Developer SPA — Bumiputera Lot Declaration (Malaysia)
SALE AND PURCHASE AGREEMENT — BUMIPUTERA UNIT
Housing Development (Control and Licensing) Act 1966 (Act 118) | Housing Development (Control and Licensing) Regulations 1989 | Contracts Act 1950 (Act 136) | Stamp Act 1949 (Act 378)
THIS SALE AND PURCHASE AGREEMENT is entered into on [SPA Date]
BETWEEN:
(1) [Developer Name], of [Developer Address], holding Developer's Licence No. [Developer Licence No] (hereinafter referred to as the "Vendor"); AND
(2) [Purchaser Name] (NRIC: [Purchaser IC]), of [Purchaser Address], being a Bumiputera of [Bumiputera Status] (hereinafter referred to as the "Purchaser").
SCHEDULE — PROPERTY PARTICULARS
Project / development: [Project Name]
Unit type: [Unit Type]
Unit / lot number: [Unit Number]
Built-up area: [Built-Up Area]
Land area: [Land Area]
Vacant possession delivery date: [VP Date]
FINANCIAL SCHEDULE
List price before discount: [List Price]
Bumiputera discount: [Bumiputera Discount]
Final purchase price: [Purchase Price]
Booking deposit paid: [Booking Deposit]
SPA deposit (balance of 10%): [SPA Deposit]
Housing loan: [Loan Amount]
Financier: [Financier]
1. SALE AND PURCHASE
1.1 Subject to the terms and conditions of this Agreement, the Vendor agrees to sell and the Purchaser agrees to purchase the Property for the Purchase Price of [Purchase Price].
1.2 The Purchase Price reflects the Bumiputera discount of [Bumiputera Discount] approved by the relevant State Authority. This Agreement is conditional upon the Purchaser maintaining Bumiputera status throughout the period of restriction on transfer imposed by the State Authority.
2. PAYMENT
2.1 The Purchase Price shall be paid in accordance with the Third Schedule of the Housing Development (Control and Licensing) Regulations 1989 (progressive payments linked to construction progress).
2.2 The Purchaser has paid a booking deposit of [Booking Deposit] prior to the execution of this Agreement, which shall be credited towards the SPA deposit. The balance SPA deposit of [SPA Deposit] is payable within 30 days of the date of this Agreement.
3. BUMIPUTERA RESTRICTION ON TRANSFER
3.1 The Purchaser acknowledges that this Property is reserved as a Bumiputera unit under the housing development approval conditions. The Property shall not be sold, transferred, charged, or otherwise disposed of to a non-Bumiputera without the prior written consent of the State Authority.
3.2 The restriction on transfer imposed by the State Authority shall be endorsed on the individual title issued under the National Land Code 1965 (Act 56). Any disposal in breach of this restriction is void and unenforceable.
3.3 If the Purchaser ceases to be a Bumiputera or wishes to sell to a non-Bumiputera, the Purchaser must first apply to the State Authority for consent and, if required, repay the Bumiputera discount.
4. VACANT POSSESSION AND DEFECTS LIABILITY
4.1 The Vendor shall deliver vacant possession of the Property in a good and tenantable state of repair on or before [VP Date] (the "Delivery Date").
4.2 If the Vendor fails to deliver vacant possession by the Delivery Date, the Vendor shall pay to the Purchaser liquidated damages (LAD) at the rate of ten per centum (10%) per annum on the purchase price for each day of delay, as prescribed under the Housing Development (Control and Licensing) Regulations 1989.
4.3 A defects liability period of twenty-four (24) months shall commence from the date of delivery of vacant possession, during which the Vendor shall rectify all defects at no cost to the Purchaser.
5. GENERAL PROVISIONS
5.1 This Agreement is governed by the Housing Development (Control and Licensing) Act 1966 (Act 118) and the laws of Malaysia.
5.2 This Agreement shall be duly stamped at LHDN under the Stamp Act 1949 (Act 378) within 30 days of execution.
5.3 The Purchaser's solicitors shall conduct a title search at the relevant Pejabat Tanah dan Galian (Land Office) to verify the title is free from encumbrances prior to completion.
Vendor (Developer)
________________
Signature
Purchaser (Bumiputera)
________________
Signature
What Is a Developer SPA — Bumiputera Lot Declaration (Malaysia)?
A Developer SPA — Bumiputera Lot Declaration in Malaysia governs the transfer of the property or business and fixes the price and conditions of sale.
The Bumiputera lot reservation requirement derives from state government development conditions imposed at the time of planning approval under the Town and Country Planning Act 1976 (Act 172) and conditions attached to development orders and building plan approvals issued by the relevant local authority under the Street, Drainage and Building Act 1974 (Act 133). Each state government in Malaysia administers its own Bumiputera lot policy — the Federal Territory of Kuala Lumpur, Selangor, Johor, Perak, Kedah, and Pahang each have distinct requirements for the percentage of Bumiputera units and the approval process for release of unsold Bumiputera lots.
