A legal battle has erupted in Malaysia’s Johor state as 63 property buyers accuse Iskandar Investment Berhad (IIB) and developer Distinctive Resources of misleading them about the ownership terms of their purchased units. The dispute centers on the Iskandar Residences project in Medini Iskandar Malaysia, where buyers claim they were promised leasehold titles but instead received private lease agreements, stripping them of full ownership rights.
The case hinges on alleged misrepresentations in the sales and purchase agreements (SPAs) signed between 2013 and 2014. Buyers argue that marketing materials and verbal assurances led them to believe they were acquiring leasehold properties, which would grant them strata titles. Instead, they discovered they held private leases, leaving them without ownership rights under Malaysian law. The plaintiffs allege violations of key housing regulations, including the Housing Development Act of 1966.
IIB, a government-linked entity overseeing Johor’s Iskandar Malaysia development, denies wrongdoing, asserting that the claims are time-barred and that buyers were fully informed. The developer, Distinctive Resources, similarly argues that the SPAs clearly outlined the lease terms and that buyers had legal representation during the transactions. Both parties maintain that the private lease scheme was legally approved by authorities, including Malaysia’s housing ministry.
This case mirrors a 2020 lawsuit where another Johor developer was found guilty of misrepresentation, resulting in damages for affected buyers. The current plaintiffs seek a court order to convert their private leases into strata titles, effectively granting them full ownership. As the legal proceedings unfold, the outcome could set a precedent for future disputes involving private lease schemes in Malaysia’s real estate sector.