Previous owner’s unpaid bills in a Malaysian subsale (2026): arrears checks and apportionment

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By Jason Lim, REN 84424 · IQI Realty · Checked on 9 November 2026

When you buy a subsale home in Johor Bahru, some of the previous owner’s unpaid bills can follow the property. Quit rent, assessment tax and condo maintenance charges are tied to the land or unit, so arrears can be chased against the new owner, while electricity and water arrears normally stay with the old account holder. At completion your lawyer checks each bill, pays what the seller owes out of the seller’s money, and splits the current period’s bills between you. That split is called apportionment.

Which unpaid bills follow the property?

The question for each bill is whether the debt is attached to the land or unit, or to a person’s account.

Bill	Who issues it	Can arrears be chased against a new owner?	Legal basis
Quit rent (cukai tanah)	Land office under PTG Johor	Yes, in effect: the remedy is against the land itself	National Land Code, ss.93, 94, 97 and 100
Assessment tax (cukai taksiran)	City or municipal council, e.g. MBJB, MBIP, MPKu	Yes: rates are a first charge on the holding	Local Government Act 1976, ss.146 to 151
Maintenance charges and sinking fund	Developer, JMB or MC	Yes: recoverable from the owner or successor-in-title	Strata Management Act 2013, ss.60(4) and 79(13)
Electricity	TNB	Normally no, if you open a new account with proof of ownership	Account-based (TNB statement, January 2024)
Water and sewerage	Ranhill SAJ (sewerage billed on the same bill)	Account-based: a change of name means opening a new account	Ranhill SAJ service page, checked November 2026

Quit rent (cukai tanah): the land office’s bill

Quit rent is the yearly rent the registered owner pays the state; for strata units it is billed as parcel rent (cukai petak). Under the National Land Code, rent is a debt due to the State Authority (s.93). It falls due in full on 1 January and is in arrears from 1 June if unpaid (s.94), so paying by 31 May keeps the account out of arrears.

When rent is in arrears, the Land Administrator can serve a notice of demand in Form 6A on the registered proprietor (s.97), and a note that it was served can be endorsed on the register document of title. If the whole sum is not paid within the period the notice gives, the Land Administrator declares the land forfeited to the state (s.100). The risk sits with the land, not the seller. A land title search before you sign can show whether a Form 6A note is already on the title.

The Johor land office’s 2026 transfer checklist asks for the quit rent receipt and, in council areas, the current year’s assessment receipt when consent to transfer is needed. Late payment charges are set by the state, so ask the land office for the current figure. For how the yearly amounts are worked out, see my quit rent and assessment tax guide.

Assessment tax (cukai taksiran): the council’s bill

Assessment tax (also called property tax or cukai pintu) is the council’s rate. Under the Local Government Act 1976 it is payable by the owner half-yearly in advance (s.133), and until paid it is a first charge on the holding (s.146). Anything unpaid after the end of February or the end of August becomes an arrear (s.147).

The council serves a Form E notice giving 15 days to pay, then can issue a warrant to seize movable property found on the holding, whoever owns it, such as a new occupier’s furniture (s.148). If that is not enough, or the property is empty, it can apply to the High Court Registrar to attach and sell the holding itself (s.151). It can also sue for the arrear as a debt (s.156).

MBJB step (Johor Bahru city)	Deadline	Charge
First half-year payment	1 January to 28 February	The bill
Second half-year payment	1 July to 31 August	The bill
Reminder letter	15 days from posting or delivery	RM6
Notice (Form E)	15 days	RM11
Seizure (Form G)	After Form E expires	RM33
Registering a new owner (Form I)	Within 3 months of the transfer (s.160)	RM50 per transaction

MBJB says outstanding property tax must be settled before it records a new owner. The sale must be notified on Form I within three months; MBJB says failing to do so can mean a fine of up to RM2,000, up to six months’ jail, or both. In MBJB’s area this is filed online through the Johor eKhidmat portal.

Maintenance charges and sinking fund: the condo’s bill

For condos, serviced apartments and gated strata houses, this is usually the largest arrear. Under the Strata Management Act 2013 (Act 757), charges imposed by a management corporation (MC) may be recovered from the proprietor of the parcel or his successor-in-title, or from whoever is collecting its rent (s.60(4)). For recovery by seizing movable property, “proprietor” is defined to include any successor-in-title (s.79(13)). So if the seller leaves arrears, the management can pursue you.

