This document provides an overview of strata title laws in Malaysia. It explains that strata title allows for horizontal subdivision of buildings into individual units. Each unit is granted a separate title, while common areas are jointly owned. Key aspects summarized include the types of parcels and common property, the application process for strata title, responsibilities of management corporations and unit owners, and consequences of noncompliance.

1. STRATA TITLESSTRATA TITLES
Sharifah Zubaidah Syed Abdul Kader
LAW 3111- May 2013

2. Why Strata Title?Why Strata Title?

3. Why Strata Title?Why Strata Title?
Emphasis since mid-60’s on development
of multi-storey buildings in response to
urbanisation.
To enable individual flats or office units to
be sold as conveniently as lots on land.

4. Strata: Horizontal SubdivisionStrata: Horizontal Subdivision
The idea of Strata
Title is based on
horizontal
subdivision of a
building, or of
airspace, instead of
normal vertical
subdivision of land.

5. The Concept of Strata TitleThe Concept of Strata Title
 The land and building(s)
on it are divided into
‘parcels’ and ‘common
property’.
 Each parcel is an
individual apartment for
which a separate strata
title is issued to the
registered proprietor.
 Each parcel may include a
parking lot or storeroom
which not be located
within the same boundary
as the parcel i.e.
‘accessory parcel’.

6. ‘‘Parcel’ v ‘Common property’Parcel’ v ‘Common property’
All parts of the
building and land
that do not form
part of an individual
apartment make up
the ‘common
property’ for which
a separate title is
issued and held by
the management
corporation.

7. Legislative HistoryLegislative History
Before 1985, NLC
had provisions for
subdivision of
buildings and the
issuance of
‘subsidiary title’.
Ss.151-157, 161-
163, 355-374.
These provisions
proved inadequate.
Malaysia’s Strata
Titles Act 1985 is
modeled after New
South Wales
Conveyancing
(Strata Titles) Act
1961 and Singapore
Land Titles (Strata)
Act(Cap.277) 1970.

8. Strata Titles Act 1985 (Act 318)Strata Titles Act 1985 (Act 318)
An Act to facilitate the subdivision of
buildings or land into parcels and the
disposition of titles and purposes
connected.
Applies in Peninsular Malaysia and FT
Putrajaya.
Has been amended 4 times. Latest in
2007.
s.5-To be read and applied with NLC.

9. TerminologyTerminology
‘parcel’ ‘common property’
One of the individual
units comprised in a
sub-divided building
which is held under a
separate strata title.
If subdivided land,
one of the individual
units of land parcel.
So much of the lot as
is not comprised in
any parcel (including
any accessory
parcel).

10. TerminologyTerminology
‘Accessory parcel’
Any parcel shown in
the strata plan as an
accessory parcel
which is used or
intended to be used
in conjunction with a
parcel.
A parking bay may
either be an
accessory parcel or
common property
depending on the
strata plan and sale
and purchase
agreement.

11. TerminologyTerminology
The 2007 amendment now allows subdivision
of land also to be issued with strata title.
(See s.6)
Requirement – there must be a building on
the land of not more than 4 storey high. This
is to cater for the Gated Community type of
development and ‘townhouses’.
‘land parcel’: a unit which is comprised
therein a subdivided land on which there is a
completed building of not more than 4 storey
which is held under strata title.

12. Gated communityGated community

13. Application for Strata TitleApplication for Strata Title
General Requirements:
1) There must be at least one building
with two or more storey. If a building
is one storey, may subdivide into land
parcel.
2) The land on which the building stands
must be alienated land.
3) The land must be one lot held under
final title.

14. Who should apply?Who should apply?
Section 8(1):
The proprietor of the land who has sold or
agreed to sell any parcel in such building.

15. Lee Wai Kin v Yulek S/BLee Wai Kin v Yulek S/B [1986][1986]
Pf. purchased a flat in a block of buildings
developed by the Dfs.
He had paid the purchase price and went
into occupation.
Strata title to the flat had not been issued
to the Pf.
Df had been demanding various sums of
money from the Pf. For expenses to be
incurred for applying for such title.

