Malaysia Leasehold Property Auction Type

While reading Lowyat forum, I found that there are 2 types of leasehold property auction.

So I googled to understand further and below are the summary.

Type of Leasehold Auctions

  • Loan Agreement Cum Assignment (LACA) auctions
  • Non-Loan Agreement Cum Assignment (non-LACA) auctions

Non LACA (high court / land office)

Meaning individual strata title completed. Non bumi can buy from bumi owner (non bumi lot unit).

LACA (public auction)

Meaning still under master title or individual strata title yet to complete (beware the need to do double transfer) depend on the developer. need to check with developer because developer hold the title.

Developer can still convert bumi owner unit into bumi lot if they suddenly oversell the project to non bumi and fail to meet the bumi quota.
For some projects, maybe developer already paid up the penalty to the authority. Meaning majority units already being converted into open unit. No longer got bumi quota.

So conclusion, only developer holds the answer to your question if the lelong unit fall under this case.

Comparison Summary

Strata Title CompletedYes. Title perfection doneNo. Still master title or title issued but perfection not done
Title owned by Who?Previous Owner (Proprietor)Developer or Previous Owner (but not yet fully completed)
Where Auctions Are ConductedHigh Court / Land OfficePublic Auction
Balance Purchase Price to be settled in (days)12090
Any potential problems?NoYes. Double transfer of strata title required by developer or The developer has transferred the property to the previous proprietor, and now the case was stucked at the proprietor and not transferred to the defendant (property owner) because the owner has not settled the legal fees and stamp duty.
Potential Additional Cost?NoMight have to pay twice stamp duty for previous owner and the buyer. (Please confirm with your lawyer)

Example of Impact

A question from Lowyat Forumer

I bought an auction unit and taken up a loan. Now my bank don't want to release the loan balance sum because the Letter of Confirmation and Undertaking stated that Strata Title is not yet been issued and that the developer is disagreed with a direct transfer and once the Strata title is out they will transfer to the first buyer name. Now my bank don't want to release the loan balance sum because of the disagree direct transfer. Why developer don't agreed to direct transfer? How to go about it if really can't direct transfer? What document do i have to follow up?


Your lawyer should advice you better regarding the process. Same like sub sale whereby if developer disagreed to do direct transfer. Then you need to do double transfer.

In sub sale, the seller is responsible to settle the first transfer from developer to his/her name. But for auction, you need to do that and bear all cost involve which is legal fees + stamp duty / MOT to transfer the title from developer to the defaulter or bank first. Then only transfer another time to your name.

It is time consuming and cost consuming. Process may take 1 year especially if the property is leasehold. To extend the auction due date (90 or 120 days) will be up to the goodwill of the auction back whether to impose penalty/interest or not.


Try to avoid LACA auction except you are cash buyer and factor in additional cost to transfer the strata title.