In this economic circumstances, buying land may be considered as a risky decision. As a wise investor, you have to follow some guidelines which will help you to make the best deal whenever you want to buy a land. You can get the best from the experts who are involved in this industry if you conduct an explicit research over internet, or you can contact the experts here and they will schedule an appointment with you and further discuss this.
We have sorted out some essential steps to show you the best way on “how to buy a land” in Malaysia successfully. Follow these steps before buying any land in Malaysia.
Get a copy of the Issued Document of Title:
The Title represents a set of rights on a piece of land on the basis of which a party can get any legal or equitable interest. It is a kind of deed which is registered as well as issued by the government of Malaysia. Before buying any land in Malaysia or in any other country, the first thing you have to do is to get a copy of this deed which is evenly called the issued document of title (or commonly known as land title). This document will let the investors who have interest on that particular land acquire important information. A private or official search can be made at the land office. If you want to know more, check this out – “Land Titles Malaysia”
Estimate the cost
No doubt that price is an important factor when purchasing a land, exactly how much a piece of land will cost depends on several factors, such as the land size, location, propinquity to transportation link and profitability – based on future value and future development. Development land and residential land is always relatively more costly than the others (eg. agriculture land). The price is normally calculated in “per square feet” unit (eg. RM380psf ), investors may use this to compare with neighborhood land market price as a reference.
Location, location, location! I bet this is one of the most common factors in land valuation, similar to housing property, location might be the prime factor influencing the property price. JP-Land.com only offers land with good location, the minimum requirements are locations with frontal road and proper development access, this is to ensure future development is cheaper and has higher cost-to-benefits. Most of the lands in listings are generally flat and some are slightly hilly. Whether investors plan to utilize that land for individual use or big development for profit, JP-Land.com caters them all. We will try our best to filter and only provide lands with potentials. Do not worry about the land with different or unsuitable zoning, JP Land will help to apply rezoning of the land to suit investors.
Surveying the land
A proper study of the area performed by a certified land surveyor is essential and will emphasize all limitations, services, expense utility collections, public or other privileges, risk of flood etc. For hilly terrain, a check regarding the contour of the particular land is necessary. Land surveyors also execute an important function in undertaking feasibility research or ecological effect tests on potential sites to evaluate whether plans are appropriate or not. One key benefit of having the land properly surveyed is that the Issued Document of Title is often obsolete and the boundaries of the land have a pattern of modifying over the years. When selecting a land surveyor, look for those who are properly accredited.
Get the plan of the land from survey department:
There are three primary circumstances you will find when purchasing land as planning authorization is concerned:
1. The area has no permission for planning.
2. The land has Outline Planning Permission.
3. The land has Detailed Planning Permission for developing for which a bundle of plans has already been submitted and accepted.
Check the tenure of Land:
Get to know about the category and the zoning of the land you are interested in. Ask the appropriate questions about the land and be sure that the land is convenient without any kind of restrictions, especially check the tenure of leasehold land, Special reserved land and State/Federal marked land.
Sign agreement with land owner:
During signing the sale and purchase agreement, ask the land owner to represent other necessary documentation in front of your agents and brokers. Unlike the other agreement, the seller or land owner is not responsible for up-keeping the property when you sign the agreement.
Insert a Private Caveat to protect your interest:
Caveat is a type of notice that an individual can claim some unregistered interest on the particular land. The caveators have to provide details of the means as well as claim to protect his interest. The purchaser of the land won’t be the legal authority of that particular land if their interest isn’t registered with the Land Title office of Malaysia.
Ask the seller about what is the common cost of purchase and its attached proficient fees sustained. If you make the deal with any broker, then you have to spend some additional amount for the broker fees. Estimate the expenditure to sort out the profit comes from your investment. Before continuing to buy that land, it is important to set up with the regional authority that they will eventually allow you to carry your plan to execution. Sign Form 14A (Transfer of land) upon the payment of full purchase, which later needs to be sent to stamp office for adjudication.
Presentation of form:
Conduct an all-purpose due diligence on the land offered, such as- address, title, picture etc. the date of presentation of form 14A to the land office will be the date of registration. According to Malaysian law, the instrument of purchasing the land has to be presented for stamping within 30 days of the execution of the deal.
Collection of Land Title:
Collect it from the land office for safe-keeping purpose. If the land is charged to the bank, then the bank will hold the responsibility to keep the title.
*Information and links courtesy of JP-Land.com