What You Need To Know About Strata Title And Individual Title

Introduction

It is important to understand the distinction between strata title and individual title, which is crucial for property buyers, particularly in Malaysia. Each title type carries unique characteristics, ownership implications, and responsibilities. In addition, strata title or individual title also affects the attractiveness of the property to buyers as well as prices in the market.

Strata Title

A strata title is a form of property ownership issued for individual units within a larger development, such as condominiums, apartments, or gated communities. In addition, strata title allows the owner to have exclusive ownership of their unit while sharing ownership and responsibility for the common areas and facilities of the property, such as hallways, elevators, recreational spaces, and parking areas. Furthermore, the strata title also outlines the rules and regulations for maintaining these shared spaces, which are typically managed by a Management Corporation (MC) or Joint Management Body (JMB) [1]. Responsibility for issues like water leakage is often a point of distinction in strata title properties. For example, leaks originating from the common areas or between units are usually managed by the MC or JMB, while owners are typically responsible for leaks within their own units.

Individual Title

An individual title, typically associated with landed properties like bungalows and terrace houses, represents full ownership of both the land and the building [2]. Unlike strata title, which involves shared ownership of common areas, an individual title offers complete control over the property. Owners are solely responsible for the maintenance and upkeep of their property, including issues like water leakage. Any leaks, whether from plumbing or structural problems, are the owner’s responsibility to repair. There is no need for a management body, as owners have full autonomy over their property. The benefits include greater autonomy, the ability to make modifications freely, and often better long-term investment potential.

Comparison Between Strata Title And Individual Title

Conclusion

The main difference between strata title and individual title is the ownership structure, in which a strata title is suitable for properties within a shared development, where owners share the common facilities and required to pay maintenance fees. In contrast, individual title grants full ownership of both the land and the building, giving the owner complete control over maintenance and modifications without shared responsibilities.

When deciding between the two, buyers must consider their preference for communal living with amenities (offered by strata title) versus independent ownership of land and property (offered by individual title). Additionally, factors such as affordability, maintenance responsibilities, and the desire for autonomy play a significant role in the decision-making process.

References

[1] Tang, R. (2023). Individual Title vs. Strata Title: Understanding Property Ownership in Malaysia. MET Property. Retrieved on 22^nd December 2023 from https://www.metproperty.com/property-guides/understand-difference-among-individual-title-and-strata-title/

[2] Hartamas Real Estate. (2023). Three types of property title in Malaysia. LinkedIn. Retrieved on 22^nd December 2023 from https://www.linkedin.com/pulse/three-types-property-title-malaysia-hartamas-real-estate-malaysia/

[3] AskLegal. (2018). What is strata & individual title property in Malaysia? AskLegal.my. Retrieved on 22^nd December 2023 from https://asklegal.my/p/what-is-strata-individual-title-property-malaysia

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