Buying or selling property in Malaysia is a big decision. It often involves a lot of money and paperwork. Unfortunately, property scams are common, and many people lose money every year because of dishonest sellers, fake agents, or fraudsters online.

If you are planning to buy or sell property, or if you think you have been scammed, this guide will help you understand what to do. We explain 7 important steps you should follow to protect yourself and your money. We also explain common scams, Malaysian laws that protect you, and how to stay safe in the future.

Why Are Property Scams So Common in Malaysia?

Malaysia’s property market is growing fast. Many people want to buy houses, condos, or land, especially in big cities like Kuala Lumpur, Penang, and Johor Bahru. Because property prices are high, scammers see a chance to trick people out of their money.

Some reasons scams happen often are:

• High demand and competition: Many buyers rush to buy good properties quickly.
• Online property portals: Sites like Mudah.my or PropertyGuru let anyone post ads, so scammers can make fake listings.
• Lack of knowledge: Many buyers and sellers don’t know how to check property ownership or agent licenses.
• Complicated legal process: Buying property involves many documents and steps that can confuse people.

Common Property Scams to Watch Out For in Malaysia

Understanding how scammers operate can help you avoid falling victim. Here are some common property scams to be aware of in Malaysia:

1. Fake Property Listings

Scammers post fraudulent ads online, offering houses or condos at unrealistically low prices to lure buyers. Often, the property doesn’t even exist. Once you pay a deposit, the scammer disappears without a trace.

2. Title or Ownership Fraud

Some fraudsters use fake or stolen documents to “sell” properties they don’t legally own. Buyers end up losing money without ever gaining rightful ownership.

3. Advance Payment or Deposit Scams

Scammers demand booking fees or deposits before any contracts are signed or ownership verified. After payment, they vanish and leave you with nothing.

4. Rental Scams

Fake landlords collect deposits or rent for properties they do not own, especially in popular rental locations, leaving tenants stranded.

5. Unlicensed or Fake Agents

Some agents operate without valid licenses, charging illegal fees or providing misleading information that can lead to costly mistakes.

7 Important Steps to Protect Yourself from Property Scams

Whether you’re buying or selling property, following these 7 key steps can help keep your transaction safe:

1. Stay Calm and Keep All Documents and Messages

If something feels suspicious, don’t panic. Instead, gather and securely store every document and message related to the transaction, including:

• Sale and Purchase Agreement (S&P) or any contracts you receive
• Bank receipts or proof of payment
• Chats or messages via WhatsApp, SMS, email, or social media with the seller or agent
• Screenshots of property listings or advertisements
• Identity cards, business licenses, or any credentials of the people involved

Keep both digital and physical copies safe. These records will be vital if you need to report the scam or take legal action.

2. Check Property Ownership at the Land Office

Before making any payments or signing contracts, visit the Pejabat Tanah dan Galian (Land Office) nearest to the property location. Request a land search or title check to verify:

• The current registered owner of the property
• Whether the title is free from debts, loans, or legal disputes
• That the property is legally valid and available for sale

You may also ask your lawyer to handle this verification for you. Never rely solely on documents provided by the seller, always confirm the property's status independently.

3. Verify That the Agent or Seller Is Real and Licensed

Before proceeding, ensure that the seller or agent is genuine and authorized to conduct property transactions. You can:

• Check the agent’s license status on the BOVAEP website
• Request official identity documents and business registration papers
• Confirm that the seller’s name matches the registered landowner on official land records
• Avoid dealing with anyone who refuses to meet in person or provide proof of identity and authorization

Taking these steps can help you avoid fraudulent individuals and protect your investment.

4. Report the Scam to the Authorities Quickly

If you believe you are being targeted by a scam or have already lost money, it is crucial to act quickly to protect yourself and others. Prompt reporting increases the chances of catching the scammer and preventing further damage.

• Visit the nearest police station to file a report and obtain a copy of your Laporan Polis (police report). Alternatively, you can submit your report online through the Royal Malaysia Police (PDRM) portal.
• Report online scams or digital fraud to the Malaysian Communications and Multimedia Commission (MCMC) at https://aduan.skmm.gov.my.
• If the scam involves housing developers, notify the Ministry of Housing and Local Government (KPKT).
• Report any unlicensed property agents to the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP).

Taking these steps quickly not only helps protect your interests but also contributes to wider efforts in curbing scams across Malaysia. Don’t hesitate, early reporting is your best defense against fraudsters.

5. Inform Your Bank or Payment Platform Immediately

If you have already transferred money or made a payment:

• Contact your bank’s fraud or customer service department right away. Ask if they can freeze the transaction or reverse the payment to prevent further loss.
• Monitor your bank account closely for any unauthorized or suspicious activity. Report any unusual transactions immediately.
• Notify any online payment platforms you used (such as DuitNow, GrabPay, or others) about the scam so they can assist in securing your account and preventing additional fraud.

Promptly informing your bank and payment providers increases the chances of recovering your funds and helps protect you from further financial harm.

6. Consult a Lawyer Experienced in Property Law

Seeking legal advice from a qualified property lawyer can make a significant difference if you suspect a scam or have issues with your property transaction. A good lawyer can:

• Verify whether your contract is genuine or fraudulent
• Explain your legal rights and available options
• Assist you in pursuing the recovery of your money
• Represent you in court or legal proceedings if necessary

Obtaining expert legal guidance early on is crucial. It helps protect your interests, prevents further complications, and increases your chances of resolving the matter successfully.

