Understanding Brunei's Tol: A Unique Cultural Practice

In Brunei, a Temporary Occupation Licence (TOL) is a type of land tenure that allows individuals to use state-owned land for agricultural, commercial, residential, or industrial purposes. These licences are typically valid for five years and prohibit the sale or subdivision of the land. While TOLs used to be available for a variety of purposes, since 2008, they have only been granted for industrial, commercial, and private school needs. This form of land tenure is an important aspect of land governance in Brunei, where nearly all land is owned by the state.

TOL land can be leased for 60 years and then returned to the original owner

In Brunei, land ownership, use, and planning are under strict central control, with ultimate authority in the hands of the Sultan and his cabinet. All land is fundamentally state land, and nearly all land in Brunei belongs to the state, who retain the ability to enforce eminent domain.

A Temporary Occupation Licence (TOL) is a type of land tenure classification in Brunei. A TOL is usually held for five years and allows for the use of state land for agricultural, commercial, housing, or industrial purposes. Such land covers around 20% of the country, and the licence prohibits sale or sub-division. After 1992, it was possible to upgrade a TOL under residential status into a full title. However, since 2008, TOLs have only been permitted for industrial, commercial, and private school needs.

This policy has been criticised for making it difficult for foreigners to invest in Brunei, and for preventing citizens who do not currently own land from ever doing so. However, it is important to note that the government of Brunei is free to make and change laws as they see fit.

TOL land can be extended or made permanent by paying a fee to the government

In Brunei, a Temporary Occupation Licence (TOL) is a type of land tenure that allows individuals to use state-owned land for agricultural, commercial, residential, or industrial purposes. While TOLs are typically valid for five years, they can be extended or made permanent upon payment of a fee to the government. This arrangement provides individuals with greater flexibility in utilising land resources and enables them to establish long-term developments on leased land.

The option to extend or make TOL land permanent by paying a fee to the government offers several benefits to both individuals and the government. For individuals, it provides the opportunity to secure land for an extended period, allowing for more stable and long-term developments. This is particularly advantageous for businesses or agricultural endeavours that require a long-term commitment.

From the government's perspective, the ability to extend or make TOL land permanent through fee payments provides a source of revenue and enables better land management. The government can generate income by charging fees for extensions or permanent status, which can then be reinvested into the country's development. Additionally, by retaining ultimate authority over land ownership, the government can ensure that land is used efficiently and in alignment with the country's economic and social goals.

The fee structure for extending or making TOL land permanent is determined by the government and may vary depending on factors such as the type of land use, the size of the land, and the duration of the desired extension. It is important to note that the process of extending or making TOL land permanent may involve administrative procedures and approvals, ensuring that land use aligns with the government's regulations and policies.

While the option to extend or make TOL land permanent provides flexibility and opportunities for individuals and businesses, it is essential to recognise that the government retains the ultimate authority over land ownership in Brunei. The government can implement policies and regulations to control land use and development, ensuring that it aligns with the country's overall vision and goals. Therefore, while individuals can benefit from the option to extend their land tenure, it is crucial to stay informed about any changes in policies and regulations related to land ownership and usage in Brunei.

TOL land can be upgraded to a full title

In Brunei, TOL stands for 'Temporary Occupation Licence', which is a type of land license that allows the licensee to occupy and use state land for a specific purpose and period. TOLs are typically granted for a range of 5 to 30 years and are often used for purposes such as agriculture, business, or residential development. One unique aspect of TOL land in Brunei is that it can be upgraded to a full title, providing long-term security and ownership-like benefits to the licensee.

Upgrading TOL land to a full title offers several advantages and is an attractive proposition for those seeking more permanent land rights. Here's a step-by-step guide outlining the process and requirements for upgrading TOL land to a full title:

Firstly, it's important to understand the eligibility criteria. Not all TOL lands are automatically eligible for an upgrade. The land must be used for a purpose that is in line with the government's development plans and must not contravene any existing laws or regulations. The licensee must also ensure that the land has been utilized according to the terms of the TOL and that all conditions have been met.

To initiate the upgrade process, the licensee should submit an application to the Brunei Land Department. This application must include detailed information about the land, such as its location, size, and current use, as well as the proposed purpose for the upgraded title. A fee is typically required to be paid at this stage, and it is important to note that the application does not guarantee approval.

Upon receiving the application, the Land Department will conduct a thorough review, considering factors such as the land's suitability for the intended purpose, the impact on the surrounding area, and whether the applicant has fulfilled all the necessary requirements. If the application is successful, the Land Department will issue an offer for the new title, outlining the terms and conditions, including any additional fees or premiums that must be paid.

Finally, once the offer is accepted and all outstanding payments are made, the Land Department will issue the new title, providing the licensee with more permanent and secure land rights. It is worth noting that the process can take several months, and in some cases, additional surveys or inspections may be required, which can extend the timeline further.

Upgrading TOL land to a full title provides several benefits, including the ability to mortgage the land, use it as collateral for loans, or sell it to a third party. It also provides long-term security and peace of mind, knowing that the land rights are no longer temporary and can be passed on to heirs or beneficiaries.

TOL land is prohibited from being sold or subdivided

TOL land, or land under a Temporary Occupation Licence, is prohibited from being sold or subdivided. This is because TOL land is state land, and the state retains the ability to enforce eminent domain. A TOL is usually held for five years and allows for the use of state land for agricultural, commercial, housing, or industrial purposes.

TOL land cannot be sold or subdivided to protect the interests of Bruneians and ensure that the country's land belongs to those who have the right to own it. This means that if you or your family do not currently own any land, you never will, unless it is inherited.

TOL land covers around 20% of Brunei. After 1992, it was possible to upgrade a TOL under residential status into a full title. However, since 2008, TOLs have only been permitted for industrial, commercial, and private school needs.

TOLs are only permitted for industrial, commercial, and private school needs

In Brunei, land ownership, use, and planning are under strict central control, with the ultimate authority in the hands of the Sultan and his cabinet. Nearly all land in Brunei belongs to the state, with the state able to enforce eminent domain.

A Temporary Occupation Licence (TOL) is a type of land tenure classification in Brunei. A TOL is usually held for five years and allows for the use of state land for agricultural, commercial, housing, or industrial purposes. Such land covers around 20% of the country, and the licence prohibits sale or sub-division.

Since 2008, TOLs have only been permitted for industrial, commercial, and private school needs. This restriction on the use of TOLs is likely due to the Brunei government's efforts to diversify the country's economy away from its reliance on oil and gas. By encouraging the use of TOLs for industrial and commercial purposes, the government can attract foreign direct investment (FDI) and strengthen the private sector.

TOLs are an important tool for the Brunei government to manage land use and development in the country. By restricting TOLs to specific purposes, the government can prioritise economic growth and development in key sectors.

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