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Kota Kinabalu: The Assembly on Thursday passed the Land Enactment (Subsidiary Title) Bill 2026, overhauling strata property title management in the State with wider coverage, stricter deadlines and stiffer penalties for developers.

“This is a significant legal reform for Sabah that is expected to help accelerate and streamline the management of subsidiary titles for the benefit of the government, the property development industry, financial institutions and buyers,” said Assistant Minister to the Chief Minister Datuk Isnin Aliasnih when tabling the Bill.

“The new legislation was drawn up to establish a more comprehensive, modern and practical legal framework for the subdivision of buildings or land into parcels held under subsidiary titles,” he said.  

“This Bill is a significant reform step because it is no longer limited to buildings alone as under the 1972 Enactment, but now covers buildings or land, including land with two or more buildings that can be subdivided into landed parcels,” he said.

Isnin said the new law reflects an expansion of legal scope in line with current development needs and the increasingly diverse strata development models in Sabah.

The new enactment replaces the Land (Subsidiary Title) Enactment 1972 and is restructured from seven to eight parts containing 54 clauses.

Among the key policy changes is the removal of building management and management corporation jurisdiction from the 1972 Enactment, which will be transferred to the Building Management Enactment 2026 under the Ministry of Local Government and Housing.

The Bill also sets out conditions that require landowners to apply for subdivision within specific timeframes.

For buildings completed before the enactment comes into force, applications must be submitted within six months of the commencement date or before any parcel unit is sold after commencement, whichever is earlier. 

For buildings constructed after the enactment takes effect, applications must be made within three months of the date the superstructure certificate is issued by an architect.

“This is a significant change from the existing law, which only allows applications to be submitted after an Occupation Certificate is issued by the local authority,” said Isnin.

He said the earlier application window is intended to give developers more flexibility while maintaining regulatory accountability.

The Bill also tightens documentation requirements for subdivision applications.

Among the documents required are a building subdivision plan, a certified copy of the land grant, a parcel schedule filed under the Building Management Enactment 2026, approved building plans or architect-certified plans, a superstructure certificate, a survey fee payment certificate and written consent from a chargee if the land is subject to a charge.

The approach aims to improve data accuracy and reduce disputes during the processing and issuance of titles.

A new provision introduces a more flexible mechanism through Provisional Subsidiary Titles, including for development parcels and cases involving Building Subdivision Authorisation based on High Court orders under the Building Management Enactment 2026.

This is intended to address situations where final measurements have not yet been carried out or where development is being done in phases, without compromising the eventual issuance of subsidiary titles once conditions are met.

The Bill also provides for the conversion of subsidiary title registers to electronic form. Clauses 14 to 18 cover the conversion of existing subsidiary title documents, indexes, register statements and certified plan copies into electronic format, with verification through electronic signatures by the Registrar.

The move is expected to improve administrative efficiency, record security and document accessibility.

On enforcement, the Bill introduces a dedicated section on the powers of authorised officers, including powers to enter premises, investigate, access computer data, seize records, prevent alteration of records and take action against obstruction.

Penalties under the new law are considerably steeper. 

Failure to comply with the obligation to apply for subdivision within the prescribed period is treated as a serious offence, carrying a fine of not less than RM250,000 and not more than RM1 million, as well as a continuing fine of up to RM1,000 per day after conviction.

Courts are also empowered under Section 5 to direct landowners to make applications for building or land subdivision or the issuance of subsidiary titles within a set period. 

The Bill expressly repeals the 1972 Enactment but includes saving and transitional provisions to ensure administrative continuity.

Pending applications under the old law will be treated as continuing under the new enactment, while existing subsidiary titles and registers will remain valid under the new regime until they are reprocessed, reviewed or replaced as required.