16. Lee Wai Kin’sLee Wai Kin’s case:case:
Pf. applied to court to determine several
questions.
Held:
In view of s.8(1) STA, it was incumbent
upon the Df. (as proprietor of land) to
apply for Strata Title to the flat on behalf
of the Pf..
Pf. to pay the costs. Amount is the
prescribed fee to be paid u-s.10(1)(a).

17. When to apply? (Mandatory)When to apply? (Mandatory)
See s.8(2):
If sale and purchase agreement signed
BEFORE completion of building, must
apply for ST 6 months after building is
completed.
If sale and purchase agreement signed
AFTER completion of building, must apply
for ST 6 months after the date of the first
unit sold.

18. Can the period to apply beCan the period to apply be
extended?extended?
Yes.
Under s.8(6), the Director of Lands and
Mines may extend the period once not
exceeding 3 months.

19. Consequence of not applying?Consequence of not applying?
S.8(7) STA:
Not making an application within the
prescribed period is an offence.
Punishable with FINE of between
RM10,000 to RM100,000.
For every day the offence continues –
RM100-RM1000 for each day.

20. Syed Azman v Lian Seng (KL)Syed Azman v Lian Seng (KL)
Construction Co. S/BConstruction Co. S/B [1992][1992]
Pf had purchased the 3rd
floor of a
proposed 5 storey building.
Building completed in 1973 and Pf paid
the full purchase price u-the agreement.
Until the date of hearing, the strata title
had not yet been delivered to the Pf.
Pf claimed specific performance i.e.
immediate delivery of the strata title
pursuant to the agreement.

21. Syed Azman’sSyed Azman’s case:case:
Df. argued, inter-alia, they were incapable
of specifically performing the terms of the
agreement as the 6 months period
specified in s.8(2) STA had expired and no
extension of such period had been made
before its expiry.

22. HELD: (Lim Beng Choon, J.)HELD: (Lim Beng Choon, J.)
Df’s contractually and statutorily bound to
apply for separate title for the property
purchased by the Pf.
Upon payment of the fine stipulated u-STA,
the Df as proprietor, could therefore apply to
the Director for subdivision of the building
and the Director could still deal with the
application even after expiry of the 6 months
period.
Court ordered the Df. to do the needful
within 1 month of the judgment.

23. RESTRICTION ON DEALING WITH
ACCESSORY PARCEL

24. See s. 69 STASee s. 69 STA
Where the approved strata plan shows
that some portion of the development (i.e.
a carpark, storeroom, etc) are to be taken
to be ‘accessory parcel’, then neither the
developer nor the parcel owner may deal
with such accessory parcel or any interest
therein separately from the parcel.

25. Doreen Tan Ying Ying v Chong TetDoreen Tan Ying Ying v Chong Tet
OnOn [1986] 1 MLJ 504[1986] 1 MLJ 504
Pf. Hd purchased 2 apartments from a
developer.
Subsequently, she purchased the disputed
parking bay from the same co.
Pf. later sold one of the apartments to the
Df.
Found out that Df. Had been using the
disputed parking bay.

26. Doreen Tan’sDoreen Tan’s case:case:
Pf. sought an injunction to restrain the Df.
from using the said parking bay.
Contended that she sold the apartment
excluding the parking bay.
HELD: (HC)
Pf’s application dismissed.
Developer was not entitled in law to sell
the parking bay as a separate entity as it
was an accessory parcel attached to the
Df.’s apartment.

27. John Dennis De Silva v Crescent CourtJohn Dennis De Silva v Crescent Court
Management CorporationManagement Corporation [2006] 3 MLJ[2006] 3 MLJ
631631
Pf=owner and resident of condo unit at
Crescent Court.
Parked his car at bay 106.
25/9/04-Pf’s car bearing the sticker of
Crescent Court was denied entry and right
to park at bay 106 on the ground that he
had not paid his monthly maintenance
charges.

28. John Dennis’sJohn Dennis’s case:case:
Pf. sought interim injunction to restrain the
Df from preventing the Pf from entering the
condo complex in his car and preventing the
Pf from parking.
Df averred that the parking bay was allocated
to the Pf, not purchased by the Pf.
Pf brought evidence that he had contributed
money to construct a roof over the parking
bay and therefore he had proprietary interest
in the parking bay.

