Illegal Extensions in Subsale Houses in Malaysia: How to Check Before You Buy

中文 · Bahasa Melayu · Bahasa Indonesia

By Jason Lim, REN 84424 · IQI Realty · Checked on 10 November 2026

This guide is for anyone buying a subsale (secondary market) landed house in Johor Bahru, including buyers from Singapore, Indonesia, India and China and MM2H participants. The short answer: extensions such as a rear kitchen, an extra room or a new porch roof need the council’s written approval, and once you buy, an unapproved extension becomes your problem. Before you offer, ask the seller for the approved plans and permits, compare them with what is on site, and agree in the SPA who pays if the works must be regularised or removed.

What counts as an illegal extension?

An illegal (unapproved) extension is any addition or alteration that needed council approval but never got it, or was built differently from what was approved. In everyday Malay you will hear ubah suai tanpa kebenaran (renovation without permission). Common examples in older Johor Bahru terraces and semi-detached houses:

Type of work	Why it often needs approval	What to look for at a viewing
Rear kitchen or back extension	New foundations, walls and roof beyond the original building line	A floor level or ceiling height change at the back; a roof joined to the original roof; a structure reaching the back fence or drain
Car porch roof or awning	New roof structure; councils issue awning permits	Steel or concrete roof over the porch; whether it extends past the front fence line
Extra floor, loft or rooftop room	New superstructure and floor slab; needs a registered engineer	A room the original floor plan does not show; stairs added inside; a concrete roof replacing tiles
Side extension on a corner lot	Setbacks from the side road reserve apply	Building close to the side fence; windows facing the road at the boundary
Front wall or facade changes	Facade changes need a permit at MBJB	Enclosed front porch turned into a room; new walls at the front
Rebuilt or raised party walls	Rebuilding outer or party walls counts as erecting	New walls shared with the neighbour; signs of disputes or cracks
Structures over drains or back lanes	These areas are outside the lot and are not yours to build on	Slabs covering the monsoon drain; rooms over the back lane

Painting, retiling and new kitchen cabinets are not on the councils’ permit lists. For what needs a permit and the fees when you plan your own works, see my renovation permit guide for Johor Bahru.

What the law says

Renovation and extension approval in Malaysia comes from the local council (pihak berkuasa tempatan), under federal law adopted by each state:

• Street, Drainage and Building Act 1974 (Act 133). Section 70(1) says no one may erect a building without the council’s prior written permission. Under section 70(16), altering or adding to a building in a way that involves new foundations, a new or bigger superstructure or roof, a departure from approved plans, or rebuilt outer or party walls is treated as erecting a building.
• The owner is presumed responsible. Section 70(17) presumes, until proved otherwise, that building work was done by the landowner. A buyer who takes over a house with an unapproved extension takes over that exposure.
• Penalties. Section 70(13) allows a fine of up to RM50,000, up to three years’ jail or both, plus up to RM1,000 a day while the offence continues. MBIP’s mayor quoted a maximum fine of RM250,000 and up to 10 years’ jail for renovating without a permit (The Star, October 2021).
• Demolition. Section 72 lets the council order work stopped or the structure demolished, and recover its costs if it does the work itself.

In June 2023 Johor’s housing and local government committee chairman said councils would act under Act 133 and the Strata Management Act 2013, and MBIP had demolished extensions and awnings at about 120 business premises in Taman Ungku Tun Aminah, Skudai, after complaints that they blocked drains (The Star, 15 June 2023). A neighbour having the same extension does not make yours approved.

How to check a house before you offer

Most problems cost less to deal with before the SPA than after. This is the order I follow with buyers:

1. Ask the seller for the paperwork. The approved building plan for the house, the council permit or approval letter for each extension, and for works done under full building plans, the Certificate of Completion and Compliance (CCC). Older houses may have a Certificate of Fitness for Occupation (CFO) instead. See my CCC guide.
2. Compare the drawings with the house. Count rooms and toilets, check the roof type, the back wall line, the porch and any upper-floor additions. Anything built that is not on the plan, or drawn in red on a permit plan but built differently, is a gap.
3. Look outside the lot line. Slabs over the monsoon drain or rooms over the back lane are a warning sign, since that land is not part of the title. A land title search confirms the owner and restrictions, and the title plan shows the lot boundary.
4. Check the party walls and neighbours. For terraces and semi-Ds, MBJB’s guideline requires a neighbour’s certificate (perakuan jiran) where shared structures are affected. See neighbour and boundary disputes.
5. Ask about notices. Ask the seller in writing whether the council or the estate management has issued any notice, compound or demolition order. In gated estates, ask the management for its renovation records and design rules (see gated and guarded homes).
6. Get a professional inspection. An architect, engineer or building inspector can spot structural shortcuts. See my subsale house inspection guide; leaks where a new roof joins the old one are common (see roof leaks in landed homes).