The Housing Development (Control and Licensing) Act 1966 (Act 118) and the Housing Development (Control and Licensing) Regulations 1989 regulate the sale of residential properties by licensed housing developers. A developer who sells a Bumiputera-reserved unit to a non-Bumiputera purchaser without obtaining prior approval from the relevant state authority commits an offence under Act 118. The declaration of Bumiputera status is therefore a mandatory document in the sale and purchase transaction between a developer and a Bumiputera purchaser.
Bumiputera status in Malaysia encompasses Malays (as defined in Article 153 of the Federal Constitution of Malaysia), indigenous peoples of Sabah and Sarawak (collectively orang asli, and the various communities recognised in Article 161A of the Federal Constitution), and certain other communities recognised under state-specific guidelines. The purchaser must produce supporting documentation such as the MyKad identification card, birth certificate, or Bumiputera status letter from the relevant state government to support the declaration.
The legal framework governing the Developer SPA — Bumiputera Lot Declaration (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 Developer SPA — Bumiputera Lot Declaration (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Land Code 1965 (Act 56) sets the foundational requirements.
When Do You Need a Developer SPA — Bumiputera Lot Declaration (Malaysia)?
A Developer SPA Bumiputera Lot Declaration in Malaysia is required in every sale and purchase transaction where a developer sells a Bumiputera-reserved unit to a Bumiputera purchaser as part of the developer's compliance with state government Bumiputera lot requirements.
A Bumiputera Lot Declaration is needed when a Bumiputera individual purchases a new residential property — a terrace house, semi-detached house, condominium, or apartment — in a licensed housing development where the developer has been required to reserve a percentage of units for Bumiputera purchasers under the state planning approval conditions.
A Bumiputera Lot Declaration is required when a Bumiputera purchaser wishes to take advantage of the Bumiputera discount — typically 5% to 10% of the standard list price — offered by the developer for Bumiputera-reserved units. The declaration documents the purchaser's eligibility and forms part of the developer's records for state authority audit and compliance purposes.
A Bumiputera Lot Declaration is needed when a Bumiputera company — a company with at least 51% Bumiputera shareholding as certified by the Registrar of Companies under the Companies Act 2016 — purchases a commercial Bumiputera lot in a commercial development under the state government's commercial Bumiputera lot allocation policy.
A Bumiputera Lot Declaration is required when a developer applies to the state authority for approval to release unsold Bumiputera units to non-Bumiputera purchasers after the mandated Bumiputera marketing period (typically 6 months to 2 years) has elapsed without a Bumiputera purchaser being found. The developer's records of Bumiputera declarations received and rejected during the marketing period support the application.
A Bumiputera Lot Declaration is needed when a Bumiputera purchaser who purchased a Bumiputera-reserved unit subsequently applies to the state authority for consent to transfer or sell the unit to a non-Bumiputera purchaser, which is subject to state authority approval under the Bumiputera lot conditions attached to the title.
What to Include in Your Developer SPA — Bumiputera Lot Declaration (Malaysia)
A complete Malaysia Developer SPA Bumiputera Lot Declaration must contain the following essential elements.
Purchaser's personal details: Full legal name as per MyKad, MyKad number, date of birth, and home address of the Bumiputera purchaser. For corporate purchasers, the SSM registration number, company name, percentage of Bumiputera shareholding, and the Bumiputera certification reference from the relevant authority.
Bumiputera status declaration: A clear declaration by the purchaser that they are a Bumiputera as defined under Article 153 of the Federal Constitution of Malaysia or as recognised under the relevant state government guidelines. The purchaser's race and religion (for Malay Bumiputera under the Federal Constitution definition) should be stated.
Supporting documentation: List of supporting documents annexed — MyKad, birth certificate, marriage certificate (where relevant for married women using husband's status), or Bumiputera status letter from the state government. Sabah and Sarawak indigenous purchasers must produce the relevant native status document from the Jabatan Hal Ehwal Orang Asli or Jabatan Perikanan Sarawak.
Property details: Name of the development, developer's licence number under the Housing Development (Control and Licensing) Act 1966, parcel or lot number being purchased, floor area, and the list price and Bumiputera discounted price in Malaysian Ringgit (RM).
Bumiputera restriction acknowledgement: The purchaser's acknowledgement of any restriction on transfer attached to the Bumiputera lot — typically a restriction preventing transfer to non-Bumiputera without state authority consent, endorsed on the land title under Section 22 of the National Land Code 1965.
Declaration of truth: A statutory declaration before a Commissioner for Oaths under the Commissioners for Oaths Act 1993 confirming that the information in the declaration is true and that the purchaser has not previously purchased a Bumiputera-reserved unit (if the state's policy imposes a once-only entitlement to the Bumiputera discount).
