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By Jason Lim, REN 84424 · IQI Realty · Checked on 13 November 2026
This guide is for buyers from Singapore, Indonesia, India, China and Malaysia who see “Lease tenancy” in the tenure field of a Johor listing and wonder what they would actually own. The short answer: “lease tenancy” is not a title type in Malaysian land law. It is a label typed in by whoever posted the listing, and it can point to very different things, from an ordinary leasehold title to a private lease, a lease of reserved land or a yearly licence on state land. Only a search of the land title tells you which, so treat the label as a question, not an answer.
Quick answer
- Not a legal category: the National Land Code knows freehold and leasehold titles, registered leases, tenancies, leases of reserved land and temporary occupation licences. “Lease tenancy” is none of these by name.
- Freehold vs leasehold: the State alienates land either in perpetuity or for a term of up to 99 years (section 76). The title type shows which.
- Leases granted by an owner: more than three years and up to 99 years for the whole land (30 for part), registered on Form 15A (section 221). Tenancies of three years or less need no registration (section 223).
- Private lease schemes: some Iskandar Puteri projects were sold as long leases rather than ownership; buyers there have gone to court over what they bought (The Edge Malaysia, January 2025).
- State land licences: a temporary occupation licence runs to the end of the calendar year, is personal and ends when the holder dies (sections 67 and 68).
- Check the title: a private search at the land office or through iTanah shows the title type, expiry, owner, leases and restrictions. PTG Johor lists RM150 for an official search (May 2026).
Why the label causes confusion
Listing sites give a tenure field to fill in, and the choices do not map neatly onto the law. The National Land Code (Act 828) defines a “lease” as a registered lease or sublease of alienated land and deals separately with tenancies exempt from registration; it has no category called “lease tenancy”. In my experience the phrase is sometimes a slip for “leasehold”, but it can also honestly describe an interest weaker than ownership. That difference matters: a leasehold title makes you the registered owner for the rest of the term, while a lease or licence leaves you holding someone else’s land on their terms.
The tenure types the law actually recognises
| What you hold | Legal basis | Length | Are you the registered owner? |
|---|---|---|---|
| Freehold title (grant or Mukim grant) | Alienation by the State, section 76 | In perpetuity | Yes |
| Leasehold title (State lease or Mukim lease) | Alienation for a term, sections 5 and 76 | A term of up to 99 years; extension possible under section 90A | Yes, until expiry |
| Registered lease from an owner | Section 221, Form 15A | More than 3 years; up to 99 years for the whole land, 30 for part | No; you are the lessee |
| Tenancy exempt from registration | Section 223; can be endorsed on the title under section 316 | Up to 3 years | No; you are a tenant |
| Lease of reserved land | Section 63, Form 4E | Up to 21 years | No; the land stays reserved |
| Temporary occupation licence (TOL) | Sections 65, 67 and 68, Form 4A | To the end of the calendar year; renewable yearly | No; a personal licence |
Section 5 treats a State lease (Form 5C) and a Mukim lease (Form 5E) as titles for a term of years. Search results abbreviate the type: GRN (grant) and PN (Pajakan Negeri) are kept at the state land registry, GM (Geran Mukim) and PM (Pajakan Mukim) at the district land office, as a state land office FAQ explains. Qualified titles (HSD, HSM) come before final survey. Malay reserve land is a separate status recorded on the title; see my guide to Malay reserve land in Johor.
What “lease tenancy” can mean on a Johor listing
These are the possibilities to rule in or out before a viewing. Each must be checked on the actual title; the label alone proves nothing.
1. An ordinary leasehold title, mislabelled
The most harmless case. The title is a PN or PM leasehold, the seller is the registered owner and the “lease” is simply the State lease with its expiry date. What matters then is the remaining term: see my guides to freehold vs leasehold and leasehold renewal in Johor.
2. A private lease scheme
In parts of the Iskandar Puteri special economic zone, especially Medini, some projects were sold under private lease schemes. The Edge Malaysia explained in January 2025 how they work: a private landowner keeps the land, leases it to a developer, and buyers receive long leases of their units, typically 30 to 99 years with an option to extend by up to 30 years, but renewal is not assured. It described buyers as lessees without ownership rights, reported that lenders were said to be reluctant to finance such units, and said the landowner had offered some owners conversion to freehold for a premium.
