Whenever you are purchasing a property or you went for a property purchase inspection, people always say things like, “don’t worry this unit has strata title issued already” or “this unit is great but it is still under master title” – why is this so important? It’s important to know as it affects your property purchase process especially in terms of time. In this article we will discuss on master title, strata title, and individual title.
Having a master title means one thing, the property is under a major/parent grant which is usually the property developer themselves. The master title will eventually be released as an individual title (normally for landed properties) or strata title (normally for high rise buildings). However, the title release will depend on the property developers in terms of how fast they settle their land purchased from the government through self finance or banks using bridging finance. In Malaysia, it may take 3 – 10 years on normal circumstances.
Unlike master title, strata title is issued for high rise properties. Having a strata title means you are now the rightful owner of that small unit up the apartment – finally! This implies that the land lot has been split evenly to all respective owners. This also means that it will be easier for you to purchase or sell the property without consent from the property developers.
Similar to strata title, individual title is normally issued for landed properties. Having an individual title means that the property is under the ownership of the individual who purchase the property. The issuance of individual title is normally much faster compared to strata title. Sometimes, even though it is a landed property but in a gated housing areas with guards and facilities – the property can be considered as strata title (as it is in a shared areas, similar to the concept of a serviced apartment) and not an individual title. Hence, do ask your developers whether your property is under which title as each title has its impact on your whole purchase process.
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