Property Administration in Malaysia is based on the Torrens System. Under this system, property ownership is via registered titles which establishes and certifies the ownership of an indefeasible interest to land.
The primary features of this system are:
- A title document, which clearly defines the location of the land, category of land use, ownership of transfer, constraints etc. This is filed in the State Registry or District Land Office according to its classification
- All subsequent transactions/dealings in the land will be registered upon this title.
Tenure of land in Malaysia falls into two broad categories:-
- Freehold - interest in perpetuity
- Leasehold - normally 99 years(but there are leases of 60 years and below)
In some cases, for state reserved land, a renewable Temporary Occupation License (TOL) for a maximum period of 1 year may be issued.