TABLE OF CONTENTS

NO CONTENTS PAGE
1. 1.1 Definition 2

2. 1.2 The Concept of Strata Title 3

3. 1.3 Law Governing Strata Titles 4

4. 1.4 The Introduction of Strata Title in Malaysia 4

5. 1.5 The Legislation : The Strata Titles Act of 1985 4

6. 1.6 The Concept of Strata Title : What is a Strata 5

Subdivision

7. 1.7 Application For Strata Title 5-8

8. 1.8 Management Corporation 9

 1.8.1 Roles and Responsibilities
 1.8.2 Responsibilities of MC

9. 1.9 Responsibilities of the parcel purchases 10

 1.9.1 Responsibilities

10. 2.0 Cases 11-12

11. 3.0 References 13

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1.0 STRATA TITLE ACT

1.1 Definition
Parcels - In relation to a subdivided by building means one of the individual
units comprised there in which is held under separate strata title.

Accessory Parcels - Means any parcel shown in a strata plan as an accessory parcel
which is used or intended to be used in conjunction with a parcel. For example, car parks.

Common Property - The area not comprised in any parcel (including any
accessory parcel) or any provisional block as shown in an approved strata plan.

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.

Figure 1: Common property and Parcel

Source: Hafizul Mukhlis, 2014. Junior lawyer at Siau Suen Miin & Tan

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1.2 The Concept of Strata Title
• The idea of strata title based on the horizontal subdivision of a building, or of airspace,
instead of the normal vertical subdivision of land.
• It is however, also in use for vertical subdivisions in the case of villa and townhouse
subdivision. It has also lent itself to subdivisions of non-land based properties such
as marinas, and commercial and industrial developments as well as residential.

Figure 2: Idea of Strata Title (Horizontal subdivision and Vertical subdivision)

Source: Hafizul Mukhlis, 2014. Junior lawyer at Siau Suen Miin & Tan

• The land and the building(s) erected upon it are divided into “parcel” (called “lots” in
the Singapore and Australian legislations) and “common property”.
• Each parcel consists of an individual apartment for which a separate strata title is
issued to the registered proprietor, whilst all parts of the building and land which 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 or body corporate of the strata
scheme on behalf of all the proprietors of parcels in the scheme.
• The individual parcel may include a parking lot, garage and/or storeroom which is not
necessarily contiguous to it.

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1.3 Law Governing Strata Titles
• Strata Titles Act 1985 (Act 318/85) came into effect on 1 June 1985. Strata Title Act is
applicable only to West Malaysian States.
• Modelled after New South Wales Strata Titles Act 1973 and Singapore Land
Titles (Strata) Act.
• Sarawak - Sarawak Strata Titles Ordinance 1974 (No. 3 of 1974)
• Sabah - Sabah Land (Subsidiary Title) Enactment 1972 (No.9 of 1972)

1.4 The Introduction of Strata Title in Malaysia

• Strata title was first introduced into Malaysia by way of certain sections of the National
Land Code 1965 which governed strata projects, including applications for subdivision of
multi-storey buildings and the subsequent issuance of strata titles which were formerly
called “subsidiary titles”.

1.5 The Legislation : The Strata Titles Act of 1985

• In the course of time, it was decided that it would be best to replace the existing
provisions of National Land Code which relate to strata title with comprehensive
Act. Thus 1985, the Strata Titles Act was passed.

1.6 The Concept of Strata Title : What is a Strata Subdivision ?

• In a strata subdivision, the land and improvements erected on it are divided into ‘lots’
(called ‘parcels’ in Malaysia) and common property.
•A basic difference between the Malaysian Act and legislation in other jurisdictions is that
the Malaysian Act envisages that only a multi-storey building can be the subject of a
strata subdivision.
• The long title to the Act states that it is “[A]n Act to facilitate the subdivision of
building into parcels and the disposition of title thereto …” S 6(1)
• originally required a building to be at least two storeys to be capable of strata
subdivision unless it was a single-storey building which was to become an
accessory parcel.
• Any parcel of airspace or any subterranean space held apart from the surface of the
earth and described with certainty by reference to a plan approved by the Chief
Surveyor.
• Any building or buildings having two or more storeys on alienated land held as one lot
under final title (whether Registry or Land Office title) shall be capable of being
subdivided into parcels; and

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 • Any building or buildings having only one storey on the same land shall also be
capable of being subdivided, into parcels to be held under strata titles or into
accessory parcels.

