The Problem With Strata Titles
If you just move into a just-completed condominium or apartment, chances are, you would not have obtained your strata title.
What’s a strata title anyway? Its a title given to the owners of multi-storey buildings, after the developer has sub-divided the master title.
But in Malaysia, the problem is that the developer is always late in issuing these titles to all the buyers. What are the reasons?
- The master title has not been subdivided yet;
- The block title has not been issued to enable submission of applications for strata titles or floor titles;
- It cannot be done until the other phases and blocks are issued with CFs;
- The master title is encumbered;
- There are numerous caveats on the land title; and
- The building has been issued with temporary CF only.
This issue has plagued housebuyers for more than 30 years. According to a report by the New Straits Times,
In our annual tabulation of complaints received last year, involving a total of 212 housing projects and more than 37,810 purchasers, the problem of strata titles accounted for 29 per cent of the complaints, a one per cent increase from 2003.
Under Section 8 of the Strata Titles Act, developers must apply for strata titles within six months of receiving the Certificate of Fitness for Occupation (CF) or face a fine of not less than RM10,000 butt not more than RM100,000.
They are also subject to a further fine of not less than RM100 and not more than RM1,000 for each day that the offence continues to be committed.
For further info, you can check the whole article taken from the website for the Homebuyers Association.
