Frequent Asked Questions (FAQ)

FAQ

THE LAND CODE (AMENDMENT) ORDER, 2025

INTRODUCTION OF NEW SECTIONS 3A, 3B, 3C, 3D, 3E, 3F & 32A

LAND CODE (CHAPTER 40)

1. What is the objective of the Land Code (Amendment) Order, 2025?

The Land Code (Amendment) Order, 2025 (hereinafter referred to as the “LCAO, 2025”) is a law:

to provide clarification and transparency regarding the holding of lands in Brunei Darussalam by non-citizens, persons of no national status as well as lands held by former citizens or permanent residents.
to correct the information in the land register in Brunei Darussalam to accurately reflect the true status of land ownership by Brunei citizens, non-citizens or persons of no national status; and
to provide for a maximum lease period according to the category of land development applied for, which is subject to the approval of His Majesty the Sultan and Yang Di-Pertuan in Council (hereinafter referred to as “His Majesty in Council”).

2. Who is a ‘Non-Citizen’ under the LCAO 2025?

‘Non-Citizen’ refers to any person who is not a subject of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam but does not include a person of no national status.

3. Who does ‘a person of no national status’ refer to?

It refers to a stateless person residing in Brunei Darussalam as a Permanent Resident holding a purple identity card who is neither a national or citizen of Brunei Darussalam nor a national or citizen of any other State or country.

4. What is the difference between a ‘private land lease’ and ‘leasehold land’?

‘Private land lease’ refers to a transaction between a registered landowner (or lessor) and a lessee for the use or occupation of a land within a specified period of time in exchange for valuable consideration. The lessee does not get legal title of ownership to the land. Upon the expiry of the lease period, the land reverts to the registered landowner (lessor).

On the other hand, ‘leasehold land’ refers to a type of land tenure (alongside ‘freehold land’) whereby the registered landowner of the leasehold land title holds legal title of ownership to the land, including the right of use and occupation, for a period of time as specified in the land grant / title. Upon expiry of the leasehold period, the land reverts to the Government unless the registered landowner(s) apply for a leasehold renewal which is subject to the approval of His Majesty in Council and payment of premium.

5. What are the categories of development or purpose of land use and their maximum registrable lease period ?

The four categories of development and their maximum registrable lease period are as follows:-

i. Shophouse (30 years) - A building or buildings often arranged in a row (terrace style) or it can refer to a block of no less than two substantially identical units, each unit being more than one storey with common party walls with internal staircases and connected by a continuous covered five-foot walkway (‘kaki lima’) with each unit having road frontage. Shophouses typically facilitate retail trade on the ground with ancillary offices and residences on the higher floors.

ii. Industrial (30 years) - Buildings used for industrial activities, specifically light, medium or heavy industries, of which the buildings are typically located on land with specific industrial land use conditions within designated industrial zones.

iii. Commercial / Mixed-Use Development (60 years):-

Commercial: one or more buildings forming a complex of units intended to be utilised for commercial purposes. This excludes Shophouses as defined above.

Mixed-Use Development: a type of development of a single building or a group of buildings (the majority of which consist of more than three (3) storeys) that combines multiple uses or activities, comprising residential, commercial and office. This excludes Shophouses as defined above.

iv. Residential (60 years) - A building specifically constructed as a complete unit intended for use as a place of private residence. Categories of residential development include detached houses, semi-detached houses, linked houses, townhouses, terrace houses, flats, apartments and condominiums and buildings constructed on land with conditions for example “Perumahan Am dan Perniagaan Sampingan”.

6. What is the maximum lease period for undeveloped lands or developed lands that DO NOT fall under the above categories ?

For any other development that does not fall under the above defined categories, the maximum lease period will be subject to the special land conditions and the approval of His Majesty in Council.

SECTION 3A OF THE LAND CODE , CHAPTER 40

7. What is the effect of Section 3A ?

Under Section 3A, non-citizens are allowed to hold a land interest in Brunei Darussalam by way of a charge, lease or sublease, subject to conditions as well as the approval of His Majesty in Council.

