Strata Title? What’s the different? Pt.1 November 13, 2006Posted by tipshartanah in English, Property, Tips serta Panduan, Umum.
2 days ago I met my friend at Kota Damansara and he talked about buying an office lot within a terrace shop/office. He asked me, “Can the office being sold separately or does it need to be bought as a whole storey (3/4-storey building)?.
So I answered him…
Actually you have to make sure in the first place what is the status of the title ownership, is it an individual title or a strata title. So what’s the difference?
Ok, let’s take 2 difference properties for example.. a 2-storey terrace house and a unit of apartment.
I believe everyone can say and knows what is the difference between these two properties… yup in general.. one is a landed and another is within a block of multi-storey building. But other than that? How about the land ownership? For a terrace house, there seems no big problem as I believe you know the land is owned by the owner of the house, right? This is what we called as Individual Title, where every individual owner has their own title to their respective building/land. But how about the apartment? How does the owner claims their ownership based on the legal issue? How is he going to sell the property if he cant find his ‘old’ SPA (Sale & Purchase Agreement) – is he has to find it first or he totally lost the right to sell his property?…
No.. he’ not. That’s is where a Strata Title comes. It is where an owner of a unit of a multi-storey building e.g apartment, flat, condo, 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 size of their unit. But the problem here is this… a strata title can take years before it can be issued by authority…. where it was a big issues until a body was setup to control the issuance of Strata Title. Before a strata title being issued, all the legal related matters will be based on the SPA and a consent from developer. A consent from developer is important as the transfer of property will only take place when a developer’s consent acquired and approved. A lawyer then will do all the necessary jobs for the transfers of ownership by dealing with both the developer and the authority.
Back to the shop/office issue. To make sure that you can buy a single unit of office or shoplot of the building, you then have to check and confirm that it is subject to a strata title and not an individual title. If the property is registered under the latter, then there is no choice for you but to make a purchase of the building as a whole storey (either 2, 3 or 4-storey). You cannot buy an individual title-type property as a separate unit/floor.
to be continue..