Strata Title is generally for properties in a multi-storey building and the land usually belongs to the owners of the property (i.e. developers). Individual Title is generally for landed properties. It's issued when you are the only owner of the whole piece of land.
Understand the differences and meanings of both the
Strata Title and Individual Title in Malaysia before you decide on which type of property to purchase.
Strata Title
Strata Titles are
generally for properties in a multi-storey building and this usually means that the land belongs to the owners of the property (i.e. developers).
Strata Titles are basically separate Individual Titles issued to units of houses, apartments or offices within a development that shares common facilities such as gated & guarded communities, security, car parks and facilities governed by a common owner.
Under the
Strata Title Act 1985, developers are required to apply for the Strata Titles on behalf of the purchasers.
A deed of assignment is required to purchase a property or to provide security for loan, for example, if the deal is a sub-sale, or to give security for a loan.
This will transfer the rights, interests and title to the owner's financier.
When the Strata Title is issued, the person who owns the property is able to use the property like how it is used for an Individual Title.
To obtain a Strata Title would take up to a few years. Before the title is issued, the one owning the property is able to sell and has rights to the property.
Individual Title
Individual Title is typically issued for landed properties such as semi-D houses, terrace houses, and bungalows, just to name a few. It is issued when you are the
only owner of the whole piece of land.
To sell,
Form 14A in the Malaysian National Land Code is needed. As for the legal charge of the property with Individual Title by the owner to his/ her financier,
Form 16A is applicable.
Both the transfer and the charge will involve the land office and the instruments must be presented to the land office for registration.
Whilst properties which have their own land will be issued with Individual Titles, the owner of a unit in a high-rise building (e.g. apartment, flat, condominium, townhouse, office or even shoplot)
will have their right of ownership of the unit they purchased.
Every owner will have their share of the land/ building which is stated as Unit Share in their Strata Title when issued based on the built-up size of their unit.
Am I affected differently whether I have a strata title vs individual title?
Nope, not really! The only difference is in your personal preference and needs.
Your property's price isn't really affected by these titles.
Generally, Malaysians are affected by
these land titles when it comes to property prices.
However, do take caution because strata properties have common facilities and areas (in the case of condos, guarded housing communities - playground, carpark, gym, etc.), there are more laws that govern strata titles and the management of it.
Source:
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