Importance of Land Search Report

Planning to purchase your dream home?

Scrutinise the land search report before paying your hard-earned money

First, what is a land search report? A land search report is a report issued by the relevant land registry or land office which offers you important information of a particular land.

To avoid falling into any property scams or being misrepresented, it is always prudent to conduct a land search before entering into any transaction to purchase a property.

Your appointed lawyer has a duty to conduct a land search prior to the signing of a sale and purchase agreement.

Here are among the crucial particulars you may obtain from a land search report: –

1. Ownership

   A land search report will show you the current registered ownership (ketuanpunyaan) of the property. You may verify whether the purported seller is the actual registered owner as stated in the land search report.

2. Encumbrances

   A land search report will also reveal the existing encumbrances including any charge or caveat on the land. If the seller has not settled his housing loan, generally there will be a charge (gadaian) in favour of his existing bank stated in the report. You should also be aware of any caveat (kaveat) entered on the particular land, as the caveator (person/body who entered the caveat) might have an interest to the land which can impede your purchase of the property.

3. Category of Land Use

   There are three types of category of land use (kategori kegunaan tanah) which will be shown in a land search report, i.e. building, agriculture and industry.

4. Express Conditions

   The express conditions (syarat nyata) in a land search report will specify the conditions to be complied with by the registered owner. For land under the category of building, the type of building (e.g. bungalow, double story terrace house, serviced apartment, factory & etc.) will also be stated.

5. Restriction in Interest

   Restriction in interest (sekatan kepentingan) as stated in the land search report will disclose whether the land is subject to restriction, for example the land is designated for bumiputera only or the land cannot be transferred without the consent of the state authority.

6. Freehold or Leasehold

   A land title can be freehold (selama-lamanya) or leasehold (pajakan). Freehold title is a title granted in perpetuity, while leasehold title means that you are leasing the land from the State for a period of time. The tenure for a leasehold land will also be stated in the land search report.

In short, a land search report will provide you a full picture of the details, conditions and restrictions of the land and give you confidence that you are purchasing a good title from a genuine party. Hence, it is advisable to consult a lawyer if you are uncertain of any particulars provided in a land search report.

This article is written by 

Yeo Soo Peng
Partners, Low & Partners

Tay Qiao Dan
Associate, Low & Partners