THE IMPORTANCE OF CONDUCTING A LAND SEARCH BEFORE BUYING PROPERTY
Buying property is a significant financial decision, and conducting a land search is crucial to ensure a smooth and legally secure transaction. Many buyers, especially first-timers, overlook this step, which can lead to legal disputes and financial losses.
Why a Land Search is Essential?
Verifies Legal Ownership
A land search confirms that the seller is the registered owner and has the legal right to sell the property. This helps prevent fraud, where scammers attempt to sell land they do not own.
Identifies Encumbrances & Legal Issues
- Charges & Mortgages – If the property is still under a bank loan, the seller must settle it before transferring ownership.
- Caveats & Lis Pendens – A third-party caveat can block a sale, while a lis pendens indicates an ongoing legal dispute. These can delay transactions or create legal complications for the buyer.
Checks for Government Restrictions
- Bumiputera Lots & Malay Reserved Land – These properties can only be sold to eligible buyers unless special approval is obtained.
- Leasehold Properties – Often require state consent before a sale can proceed.
- Land Use Restrictions – Properties are designated for agricultural, residential, or commercial use. Buyers must ensure their intended use aligns with these conditions.
Confirms Title Status
- If a property is under a master title, checking whether an individual or strata title has been issued is essential. Without a separate title, financing, ownership registration, and resale may be complicated.
