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The Difference Between Individual and Strata Title
Ownership (commonly known
as title) of property in Malaysia have two types, individual title and
strata title. An individual title is for a property which has its own
land and this usually means that the land itself is owned by the
proprietor. Strata titles are generally for properties in a
multi-storey building and this usually means that the land belongs to
the proprietors from the time of the multi-storey building.
Whilst properties which have their own land will be issued with
individual titles, the owner of a unit in a multi-storey building
(e.g. apartment, flat, condominium, townhouse, office or even retail
lot) 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.
It can take years for a strata title to be issued by the relevant
authorities. Pending the issuance of the strata title, the owner of a
unit can still sell or assign their unit and the non-availability of
the strata title does not in any way affect the owner’s right to their
unit.
For the sale of a property with individual title the transfer
instrument is in Form 14A as prescribed in the Malaysian National Land
Code 1965. As for the legal charge of the property with individual
title by the owner to his 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.
For property with a strata title still to be issued a deed of
assignment is executed to buy a property (if the seller is not the
developer, i.e. a sub-sale) or to give security for a loan. A deed of
assignment transfers all rights, title, and interests in respect of
the property and under the previous sale and purchase agreement to the
purchaser. Likewise for an owner to provide the security over the
property to his financier, a deed of assignment assigns all rights,
title, and interests in respect of the property and under the previous
sale and purchase agreement to the owner’s financier.
Once the strata title to
the unit has been issued, the owner will transfer and/or charge his
unit in the same way as a property with individual title. |
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