Buyer's Guide · FOREIGNER

State Authority Consent (Kebenaran Pindah Milik): The Gate That Actually Decides Your Purchase

Q: Do foreigners always need State Authority consent in Malaysia?

Yes, in every state. Section 433B(1) of the National Land Code requires a non-citizen or foreign company to obtain prior written State Authority approval. Section 433C makes any contravening dealing null and void. Sabah and Sarawak are outside the National Land Code, but each has its own statute and its own consent process — there is no escaping it.

Q: How long does state consent take?

There is no published timeline. We could not find a processing-time commitment published by any state, so we do not repeat the "one to three months" figures that circulate online. The only sourced figure is at federal level: a decision within 10 working days of a complete application — but that applies only to acquisitions above RM20 million or involving Bumiputera equity dilution, which ordinary residential buyers never touch. Ask your conveyancing solicitor for the real current figure.

Q: If consent is refused, do I get my deposit back?

That depends on your contract, not on the law. Section 433C voids the dealing; it says nothing about your deposit. So your booking form and SPA must state that the transaction is conditional on State Authority consent, failing which the deposit is refunded in full. Without that clause, a refusal can cost you the property and the money. Have your solicitor point the clause out before you sign.

Q: Who submits the application — me or my solicitor?

In practice the buyer's conveyancing solicitor files it. In Penang it is mandatory — the state land office guideline states that a foreign acquisition application may be submitted only through a solicitor. Selangor's official page names the non-citizen or foreign company as the applicant, with forms filed at the land office counter. So if someone in Penang offers to "handle the approval" for you, that offer does not hold up.

Q: The bank has approved my loan — is that enough?

It is unrelated. Section 433B(3) of the National Land Code states that a non-citizen taking a charge or lien does not need State Authority approval. The bank's security was never restricted, so its approval says nothing about whether you can complete. What decides that is state consent for the transfer.

Q: I am overseas — can I sign a power of attorney and have someone handle it?

No. Section 433F of the National Land Code provides that any deed or instrument executed by a non-citizen under a power of attorney in respect of alienated land is void, and where it is an instrument of dealing, incapable of registration. Signing a POA at home and handing it to a relative or agent is the first instinct of most overseas buyers — and it is closed to foreigners here. Plan to sign in person, or ask your solicitor what compliant alternatives exist.

Price cleared, loan approved, contract signed — without this consent the transaction is void in law. Who applies, what it costs, how long it takes, and what happens to your deposit if it is refused.

By the PropertySifu Editorial · Updated August 2026 · 9 min read read

Read this first

Every state, every foreign buyer: you must obtain prior written State Authority consent before you can acquire the property. That is section 433B(1) of the National Land Code. It is not an administrative formality — section 433C states that any dealing in contravention of 433B is null and void.

Many buyers leave it to the end because "the bank has approved". That conflates two different gates: section 433B(3) says plainly that a charge taken by a lender needs no state consent at all. The bank leg was never the hard part. The transfer is.

🔴 The single most important thing here: the law voids the dealing, it does not guarantee your deposit back. That depends entirely on whether your contract says the transaction is conditional on consent, failing which the deposit is refunded in full. Without that clause, a refusal can cost you the money as well as the property.

What the statute actually provides

Four provisions define this gate entirely:

Section 433B(1) — a non-citizen or foreign company may acquire alienated land, but only after prior written approval of the State Authority on written application. It covers transfers, trusts, registration as a representative, and memorials of transmission on inheritance.
Section 433C — any disposal, dealing or act contravening 433B is null and void. Consent is not "nice to have"; without it the transaction does not exist.
Section 433B(3) — a non-citizen taking a charge or lien needs no state approval. That is why the financing side can run smoothly while your transfer stalls.
Section 433F — any deed or instrument executed by a non-citizen under a power of attorney over alienated land is void, and where it is an instrument of dealing, incapable of registration. The "sign a POA at home and let someone handle it" route is closed.

🔴 Sabah and Sarawak do not run on this. The National Land Code applies to Peninsular Malaysia only. Sabah operates under the Sabah Land Ordinance (Cap. 68) and Sarawak under the Sarawak Land Code — different statutes, different procedures, different offices. Any article telling you s.433B applies nationwide is not reliable.