Developer's verification: The developer's confirmation that it has sighted the supporting documents and verified the purchaser's Bumiputera status before proceeding with the sale of the reserved lot.
Additional compliance elements for a Developer SPA — Bumiputera Lot Declaration (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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Forms Legal. (2026). Developer SPA — Bumiputera Lot Declaration (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/real-estate/purchase-sale/developer-spa-bumiputera-malaysia
"Developer SPA — Bumiputera Lot Declaration (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/real-estate/purchase-sale/developer-spa-bumiputera-malaysia.
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author = {{Forms Legal}},
title = {Developer SPA — Bumiputera Lot Declaration (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/real-estate/purchase-sale/developer-spa-bumiputera-malaysia}},
note = {Free legal document template. Based on National Land Code 1965 (Act 56)}
}Frequently Asked Questions
For property purchase purposes in Malaysia, a Bumiputera is a person who qualifies as a Malay, native of Sabah or Sarawak, or other orang asli under Article 153 of the Federal Constitution of Malaysia. A Malay for this purpose is defined in Article 160(2) of the Federal Constitution as a person who professes the religion of Islam, habitually speaks the Malay language, and conforms to Malay custom — and who was born before Independence Day in Singapore, the Federation of Malaya, North Borneo, or Sarawak, or is the descendant of such a person. The indigenous peoples of Sabah include the Kadazan-Dusun, Bajau, Murut, and others recognised under the Sabah Land Ordinance. The indigenous peoples of Sarawak include the Iban, Bidayuh, Melanau, Orang Ulu, and others recognised under the Sarawak Land Code. Chinese and Indian Malaysians do not qualify as Bumiputera. State-specific guidelines may expand or restrict the categories eligible for Bumiputera lot purchases.
The Bumiputera discount on property in Malaysia is a price reduction granted by a property developer to a Bumiputera purchaser buying a Bumiputera-reserved unit, as required by the state government's Bumiputera lot policy. The discount is typically between 5% and 10% of the standard list price for residential properties, and may be higher for certain categories of development or state policies. For example, in the Federal Territory of Kuala Lumpur, a 5% Bumiputera discount is standard for most residential developments. In Selangor, the discount may vary between 5% and 7% depending on the development type. The Bumiputera discount is not a statutory entitlement but a condition imposed by the state authority on the developer at the time of planning approval. The developer deducts the discount from the purchase price stated in the Sale and Purchase Agreement (SPA) executed under the Housing Development (Control and Licensing) Act 1966.
A Bumiputera purchaser who has bought a Bumiputera-reserved lot in Malaysia cannot freely sell or transfer the unit to a non-Bumiputera purchaser without first obtaining the approval of the relevant state authority. The Bumiputera restriction is typically endorsed as a restriction in interest (Kepentingan dihadkan) on the land title under Section 22 of the National Land Code 1965, prohibiting transfer to non-Bumiputera without the state authority's written consent. The process for obtaining state authority consent to transfer a Bumiputera lot to a non-Bumiputera buyer varies by state and may involve payment of a premium to the state government, submission of an application to the State Land and Mines Office (Pejabat Tanah dan Galian), and a determination period of several months. Some state governments have established online application systems for this approval. Breach of the Bumiputera restriction by transferring without consent renders the transfer invalid.
When Bumiputera-reserved lots in a Malaysian housing development remain unsold after the mandatory Bumiputera marketing period — which varies by state from 6 months to 2 years from the launch date — the developer must apply to the relevant state authority for permission to release the unsold units to non-Bumiputera purchasers at the standard (non-discounted) price. The developer must demonstrate that genuine efforts were made to market the units to Bumiputera purchasers during the marketing period. Some state governments in Malaysia allow a partial release — for example, releasing only a portion of unsold Bumiputera units to non-Bumiputera — while maintaining a residual Bumiputera allocation for future applicants. In some cases, the state government itself may purchase or arrange to purchase unsold Bumiputera units through government-linked housing agencies such as Syarikat Perumahan Negara Berhad (SPNB) or state economic development corporations.
The Bumiputera lot policy in Malaysia is administered individually by each of the 13 states and 3 federal territories, and the specific requirements differ significantly from state to state. In Selangor, the Bumiputera lot requirement is governed by the Selangor State Authority guidelines and applies to all housing developments above a certain threshold of units. In the Federal Territory of Kuala Lumpur, the policy is administered by the Ministry of Federal Territories and the DBKL. In Johor, the percentage of mandatory Bumiputera lots and the Bumiputera discount rate may differ from Selangor. In Sabah and Sarawak, the definition of qualifying Bumiputera is broader and the lot reservation rules reflect the respective state land codes. The Federal Government through the Economic Planning Unit (EPU) sets overarching NEP guidelines, but implementation details — percentage allocations, discount rates, marketing periods, and release procedures — are determined at the state level. Developers must obtain state-specific approval for each development and maintain compliance records for state audit.
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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