If the seller has lost the papers, the seller, as owner, can ask the council how to obtain copies of the approved plans; procedures and fees vary by council. Until the papers appear, treat the extension as unapproved.

How an unapproved extension affects your loan, insurance and resale

Area	What can happen	What to do
Bank valuation	The valuer may give space not on approved plans little or no value, so the valuation and loan can come in below the price.	Tell the bank about the extension early and ask how it will be treated. See when the valuation comes in low.
Loan paperwork	A council official in Selangor said banks ask for the CCC when granting housing loans, and that building works including extensions need a CCC when selling or transferring (The Star, August 2022).	Check early whether your bank needs documents for the extension.
Insurance	Under Schedule 9 of the Financial Services Act 2013, a consumer must take reasonable care when answering an insurer’s questions (FMOS, April 2026). The same Selangor official said unapproved work can affect insurance claims (The Star, August 2022).	Answer the proposal form fully and tell the insurer about the extension. See home insurance in JB.
Council action	A notice to regularise or demolish goes to the current owner, with penalties under Act 133.	Keep the seller’s written answers and any SPA warranty.

Using the SPA and your offer to manage the risk

A subsale sale and purchase agreement (SPA) often says the house is sold “as is where is”, meaning in its present condition. That wording can leave the buyer with existing problems, including unapproved works, unless the agreement says otherwise. Ways buyers handle it, with their lawyer:

• A seller’s warranty. A clause that the seller has received no council notice and that the listed extensions were approved, with a remedy if this proves untrue.
• Agree who pays to regularise. The seller can apply for approval before completion, or the parties can agree how the cost and penalty are shared.
• Reflect it in your offer. If you are taking on the risk, your offer can account for the likely cost of regularising or removing the works. See how to make an offer on a subsale house.

For the wider picture, see the SPA explained, subsale property risks and the legal steps of buying in Johor. This is general information, not legal advice.

Already own a house with an illegal extension?

Works can often be approved after the fact if they meet current rules. In October 2021 MBIP’s mayor said owners who had renovated without approval could apply if the works met all regulations and guidelines, but would still be penalised, with a penalty of up to 30% of the cost of the completed work; The Star reported the same position in June 2023. MBJB’s minor works checklist (December 2022) lists a penalty plan fee (wang pelan berdenda) of 10 times the normal processing fee.

The usual route looks like this:

1. Talk to the council first. MBIP has said its building unit advises owners on approved standards at no fee (The Star, October 2021). Check which council covers you on your assessment (cukai taksiran) bill: MBJB, MBIP, MBPG or MPKu.
2. Appoint a submitting person. A registered architect, engineer or building draughtsman measures what was built and prepares plans; any concrete roof, slab or structural wall needs a registered engineer’s certification.
3. Submit through the council’s One Stop Centre (OSC 3.0 Plus) with the title, assessment and quit rent receipts, and neighbours’ consent where shared walls are involved.
4. Fix or remove what cannot be approved. Works over drains or back lanes, or inside required setbacks, may have to be cut back or demolished.

If you rent out the house, ban alterations without your written consent in the tenancy agreement, because the presumption under the Act points at the owner, not the tenant. If you plan to add partitions and rent by the room, read my guide to renting out rooms in JB first.

Condos and strata homes

Strata homes follow the Strata Management Act 2013 and the standard by-laws in the Third Schedule of the Strata Management (Maintenance and Management) Regulations 2015. Paragraph 27 requires the management’s prior written approval for renovation; paragraph 28 requires both the authority and the management to approve adding a platform, moving an external door or window or changing safety features; and paragraph 29 bars changes to the facade without the management’s written approval.

In October 2025 The Star reported low-cost flats in Skudai where extensions covered drains and blocked walkways, and where MBIP had removed locked corridor grilles and extensions at some blocks. When buying a strata unit, ask the management whether the unit has any approved or outstanding renovation issues, and see my guides to checking condo management before buying and strata titles.

