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Individual Title and Strata Titles

Posted by Admin on October 17, 2022

Know the meanings and distinctions between the strata title and the individual titles in Malaysia before deciding the type of property you want to buy.


Strata Title

1.) What is a Strata Title?

These titles are typically for property buildings with multiple floors, also referred to as stratified homes. It is usually a sign that the land is owned by the property’s owners (i.e. housing developers).

The strata titles are individual titles issued to the homes, office buildings, apartments or other units within a development that have common facilities like gated and guarded communities, car parks, security and other facilities managed by joint management.

This will transfer the rights, interests and title to the owner’s financier.

2.) When is a Strata Title Used?

Once the strata title has been granted, the person who owns the property can make use of the property similar to the property with individual title.

In the Strata Title Act 1985, developers must submit applications for strata title on behalf of the buyers. The deed of assignation is needed to purchase an asset, secure loans, for instance, in the case of sub-sales, or provide security for the repayment of a loan.

3.) How do you get the Strata Title?

In the Strata Title Act, the process for obtaining your strata title may begin when the construction of your property has completed the superstructure stage.

Within three months following the certification of Completion and Compliance (CCC) issued, the entire strata plan has to be submitted to the Director of Survey (JUPEM).

This is to ensure that the application process for this certificate of Proposed Strata Plan (CPSP) can begin. In this phase, the accessory parcels and common property measurements have to be listed on the strata plan.

After the CPSP is approved, the property developer must file for strata titles on your behalf (and other buyers) within a month.

As a homeowner, you can obtain your unit’s strata title from the developer. Before purchasing your property, make sure that the Sale and Purchase Agreement specifies the terms that apply to your master title (which covers the entire construction of the building).

To make it easier for you to understand the process of obtaining your strata title, you can always contact the land office in your area to learn more about the process.

Individual Title

1.) What is an individual Title?

A title for an individual is usually granted for land-based properties, such as semi-D houses or terrace homes, as well as bungalows, to mention just a few. It is issued if you are the sole owner of a large area of land.

Form 14A within the Malaysian National Land Code is required to dispose of such property. As for the property’s legal charge with individual title by the owner onto their financier, Form 16A is applicable.

2.) When is an Individual Title Being Used?

Properties with the land they own will have separate titles; the owners of a unit located in the high-rise area (e.g. flat, apartment townhouse, condominium, townhouse, office, or even a shop lot) will be entitled to the right to own the unit they bought.

Every property owner has their share of the building or land that can be described as a unit share within their title to strata based on the unit’s constructed-up area.

3.) How do you obtain A Title for an Individual?

Like the mechanism of how a strata title is managed, each title is a subset of the master title owned by a developer before homeowners buy the land they offer for sale.

Your local land office will handle the transfer and the charge of an individual title. All documents and instruments must be submitted to the land offices to register.

Here are some of the critical nuances of having an individual title that you need to be aware of:

  1. When you purchase a freehold home, the title that houses the property and land you own is yours for the rest of your life.
  2. If your property is a leasehold property, the title to your property is yours for the duration of the lease duration is specified.
  3. If the property you own is deemed to be a Bumi property, the title you hold is subject to the conditions and terms of the property.

How will having a Strata Title Vs Individual Title Affect me?

There’s not much distinction to be noted! The only difference lies in your personal preferences and needs. The price of your property isn’t affected by these titles.

In general, Malaysians are affected by these title deeds with regard to property values.

But, be aware that strata properties share amenities and spaces (e.g. condominiums typically have security housing communities and car parks, playgrounds, gyms, and so on). Because of these common characteristics, there are a variety of statutes that regulate strata titles as well as their management.

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