Strata Title vs. Individual Title

Titles, titles, titles. There are tons to remember and sometimes, it kinda gets a little confusing. So let me just put the basics of the basics all out there, as plain as day and what you’d get out of it.

Now, there are 2 main land titles in Malaysia which are namely the Individual Title and Strata Title. These land titles are assigned by the developer from the start depending on the type of property that the developer will be building. So, as a potential homebuyer, let’s dig up the news on these titles! Here’s a very basic and compiled info to understand the differences between Strata and Individual Title. 

Strata Title

High-rise homes like condominiums and apartments carry the Strata Title because you’re sharing common facilities like the swimming pool and playground with your neighbours! However, the Strata Title does also apply to landed properties too, as long as it’s gated and guarded. Why? Because you’ll be sharing the common areas and features such as having security or even a clubhouse with each other. So that’s a perk.

Alongside having perks such as facilities, one thing you’d need to remember is that because Strata Title properties are sharing common areas, there are some rules that apply. Now, once you have received your home, the developer will create something like the Round Table which is called the Joint Management Body (JMB) to run the facilities for 1 year before the residents (aka you) take over which creates the Management Corporation (MC). The JMB and subsequently, MC, will be there to manage security and cleaners, and the maintenance of the common areas among other things. Because of these facilities and extra features, a monthly maintenance fee will be required. This amount will depend on the sqft of your home and the types of facilities being offered.

Next, house rules will also be enforced. Rules concerning your home’s exterior aesthetic look, where for example, if you live in a condominium and want to install grills, you would need to make sure that your grill set must match the specific options which are the colour and size that are stated in your house rules. You won’t be able to choose a bronze coloured grill for your front door or paint your windows blue, unfortunately. This might feel like a huge limitation to some, but hey, on the bright side, you’ll be coming home to an environment where it’s aesthetically neat and tidy. You won’t have to deal with your neighbour’s Shrek green coloured front door or that extended roof they put up that cuts over to your front porch. ;) (How great is that?!) So be sure to read the house rules so that you may avoid any dispute with the committee or your neighbours!

What are your rights?

Living in a Strata Title home doesn’t mean you lose absolute freedom over your house. You still can design and manage the way you want your home to be, and you actually have more of a voice in things because it is a democracy! So during your Annual General meeting (AGM), voice out and vote for changes like lower maintenance fees or allowance of pets. If you’re in the majority, changes will be made! Don’t be afraid to stand up for yourself and what you want. 

Plus, well-managed properties can expect to enjoy a higher % of price appreciation because of your orderly development!

Individual Title

Individual Titles homes are usually for landed properties and because you are the sole owner of the house and the land that it’s on. So all responsibility falls to you as a homeowner. 

Landed homes such as terrace houses, semi-detached, superlinks, or bungalows are included in this land title. So if you purchase a freehold property with an individual title, then the land and property is yours forever and ever unless you sell it or the government buys over the land from you for future development for the country. As for leasehold Individual Title homes, it’s still yours to keep for the entire duration of the lease duration or till its sale!

What are your rights?

Absolute freedom. Since the land and the house is yours, you can do whatever it is that you want. So paint the house entirely white, have blue shutters on your windows, and extend your home all the way to the back so that you have an even larger kitchen, if you’d like! The world is your oyster. 

Will these land titles affect you as a homebuyer?

The only main thing that you as a homebuyer should think of between a Strata Title home and Individual Title home would be your preferences and needs. So, nope! These land titles won’t really affect you as the differences between each title is there, but it’s small. Because even in recent developments, Individual Title homes are already offering features such as security and guardhouses at the entry points. These things too will require maintenance fees, but it also enhances your quality of living! So the point that you need to consider is what you’re looking for and what you’re willing to pay. Facilities or having a home of your dreams down to a tee.

P.S: Myra has great selections of homes for you that fall in the Strata Title or Individual Title category! Check out Myra's Homes.