Notes for foreign buyers

The rules are the same for foreign owners. Foreigners can generally buy Johor residential property only from RM1 million, landed included (New Straits Times, April 2026; see Johor’s foreigner minimum price), so foreign buyers often look at larger semi-Ds and bungalows, where extra rooms and covered patios are common. Ask for approvals for each one.

Where to buy if this matters to you

• Tebrau, Setia Indah and Molek: established MBJB estates, where checking past extensions against approved plans matters.
• Mount Austin: terraces and semi-Ds popular with families buying subsale.
• Skudai, Tampoi and Kempas: older terrace stock between the city and Iskandar Puteri.
• Iskandar Puteri: newer MBIP townships, often with estate design guidelines.
• Bukit Indah and Gelang Patah: gated landed homes where estate rules apply alongside MBIP’s.
• Permas Jaya and Senibong: east-side landed homes under MBPG.

Compare them on my JB property map, or see the landed homes guide and corner lot vs intermediate terrace.

More Johor living guides: Hillside and slope homes · Renovation permits in JB · Subsale house inspection checklist · Roof leaks in landed homes · Termites and pest control in JB

Frequently asked questions

Is it illegal to extend a house in Malaysia without approval?

Yes. Section 70 of the Street, Drainage and Building Act 1974 requires the council’s prior written permission to erect a building, and an extension with new foundations, a new or bigger roof or rebuilt party walls counts as erecting. In Johor Bahru the council is MBJB, MBIP, MBPG or MPKu, depending on the address.

How do I check if a subsale house extension is approved?

Ask the seller for the approved building plan, the council permit or approval letter for each extension and, for works under full plans, the CCC. Compare the drawings with what is built: rooms, roof type, setbacks and anything over drains or back lanes. If the papers are missing, treat the extension as unapproved until shown otherwise.

Can I get a housing loan for a house with an unapproved extension?

Usually yes for the house itself, but the bank’s valuer may give the unapproved area little or no value, so the valuation and loan amount can come in lower than the price. Tell the bank about the extension early and ask how it will be treated before you sign.

Who is responsible for an illegal extension after I buy the house?

You are. The Act presumes that work on a building was done by the landowner unless proved otherwise, and a council notice goes to the current owner. That is why buyers negotiate who pays to regularise or remove the works before signing the SPA.

Can an illegal extension be approved later in Johor?

Often, if it meets current rules. MBIP has said such works can be approved after the fact with a penalty of up to 30% of the cost of the work, and MBJB’s minor works checklist lists a penalty plan fee of 10 times the processing fee. Works that break setbacks or sit over drains may have to come down.

Do condo owners need approval to enclose a balcony or extend a unit?

Yes. The standard strata by-laws require the management’s written approval for renovations, and both the authority and the management must approve changes such as adding a platform or moving an external door or window. Changes to the facade also need the management’s approval.

Buying a subsale house in Johor Bahru?

Tell me the area, budget and house type. For any house with an extension, I ask the seller for the approved plans and permits before you offer, compare them with what is on site, and point out what your lawyer, bank and insurer should know. You can also book an appointment for viewings, or a Zoom consultation if you are abroad.

Sources: Street, Drainage and Building Act 1974, Part V, sections 70 and 72 (as published by the National House Buyers Association), checked November 2026; MBJB, Kerja-Kerja Kecil Rumah Kediaman (minor works guideline for houses), updated 2016, accessed November 2026; MBJB, checklist for minor renovation permit plans (MBJB/OSC/UT/P2_14), December 2022, accessed November 2026; MBJB, OSC 3.0 Plus checklist for amended building plans (MBJB/OSC/PP/P2_22), updated 1 January 2025; The Star, “MBIP: Seek approval before carrying out renovations”, 21 October 2021; The Star, “Get approval for renovations or face hassles when selling house”, 16 August 2022; The Star, “Housing exco: City council will take action if structures obstruct”, 15 June 2023; The Star, “Illegal extensions plague Johor strata management”, 9 October 2025; Financial Markets Ombudsman Service (FMOS), “Failure to disclose pre-existing medical condition”, 29 April 2026 (Schedule 9, Financial Services Act 2013); Strata Management (Maintenance and Management) Regulations 2015, P.U. (A) 107/2015, Third Schedule (copy published by DBKL), checked November 2026; KPKT, OSC 3.0 Plus manual (as published by MBJB), checked November 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 10 November 2026, not legal, financial or insurance advice. Council rules, fees and penalties change; confirm with your council (MBJB, MBIP, MBPG or MPKu), your lawyer, bank and insurer, and get a licensed professional to inspect any extension before you buy or build.