Land Titles in Malaysia: Geran, Pajakan, HS(D) and What Factory Buyers Should Check

Key Takeaways

• Malaysia's National Land Code (Act 828, Revised 2020) recognises two kinds of title: final title (Registry title or Land Office title) and qualified title (issued before the land is fully surveyed). Strata title is a subsidiary title, also counted as final title.
• The code on the title tells you a lot: GRN (Geran) and PN (Pajakan Negeri) are Registry titles, GM (Geran Mukim) and PM (Pajakan Mukim) are Land Office titles, and HS(D) and HS(M) are their qualified title versions.
• "Geran" means the land is held in perpetuity (freehold); "Pajakan" means it is leased from the state for a term of years, which under section 76 cannot exceed 99 years.
• For a factory, the most important line is the category of land use: it should read "Perusahaan" (industry). That category brings implied conditions under section 117, including starting operations within three years and getting consent before you alter or extend a building.
• An HS(D) or HS(M) title gives you the same rights as a final title, but the boundaries are provisional and the land cannot be subdivided or amalgamated until it is converted.

What are the types of land title in Malaysia?

The National Land Code sets out the titles under which state land can be alienated in section 77: Registry title and Land Office title (the two forms of final title), and qualified title. Each form has its own document, and each document carries a short code that appears before the title number on every land search and sale and purchase agreement.

Final title: Registry title and Land Office title

Registry title is kept at the state Land and Mines Office (Pejabat Tanah dan Galian, PTG). Section 77(3) says it is the right form for town or village land, country land over four hectares and any part of the foreshore or seabed. Its two documents are:

• Grant (GRN, Geran): Form 5B, land held in perpetuity.
• State lease (PN, Pajakan Negeri): Form 5C, land held for a term of years.

Land Office title is kept at the district land office (Pejabat Daerah dan Tanah). It is the right form for country land of four hectares or less, although the state can direct that a small lot be held under Registry title. Its two documents are:

• Mukim grant (GM, Geran Mukim): Form 5D, land held in perpetuity.
• Mukim lease (PM, Pajakan Mukim): Form 5E, land held for a term of years.

Registry and Land Office titles give the owner the same rights. The difference is where the register is kept, and so which office you go to for searches and registration.

Qualified title: HS(D) and HS(M)

A qualified title (Hakmilik Sementara) is issued "in advance of survey". Under section 177 there are two forms: one corresponding to Registry title, shown as HS(D) (Hakmilik Sementara Daftar), and one corresponding to Land Office title, shown as HS(M) (Hakmilik Sementara Mukim). Many factories in newer industrial parks are still on HS(D) titles because the developer subdivided the land before the final survey was finished.

Strata title for factory units

Strata title is a subsidiary title issued for parcels in a subdivided building under the Strata Titles Act 1985 (Act 318). The code defines final title as Registry title, Land Office title and subsidiary title, so a strata title is also a final title. It applies to stratified factory or warehouse units, not to a terrace or detached factory on its own lot.

Quick reference table

How can I tell from the title if land is freehold or leasehold?

Look at the document type first. A Geran or Geran Mukim is a grant in perpetuity, which is what people mean by freehold. A Pajakan Negeri or Pajakan Mukim is a lease from the state, and the title shows the term and the expiry date. Section 76 limits alienation for a term to no more than 99 years, while grants in perpetuity are reserved for cases the code lists, such as land for a public purpose or where the state finds special circumstances.

A qualified title does not say freehold or leasehold through its code, so read the tenure field (Tempoh Pegangan) on the title or on the official search. For a factory buyer, the remaining lease matters for bank financing and resale. If you want freehold, start from the freehold industrial land for sale in Selangor and confirm the tenure on each title.

What does the land use category on a factory title mean?

Section 52 creates three categories of land use: agriculture, building and industry. The category is endorsed on the title, and it decides which implied conditions apply. On a Malay title, industry appears as Perusahaan, building as Bangunan and agriculture as Pertanian.

Implied conditions for industrial land (section 117)

When land is in the category industry, section 117 implies these conditions, unless they clash with an express condition on the title:

1. The land may be used only for industrial purposes: factories, workshops, foundries, warehouses, docks, jetties, railways and other buildings used for manufacture, smelting, producing or distributing power, or assembling, processing, storing, transporting or distributing goods.
2. The industry must start operations within three years of the date the land first became subject to the category, and every building must be kept in repair.
3. No building or installation may be demolished, altered or extended without the prior written consent of the appropriate authority.

The code still allows buildings for welfare facilities for the people working there, and other uses the state authorises case by case.

Express conditions and restrictions in interest

Under section 120 the state can add express conditions (for example, the type of industry allowed) and restrictions in interest, which the code defines as limits on the owner's powers of dealing, such as transferring, leasing or charging the land. Both must be endorsed on or referred to in the title. A restriction requiring state consent to transfer is common on leasehold industrial land, and it adds a step to your timeline. If the category or a condition does not suit your plans, section 124 lets the owner apply to the state to change the category or rescind a condition. Our industrial land conversion guide covers that process.

Is an HS(D) title safe for a factory purchase?

Yes, in the sense that the law protects you. Section 176(2) says a qualified title confers on the owner the same rights in every respect as a final title, with two exceptions: the boundaries shown are provisional (unless an earlier survey fixed them), and the land cannot be subdivided, partitioned or included in an amalgamation, nor can any building on it be subdivided. You can still buy, transfer, lease or charge it.

