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Strata Title vs Individual Title

In general, an individual title is for a property which has its own land and this usually means that the land itself is owned by the house owner. Strata titles are generally for properties in a multi-storey building or a gated community with a master title and this usually means that the land belongs to the owners of multi-storey building or gated community.

Whilst properties which have their own land will be issued with individual titles, the owner of a unit in a multi-storey building or gated community 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. In other words, you will still own part of the land but in Unit Share instead of individual lot.

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) 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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  1. kenny
    May 10th, 2011 at 11:35 | #1

    which one will carry more value at future for landed property.. strate title or individual title ??

  2. PPT EDITOR
    Ken
    May 10th, 2011 at 11:49 | #2

    Usually not much different. Sometimes if the area is nice, even if it is strata title, it may fetch better pricing. I’m taking example from KL’s properties.

    But one main concern usually people have is the maintenance fees. Usually the maintenance will cost around 200-300 if it comes with swimming pool. And also depends on the density. If you bought a gated property at around RM300K, then RM200-300 is significant. But if the property worth 800k – 1M, then the RM200-300 no longer a concern.

    Like those people buying Merz S500, the petrol consumption or roadtax is no longer their concern. :)

  3. paulynn
    May 16th, 2015 at 15:36 | #3

    How can I apply my EPF drawings to buy the flats at Taman Bidara, Fasda Heights if there is no starta title.
    My lawyer says the is no exact lot. And I can purchase the flats as well.
    The land office does not bother to search the documents. All say ‘TAK tau!

    Desperate….

  4. Seline ong
    November 9th, 2015 at 20:09 | #4

    how to provide relevent reason to say that strata title plays important role in new residence amd commercial property development nowadays?

  5. Property
    November 9th, 2015 at 20:37 | #5

    @kenny

    Definitely landed property with individual title will carry more value.

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