Own with Confidence: Your Guide to Due Diligence in the Malaysian Property Market

Own with Confidence: Your Guide to Due Diligence in the Malaysian Property Market


In any property deal, due diligence is the magic that transforms chaos into clarity. It is like a complex puzzle. Each piece – the initial process, the land search, the ownership history, the state and nature of the property itself – must fit together to create a harmonious outcome. This guide equips the Purchaser with invaluable insights on the due diligence manner from a legal perspective to ensure a seamless and informed transaction process.

Before you say I-do

Before boarding on the property purchase journey, it is crucial to establish a solid financial foundation. Conducting a comprehensive assessment of your budget, including potential monthly payments and deposit requirements, is essential. Malaysian employees contributing to the Employees Provident Fund (EPF) may consider utilizing funds from Account 2 for the deposit.

Property Inspection and Assessment

Upon deciding to proceed with the purchase, it is important to conduct a meticulous physical inspection of the property. This involves evaluating the property’s condition, identifying any structural deficiencies, and anticipating potential renovation or repair needs. Clarifying the inclusion of fixtures and fittings and documenting the property’s current state through photography can be used as evidence during negotiation with the Vendor especially if there are visible issues or defects that need to be addressed.

Land Search and Ownership Verification

Conducting a land search before committing to a property purchase is crucial as this mundane task will reveal crucial information that could impact the entire sale and purchase process.

The land search reveals essential information such as land tenure, whether it is erected on a leasehold or freehold land which will influence tenure and ownership rights. Additionally, knowing if the property is still under master title or issued strata title discloses not only who is the registered owner but also if developer’s consent is prerequisite for the sale and purchase. You might need to conduct a further search if a caveat has been lodged on that property for whatever reason.

By ensuring that the Vendor holds the legal right to sell with or without the state authority consent, you mitigate the risk of purchasing a property riddled with disputes or conflicting claims. Do not be misled by the representative. A bankrupt Vendor must obtain a sanction from Insolvency Department. On the other hand, you might need to acquire the beneficiaries’ approval and the Court order prior to the purchase from a deceased Vendor.

Sale and Purchase Agreement (SPA)

The SPA serves as the comprehensive blueprint for the property transaction, encapsulating critical clauses including but not limited to the purchase price, deposit amount, completion date, conditions precedent, possession conditions, warranties, defect liability, and termination rights.

Special considerations may arise, particularly concerning properties with unique features such as elevators or swimming pools, which may necessitate the inclusion of an extra warranty period to cover any associated risks or maintenance requirements. Ultimately, once your name is endorsed on the issued document of title, the property is legally yours.


Owning your dream property is a significant milestone, and ensuring a smooth and secure journey requires thorough due diligence. Remember, due diligence isn’t just a formality; it’s an investment in peace of mind and the foundation for a successful property transaction.

By Rahayu Partnership, Malaysia
Law Firm Website: www.rahayupartnership.com


Rahayu Partnership is a boutique law firm specializing largely in admiralty, marine insurance and general and commercial litigation work. The firm is part of the Joseph Tan Jude Benny (JTJB) Global Network and this unique association with JTJB has made us the most dynamic and progressive maritime law firm in Malaysia, exporting our skills and services to the world. Our firm has considerable expertise in both contentious and non-contentious aspects of shipping law, advising on matters ranging from ship arrest and release, collision, charter parties, sale & purchase of ships, cargo claims to marine casualties and from admiralty processes to insurance law.

Follow by Email



Leave Comment