(Bandar Seri Begawan, 16th) According to reports from local English media, Section 3D of the 2025 Land Code (Amendment) Order (LCAO 2025), which comes into effect on August 1, stipulates that stateless permanent residents will be able to own one piece of freehold land through transfer, purchase, or acquisition, and such land is to be used solely for personal residential purposes. At the same time, other freehold land interests may only be held through leases, with the lease terms to be carried out according to guidelines issued by the Minister of Development (MoD) under Section 3F of the Land Law.
This amendment, issued by the Ministry of Development by command of His Majesty the Sultan, aims to improve and facilitate the land ownership process for Brunei citizens and other categories of residents, including stateless individuals.
Section 3A of the amendment allows non-Brunei citizens to hold interests in national land only through mortgage, lease, or sublease, subject to specific conditions and with the approval of relevant authorities. Section 3B states that non-Brunei citizens currently holding freehold land interests through power of attorney, trust deeds, or other certified documents must declare these interests to the Head of the Land Department.
Upon approval, the freehold land will convert into leasehold land, and the specific term is as stated in Section 3F. This declaration must be made within 12 months from the date this order comes into effect. If the declaration is not made within the stipulated period, any land ownership or interest shall be deemed invalid, and land ownership will remain with the original landowner.
According to Section 3C, non-Brunei citizens may inherit freehold land. However, any such declaration must be made within 12 months following the death of the landowner. The inherited freehold land must be sold to a Brunei citizen within 10 years from the date of the landowner's death.
If this requirement is not met, the freehold right will automatically convert to a leasehold right, and the term should be referred to under the guidelines of Section 3F. Conversely, if a non-Brunei citizen inherits leasehold land, only the remaining lease term needs to be registered.
Section 3E stipulates that former Brunei citizens and permanent residents must sell their freehold land to Brunei citizens within 10 years of renouncing or being stripped/cancelled of their citizenship or permanent resident status. Otherwise, the land will be converted to leasehold for the prescribed term.
Section 3F allows the minister, with the approval of the Sultan’s Privy Council, to issue guidelines for the maximum lease term for land acquired through purchase or acquisition. The guidelines specify that the maximum lease term for shophouses and industrial properties is 30 years, whereas for residential, commercial, or mixed-use development projects, the maximum lease term is 60 years.
Under Section 32A, Brunei citizens are prohibited from purchasing or acquiring property as a beneficiary on behalf of non-Brunei citizens or stateless permanent residents. Any trust document or instrument set up for this purpose shall be deemed invalid. The purpose of this amendment is to clearly and transparently stipulate the relevant laws regarding land ownership by non-citizens and stateless permanent residents.
One of the main objectives of this amendment is to ensure that Brunei’s land ownership registry information can be corrected and its accuracy ensured, reflecting the true nature of land ownership by Brunei citizens, non-citizens, or stateless individuals. The implementation of this amendment will further improve the level of land governance, strengthen land ownership policy, and promote a more structured and progressive real estate development in the Sultanate.
These amendments were formulated after a series of dialogues with relevant stakeholders including the Attorney General’s Chambers and the Brunei Bar Association, with the aim of gathering opinions, comments, and feedback on its application and effectiveness.
This amendment, issued by the Ministry of Development by command of His Majesty the Sultan, aims to improve and facilitate the land ownership process for Brunei citizens and other categories of residents, including stateless individuals.
Section 3A of the amendment allows non-Brunei citizens to hold interests in national land only through mortgage, lease, or sublease, subject to specific conditions and with the approval of relevant authorities. Section 3B states that non-Brunei citizens currently holding freehold land interests through power of attorney, trust deeds, or other certified documents must declare these interests to the Head of the Land Department.
Upon approval, the freehold land will convert into leasehold land, and the specific term is as stated in Section 3F. This declaration must be made within 12 months from the date this order comes into effect. If the declaration is not made within the stipulated period, any land ownership or interest shall be deemed invalid, and land ownership will remain with the original landowner.
According to Section 3C, non-Brunei citizens may inherit freehold land. However, any such declaration must be made within 12 months following the death of the landowner. The inherited freehold land must be sold to a Brunei citizen within 10 years from the date of the landowner's death.
If this requirement is not met, the freehold right will automatically convert to a leasehold right, and the term should be referred to under the guidelines of Section 3F. Conversely, if a non-Brunei citizen inherits leasehold land, only the remaining lease term needs to be registered.
Section 3E stipulates that former Brunei citizens and permanent residents must sell their freehold land to Brunei citizens within 10 years of renouncing or being stripped/cancelled of their citizenship or permanent resident status. Otherwise, the land will be converted to leasehold for the prescribed term.
Section 3F allows the minister, with the approval of the Sultan’s Privy Council, to issue guidelines for the maximum lease term for land acquired through purchase or acquisition. The guidelines specify that the maximum lease term for shophouses and industrial properties is 30 years, whereas for residential, commercial, or mixed-use development projects, the maximum lease term is 60 years.
Under Section 32A, Brunei citizens are prohibited from purchasing or acquiring property as a beneficiary on behalf of non-Brunei citizens or stateless permanent residents. Any trust document or instrument set up for this purpose shall be deemed invalid. The purpose of this amendment is to clearly and transparently stipulate the relevant laws regarding land ownership by non-citizens and stateless permanent residents.
One of the main objectives of this amendment is to ensure that Brunei’s land ownership registry information can be corrected and its accuracy ensured, reflecting the true nature of land ownership by Brunei citizens, non-citizens, or stateless individuals. The implementation of this amendment will further improve the level of land governance, strengthen land ownership policy, and promote a more structured and progressive real estate development in the Sultanate.
These amendments were formulated after a series of dialogues with relevant stakeholders including the Attorney General’s Chambers and the Brunei Bar Association, with the aim of gathering opinions, comments, and feedback on its application and effectiveness.