8. How does Section 3A affect the TRANSFER, PURCHASE, ACQUISITION of land, or the creation of a trust in land in favour of any non-citizen ?

After the commencement of this Order (1st August 2025):

any transfer of any land (or any estate or interest therein) by any person to a non-citizen, or
trust in respect of any land (or any estate or interest therein) created by any person in favour of a non-citizen; or
purchase or acquisition of any land (or any estate or interest therein) by a non-citizen except by way of a charge, lease or sub-lease, shall be null and void.

9. Does Section 3A affect instruments that have been signed / stamped and / or monetary consideration that has been paid before the commencement of the LCAO 2025 ?

For any instruments signed, stamped and/or monetary consideration paid prior to the commencement of this Order in which the lease interest in land has not been registered, the lease period allowed for such land may be up to a maximum of 60 years subject to the tenure of the land, terms and conditions of those instruments and the subject to the approval of His Majesty in Council.

10. What happens once the lease period lapses ?

Once the lease period expires, the land may revert to the registered landowner, or the lessor, or sub-lessor, as the case may be. Any renewal or extension of the lease period may be decided by the registered landowner, the lessor or the sub-lessor, and the application for the registration of the extended lease is subject to approval by His Majesty in Council.

SECTION 3B OF THE LAND CODE , CHAPTER 40

11. What is the effect of Section 3B ?

This section applies to when a non-citizen holds interests (except by way of a charge, lease or sub-lease) in lands through a Power of Attorney (‘PA’), Trust Deed (‘TD’), or any other certified document, to enable them to make a declaration of claim or land interest.

12. Does a non-citizen need to declare his interest in land if his interest is already registered in the land title as a lessee / sub-lessee ?

No, the non-citizen will not be required to make any declaration if his interest is already registered in the land title.

13. What kind of documents must be submitted along with any declaration of claim or land interest ?

Any declaration of claim or land interest must be accompanied by valid documentation as proof of such claim or interest, i.e. PA, TD and/or any other certified document proving the submitted claim or land interest, in addition to other supporting documents. The checklist of documents (Senarai Semak Permohonan) may be obtained on www.land.gov.bn.

14. What is the effect of an approved declaration under Section 3B ?

Where a declaration of claim or interest in a freehold land has been submitted and the declaration is approved, the land tenure will be converted from freehold to leasehold and the non-citizen will be registered in the land title as a landowner. In such a case, the maximum lease period allowed and to be registered will be in accordance to Section 3F, commencing from the date of the commencement of the LCAO 2025 (1st August 2025).

16. When must this declaration of claim or interest in land be made ?

Any declaration of claim or land interest must be made within 12 months from the commencement date of this LCAO, 2025 (1st August 2025).

15. What if the claim or land interest declared is leasehold land ?

For lands originally held under leasehold tenure, the new leasehold period to be registered will be adjusted taking into account the remainder of the leasehold tenure and the maximum period of lease under Section 3F, whichever is the lesser.

17. What is the consequences of failing to declare a claim or land interest within 12 months from the commencement of the LCAO 2025 ?

Any declaration of claim or land interest made after such a period will render any claim or interest in the land null and void. As a consequence, the land will remain under the registered landowner’s name.

18. What will then happen to my Power of Attorney (PA) / Trust Deed (DA) / Certified Document from these previous transactions ?

Any PA or TD executed prior to the commencement of the LCAO 2025 will become null and void in law.

19. What declarations of claim or land interest are NOT permitted ?

Declarations of claim or land interest on the following lands are not permitted:

State Land;
Land held by way of Temporary Occupation Licence (TOL land);
Any land under Skim Tanah Kurnia, including Skim Penempatan;
Privately-owned land with restrictive conditions, such as lands that restrict their ownership to Brunei citizens of the Malay race / Melayu Jati / successors [“Rakyat Brunei Bangsa Melayu / Melayu Jati / ahli waris”]; and
Lands with encumbrances (caveats, court orders, etc).