• Get the official figure. An owner or prospective buyer can ask the MC for a certificate stating the charges and sinking fund payable, how they are paid, any arrears for the unit, the balances in the maintenance and sinking fund accounts, and any major repairs in the pipeline (s.73). Before strata titles are issued, the same certificate comes from the developer or the joint management body (JMB) (s.31). The fee is capped at RM50.
• Interest adds up. An MC’s general meeting sets the late-payment interest rate, capped at 10% a year (s.60(3)(c)). In the developer’s management period, unpaid charges carry interest of 10% a year after 14 days (s.52(5)).
• Recovery routes. After a written notice of at least 14 days, the management body can claim through the courts or the Strata Management Tribunal, or apply to the Commissioner of Buildings for a warrant to seize movable property (ss.34, 35, 78 and 79). Ignoring the notice without reasonable excuse is an offence punishable by a fine of up to RM5,000, up to three years’ jail, or both. Tribunal claims can go up to RM250,000, with a filing fee of RM100 for residential property (KPKT, July 2025).
• Access cards. After the 14-day notice, the Strata Management (Maintenance and Management) Regulations 2015 allow management to deactivate access cards, suspend facilities and make defaulters sign in as visitors. In October 2026 the housing minister told Parliament that management bodies may not stop owners reaching their own units and must provide a reasonable alternative way in, citing a Court of Appeal decision of 26 October 2026.

My guides to maintenance fees and sinking funds and to checking a condo’s management before buying cover what to look for.

Electricity, water and sewerage: the account holder’s bills

Utility bills are charged to an account, not to the land.

• Electricity (TNB). In January 2024 a buyer of a foreclosed house found an unpaid bill of over RM21,000 left by an occupier. TNB said she would not be responsible if she submitted proof of new ownership when opening a new account.
• Water (Ranhill SAJ). Ranhill SAJ treats a change of name after a purchase as opening a new account, applied for with identity card copies, the SPA and the land title, plus a deposit. It does not say whether old arrears must be cleared first, so ask the seller to close the old account and settle the final bill.
• Sewerage. In Johor, sewerage charges have been billed on the Ranhill SAJ bill since 2019.

Even when you are not liable, a cut-off supply can delay your move-in. Photograph the meters at handover and change the accounts straight after completion. My moving-in and utilities guide lists the steps.

How apportionment works at completion

Most subsale SPAs say the seller pays the outgoings up to an agreed date and the buyer pays from that date. The date is commonly the day vacant possession is delivered or the balance price is paid. As a Malaysian Bar conveyancing column describes, unpaid outgoings can be deducted from the balance price or paid by the seller before the balance is released.

Quit rent and assessment are paid in advance, so the buyer usually refunds the seller for the period after handover. Maintenance arrears go the other way, out of the seller’s money to the management body.

Illustration with made-up figures

Illustration only: invented figures, not any real unit or rate. Assume vacant possession is handed over on 31 March in a 365-day year, and the SPA apportions outgoings at that date.

Item (illustration)	What happened	Seller’s share	Buyer’s share	Result at completion
Quit rent RM365 for the year	Seller paid the full year in January	1 Jan to 31 Mar: 90 days = RM90	1 Apr to 31 Dec: 275 days = RM275	Buyer refunds RM275 to seller
Assessment RM543 for January to June	Seller paid the half-year in February	90 of 181 days = RM270	91 of 181 days = RM273	Buyer refunds RM273 to seller
Maintenance and sinking fund RM330 a month	Seller has not paid January to March	3 months = RM990 plus RM15 late interest	From April	RM1,005 paid to the management body from the seller’s balance
Water and electricity	Final bills not yet issued	Up to the handover meter readings	From the handover readings	Lawyer may hold an agreed sum until the seller shows the final bills are paid

Separately, the buyer must retain part of the price for real property gains tax and pay it to LHDN within 60 days of the disposal: generally 3% where the seller is a Malaysian citizen or permanent resident and 7% for a non-citizen individual (LHDN, May 2026). It is another deduction from the seller’s money; see my RPGT guide.

A checklist from offer to handover

Stage	What to ask for or do
Before you offer	Ask for the latest quit rent and assessment receipts and maintenance statement. See making an offer on a subsale.
Before signing the SPA	Your lawyer runs a title search and checks the apportionment and outgoings clauses, and that the seller must produce the s.73 or s.31 certificate and paid receipts.
Before completion	Lawyer obtains updated statements from the council, land office and management body and works out the apportionment.
At handover	Photograph the electricity and water meters, collect access cards and keys, and confirm the cards work.
After completion	File Form I with the council within three months, open your own TNB and Ranhill SAJ accounts, register with the management office and check the next quit rent bill is in your name.

The full legal sequence is in my guides to the legal steps of buying in Johor, the sale and purchase agreement and legal fees.

Special cases

• The seller still has a loan. Arrears come out of what is left after the bank’s redemption sum, which may not be enough if the loan is large. See buying when the seller has a loan.
• The unit is tenanted. Rent and deposits are apportioned or handed over too. See buying a tenanted property.
• Auction properties. The proclamation of sale decides who bears outstanding bills. See auction property in Johor Bahru.
• No strata title yet. The developer or JMB issues the s.31 certificate, and MBJB accepts SPA pages in place of a title when recording a new owner. See strata titles explained.
• Foreign buyers and owners abroad. The rules are the same, but Johor state consent adds time, so ask your lawyer to update the statements just before completion. See managing a JB property from overseas.