These schemes have been tested in court: The Edge Malaysia recorded a 2020 High Court ruling for 107 buyers of one Medini project, and in December 2024 the New Straits Times reported Singaporean buyers saying they had not understood they would be lessees rather than owners. Outcomes depend on each project’s documents and on appeals. If a Medini listing says “lease tenancy”, ask whether it is under a private lease scheme, and have your lawyer explain exactly what you would hold and on what renewal terms.
3. A registered lease or sublease from a private owner
An owner can grant a registered lease of more than three years, up to 99 years over the whole land or 30 over part (section 221). Buying “the lease” means taking over the lessee’s position, not the land; the lease sets the rent, renewal and transfer conditions.
4. A licence or lease over state or reserved land
Some older houses and plots stand on land held under a temporary occupation licence (TOL) or a lease of reserved land. A TOL runs to the end of the calendar year and can be renewed annually by the Land Administrator; more than three renewals need the State Authority’s written approval (section 67). It cannot be assigned and ends when the holder dies (section 68). Malay Mail summarised the position in February 2026: a TOL gives no ownership, can be withdrawn or not renewed at the State’s discretion, and cannot be transferred or inherited. Anyone “selling” a TOL house is selling something the law does not let them transfer.
5. A rental listing in the wrong section
Sometimes the field is used to mean “currently tenanted”. If so, read my guide to buying a tenanted property in JB.
Seen “lease tenancy” on a listing?
Send me the listing or the project name. I’ll find out what the tenure really is and what you would hold, before you spend time on a viewing.
WhatsApp JasonHow to check: a title search at the land office
- Get the title details. District, mukim, title type and number, and lot or parcel number. A seller who will not share them is a warning sign.
- Run a private search. In Johor, at the land office that keeps the title (PTG Johor for registry titles, the district land office for Mukim titles) or online through iTanah, the Johor Land and Mines Office portal. Its 2026 user manual describes private searches with results emailed after payment.
- Read the title type and tenure. GRN or GM means a grant in perpetuity; PN or PM means a lease from the State with an expiry date. Count the years left.
- Match the registered proprietor to the seller. If the seller is not on the title but says they “own the lease”, ask for the lease document and check whether it is registered or endorsed on the title.
- Read the encumbrances and restrictions. Registered leases, endorsed tenancies, charges, caveats and restrictions in interest such as “no transfer without State consent”.
- Let your lawyer do the official search. PTG Johor’s official search form, amended in 2026, lists RM150 per title (RM180 for information no longer in force).
Only a licence receipt or an unregistered “lease agreement”? Get legal advice first. My guide to land title searches and caveats walks through a search result line by line, and strata titles explained covers condos still under a master title.
What each tenure means for your loan and resale
| Tenure | Home loan | Resale |
|---|---|---|
| Freehold | The usual case; the bank takes a charge over the title. | Widest pool of buyers. |
| Leasehold, long term left | Usually treated like freehold. | Similar, with remaining years noted by buyers and valuers. |
| Leasehold, short term left | Harder: Malay Mail reported in February 2026 that financing may get harder as the term shortens, especially below 60 years. | Fewer buyers who can borrow; an extension under section 90A is at the State’s discretion. |
| Private lease scheme | Lenders were reported to be reluctant (The Edge Malaysia, January 2025). Ask your bank before paying a deposit. | Depends on the lease terms, including any consent needed to assign. |
| Registered lease from an owner | Ask your bank whether it will lend against the lease; do not assume it will. | Limited to the years left and the lease conditions. |
| TOL or other licence | No title to charge; a TOL is personal and cannot be assigned. | The licence cannot be transferred, so there is nothing to sell in law. |
In July 2026 Petaling Jaya residents told Malay Mail that banks generally decline loans where only about 20 to 25 years of lease remain. That is Selangor, but banks everywhere look at the years left when your loan would end. See my JB home loan guide.
Foreign buyers
Non-citizens need State Authority approval to acquire land (section 433B), and Johor generally sets a RM1 million minimum for most homes, with exceptions in some designated zones (Malaysian Bar circular, December 2024; New Straits Times, April 2026). Check that a title restriction does not bar non-citizens. See my Johor minimum price guide and state consent guide.
Questions to ask before you view
- What is the title type and number, and whose name is on it?
- If leasehold, when does the term expire? Has an extension been applied for or endorsed?
- Is the unit part of a private lease scheme? If so, may I see the lease, the renewal clause and any conversion offer?
- Is the land state land, reserved land or held under a licence?
- Are there restrictions in interest, such as State consent to transfer or charge?
More in questions to ask at a subsale viewing and the legal steps of buying in Johor.
