Renting and buying property

Renting: there is no single tenancy law yet

Malaysia does not yet have a Residential Tenancy Act. As of late 2026 the proposed law has been discussed by the Housing and Local Government Ministry (KPKT) for several years but has not been passed. Residential tenancies are still governed mainly by:

• the tenancy agreement (perjanjian sewa) itself, which is a contract under the Contracts Act 1950;
• the Specific Relief Act 1950 (recovering possession);
• the Distress Act 1951 (recovering rent arrears through the court);
• the Civil Law Act 1956 and general court procedure.

Because the agreement is so important, read it carefully before signing: rent, deposits, length, renewal, repairs, early termination and how the deposit is refunded.

A landlord cannot evict without a court order

Section 7(2) of the Specific Relief Act 1950 says that where property has been let under a tenancy, and the tenancy has ended but the occupier stays on, the owner shall not recover the property otherwise than by proceedings in court. In practice this means a landlord may not lock a tenant out, change the locks, cut off water or electricity, or remove the tenant's belongings to force them out. The landlord must get a court order and have it enforced by the court bailiff.

A person who is dispossessed without consent "otherwise than in due course of law" can sue to recover possession (s 8).

This does not mean a tenant can stay for free. Tenants who stop paying or overstay can be sued for possession, arrears and damages, and can be ordered to pay the landlord's legal costs.

Rent arrears: the Distress Act 1951

A landlord owed rent can apply to the court for a warrant of distress (waran tahanan). This lets the court seize and sell the tenant's movable property on the premises to pay the arrears. It is a court process, not self-help.

Deposits

There is no law yet that caps deposits. The amounts are set by agreement and market practice, so negotiate before you sign. The agreement should say when and how the deposit is refunded and what deductions are allowed. Take dated photos of the property when you move in and when you move out.

Stamp duty on tenancy agreements

A tenancy agreement must be stamped (duti setem) by the Inland Revenue Board (LHDN). An unstamped agreement cannot normally be used as evidence in court until it is stamped and any penalty is paid.

• Rate (Item 49(a), First Schedule, Stamp Act 1949): for every RM250, or part of RM250, of annual rent: RM1 for a term of up to 1 year, RM3 for more than 1 and up to 3 years, RM5 for more than 3 and up to 5 years, and RM7 for more than 5 years.
• Who pays: the tenant pays duty on the original. The landlord pays the duty on the duplicate copy.
• When: submit within 30 days of signing to avoid late penalties.
• How (from 2026): since 1 January 2026, tenancy and lease instruments are under phase 1 of LHDN's stamp duty self-assessment system, filed online through e-Duti Setem on MyTax.

Leases longer than three years must also be registered at the land office under the National Land Code.

Buying from a developer

Housing developments in Peninsular Malaysia are regulated by the Housing Development (Control and Licensing) Act 1966 (HDA) and its regulations. Sabah and Sarawak have their own housing laws. Key protections:

• Developers must be licensed and hold an advertising and sale permit.
• The sale and purchase agreement (perjanjian jual beli) must follow a prescribed statutory form (Schedules G and H for landed and strata property). The developer cannot add terms that reduce your protection.
• Late delivery entitles the buyer to liquidated ascertained damages (LAD) at the rate set in the agreement.
• The developer must repair defects reported during the defects liability period (tempoh liabiliti kecacatan) stated in the agreement.

Tribunal for Homebuyer Claims

The Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah, TTPR), under KPKT, is a low-cost forum for buyers' claims against licensed developers, for example LAD for late delivery or the cost of repairing defects.

• Limit: claims up to RM50,000 (HDA s 16M). The Federal Court has held that the limit applies to each separate claim.
• Time limit: generally within 12 months of the issue of the certificate of completion and compliance (CCC), the end of the defects liability period, or the termination of the agreement, as the case may be.
• Lawyers are generally not allowed unless complex legal issues arise.
• Awards are binding and can be enforced through the Magistrates' Court. Not complying with an award is an offence.

See also Tribunals.

Strata living: Strata Management Act 2013

Condominiums, apartments and gated developments with strata titles are governed by the Strata Management Act 2013 (Peninsular Malaysia and Labuan). Key points:

• Before strata titles are issued, the developer and then a Joint Management Body (JMB) manage the building. After that, a Management Corporation (MC) takes over.
• Owners must pay maintenance charges and contributions to the sinking fund. Unpaid charges can lead to penalties and recovery action.
• Disputes, such as over charges, by-laws or repairs, can go to the Strata Management Tribunal (Tribunal Pengurusan Strata), which can award up to RM250,000.

Complaints about how a building is managed can also be made to the Commissioner of Buildings (COB) at your local authority.

When to see a lawyer

Use a lawyer for property purchases (they handle the conveyancing), for eviction or large arrears claims, and for any dispute above the tribunal limits. Lawyers' conveyancing fees are set by scale: see Getting legal help.

Laws cited on this page

Listed automatically from the federal Acts named on this page. All laws of Malaysia →

Sources

• Specific Relief Act 1950 (Act 137), ss 7-8 (text)
• LHDN - Guidelines on stamp duty, First Schedule Stamp Act 1949 (Item 49 leases/tenancies)
• LHDN - Introduction to stamp duty (self-assessment phases from 1.1.2026)
• Low & Partners - Residential Tenancy Act status (not yet tabled)
• Conventus Law - Practical guide to the Homebuyers Tribunal
• EdgeProp - Housing tribunal limit per claim (Federal Court)
• KPKT - Tribunal for Homebuyer Claims page
• Laws of Malaysia (HDA 1966, Strata Management Act 2013, Distress Act 1951)

Related

Tribunals and alternatives to courtSmall claims (RM5,000 and below)How a civil case runsEnforcing a judgmentConsumer rights