3 types of Property Titles in Malaysia
When searching for the right property in Malaysia to stay or invest in, there are many factors to consider. Among them is determining the type of property titles available – either strata or individual as well as master titles. We’ll explore the three types of property titles as each has different meanings and some of their advantages in this article.
Master Title
Before the developments are divided into smaller strata or individual titles and given to different owners, the overall land area is designated to a single owner, typically under the property developer’s name. During this phase, the planning and construction of the development will be completed by the developer.
Once the development construction is completed and the keys are handed over to the rightful homeowners, the developer is obligated to transfer the titles to them, whether it be strata or individual titles. At this point, the development holding the master title will be considered invalid. However, the developer is still required to look after developments with shared facilities and common spaces and is responsible for their maintenance through a joint management body comprising themselves and purchasers. In addition, developers also serve as an informal mouthpiece for anything related to the updates on these shared spaces and facilities.
If someone buys a property through a bank loan, there will be a lien on the title. It means that you won’t fully own the property until you’ve fully repaid the debt, and if you fail to pay the loan, the banks can foreclose your home.
Strata Title
Strata titles are usually given to residents who bought units from multi-level developments such as high-rise apartments, condominiums or townhouses. However, many townships with landed properties nowadays are also considered strata titles because these neighbourhoods share common facilities amongst their residents, especially gated neighbourhoods. Thus, the cost of upkeeping these facilities is also shared amongst them. However, if you refuse to pay, the building management can take legal action against you, and you will also lose your right to vote during the joint management body’s AGM. Obtaining your strata title might be slightly slower than getting an individual one.
Individual Title
On the other hand, individual titles refer to the sole owner of property and building on that land. It means that the person is the sole decision-maker for what goes on the land. Individual titles are almost exclusively allocated to landed properties compared to high-rise developments. Compared to strata titles, the homeowner is solely responsible for the upkeep of their land. However, obtaining an individual title is much quicker as only one party is involved.
Ultimately, strata and individual titles are essential documents regarding owning a property as it serves as proof of your ownership. So, it would be imperative to start the process of obtaining your title from the developer as soon as they hand over the keys to you. By knowing more about property titles and what they mean, you’ll be in the right direction in taking the wheel in your homeownership journey.
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