29. HELD:HELD:
From the Strata Plan, the parking bays
were common property.
The Pf had a proprietary interest in the
parking bay as all owners of Crescent
Court ‘owned’ the common property.
The act of the Df in preventing entry was
ultra vires ss. 52,53,53A and 75 STA.

30. Plaza Pekeliling Management Corp. vPlaza Pekeliling Management Corp. v
IGB Corp. Bhd. & Anor.IGB Corp. Bhd. & Anor. [2003] 1 MLJU[2003] 1 MLJU
216 (HC)216 (HC)
Justice Abd Malik Ishak:
“common property meant that there was
no title to it because if there was title,
then it was not a common property”
In this case, AHU Rooms, toilets, risers,
roof top and carparks had been issued
with strata titles, thus were not
considered ‘common property’.

31. Management CorporationManagement Corporation
Established upon opening of a Strata
Register for the said strata scheme. (see
s.39(1) STA)
Consists of all parcel proprietors.
Is a body corporate that can sue and be
sued.
U-s.42 STA, the MC is the proprietor of
common property and holds the IDT for
the common property.

32. Roles and Responsibilities:Roles and Responsibilities:
Responsible for maintenance and
management of common property in the
scheme – lifts, corridors, swimming pool,
etc.
Responsibilities of MC
(see s.43, s.44(6), Third Schedule of STA,
54 STA).

33. s.43(1) STAs.43(1) STA
1) To manage and
properly maintain
the common
prop. and keep
it in the state
of good and
serviceable
repair.
2) To insure and
keep insured te
building or land
to the
replacement value
agst fire and such
other risks.

34. 3) To comply with
any notices or
orders made by
any public/
statutory
authorities
requiring the
abatement of
nuisance on the
common property/
ordering repairs,
etc.
4) To comply with
any such
notices or
orders given in
respect of the
parcels if the
proprietor fails
to do so within
a reasonable
time.

35. 5) To prepare and
maintain a
strata roll for
the sub-divided
building.

36. s.44(6) STAs.44(6) STA
6) To keep a record of the by-laws for
the time being in force and to lodge a
certified true copy with the
Commissioner of Buildings (COB)

37. 33rdrd
ScheduleSchedule
7) To enter in the strata roll any intended
change without delay.
8) To maintain in a state of good and
serviceable repair the fixtures and
fittings (including lifts) existing.
9) To establish and maintain suitable
lawns and gardens on the common
property.

38. 10) To maintain
repair and
where necessary,
renew sewers,
pipes, wires,
cables and
ducks existing
on the lot.
11) To produce all
policies of
insurance
effected by the
MC together
with the
receipts to the
proprietor/
chargee upon
request.

39. s. 54s. 54
12)To display the name and address of
the MC as shown in the book of the strata
register at the main entrance for the lot
and to provide the post box.

40. RESPONSIBILITIES OF THE PARCEL
PURCHASERS

41. Rights (s.35 STA) see also s.36Rights (s.35 STA) see also s.36
Other than rights of a proprietor under
the NLC, parcel proprietors hv the
following rights:
1) Right of support by the common
property and other parcels.
2) Right of service – rights to passage
and provision of water, sewage,
drainage, gas, electricity, garbage,
etc.

42. ResponsibilitiesResponsibilities
Parcel proprietors have the following
responsibilities:
1) Ensure regular payment of the
management fund.
2) To attend the AGM;
3) Comply with any directive by the
authority relating to his parcel.

43. Management Fund (s. 45)Management Fund (s. 45)
To meet administrative expenses incurred
for the purpose of controlling, managing
and administering the common property.
Amount to be contributed by the parcel
proprietors is determined at the AGM.

44. Non-payment of ManagementNon-payment of Management
Fund by Parcel OwnersFund by Parcel Owners
S. 55A of the Building and Common
Property (Maintenance and Management)
Act 2007 provides this to be an offence
where upon conviction can be fined not
more than RM5000 and additional RM50
per day for any delay in the contribution
after conviction.