for the legal side of things.

5. Underestimating Stamp Duty and Legal Fees

Many first-time buyers focus only on the purchase price and overlook the other costs involved. These include stamp duty, legal fees, disbursements, valuation fees, and loan agreement charges.

Tip: Ask your lawyer for a cost estimate breakdown so you can budget appropriately.

6. Not Understanding Property Restrictions and Express Conditions

If the property has a restriction in interest, the necessary consent must first be obtained before the property can be transferred. This process can take months.

The express condition is a restriction or requirement imposed by the State Authority and stipulates the permitted use and activities that may be conducted on the land that must be complied with.

Tip: check the title / land search to ascertain if there are any restrictions in interest.

7. Failing to Time Loan and Transfer Properly

Mismatched timelines between your housing loan approval, SPA signing, and property handover can cause delays or breach of contract. If deadlines are missed, you could face penalties or be liable for breach.

Tip: Appoint a lawyer early on and work closely with your lawyer to ensure all processes are coordinated with your bank and the seller’s solicitor.

Conclusion

Buying property should be an exciting milestone—not a legal nightmare.

By avoiding these common mistakes and engaging an experienced conveyancing lawyer, you protect your rights, finances, and peace of mind.

Why choose us?

For over 50 years in the industry, Chan & Chia has consistently been relied on and trusted our many clients. We are a firm deeply rooted in old traditions, and culture while being fully equipped for the modern legal landscape. Our team of experienced professionals are always ready to help.

Got a question? Leave us a message

Is Divorce Within 2 Years Of Marriage Possible?

Under Malaysian law, a divorce petition generally cannot be filed within the first two years of marriage. However, the court may grant leave to do so if the petitioner can prove exceptional circumstances or hardship under Section 50(2) of the Law Reform (Marriage and Divorce) Act 1976. Malaysian courts interpret “exceptional hardship” strictly, requiring more than ordinary marital disagreements. Serious physical or psychological abuse, severe humiliation, or ongoing harm that makes continuation of the marriage intolerable may qualify. Even then, the court will consider the welfare of any children and the possibility of reconciliation before allowing an early divorce to proceed.

What If The Executor Refuses To Provide A Copy Of The Will?

When a loved one passes away, the will plays a central role in determining how their estate is administered and distributed. Beneficiaries and interested parties are often entitled to know the contents of the will, as it directly affects their legal rights. However, disputes frequently arise when an executor refuses or delays in providing a copy of the will.

This article explains what an executor’s obligations are under Malaysian law and the steps you can take if a copy of the will is being withheld.

How To Safely Buy Auction Property

Thinking of buying an auctioned property in Malaysia? Learn the key legal risks, due diligence steps, and practical tips to safely purchase auction properties and avoid costly mistakes.

Can Your Land Title Be Forged?

Over the past few decades, we have seen numerous cases reported on land scams and fraudulent land dealings. Cases often involve the use of a forged issue document of title (“IDT”), forged sale and purchase agreements and other legal instruments, collusion with land office staff, impersonation of land owners etc. Land scams involving forged or fraudulent land titles continue to arise and unaware land owners continue to fall victim.

Get free initial consultation

If you have a legal matter on you hand and you are not sure about how to deal with it, our experienced and friendly lawyers are here to help.

We offer a free initial consultation to help you figure out the best way forward. Just fill up the form and briefly describe your legal needs and we will speak with you soon!

If you have any questions, feel free to Contact Us.