Individual Title vs Strata Title - What are the differences?

On our previous guide, we are focusing on the property ownership title which consists of Freehold, Leasehold & Bumi Lot. But this topic is closely related to another aspect of property right which involves a person's right or ownership of the land. 

There are mainly 2 types of land titles in Malaysia, namely individual title and strata title. Before assigning these titles, the developer of a specific property will be the landowner in the master title. The developer will then assign the individual or strata title depending on the property purchased by the buyer. As a buyer, let's dig into what they are, & have comparisons of both titles.

Well, it’s important to know as it affects your property purchase process in legal terms but it won't generally have an impact on the price or buying decision. Generally, if you have private Jet the whole benefits of the Jet can be enjoyed by you, this is the case of individual title owners. But if you book a separate flight you might share the common benefits of the flight with your co-travellers but the seat you booked can be enjoyed by you as long as you are a traveller, this case can be related to Strata holders. So from this, it is clear that unless you don't want to enjoy an entire condominium or house both titles have a lesser impact on the purchase decision of a buyer.

Individual Title

All the landed properties except (the properties which are gated and guarded with shared common facilities) will have the landowners registered under the individual title. This includes types of houses such as terrace houses, bungalows, semi-detached, etc. In simple, the individual titles will be issued when you are the only owner of the land. The registration process of individual titles is faster than that of Strata titles. It is always important to understand the relationship between ownership titles and land titles. Let's look into the comparison: 

Individual title and major land titles:

- When you purchase a Freehold property with the individual title then that land and property are yours forever.
- When you purchase a Leasehold property with the individual title then that property is yours depending on the lease duration (30-999 years).
- When you purchase a Bumi property with the individual title then you own the property depending on the terms of land (freehold or leasehold)

Strata Title

Strata title is issued mainly for high rise properties. It includes properties such as condominium, apartment, townhouse & also some landed properties which shares common facilities like gated and guarded, flat and such. The owner of the land with strata title has to shares the common facilities and areas such as swimming pool, gym, and other such facilities with the fellow residents. Now let's see how strata titles are related to major land titles.

Strata title and major land titles:

- When you purchase a Freehold property with strata title then the part of that property (units) is yours forever.
- When you purchase a Leasehold property with strata title then the part of that property (units) is yours depending on the lease duration (30-999 years).
- When you purchase a Bumi property with strata title then the part of that property (units) is yours depending on the terms of land (freehold or leasehold)

Before purchase, every homeowner must check the title status with the developer. This is important as it proves your legal ownership which has a direct influence on selling your property later. Without the title, you may need to refer back to your developer for confirmation as well as facing difficulties in acquiring financing from the banks. So we would suggest you acquire your title or get a confirmation from the developer before purchasing any property. Also, you can visit NuProp Guide to have better preparation on your property buying journey.