This is for Malaysians buying a home in Johor Bahru, subsale or new launch, who want to know what the lawyers do and where Johor adds its own layer. The short answer: the paperwork follows the same national laws as the rest of Peninsular Malaysia, but the title type, any restriction on the title and the need for state consent decide how long the deal takes, and sometimes whether you can buy at all.
Subsale: the steps from offer to keys
- Offer letter and earnest deposit. You sign an offer to purchase and pay an earnest deposit, usually 2% to 3% of the price, held by the agency as stakeholder.
- Lawyer checks and SPA. The offer typically gives 14 to 21 days to sign the sale and purchase agreement. Before that, your lawyer runs a title search (more below).
- Balance deposit. On signing the SPA you top the deposit up to 10% of the price. Stamp duty on the SPA, legal fees and other costs are usually paid around this time too.
- Loan agreement. If you are borrowing, you sign the bank’s facility documents and your lawyer coordinates with the bank’s lawyer.
- Completion. The balance is commonly due within three months, with a one-month extension if needed, on which late interest of 8% a year is charged.
The three-month clock does not always start on the day you sign. If the property is still under a master title, it usually runs from the date the developer or landowner gives consent. Where state consent is a condition of the SPA, the completion period starts only after consent is obtained. So a JB subsale with a restriction on the title can take months longer.
New launch: what changes
Buying from a developer, the SPA is not freely negotiated. It is in the statutory form under the Housing Development regulations: Schedule G for landed homes and Schedule H for strata units such as condos and serviced apartments.
| Point | Schedule G (landed) | Schedule H (strata) |
|---|---|---|
| Payment on signing the SPA | 10% of price | 10% of price |
| Balance | Progressive payments as work is done | Progressive payments as work is done |
| Vacant possession due within | 24 months | 36 months |
Two points buyers miss. First, Regulation 11(2) prohibits anyone from collecting money before the SPA except as the contract allows, so a “booking fee” sits in a legal grey zone; the 10% is meant to be paid when you sign. My article on booking fee refunds covers what to do if things go wrong at that stage. Second, the Federal Court held in January 2021 that the delivery period runs from the date you paid the booking fee, not the SPA date, which matters if you ever claim for late delivery.
Title types you will meet in Johor
- Individual title. A separate title for a landed home (geran or pajakan).
- Strata title. Each condo or apartment unit has its own strata title, carved out of the land’s title. It carries the same tenure as the land.
- Master title. Strata or individual titles have not been issued yet, so a subsale is done by assigning the rights under the original SPA. A search of the master title will not show you the unit owner or what is charged against the unit; your lawyer has to get that from the developer.
- Freehold or leasehold. Leasehold land in Johor is often 99 years. The remaining years matter to banks; see my freehold vs leasehold guide.
Restrictions and state consent
A restriction in interest is a line on the title saying the land cannot be transferred, leased or charged without the State Authority’s consent. It is common on leasehold land and can appear on freehold land too. In Johor, consent applications go through the land office or PTG Johor, and the state’s iTanah portal lets lawyers apply for consent to transfer online. Law firm MahWengKwai notes an application typically takes at least three months, which is why many SPAs allow six months for it.
Foreign buyers need separate state approval and face Johor’s own minimum prices. I cover those in my article on the foreigner minimum price and quota, so I will not repeat them here.
Bumiputera lots and Malay Reserve land
These two are often confused but work very differently.
Bumiputera lots are units a developer must set aside for Bumiputera buyers as a planning condition. Selling one to a non-Bumiputera needs state consent, and approval is not automatic. The restriction usually stays on the title, so later sales to non-Bumiputera buyers need consent again. For unsold developer units, Johor lets developers apply for release after a waiting period, on payment of a release fee to the state; in 2022 a state exco put that fee at 7.5% to 10% of the unit price. For a subsale owner, ask your lawyer to check with the land office what applies to that title before you pay any deposit.
Malay Reserve land is governed in Johor by the Malay Reservation Enactment Johor 1936. Dealings in favour of non-Malays are void, and once the land is owned by a Malay it cannot pass back to a non-Malay. If you are not Malay, a home on Malay Reserve land is simply off the table.
The title search: what to look for
Your lawyer will do this, but know what it shows. In Johor you can apply for an official search at the land registry (RM150 per title on the 2026 form), and a private search can be done online through iTanah Johor. Since 25 March 2025, private searches of strata titles are also available online through eStrata Johor.
| On the search | Why it matters |
|---|---|
| Registered owner | Must match the seller, or the seller must show authority (executor, administrator, attorney). |
| Tenure and expiry | Freehold or leasehold, and how many years are left on a lease. |
| Charges | The seller’s bank loan; it must be redeemed at completion. |
| Caveats | Someone else claims an interest. Find out why before you pay more money. |
| Restriction in interest | Tells you whether state consent is needed, including Bumiputera restrictions. |
| Category and conditions of use | A home should sit on land for building use, not agriculture or industry. |
What your lawyer does
On a subsale, the buyer’s lawyer runs the searches, drafts or vets the SPA, applies for consent, handles stamping and registers the transfer. The seller’s lawyer deals with redeeming the seller’s loan. With a bank loan, the bank’s lawyer prepares the loan documents. Fees are set by a statutory scale; I explain them in my article on legal fees for buying property.
In my experience, most problems in JB deals start before the lawyer is involved, when someone pays an earnest deposit without knowing the unit is a Bumi lot or on a master title. Ask for a recent title search before you sign the offer.
Questions about your situation?
Send me the address or the title details and I will tell you which of these steps apply before you commit.
Sources: Donovan & Ho, “Cash Flow & Timing of Sub-Sale Property Purchase in Malaysia”, July 2020, updated March 2024; Donovan & Ho, “What to do if the seller delays the sale and purchase agreement”, December 2020, updated March 2024; StarProperty, “How long does it take for a sale and purchase agreement of a property to be completed?”, May 2018; EdgeProp (Chang Kim Loong, HBA), “Legalising ‘booking fees’: a case for reform — and its limits”, May 2026; Low & Partners, “Vacant Possession”, November 2021; MahWengKwai & Associates, “Property Transactions Requiring State Consent”, June 2024; Chia, Lee & Associates, “Revisiting the Malay Reserve Land Law in Malaysia”, March 2021; The Iskandarian, “Johor is Releasing Unsold Bumi Lots – Exco”, August 2022; Malaysian Bar (from The Star), “Importance of a property title search”, June 2019; PTG Johor, “Manual Pengguna iTanah Johor (Public) v1”, 2026; Pejabat Pendaftar Hakmilik Tanah Johor, “Borang C2: Permohonan Carian Rasmi (Pindaan 01/2026)”, May 2026; Johore Bar Committee, “Circular No. 11/2025: Online private searches for strata titles via eStrata Johor”, March 2025
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 16 October 2026, not legal, tax or financial advice.