The two states where we could verify official figures

Penang

Selangor

Who may file

Only through a solicitor, to the state land office (stated in the official guideline)

The non-citizen or foreign company is the applicant; forms filed at the Land Development Division counter, Level 4

Application fee (residential, foreign individual)

RM10,000 per title (PR RM2,000; company RM20,000)

RM200 per title

Appeal fee

Separate schedule (from RM2,000 for a residential individual)

RM1,000 per title

Approval levy

3% of acquisition value; 1.5% for island strata between RM1m and RM1.5m (SPA dated from 1 July 2017)

No percentage levy — the official page lists only the two fees above

Deadline to pay the levy

🔴 Within 30 days of the approval letter; late payment needs an extension (RM500 per title); after one year the approval lapses

Not applicable

If refused

Appeal to the Director of Lands and Mines; a refused application does not pay the 3%

Appeal on payment of the appeal fee

As at

State land office guideline, 1 August 2024

State land office page, updated 2 April 2026

🔴 How long does it take? We are not giving you a number, and here is why

You will read "one to three months in KL, three to four in Penang, six months in East Malaysia" everywhere. We could not find a single published state-level processing time commitment. Those figures come from blogs and agency articles with no source behind them. Our rule: if we cannot source it, we do not print it.

What we could verify is limited to two things:

At federal level (which only applies to acquisitions above RM20 million or involving dilution of Bumiputera equity — not ordinary residential buyers): a decision within 10 working days of a complete application, per paragraph 13 of the federal guideline.
Johor was reported to have cut its process from 70 days to 21 days. That is news reporting, not a published service commitment.

So the right move is to ask your conveyancing solicitor, before you sign, what that state is currently taking. They have recent files; that number is real. Then get the timeline written into the completion period in your SPA — your solicitor will handle it, but you have to raise it.

Six steps to get this gate right

Put the condition in before you pay a deposit
Your booking form and SPA must state that the transaction is conditional on State Authority consent, failing which the deposit is refunded in full. The statute will not protect that money; the contract will.
First confirm the property is capable of being approved
Does it clear the state's minimum price? May a foreigner hold that title type? Is it a Bumiputera quota or low-cost unit? Fail any of those and refusal is certain — start with state thresholds and what foreigners cannot buy.
Use a conveyancer who has done foreign-buyer files
In Penang it is mandatory that a solicitor files. Ask how many they have handled recently and what that state is currently taking.
Budget the application fee and the levy
Penang charges a foreign individual RM10,000 per title plus a 3% levy; Selangor charges RM200. The gap runs to tens of thousands — never estimate your state's cost from another state's figure.
The moment consent arrives, deal with the levy deadline
Penang requires payment within 30 days of the approval letter; late payment needs a separate extension application, and after a year the approval lapses and you start over. Put that date in your calendar.
Sign in person — do not rely on a power of attorney
Section 433F makes land instruments executed by a non-citizen under a POA void and unregistrable. Plan your travel, or ask your solicitor what compliant alternatives exist.

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Frequently asked questions

Do foreigners always need State Authority consent in Malaysia?

Yes, in every state. Section 433B(1) of the National Land Code requires a non-citizen or foreign company to obtain prior written State Authority approval. Section 433C makes any contravening dealing null and void. Sabah and Sarawak are outside the National Land Code, but each has its own statute and its own consent process — there is no escaping it.

How long does state consent take?

There is no published timeline. We could not find a processing-time commitment published by any state, so we do not repeat the "one to three months" figures that circulate online. The only sourced figure is at federal level: a decision within 10 working days of a complete application — but that applies only to acquisitions above RM20 million or involving Bumiputera equity dilution, which ordinary residential buyers never touch. Ask your conveyancing solicitor for the real current figure.

If consent is refused, do I get my deposit back?

That depends on your contract, not on the law. Section 433C voids the dealing; it says nothing about your deposit. So your booking form and SPA must state that the transaction is conditional on State Authority consent, failing which the deposit is refunded in full. Without that clause, a refusal can cost you the property and the money. Have your solicitor point the clause out before you sign.

Who submits the application — me or my solicitor?

In practice the buyer's conveyancing solicitor files it. In Penang it is mandatory — the state land office guideline states that a foreign acquisition application may be submitted only through a solicitor. Selangor's official page names the non-citizen or foreign company as the applicant, with forms filed at the land office counter. So if someone in Penang offers to "handle the approval" for you, that offer does not hold up.

The bank has approved my loan — is that enough?

It is unrelated. Section 433B(3) of the National Land Code states that a non-citizen taking a charge or lien does not need State Authority approval. The bank's security was never restricted, so its approval says nothing about whether you can complete. What decides that is state consent for the transfer.

I am overseas — can I sign a power of attorney and have someone handle it?

No. Section 433F of the National Land Code provides that any deed or instrument executed by a non-citizen under a power of attorney in respect of alienated land is void, and where it is an instrument of dealing, incapable of registration. Signing a POA at home and handing it to a relative or agent is the first instinct of most overseas buyers — and it is closed to foreigners here. Plan to sign in person, or ask your solicitor what compliant alternatives exist.