See also my guides to subsale risks, subsale house inspection and hidden buying costs.

Where to buy if this matters to you

• Mount Austin: many subsale condos and terraces, under MBJB.
• Tebrau, Setia Indah and Molek: established landed estates with long payment records to check.
• Iskandar Puteri: condos and gated homes under MBIP.
• JB Sentral and Bukit Chagar: high-rise units near the RTS Link, where management records matter.
• Permas Jaya and Senibong: east-side condos and landed homes of different ages.
• Kulai and Senai: landed subsales under MPKu.

Compare them on my JB property map.

More Johor living guides: Quit rent and assessment tax · Maintenance fees and sinking fund · Moving in: utilities and internet · Land title searches and caveats

Frequently asked questions

Do I have to pay the previous owner’s unpaid maintenance fees?

The management body can pursue you for them. Under section 60(4) of the Strata Management Act 2013, charges can be recovered from the owner or his successor-in-title. That is why your lawyer should get the arrears figure before completion and pay it out of the seller’s money.

Can the council claim old assessment tax from a new owner?

Yes, in effect. Assessment is a first charge on the property under section 146 of the Local Government Act 1976, and the council can seize movable property found on the holding or apply to sell the holding. MBJB also requires outstanding property tax to be settled before it records a new owner.

What happens if the seller did not pay quit rent?

The land office can serve a Form 6A notice of demand on the registered owner and, if the sum is not paid within the notice period, declare the land forfeited to the state. A title search can show a Form 6A note, and your lawyer should see the paid receipt before completion.

Am I liable for the previous owner’s TNB or water bill?

Normally not. Utility arrears belong to the account holder. TNB has said a new owner who opens a new account with proof of ownership does not take over the old arrears. Ranhill SAJ treats a change of name as opening a new account. Ask the seller to settle the final bills anyway.

What does apportionment mean in a subsale SPA?

Splitting the current period’s outgoings, such as quit rent, assessment and maintenance charges, between seller and buyer at a date fixed in the SPA, commonly the handover of vacant possession. If the seller has prepaid, the buyer refunds the share after that date; if the seller owes, it comes out of the seller’s balance.

How do I get the official maintenance arrears figure for a condo?

Ask the management corporation for a certificate under section 73 of the Strata Management Act 2013, or the developer or JMB under section 31 if strata titles are not yet issued. It states the charges, any arrears and the fund balances, and the fee is capped at RM50.

Buying a subsale in JB?

Tell me the unit you are looking at. Before you sign, I will ask the seller for the latest statements and flag anything outstanding for your lawyer. You can also book an appointment for viewings, or a Zoom consultation if you are abroad.

Sources: National Land Code (Revised 2020), sections 93 and 94 (rent a debt; when due and in arrears), checked November 2026; National Land Code (Revised 2020), section 97 (notice of demand), checked November 2026; National Land Code (Revised 2020), section 100 (forfeiture), checked November 2026; Johor land office, transfer application checklist 2026, May 2026; Local Government Act 1976 (Act 171), Part XV, sections 133, 146 to 156 and 160, checked November 2026; Local Government Act 1976, section 148 (recovery of an arrear), checked November 2026; MBJB, property tax (assessment) service page, last updated 6 November 2026; Johore Bar Committee, Circular 51/16 on filing Borang I with MBJB, 2016; Strata Management Act 2013 (Act 757), section 60, checked November 2026; Strata Management Act 2013, section 79 (attachment of movable property), checked November 2026; Strata Management Act 2013, section 73 (certificate for proprietor or prospective proprietor), checked November 2026; Strata Management Act 2013, section 31 (certificate before strata titles), checked November 2026; Strata Management Act 2013, section 52, checked November 2026; Strata Management Act 2013, sections 34 and 78 (recovery procedure), checked November 2026; KPKT, Strata Management Tribunal FAQ, updated 9 July 2025; The Star, “No right to deny access”, 30 October 2026; The Sun, on strata owners in arrears and access to units, 29 October 2026; TNB news clip of The Sun, new homeowner and a previous occupier’s electricity bill, 19 January 2024; Ranhill SAJ, change of account name, checked November 2026; The Star, “Johor folk to receive single water services bill next year”, 9 November 2018; Malaysian Bar, Conveyancing Practice Committee column “Understanding an SPA, Part 3”, 5 January 2007; LHDN, RPGT retention and remittance by the acquirer, updated 25 May 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 9 November 2026, not legal or financial advice. Rules, charges and procedures change; confirm with your lawyer, the land office, your council, the management body and the utility before you act.