20. Can a non-citizen declare a claim or land interest on an expired leasehold land ?

No. The expired leasehold land will revert to the Government.

SECTION 3C OF THE LAND CODE , CHAPTER 40

21. What is the effect of Section 3C ?

Where non-citizen successors or heirs stand to inherit freehold land, the appointed executor and/or administrator must submit a claim for inheritance within 12 months from the date of the registered landowner’s death.

22. What kind of supporting documents are required for Section 3C ?

Depending on applicability, the relevant supporting documents to be submitted shall include (but are not limited to) the following:

Syariah High Court
Will (Surat Wasiat)
Faraidh Certificate / Order
Civil Court
Statutory Declaration
Letters of Administration
Grant of Probate
Head of Community / Village Head / Relevant Authorities
Certification letter

In addition to the above, the full checklist of required documents for submission to the Land Department (Senarai Semak Permohonan) may be obtained on www.land.gov.bn.

23. What restriction is set under this Section 3C ?

A successor who is a non-citizen will be subject to a restriction that they must sell the inherited freehold land to a Brunei citizen within 10 years from the date of the registered landowner’s death.

24. What happens if the non-citizen successor fails to sell the inherited freehold land within the specified period of time ?

Failure to sell the inherited freehold land within the 10-year period will result in the land tenure being converted from freehold to leasehold, subject to the approval of His Majesty in Council.

25. Upon conversion, What is the maximum period of lease that will be registered on the land title ?

The maximum period of lease will be registered in accordance to Section 3F commencing from the date of the registered landowner’s death.

26. Can the non-citizen successor apply for an extension of time to sell the freehold land ?

If the non-citizen wishes to apply for an extension of time to sell the land, they must submit the application no earlier than 18 months and no later than 6 months before the expiration of the 10-year period, together with strong justifications to the officer in charge of the Land Office. Any extension of this period will be subject to the approval of the Minister.

27. What happens if the inherited land is a leasehold ?

For the non-citizen inheriting land of leasehold tenure, he will be entitled to inherit the remainder of the tenure. Upon expiry of the remainder leasehold period, an extension of the leasehold period may be applied for from the Government via the Land Office and subject to the approval of His Majesty in Council and payment of premium.

28. What is the effect of Section 3D ?

A person of no national status is permitted to own not more than one freehold land or any estate or any interest therein, which is intended to be used solely for his residential purpose either by way of a transfer, purchase or acquisition.

SECTION 3D OF THE LAND CODE , CHAPTER 40

29. What if a person of no national status holding freehold land by way of a power of Attorney (PA) / Trust Deed (TD) / Other certified document, makes a claim to or interest in that land ?

If a person of no national status declares a claim or land interest in a freehold land (except by way of charge, lease or sub-lease) held by way of a PA or TD or any other certified document, he or she is permitted to be the registered owner of the freehold land, PROVIDED that his or her land ownership is limited to that land and that the land is currently / to be used for his or her own residential purposes only.

30. What if a person of no national status has additional claims or land interests in more than one freehold lands ?

Any additional claims or land interests in other freehold lands will be converted to leasehold tenure. The maximum period of lease allowed to be registered will be according to Section 3F commencing from the date of the commencement of this LCAO, 2025 (1st August 2025).

31. What happens after a person of no national status having already owned one freehold residential land registered under his name, then stands to inherit another freehold land ?

A person of no national status can only own one piece of freehold land and it must be for his sole residential purpose.

32. What happens if a person of no national status declares a claim or land interest in a leasehold land ?

If a person of no national status declares a claim or land interest (except by way of charge, lease or sub lease) in a land with leasehold tenure held by way of a PA or TD or any certified document, the new leasehold period to be registered will be adjusted taking into account the remainder of the leasehold period and the maximum period of lease period stated in Section 3F, whichever is the lesser. Upon expiry of the leasehold period, an extension of the leasehold period may be applied from the Government subject to the approval of His Majesty in Council and payment of premium.

