Strata Title
Strata Title
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Jamaludin Yaakob
STRATA TITLE
CONTENT
Learning Outcomes Introduction Governing Laws Definition of Strata Title Implications of Property Ownership Prove of Ownership Importance of Title Problems with NLC 1965
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Inadequacies of Subsidiary Title General Features of Strata Title Strata Title Act 1965 B & CP (M & M) Act 2007 Legal Issues
Jamaludin Yaakob
STRATA TITLE
Learning Outcomes
At the end of the discussion students should be able to: Explain the legal basis for the needs of strata title; Explain the important concepts of strata title scheme; Discuss critical issues in strata title; and Solve legal problems relating to strata title.
14/05/2012 Jamaludin Yaakob
STRATA TITLE
Introduction A common characteristic of urbanisation having multistorey building for commercial as well as residential purposes. This urbanisation pattern is caused either by choice or by pressure due to unavailability of land in urban centres. The decision to go for vertical development is made possible by advancement in in building technology.
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STRATA TITLE
Introduction This development is supported by the appropriate legislations. The strata title is essentially based on the concept of subdivision of land (horizontally). Whereas, strata title is in fact the subdivision of building horizontally and vertically.
The strata titles are therefore documents relating to ownership of parcels in subdivided buildings.
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STRATA TITLE
Introduction The NLC 1965 had a specific chapter (PART NINE, Chapter 1, sections 151-157) on subdivision buildings. These provisions were found to be inadeqaute to regulate the whole requirements of strata title schemes. In 1985, the Malaysian Parliament had passed the Strata Title Act (Act 318).
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STRATA TITLE
Introduction After 22 years and many complaints, legal issues, court actions and amendments, in 2007, the Parliament had passed another legislation called the Building and Common Property (Management and Maintenance) Act 2007. At the same time the Strata Title Act was also amended to take in account of the Gated and Guarded Community. This new act complements the Strata Title Act 1985.
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STRATA TITLE
Governing Laws National Land Code 1965 Strata Titles Act 1985 Housing Development (Control and Licensing) Act 1966 Strata Titles (Federal Territory of Kuala Lumpur) Rules 1988 Federal Territory of Putrajaya (Modification of Strata Titles act 1985) Order 2002 Building & Common Property (Maintenance and Management) Act 2007
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STRATA TITLE
Definition
Strata Title Act 1985 - titles issued under section 16.
A Strata scheme is a development that divides a building (or land) into parcels, accessory parcel and common property and stipulates a system of management.
Strata titles are issued for each parcel in relation to a strata title scheme. This document carries similar functions and roles as any document of title.
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STRATA TITLE
Definition Strata title is a document issued by the State Authority in relation to ownership of a unit or parcel in a building A procedure that gives legal ownership to subdivision of building into parcels in separate title. A system of ownership of property based on horizontal & vertical subdivision of space of building into lots with separate titles where rights of transfer, lease and charge are not restricted.
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STRATA TITLE
Strata Title Property Residential Condominiums, Apartments, Town Houses, Bungalows, Semi Detached Houses, Terrace Houses, Gated & Guarded Community Commercial office buildings
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STRATA TITLE
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Jamaludin Yaakob
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STRATA TITLE
Occupation
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Jamaludin Yaakob
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STRATA TITLE
Proof of Ownership
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STRATA TITLE
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STRATA TITLE
B2
Caveat
D
Charge Caveat B1
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STRATA TITLE
Problems with Dealings Without title parcel owners encounter difficulty when carrying out dealings: Transfer: no title to register purchasers name, ownership is based on Sale & Purchase Agreement. Charge: not possible to create charge; end financing is secured by deeds of assignment.
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STRATA TITLE
Rights of Chargees Under the NLC 1965 which is based on Torrens System where registration is everything, It therefore appears that registered chargees of the master titles (the bridging financiers) will enjoy priority vis-a-vis purchasers and end financiers, whose rights are based on contracts.
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Jamaludin Yaakob
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STRATA TITLE
Inadequacy of NLC 1965 1) Developers are not compelled to apply for strata title. 2) Developers may continue to use the land as security. 3) Purchasers of parcels were made to pay quit rents & rates.
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STRATA TITLE
Inadequacy of NLC 1965 5) Rights of subsidiary owners were not systematically arranged 6) No provision for common property.
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STRATA TITLE
General Features of Strata Scheme The general concept of subdivision remains unchanged; The strata titles are issued in the name of the proprietors who will subsequently transfer them to purchasers of parcels; Management Corporation automatically comes into existence (except for low cost flats); Common Property is vested in the MC;
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STRATA TITLE
General Features of Strata Scheme Unit Shares are allocated to each parcel; Registered owners of parcels enjoy similar rights as registered proprietors of land under the NLC 1965; The rights of support, service and shelter for the parcels are guaranteed; and Subdivision, partition and amalgamation.
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Overview of Strata Title Act 1985 The 1985 Act (STA), facilitates subdivision of buildings and land. It provides for applications for subdivision, registration and issuance of titles, systematic management of strata schemes; establishes Strata Titles Board for purpose of settling disputes.
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STRATA TITLE
Overview of Strata Title Act 1985 Since it was introduced in 1985, it had been amended four times: introduced which were in: 1) 23rd February 1990 (Act A753),
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Overview of Strata Title Act 1985 In the latest amendment, a further step forward was made to enable the subdivision of land into parcels, accessory parcel and common property. This amendment accommodates the Gated Community Schemes (GACOS).
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Provisional Blocks
Subdivided Buildings: Divisions & Amalgamation of Parcels
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STRATA TITLE
Overview of Strata Title Act 1985 PART VII Sections 39 - 55 Management of subdivided building
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Overview of Strata Title Act 1985 PART IXA Sections 67A 67X PART X Sections 68 - 85
Miscellaneous
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Buxton & Anor v Supreme Finance In James Edward Buxton & Anor v Supreme Finance (M) Berhad [1992] 4CLJ 1945 the Supreme Court had held at page 1949: In all these cases, it was held that the interest of a registered charge is indefeasible by s. 340(1) of the Code unless it is made defeasible by s. 340(2). . The interest of a bona fide purchaser for value cannot prevail over that of a registered chargee.
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