Where to buy if this matters to you
Tenure differs from project to project, even in the same area, so check each title rather than assuming a whole township is freehold or leasehold.
- Iskandar Puteri: Medini, Puteri Harbour and EduCity; ask about private leases in Medini.
- Mount Austin: completed condos and landed homes with ordinary titles to compare.
- JB Sentral and Bukit Chagar: city-centre high-rises near the RTS Link.
- New launches in JB: check the master title and tenure before booking.
Compare them on my JB property map.
More Johor living guides: Freehold vs leasehold · Leasehold renewal in Johor · Land title searches and caveats · Malay reserve land in Johor
Frequently asked questions
What does “lease tenancy” mean on a Johor property listing?
It is not a title type under the National Land Code. It may be a mislabelled leasehold title, a private lease, a registered lease from an owner, or a licence over state land. Only a land title search shows which one applies.
Is “lease tenancy” the same as leasehold?
Not necessarily. Leasehold means you are the registered owner of land alienated by the State for a term of up to 99 years. A lease or tenancy means you hold someone else’s land on their terms. Check whose name is on the title.
What is a private lease scheme in Iskandar Puteri?
A structure used in some Medini projects where a private landowner keeps the land and buyers receive long leases, typically 30 to 99 years with an option to extend that is not assured. Buyers have taken disputes over these schemes to court, so read the lease with a lawyer.
Can I buy a house on a temporary occupation licence (TOL)?
Not in law. A TOL is a personal yearly licence over state land. It cannot be assigned and ends when the holder dies, under sections 67 and 68 of the National Land Code, so there is no title to transfer to you.
Can I get a home loan on a lease tenancy property?
It depends on what the label really means. Freehold and long leasehold titles are routinely financed. Lenders were reported to be reluctant on private lease units, and a licence has no title to charge. Ask your bank before paying any deposit.
How do I check the tenure of a Johor property?
Do a private search at the land office that keeps the title or through iTanah, PTG Johor’s online portal. It shows the title type, expiry date, registered owner, leases, charges and restrictions. Your lawyer then runs the official search.
Want the tenure checked before you view?
Send me the listing or the project and unit, and tell me whether you are buying as a Malaysian or a foreigner. I will find out the title type, expiry date and any lease or restriction, tell you plainly what you would hold, and show you comparable units with clear titles. You can also book an appointment, or a Zoom consultation if you are abroad.
Sources: National Land Code (Revised 2020), section 5 (definitions of lease, State lease, Mukim lease, Registry and Land Office titles), synced from the Attorney General’s Chambers on 23 September 2026; National Land Code, section 42 (powers of disposal of State land), synced 23 September 2026; National Land Code, section 63 (leases of reserved land), synced 23 September 2026; National Land Code, section 65 (temporary occupation licences), synced 23 September 2026; National Land Code, section 67 (term and renewal of TOLs), synced 23 September 2026; National Land Code, section 68 (TOLs not assignable, end on death), synced 23 September 2026; National Land Code, section 76 (alienation in perpetuity or for up to 99 years), synced 23 September 2026; National Land Code, section 221 (leases over three years, Form 15A), synced 23 September 2026; National Land Code, section 223 (tenancies exempt from registration), synced 23 September 2026; National Land Code, section 316 (endorsement of tenancies), synced 23 September 2026; National Land Code (Amendment) Act 2016 (Act A1516), section 90A, gazetted 9 September 2016; Pejabat Tanah dan Galian Pulau Pinang, FAQ on registration of land dealings (title types and lease terms), checked November 2026; PTG Johor, Borang C2 official search application, amendment 01/2026, May 2026; Pejabat Tanah dan Galian Johor, Manual Pengguna iTanah Johor (public user manual), version 1.0, 2026; The Edge Malaysia, on the private lease scheme in Medini, 28 January 2025; New Straits Times, on Singaporean buyers’ dispute over Johor condo purchases under a private lease scheme, December 2024; Malay Mail, “Freehold, leasehold and squatters: what laws in Malaysia say about land ownership”, 24 February 2026; Malay Mail, “Petaling Jaya’s leasehold dilemma”, 22 July 2026; Malaysian Bar, Circular No 444/2024 (Part 33A of the National Land Code and state thresholds, Johor table as at October 2024), 23 December 2024; 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 13 November 2026, not legal or financial advice. Tenure is decided by the land title and the documents behind it; confirm with PTG Johor or the district land office, your lawyer and your bank before you pay anything.