7. Share Your Experience to Warn Others

By sharing your story, you help protect other buyers and sellers from falling victim to similar scams. You can:

• Post your experience on social media platforms such as Facebook, Twitter, or Instagram to reach a wide audience.
• Join and contribute to property-related forums like Lowyat.net, where many buyers and sellers discuss and share valuable insights.
• Reach out to consumer protection organizations like FOMCA (Federation of Malaysian Consumers Associations) to report your case and raise awareness.

Your willingness to share not only educates others but also helps build a stronger community that can stand against scammers and reduce future fraud cases.

How to Stay Safe When Buying or Selling Property in the Future

Buying or selling property is one of the biggest financial decisions many people make, so it’s important to stay cautious and protect yourself from scams or mistakes. Here are key tips to help you stay safe and confident throughout the property transaction process:

Always Use Licensed Agents and Trusted Developers

Before working with any real estate agent or property developer, verify that they are officially licensed and reputable. Licensed agents are regulated by government authorities and must follow strict rules, which helps protect you from fraud. You can check their license status online or through official real estate associations.

Check Property Ownership and Title at the Land Office

Never pay any money or sign documents without first confirming that the person selling the property is the true legal owner. Visit the nearest Land Office (Pejabat Tanah) to conduct a land search or title check. This confirms the property’s ownership status, whether there are any debts or liens, and if the property is legally allowed to be sold.

Never Pay the Full Price Before Signing a Proper Sale and Purchase Agreement

Always insist on signing a formal Sale and Purchase Agreement (SPA) that clearly states the terms and conditions of the sale. The agreement should protect your interests, detailing payment schedules, property details, and responsibilities of both parties. Avoid paying the full amount upfront before this legal contract is signed.

Be Cautious with Urgent Payment Requests or Offers That Seem Too Good to Be True

Scammers often pressure buyers to make quick payments or offer properties at prices that are suspiciously low. Take your time to verify all information and never rush into making payments without proper due diligence. If someone insists on urgent payment, pause and seek advice.

Meet Sellers and Visit the Property in Person Whenever Possible

If feasible, always meet the seller face-to-face and personally visit the property. This helps you confirm the property’s condition and legitimacy. If a seller refuses to meet or allows only virtual meetings, be extra cautious.

Keep All Communication in Writing and Avoid Relying on Verbal Promises

Ensure all agreements, promises, and important discussions are documented in writing, whether by email, messaging apps, or formal letters. Verbal promises are hard to prove in disputes, so written records protect you legally.

Engage a Qualified Lawyer for Legal Advice and Contract Review

Hiring a property lawyer can help you review contracts, explain legal terms, and guide you through the buying or selling process safely. They can also assist in identifying potential issues before you commit financially.

Verify Payment Channels and Avoid Paying via Untraceable Methods

Always use secure and traceable payment methods like bank transfers. Avoid cash payments or transfers to personal accounts that are unrelated to the property transaction. Keep receipts and proof of all payments.

Research the Property’s Market Value

Knowing the current market price of the property will help you identify if a deal is too good to be true or overpriced. Consult multiple sources such as online listings, agents, or valuation reports.

Report Suspicious Activities Immediately

If you suspect you are dealing with a scam or fraudulent party, report the incident to the police and relevant authorities quickly. Early action can prevent further losses and help protect other buyers and sellers.

Malaysian Laws That Protect Property Buyers and Sellers

When buying or selling property in Malaysia, it’s important to know the laws designed to protect you. Understanding these legal safeguards can help you avoid scams, unfair practices, and costly mistakes. Here are the key laws and regulations every property buyer and seller should be aware of:

National Land Code 1965

This is the primary law governing land ownership, registration, and transactions in Malaysia. The National Land Code sets out clear rules on how land can be bought, sold, transferred, or leased. It ensures that property ownership is properly recorded and legally recognized, protecting buyers and sellers from fraudulent land deals.

Housing Development (Control and Licensing) Act 1966 (HDA)

The HDA is designed to protect property buyers, especially those purchasing from developers. It requires developers to be licensed and to follow strict regulations, including holding buyer payments in trust accounts until the property is completed. The Act also gives buyers the right to claim compensation if developers fail to deliver properties on time or if the project is abandoned.

Consumer Protection Act 1999

This law protects consumers, including property buyers, from dishonest or unfair business practices. It covers false advertising, misleading information, and defective products or services. Under this Act, buyers have the right to fair treatment and can seek remedies if they are victims of scams or unfair deals.

BOVAEP (Board of Valuers, Appraisers, Estate Agents and Property Managers)

BOVAEP is the regulatory body that licenses and oversees real estate agents in Malaysia. By licensing agents, BOVAEP helps maintain professional standards and ethics in the property industry. Working with licensed agents reduces the risk of fraud and unethical practices.

Checklist: What to Do If You Suspect a Property Scam

• Collect and save all documents and chats
• Check ownership at Land Office before paying
• Verify agent license on BOVAEP’s website
• Report to police and MCMC quickly
• Tell your bank to freeze payments
• Consult a property lawyer
• Share your experience online
• Always do careful checks in future deals

Useful Links for Malaysian Property Buyers and Sellers

• BOVAEP (Agent Licensing Board): https://www.lppeh.gov.my
• Royal Malaysia Police (PDRM): https://www.rmp.gov.my
• Malaysian Communications and Multimedia Commission (MCMC): https://aduan.skmm.gov.my
• Federation of Malaysian Consumers Associations (FOMCA): https://www.fomca.org.my
• Visit your local Pejabat Tanah dan Galian (Land Office) for land searches

Related Article:

• Avoiding Rental Scams: How to Catch a Rental Scammer?
• 11 Warning Signs Your Tenant Might Be Involved in Illegal Activities