Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Clearing the Air: Debunking Legal Misconceptions of Private Lease Schemes

Nur Huzaifah Zainal, Salfarina Samsudin, Fatin Afiqah Md Azmi

http://dx.doi.org/10.6007/IJARBSS/v14-i4/21363

Open access

The scarcity of land has led landowners to prioritise maintaining their ownership, which can impede the construction of high-rise buildings for housing. However, this situation has presented an opportunity to implement the strata lease scheme. Under this scheme, each strata title is registered with a lease, and buyers are granted the right to possess the purchased strata parcel for a 99-year lease term rather than being registered as proprietors. Despite concerns from the public about the lack of property proprietorship and insufficient protection for buyers under current legislation, this paper aims to review whether Malaysian legislation can answer public concerns in strata lease scheme projects. Qualitative research approaches, including case studies, will be used to examine legal issues from a societal perspective and evaluate the effectiveness of legal institutions in meeting societal demands. The objectives are to identify the legal problems related to the development of strata lease schemes, sometimes called the private lease scheme, and to address these issues. This study challenges negative public perceptions of some strata lease scheme projects. The findings reveal that Malaysian statutes can address the legal issues, and learning from more experienced strata lease scheme projects may help ease the worries over the public’s interpretation of private lease schemes.

Abu Bakar, N., Azmi, R., Sufian, A., & Saripan, H. (2021). The Legal Implications of a Sale of Property by Malaysian Developers under the Private Lease Scheme: In two minds? Environment-Behaviour Proceedings Journal, 6(17), 183–187.
Chang, K. L. (2020). Ramifications of leasing out freehold land under Private Lease Scheme. EdgeProp. Retrieved from
https://www.edgeprop.my//content/1755981/ramifications-leasing-out-freehold-land-under-private-lease-scheme
Chang, K. L. (2020). Letter – Between freehold, leasehold and private lease – Chang Kim Loong. The Vibes. Retrieved from https://www.thevibes.com/articles/opinion/8195/letter-what-is-freehold-leasehold-and-private-lease-datuk-chang-kim-loong
Chang, K. L. (2020). Beware the oppressive Private Lease Scheme. EdgeProp. Retrieved from https://www.edgeprop.my/content/1771030/beware-oppressive-private-lease-scheme
Chang, K. L. (2020). Private lease scheme: A risk for house buyers. Focus Malaysia. Retrieved from https://focusmalaysia.my/private-lease-scheme-a-risk-for-house-buyers/
EdgeProp. (2018). Buyers of Johor private lease scheme project sue developer. EdgeProp. Retrieved from https://www.edgeprop.my//content/1404157/buyers-johor-private-lease-scheme-project-sue-developer
National House Buyer Association (2021). What homebuyers should know about Private Lease Schemes (PLS). iProperty. Retrieved from https://www.iproperty.com.my/news/private-lease-schemes-homebuyers/
Othman, J., Hoh, K. C., Tey, A. (2021). Debunking Myths About Private Lease Scheme (Part 1). Retrieved from https://www.starproperty.my/news/debunking-myths-about-private-lease-scheme-part-1/120141
Othman, J., Hoh, K. C., Tey, A. (2021). Private Lease Scheme: Boon Or Bane? (Part 2). Retrieved from https://www.starproperty.my/news/private-lease-scheme-boon-or-bane-part-2/120213
Pavither. (2018). Housing Projects on Privately Leased Land Detrimental to Buyers. Property Guru. Retrieved from https://www.propertyguru.com.my/property-news/2018/6/172418/housing-projects-on-privately-leased-land-detrimental-to-buyers
Property Hunter. (2020). Beware of Misleading Private Lease Scheme. Property Hunter. Retrieved from
https://www.propertyhunter.com.my/news/2020/12/7829/article/beware-of-misleading-private-lease-scheme
Mohsin, A., Zainudin, A. Z., Zamri, N. I., & Maaroof, N. N. (2020). Perlaksanaan Skim Pajakan Persendirian Hartanah Strata: Kajian Kes Medini, Johor. In LAND (Vol. 4, Issue 1, pp. 95–118). , Jabatan Ketua Pengarah Tanah & Galian Persekutuan.
National Land Code [Act 828]. (2019), International Law Book Services, Selangor Darul Ehsan
Strata Management Act 2013 [Act 757]. (2016), International Law Book Services, Selangor Darul Ehsan.
Strata Title Act. (1985). [Act 318] (2017), International Law Book Services, Selangor Darul Ehsan.
Teoh, T. L. (2003). The issues of strata title development in Malaysia and Australia: a comparison for future direction. Master’s thesis, Universiti Teknologi Malaysia, Faculty of Geoinformation Science And Engineering.
The Edge Malaysia. (2018). 'Private Land Leasing For Housing' Idea First Mooted By Iskandar Investment. The Edge Markets. Retrieved from https://www.theedgemarkets.com/article/private-land-leasing-housing-idea-first-mooted-iskandar-investment
The Sun Daily. (2018). HBA objects to leasing of private land for housing purposes. The Sun Daily. Retrieved from https://www.thesundaily.my/archive/iskandar-investment-explains-medini-private-lease-scheme-DUARCH566137
Zainal, N. H., Samsudin, S., Azmi, M. F. A., & Amin, S. (2022a). Practicalities of Strata Lease Schemes in Malaysia. Environment-Behaviour Proceedings Journal, 7(19), 233–237.
Zainal, N. H., Samsudin, S., Azmi, F. A. M., & Amin, S. (2022b). A Case Study of Strata Lease Schemes in Malaysia: Features and Uniqueness. Environment-Behaviour Proceedings Journal, 7(22), 95-102.
Zainal, N. H., Samsudin, S., & Azmi, F. A. M. (2023). Distinctness Of Strata Lease Scheme In Malaysia’s Stratified Building Development: A Review. International Journal of Law, Government and Communication, 8(32), 138-149.
Zainudin, A. Z., Abdullah, N., Yunus, N. M., Samsudin, S., Mustaffa, N. E., Radiaton, S., Zakaria, A., Afiqah, F., Azmi, M., Mohsin, A., & Ismail, D. N. (2022). Knowledge And Views Of Buyers And Property Management Agent On The Management Of Strata Private Lease Scheme. In International Journal of Business and Economy (IJBEC) (Vol. 4, Issue 2).
Zamri, N. I. (2019). Skim Pajakan Persendirian Bagi Bangunan Strata Di Medini, Johor Bahru (Vol. 1). Master’s thesis, Universiti Teknologi Malaysia, Faculty of Built Environment And Surveying

(Zainal et al., 2024)
Zainal, N. H., Samsudin, S., & Azmi, F. A. M. (2024). Clearing the Air: Debunking Legal Misconceptions of Private Lease Schemes. International Journal of Academic Research in Business and Social Sciences, 14(4), 645–654.