Understanding Strata vs Master and Individual titles

Master Title

In the construction and development phase, developers typically hold that entire piece of land in the form of a Master Title. The developer holds all rights to deal with or transact on the land, such as developing or selling it, under a master title. All newly built properties fall under the master title. The developer sells properties to individuals by way of an assignment of ownership rights to the particular property pending the issuance of the strata/individual title.

units in this development will then be subdivided and sold as strata titles or individual titles. There will be no changes to shared areas, such as playgrounds,swimming pools, or outdoor spaces, under the master title.

We are here to help you better understand what is offered by each title before you make a purchase.

Strata title

Strata titles are titles to properties in a multi-story building, also known as stratified properties. In most cases, this means that the land belongs to the property owners (i.e., the developers).

The term strata title refers to separate titles issued to units within a development with shared facilities like gated and guarded communities, parking garages, and facilities governed by a common owner.

When is strata title used?

A strata title entitles the owner to use the property the same way an individual title does.

Under the Strata Title Act 1985, the developers must apply for the strata titles on behalf of the purchasers. Deeds of the assignment are required when the transaction involves a sub-sale or if security is needed for a loan. As a result, the financier will have the rights, interests, and title.

How does one obtain a strata title?

A strata title is a subset of a master title owned by the developer before the landed property that they sell is purchased by homeowners. Strata title applications can be filed once your property has completed the superstructure stage of construction.

Strata plans must be submitted to the Director of Survey (JUPEM) within three months of receiving the Certification of Completion and Compliance (CCC).

A Certificate of Proposed Strata Plan (CPSP) can then be applied for. It is mandatory to indicate all accessory parcel measurements as well as all common property on the strata plan.

Upon issuance of your CPSP, the developer of your building must then apply for strata titles on your behalf.

As a homeowner, you can easily obtain your strata title from your developer. When considering buying your dream home, be sure that your Sale and Purchase agreement clearly outlines the details of the master title describing the entire development of the property.

Strata title information can be obtained by contacting the local land office in your region.

Individual title

Most often, an individual title is issued for a landed property such as a semi-D house, terrace house, or bungalow. This title is given when you are the sole owner of a large tract of land.

The Malaysian National Land Code Form 14A must be used for the sale of such properties. In the case of a legal charge of a property by the owner on a financier, Form 16A is required.

When should individual titles be used?

Individual titles will be issued for properties with their own land, however, the owners of units in high-rise buildings will have their right of ownership to the units they purchased.

Every owner will have their share of the land or building, all of which translates into ‘unit share’ in their strata title when issued based on the built-up size of their unit.

How do you obtain an individual title?

An individual title will be transferred and charged by your region's land office. Therefore, all relevant documents must be filed with the land office in order to register a property.

When buying an individual title, you must remember the following:

a) You own the individual title to the land and property as soon as you buy a freehold home.

b) While you are leasing your property, the individual title will remain yours until your lease period expires.

c) The individual title you own on a Bumi property is subject to the conditions of that land.

In this article, we have explained that every title is accompanied by a set of rights and corresponding ownership. Ultimately, it's a matter of personal preference. Following is a chart that summarizes the differences between master titles, individual titles, and strata titles: