Restriction in Interest — Land Title (Malaysia)
APPLICATION IN RESPECT OF RESTRICTION IN INTEREST ON LAND TITLE
National Land Code 1965 (Act 56) — Sections 166–168 | Land Registry, [State]
Date of application: [Application Date]
TO: The Land Administrator / Registrar of Titles
[Consenting Authority]
PART A — PROPRIETOR / APPLICANT DETAILS
Registered proprietor: [Proprietor Name] (NRIC: [Proprietor IC])
Address: [Proprietor Address]
Applicant's role: [Applicant Role]
PART B — LAND PARTICULARS
Title reference: [Title Reference]
Property address: [Property Address]
State: [State]
Land tenure: [Land Tenure]
PART C — RESTRICTION IN INTEREST DETAILS
Action sought: [Restriction Action]
Wording of restriction:
[Restriction Wording]
Grounds for application:
[Grounds for Application]
Application fee paid: [Consent Fee]
STATUTORY BASIS
This application is made pursuant to Section 166 of the National Land Code 1965 (Act 56), which provides that a restriction in interest may be endorsed on a Register Document of Title by order of the Land Administrator at the instance of the proprietor or of any person or body entitled to require its imposition.
A restriction in interest endorsed on a title limits the proprietor's right to deal with the land as specified in the endorsement. Any dealing in breach of the restriction is void under Section 168 of the National Land Code 1965.
We confirm that the information provided above is true and accurate to the best of our knowledge.
Proprietor / Applicant
________________
Signature
Consenting Authority (if applicable)
________________
Signature
What Is a Restriction in Interest — Land Title (Malaysia)?
A Restriction in Interest — Land Title in Malaysia sets out the property, price, and conditions governing the dealing it concerns.
Restrictions in interest in Malaysia arise from several sources. The most common source is a condition imposed by the state authority at the time of a land grant or alienation, pursuant to Section 22 of the NLC 1965, requiring the state authority's prior consent before any transfer, charge, or lease. This is standard for all leasehold titles (pajakan kebangsaan) in Malaysia and for land alienated under government resettlement or housing programmes. A second common source is the Bumiputera lot condition imposed by the state government on developers under the NEP framework, restricting the unit from being transferred to non-Bumiputera without state authority approval.
A restriction in interest may also be imposed by the landowner voluntarily — for example, a parent company may impose a restriction on a subsidiary's land title requiring the parent's consent before any dealing, to prevent unauthorised disposals. Under Section 24 of the NLC 1965, a restriction in interest may be imposed by entry in the Register of Title upon application to the Land Administrator.
To remove or vary a restriction in interest registered on a title in Malaysia, the landowner must apply to the Land Administrator under Section 24 of the NLC 1965 for the restriction to be removed or modified, supported by the consent of the party in whose favour the restriction was imposed. For state authority restrictions, this process involves submitting a Form 16J application to the relevant state Pejabat Tanah dan Galian and obtaining the State Director of Lands and Mines' approval before the Registrar of Titles will remove the restriction from the Register.
The legal framework governing the Restriction in Interest — Land Title (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Restriction in Interest — Land Title (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Federal Constitution of Malaysia sets the foundational requirements.
When Do You Need a Restriction in Interest — Land Title (Malaysia)?
An application relating to a Restriction in Interest on a land title in Malaysia is required whenever a registered restriction affects a proposed dealing with the land or when a landowner seeks to impose a new restriction to protect their interest.
A Restriction in Interest application is needed when a property owner is selling a leasehold property in Malaysia where the title carries a standard restriction requiring state authority consent before transfer. The vendor's solicitors must obtain the state authority's consent (using a separate Form 14A consent application) before the Restriction in Interest condition is satisfied and the transfer can be registered.
A Restriction in Interest application is required when a developer is selling Bumiputera-reserved units in a housing development and the state government imposes a restriction on each Bumiputera unit's strata or individual title preventing transfer to non-Bumiputera without state authority approval. The developer's solicitors apply to register this restriction at the time of issuance of individual titles.
A Restriction in Interest application is needed when a landowner wishes to impose a voluntary restriction on their own land title — for example, to protect family land from being sold without the consent of all family members, or to implement a corporate governance restriction requiring the parent company's approval before a subsidiary transfers property assets.
A Restriction in Interest removal application is required when a purchaser has completed all conditions for which the restriction was imposed — for example, upon payment of the full Bumiputera lot premium to the state authority — and wishes to have the restriction removed from the title so that the land can be freely dealt with in future transactions.
A Restriction in Interest application is needed when a bank as chargee under a registered charge over leasehold land applies to the state authority for consent to exercise its power of sale under the charge, and the state authority imposes conditions (including a restriction on the subsequent title issued to the purchaser at the mortgagee sale) as part of granting the mortgagee's consent to deal.
What to Include in Your Restriction in Interest — Land Title (Malaysia)
A complete Malaysia Restriction in Interest application or instrument must contain the following essential elements for registration at the Pejabat Tanah dan Galian.
Land title particulars: Title register reference — volume (jilid), folio, and lot number for general land titles, or individual strata title reference for stratified properties. Mukim, district (daerah), and state. The current registered proprietor's name and identification details.
Nature of the restriction: The precise wording of the restriction to be imposed or already endorsed on the title — for example: 'Tanah ini tidak boleh dipindahmilik, dicagarhak atau disewakan tanpa kebenaran bertulis Pihak Berkuasa Negeri Selangor' (This land cannot be transferred, charged, or leased without the written consent of the Selangor State Authority). The restriction must be specific as to the dealings it restricts and the authority or person whose consent is required.