What matters in practice is the land area. On a qualified title the area is provisional, so the final survey can come out slightly different. If your price is worked out on land area, the sale agreement should say how a difference after the final survey is handled.

How a qualified title becomes a final title in Selangor

According to PTG Selangor, conversion from qualified title (QT) to final title (FT) is handled by its Flying Squad Unit. Once the land has been fully surveyed and the certified plan approved by the Director of Survey, the owner can apply to the registration unit of the relevant district land office.

• HS(D) to GRN or PN: once registered, the new title can be collected at PTG Selangor's QTFT unit (Tingkat 2, Bangunan SSAAS, Shah Alam) by appointment. PTG lists 03-5544 7154 / 7510 / 7517 for checking whether it is ready.
• HS(M) to GM or PM: contact the registration unit of the district land office directly.

Bring the documents on PTG Selangor's checklist:

1. The original qualified title (HSD or HSM).
2. A copy of the current year's paid quit rent receipt.
3. Two copies of the collector's identity card.
4. A letter of authorisation from the registered owner if a representative collects, or if there is more than one owner.
5. If the land is charged, only the bank's representative can collect, with a letter from the bank.
6. The company stamp, where relevant.
7. A death certificate or related documents if an owner has died.
8. The Form 5F notice fee of RM20.

Where do I search a land title?

You search the title at the office that keeps its register. JKPTG puts it simply: an official search (carian rasmi) for HSM, GM and PM titles is bought from the district land office, and for HSD, GRN and PN titles from the state PTG. The search shows the owner, the category of land use, express conditions, restrictions in interest, charges, caveats and registered leases, so it is the first document to read before you pay a deposit. After the title is clean, the transfer itself is registered using a Memorandum of Transfer (Form 14A).

What changes for a factory or warehouse compared with a house?

• The category must be industry. A house sits on building land. A factory on building or agriculture land may need a change of category before it can be approved, and the planning control on the area must also allow industry.
• Development conditions bite. The three-year start of operations condition and the consent needed to alter or extend buildings under section 117 do not apply to residential land. Ask the seller whether extensions were approved.
• Plot ratio and site coverage. The title does not show how much you can build; that comes from the local plan and the council. See our guide on plot ratio for industrial land.
• Foreign buyers. Under section 433B, a non-citizen or foreign company needs the prior approval of the state authority for most dealings in land, with listed exceptions.
• Strata factory units. If the unit is in a stratified building, check that the strata title has been issued and is not still under the master title.

Before you buy in Serendah or Batang Kali, Jason Low's guide on checking the title category and land conversion there is a useful second read.

Common mistakes buyers make with land titles

• Assuming "Geran" on a qualified title means freehold without reading the tenure field.
• Not checking the express condition: a title can be in the category industry but limited to a certain type of industry.
• Ignoring a restriction in interest and finding out late that state consent is needed to transfer or charge.
• Pricing a deal on a provisional land area without a clause for the final survey.
• Relying on a photocopy of the title instead of a fresh official search.

This guide explains the law in general terms and is not legal advice; ask your lawyer to check the title for your own transaction.

Frequently Asked Questions

What are the types of land title in Malaysia?

There are final titles and qualified titles. Final titles are Registry titles (Geran, Pajakan Negeri) kept at the state PTG and Land Office titles (Geran Mukim, Pajakan Mukim) kept at the district land office, plus strata titles for units in a subdivided building. Qualified titles, HS(D) and HS(M), are issued before the land is fully surveyed.

What is land title in Malay?

A land title is called hakmilik tanah in Malay, and many people simply say "geran". Strictly, a geran is only one type of title, the grant held in perpetuity. A leasehold title is a pajakan, and a qualified title is a hakmilik sementara.

What is the difference between Geran and Pajakan Negeri?

A Geran (GRN) is a grant in perpetuity, which is freehold. A Pajakan Negeri (PN) is a state lease for a term of years, not exceeding 99 years under the National Land Code. Both are Registry titles kept at the state PTG.

What does HS(D) mean on a land title?

HS(D) stands for Hakmilik Sementara Daftar, a qualified title kept at the state registry. It is issued before the final survey and gives the owner the same rights as a final title, except that the boundaries are provisional and the land cannot be subdivided or amalgamated. It is later converted to a GRN or PN.

Can I take a bank loan on an HS(D) factory?

The National Land Code allows land on a qualified title to be charged, because a qualified title carries the same rights as a final title. Whether a bank lends, and on what terms, is the bank's own decision. Ask your bank and lawyer early if the title is still HS(D).

What should the title say for a factory?

The category of land use should read industry (Perusahaan). Then read the express conditions to see what type of industry is allowed, and check for any restriction in interest such as state consent to transfer or charge.

Can a foreign company buy industrial land with any type of title?

Under section 433B of the National Land Code, a non-citizen or foreign company needs prior approval from the state authority for most dealings in land, whatever the title type. Our guide for foreign companies buying or renting a factory explains the Selangor rules.

FactoryHub is dedicated to helping every client find the right factory or warehouse. To check a title before you make an offer, call Peter Tan (REN 12771) on 016-666 6872.