KOTA KINABALU: Sabah has amended its land law to protect buyers from losing their property due to fraud committed by previous owners.
The Land (Amendment) Enactment 2025, passed by voice vote without amendments during the state assembly sitting on Thursday (April 17), introduces a key legal principle known as indefeasibility of title, ensuring that land ownership cannot be easily challenged once it is registered — unless it was obtained through fraud or unlawful means.
Assistant Minister to the Chief Minister Datuk Nizam Abu Bakar Titingan, who tabled the Bill during the afternoon sitting, said the move would bring clarity and legal protection to genuine landowners while also strengthening Sabah’s land registration system.
Under the newly inserted Section 88A of the Land Ordinance (Cap. 68), ownership will now be legally secure for those who purchase property in good faith and for valuable consideration — even if the original title was tainted by forgery or misrepresentation unknown to the buyer.
“This amendment protects bona fide purchasers who rely on the integrity of the land registry and acquire property without any knowledge of prior wrongdoing,” Nizam said during the Bill’s second reading.
The change is expected to benefit not only buyers, but also financial institutions, legal professionals, and the state government by reducing the risk of ownership disputes, litigation, and compensation claims.
Sabah’s Land Ordinance previously lacked any express provision on indefeasibility, unlike the National Land Code and Sarawak Land Code. As a result, registered ownership in Sabah could still be challenged in court — even after multiple transfers — if fraud or procedural issues occurred earlier in the chain.
The new section specifies exceptions where indefeasibility does not apply, such as when registration was obtained by fraud, forgery, or unlawful use of authority.
However, it provides full protection to subsequent owners who acquire the land in good faith.
The Bill also introduces Section 38A, which allows landowners to voluntarily surrender part of their titled land to the state.
The amendment will simplify processes for individuals, government agencies, and GLCs that wish to return portions of land for public purposes, such as village reserves or riverbanks, without needing to surrender the entire title.
Partial surrenders must be approved by the Director of Lands and Surveys or the Assistant Collector of Land Revenue, depending on the land classification.
Once accepted, the land becomes state property free of encumbrances and no compensation is required.
Both amendments aim to strengthen Sabah’s land governance and align the state’s legal framework with best practices.
The amended law comes into force on the date of its publication in the state gazette.