Beneficiary of the restriction: The name and designation of the authority or person in whose favour the restriction is imposed — for example, 'Kerajaan Negeri Selangor' (Selangor State Government), or the name of a specific company. The beneficiary is the party whose consent must be obtained before any restricted dealing can proceed.
Grounds for imposition or removal: The legal basis for imposing the restriction (for example, a state authority condition under Section 22 of the NLC 1965, or a voluntary restriction under Section 24 of the NLC 1965) or the grounds for applying to remove or vary it (for example, completion of the condition precedent, payment of the state premium, or lapse of the purpose for which the restriction was imposed).
Supporting documents: For imposing a state authority restriction — the state authority's written direction or the development conditions. For removing a restriction — the written consent of the beneficiary, the completed Form 16J, and any supporting evidence that the conditions for removal have been satisfied.
Prescribed forms and fees: The application must use the forms prescribed under the National Land Code 1965 and the relevant state's land rules. Prescribed fees are payable to the Pejabat Tanah dan Galian, varying by state and by the value of the land.
Additional compliance elements for a Restriction in Interest — Land Title (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Restriction in Interest — Land Title (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/government/declarations/restriction-in-interest-malaysia
"Restriction in Interest — Land Title (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/government/declarations/restriction-in-interest-malaysia.
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author = {{Forms Legal}},
title = {Restriction in Interest — Land Title (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/government/declarations/restriction-in-interest-malaysia}},
note = {Free legal document template. Based on Federal Constitution of Malaysia}
}Frequently Asked Questions
A restriction in interest on a Malaysia land title is a registered condition endorsed under Section 22 or Section 24 of the National Land Code 1965 that limits the registered owner's freedom to deal with the land without first satisfying a specified condition — most commonly, obtaining the prior written consent of a named authority. The restriction appears in the endorsement panel of the title document (geran tanah) and in the Register of Title held at the Pejabat Tanah dan Galian. A common restriction wording is: 'Tanah ini tidak boleh dipindahmilik, dicagarhak atau disewakan tanpa kebenaran bertulis Pihak Berkuasa Negeri' — meaning the land cannot be transferred, charged, or leased without the state authority's written consent. The restriction does not prevent ownership of the land but restricts dealings. A purchaser who conducts an official land search before buying will see the restriction and know that state authority consent must be obtained before the transfer can be registered.
To remove a restriction in interest from a land title in Malaysia, the registered proprietor must submit a formal application to the Land Administrator (Pentadbir Tanah) of the relevant district, using Form 16J under the National Land Code 1965. The application must be supported by the written consent of the party in whose favour the restriction was imposed — typically the state authority, a specified government body, or a private party. For state authority restrictions, the applicant must satisfy the state authority that the original purpose of the restriction has been fulfilled — for example, by paying any outstanding premium, demonstrating that the Bumiputera conditions of the title have been complied with, or producing a consent order from the High Court. Upon receipt of the Land Administrator's approval, the Registrar of Titles removes the restriction from the Register of Title by making an entry in the endorsement register. The process typically takes 2 to 6 months depending on the state and the nature of the restriction.
A bank can charge (mortgage) a leasehold property in Malaysia that carries a restriction in interest, provided the bank first obtains the state authority's consent to the charge as required by the restriction condition. Under Section 214 of the National Land Code 1965, the restriction requiring state authority consent applies to charging (gadaian) in the same way as it applies to transfer and lease. The mortgagor's solicitors must apply to the Pejabat Tanah dan Galian for the state authority's consent to the charge before the bank's charge can be registered. Without this consent, the land registry will not register the charge. In practice, most banks regulated by Bank Negara Malaysia require their panel solicitors to obtain the state authority's charging consent as part of the security documentation process, and factor the processing time into the loan approval timeline. The state authority's consent to charge is typically processed within 1 to 3 months in major urban states.
If a registered proprietor in Malaysia transfers land that carries a restriction in interest without obtaining the required prior consent, the transfer is defeasible under Section 340(2)(b) of the National Land Code 1965. The title passed to the transferee is not indefeasible and may be set aside by the state authority or the party in whose favour the restriction operates. In practice, the Pejabat Tanah dan Galian will refuse to register the transfer if the restriction is endorsed on the title and the consent document is not presented alongside the Memorandum of Transfer (Form 14A). If a transfer is registered through fraud or error despite the restriction, the registered proprietor in whose favour the restriction operates may apply to the High Court of Malaya under Section 340(3) of the NLC 1965 to have the transfer set aside and the land revested in the original proprietor. The solicitors who facilitated the transfer without proper consent may also face professional disciplinary action under the Legal Profession Act 1976.
A restriction in interest and a caveat are different instruments under the National Land Code 1965, though both appear as encumbrances on a land title. A restriction in interest is imposed under Section 22 or 24 of the NLC 1965 as a permanent or semi-permanent condition attached to the title itself, operating as an absolute bar on specified dealings unless the requisite consent is obtained. A caveat, on the other hand, is a temporary protective instrument lodged under Section 319 (Registrar's caveat), Section 322 (lien-holder's caveat), or Section 323 (private caveat) of the NLC 1965 to prevent registration of dealings while the caveator's claim is asserted. A private caveat typically lapses after 6 years (or upon court order) and may be removed by the landowner by giving the caveator 2 months' notice under Section 327 of the NLC 1965. A restriction in interest does not lapse with time and can only be removed through the formal application process under Section 24 of the NLC 1965 with the beneficiary's consent.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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