Short answer: Most bad property deals in Johor Bahru can be avoided with a few checks done before the first payment. Confirm that the developer holds a housing licence and a sale permit for the project, that your money goes only into the project’s designated account or your lawyer’s client account, that the title and land status match what you were told, and that the agent is registered. If any answer is unclear or someone pushes you to pay quickly, stop and ask.
Last verified: 18 October 2026. This is a general checklist, not legal advice. Confirm each point with the relevant authority and your own lawyer.
The ten checks at a glance
| # | Check | Where to confirm |
|---|---|---|
| 1 | Developer holds a Housing Development Licence | Ministry of Housing and Local Government (KPKT) |
| 2 | Project has an Advertising and Sale Permit | Permit number on the brochure and show unit; confirm with KPKT |
| 3 | Land title and any charge or caveat | Land office title search through your lawyer |
| 4 | Approved plans and unit specification | Developer, plus your lawyer’s review of the SPA |
| 5 | Payment goes to the right account | Account named in the SPA or your lawyer’s client account |
| 6 | Agent is registered | Board of Valuers, Appraisers, Estate Agents and Property Managers |
| 7 | Standard-form agreement is used | Your lawyer’s review of the SPA |
| 8 | Delivery date and late-delivery compensation | The SPA |
| 9 | Realistic running costs | See the holding costs guide |
| 10 | Rules for your buyer type | Foreigners: see foreigners buying property in Johor |
What each check protects you from
Licence and permit (checks 1 and 2)
A developer selling units before completion needs a housing development licence and an advertising and sale permit for each project. If the brochure does not show a permit number, or the number cannot be confirmed, do not pay. Our project due diligence checklist goes through the paperwork in more detail.
Title and land status (checks 3 and 4)
Ask your lawyer to search the title. You are checking who owns the land, whether it is charged to a bank, whether there are caveats, and whether the land category and any conditions fit the project being sold. A project that looks finished on a brochure can still have title problems.
Where your money goes (check 5)
Only pay into the account named in the agreement or your lawyer’s client account. Never pay cash, never pay into a personal account, and be wary of anyone who asks you to transfer money outside the agreed process. For a new launch, buyers’ progress payments are meant to be handled through the developer’s housing development account, so ask your lawyer to confirm the details. The full sequence is explained in how to buy a new launch in Johor Bahru.
Agents (check 6)
Property agents in Malaysia must be registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers. Ask for the registration number and check it. A registered agent is still not a substitute for your own lawyer.
The agreement (checks 7 and 8)
Developers selling before completion must use the prescribed form of agreement. Be careful if you are asked to sign a different contract or to sign before reading it. Look at the delivery date, the compensation for late delivery and the defect liability period.
Costs and rules (checks 9 and 10)
A low headline price can hide high running costs. Add stamp duty and legal fees from the stamp duty and legal fees guide, and the yearly bills in the holding costs guide, before you compare options. If you are a foreign buyer, state consent and a minimum price apply.
Warning signs
- Pressure to pay today “because the unit will be gone”.
- Promises of guaranteed rental returns with no written, enforceable terms.
- A request to pay cash or into an account that is not the developer’s or your lawyer’s.
- No permit number, or a permit number that does not check out.
- Refusal to let your lawyer see the agreement first.
- A price far below similar projects nearby.
What to do if something goes wrong
Keep every message, receipt and document. Speak to your lawyer first. For disputes with a developer over a sale and purchase agreement, buyers can bring claims to the Tribunal for Homebuyer Claims, which hears claims up to a set limit, and larger matters go through the courts. Report suspected fraud to the police.
FAQ
How do I check whether a Johor developer is licensed?
Ask for the housing development licence number and the advertising and sale permit number for the project, then confirm them with the Ministry of Housing and Local Government. The permit number should appear on the brochure and advertising.
Is it safe to pay a booking fee?
It can be, if the project has a valid permit and you pay only into the account named in the booking form or by your lawyer. Ask in writing whether the fee is refundable if your loan is rejected.
Who should I make payment to when buying a new launch?
To the account stated in the sale and purchase agreement, which your lawyer should confirm. Never pay cash or into a personal account.
How do I check that a property agent is registered?
Ask for the agent’s registration number and verify it with the Board of Valuers, Appraisers, Estate Agents and Property Managers.
Can foreigners and Singaporeans be targeted by scams?
Yes, buyers who live overseas and cannot visit often are. Use a lawyer in Malaysia, avoid paying anyone outside the agreed process and do not buy on pressure.
What should I do first if I suspect a problem?
Stop further payments, keep all records and talk to your lawyer. You can also WhatsApp our team and we will help you check the project details.
Sources: Housing Development (Control and Licensing) Act 1966; Ministry of Housing and Local Government (KPKT) guidance on licences and permits; Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia; Tribunal for Homebuyer Claims. Always confirm with your lawyer.
