Imagine the shock of discovering that some Singaporean buyers are embroiled in a legal battle with a Malaysian developer over the ownership form of their Johor condo purchases. These buyers thought they were making a wise investment, only to find themselves caught in a unique property scheme known as the Private Lease Scheme (PLS) that is unfamiliar in Singapore but prevalent in Malaysia.
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What is PLS?
- Under this scheme, the Malaysian developer maintains ownership of the property while buyers essentially have a long-term rental agreement rather than true ownership. This means that buyers do not hold full ownership rights, like voting on condo management or freely selling the property. It’s more like being a tenant with a 99-year lease to stay in the condominium apartment, needing permission from the Developer to sublease or sell the unit.
- Where is the Issue?