33. What happens after a person of no national status having already owned one freehold residential land registered under his name, then inherits leasehold land ?

By virtue of Section 26 of the Land Code, a person of no national status is allowed to inherit leasehold land for the remainder of the lease period.

SECTION 3E OF THE LAND CODE , CHAPTER 40

34. To whom does Section 3E apply ?

This section applies to any of the following persons:

A Brunei citizen who renounces his or her citizenship;
A Brunei citizen whose citizenship is revoked;
A permanent resident who chooses not to renew his or her expired Entry Permit; or
A permanent resident whose Entry Permit is cancelled.

35. What is the effect of Section 3E ?

Any person to whom Section 3E applies and who as a citizen or a permanent resident owns freehold land in Brunei, after no longer being a citizen or permanent resident through renunciation, revocation or cancellation respectively, must sell that land to a Brunei citizen within 10 years from when his/her Brunei Darussalam citizenship was renounced, revoked or when his/her Entry Permit was cancelled.

36. What happens if the former citizen / former permanent resident (stateless) FAILS to sell the land within the specified period of time ?

Failure to sell the land within the specified period will result in the land tenure being converted from a freehold to a leasehold subject to the approval of His Majesty in Council.

37. What is the maximum period of lease that will be registered on the land title ?

The maximum period of lease will be registered in accordance to Section 3F commencing from the date of the cessation (or cancellation) of the person’s Brunei Darussalam citizenship or Entry Permit.

38. Can the former citizen / permanent resident apply for an extension of time to sell the freehold land ?

If the former Brunei citizen or permanent resident wishes to apply for an extension of time to sell the freehold land, they must submit the application no earlier than eighteen (18) months and no later than six (6) months before the expiration of the 10 year period, along with strong justifications to the Land Department. Any extension of this period will be subject to the approval of the Minister.

39. What is the effect of Section 3F ?

This section allows for the Minister to issue guidelines with the approval of His Majesty in Council, in relation to the maximum lease period approved, depending on the purpose of purchase or acquisition of the land, estate or interest therein (i.e. the depending on the category of development).

SECTION 3F OF THE LAND CODE , CHAPTER 40

40. What happens upon the expiry of a lease period in a private lease agreement ?

For the purposes of Section 3A, see Q&A No.10 above.

41. What happens upon the expiry of a lease period for a leasehold land ?

For the purposes of Sections 3B, 3C and 3E, upon expiry of the leasehold period, the land reverts to the Government unless the registered landowner(s) apply for a leasehold renewal which is subject to the approval of His Majesty in Council and payment of premium.

SECTION 32A OF THE LAND CODE , CHAPTER 40

42. What is the effect of Section 32A ?

Land is not to be purchased or acquired by a citizen of Brunei Darussalam as a nominee of a non-citizen or person of no national status. In other words, a non-citizen or person of no national status is not allowed to purchase or acquire land using the name of a Brunei citizen and by the use of legal documents such as Power of Attorney (PA) or Trust Deeds (TD) etc.

43. What would be the status of those legal documents upon the commencement of the LCAO 2025 ?

Any trust created shall be null and void and there is no resulting trust in favour of the non-citizen or person with no national status. Any contract or agreement between such Brunei citizen and the non-citizen or person with no national status in respect of such land or estate or interest therein shall be null and void.

44. What happens if a Brunei citizen or a non-citizen contravenes Section 32A ?

When this matter is discovered by a Land Officer either before or after final registration, any legal documents or instrument of transfer that contains any such null and void trust will be null and void and the Land Officer shall enter a note in the documents, instrument or registration copy thereof, stating that such trust is null and void.

45. After the land officer makes such notes as in Q&A No. 44 above, who will the land be registered under ?

The land will remain / be registered under the name of the original registered owner (prior to the transaction above).