1.7 Application For Strata Title

• There must be at least one building with two or more storey. If a building is one
storey, may subdivide into land parcel.

Figure 3: Single storey house

Source: Hafizul Mukhlis, 2014. Junior lawyer at Siau Suen Miin & Tan

Figure 4: Multi storey

Source: Hafizul Mukhlis, 2014. Junior lawyer at Siau Suen Miin & Tan

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 • The land on which the building stand must be alienated land.

“Any building or buildings having only one storey on the same land shall also be capable of
being subdivided, into parcels to be held under strata titles or into accessory parcels.”

Figure 5 & 6: the land need to be alienated land in order to apply for strata title.
Source: Hafizul Mukhlis, 2014. Junior lawyer at Siau Suen Miin & Tan

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• The land must be one lot held under final title.

“Any building or buildings having two or more storeys on alienated land held as one lot
under final title (whether Registry or Land Office title) shall be capable of being subdivided
into parcels.”

Figure 7: Alienated land held as one lot under final title (whether Registry or Land Office title)
Source: Hafizul Mukhlis, 2014. Junior lawyer at Siau Suen Miin & Tan

Figure 8: more than two storeys high rise buildings with more than one strata title issued
for each building.

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Figure 9: Mixed development of high rise buildings more than two storeys with more than
one strata title issued for parcel within the building and buildings of not more than four
storeys with single strata title titles issued for each of the land parcel comprising a building.

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

1.8.1Roles and Responsibilities:

 Responsible for maintenance and management of common property in the scheme
– lifts, corridors, swimming pool, etc.

1.8.2 Responsibilities of MC
 (See s.43, s.44(6), Third Schedule of STA, 54 STA). s.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 the building or land to the replacement value against fire
and such other risks.

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.

5) To prepare and maintain a strata roll for the sub-divided building. s.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) 3rd Schedule

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.

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/ charge upon request. s. 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.

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1.9 RESPONSIBILITIES OF THE PARCEL PURCHASERS

Rights (s.35 STA) see also s.36

Other than rights of a proprietor under the NLC, parcel proprietors have 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.

1.9.1 Responsibilities
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. Management Fund (s.
45) 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.
 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. Non-
payment of Management Fund by Parcel Owners.

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2.0 Cases
Lee Wei Kin v Yulek S/B [1986]
• Plaintiff purchased a flat in a block of buildings developed by the defendant.
• He had paid the purchased price and went into occupation.
• Strata tittle to the flat had not been issued to the plaintiff.
• Defendant had been demanding various sums of money from plaintiff. For expenses
to be incurred for applying for such title.

Lee Wei Kin’s case

• Plaintiff applied to court to determine several questions.
• Held:
• In the view of S. 8(1) Strata Title Act, it was incumbent upon the defendant. (as
proprietor of land) to apply for Strata Title to the flat on behalf of the plaintiff.
• Plaintiff to pay the costs. Amount is the prescribed fee to be paid under S.10(1)(a).
Section 8(1)
• The proprietor of the land who has sold agreed to sell any parcel in such building.

Syed Azman v Lian Seng (KL) Construction Co. S/B [1992]

• Plaintiff had purchased the 3rd floor of proposed 5 storey building.
• Building completed in 1973 and plaintiff paid the full purchased price under
the agreement.
• Until the date of hearing, the strata title had not yet been delivered to the plaintiff.
• Plaintiff claimed specific performance i.e. immediate delivery of the strata title pursuant to
the agreement.

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Syed Azman’s case
• Defendant argued, inter-alia, they were incapable of specifically performing the terms
of the agreement as the 6 months period specified in S.8(2) Strata Title Act had expired
and no extension of such period had been made before its expiry.
Section 8(2)
• If sale and purchase agreement signed BEFORE completion of building, must apply
for Strata Title 6 months after building is completed.
• If sale and purchase agreement signed AFTER completion of building, must apply for
Strata Title 6 months after the date of the first unit sold.

• 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.

Doreen Tan Ying Ying v Chong Tet On [1986] 1 MLJ 504

• Plaintiff had purchased 2 apartments from a developer.
• Subsequently, she purchased the disputed parking bay from the same co.
• Plaintiff later sold one of the apartments to the defendant.
• Found out that defendant had been using the disputed parking bay.

Doreen Tan’s case

• Plaintiff sought an injection to restrain the defendant from using the said parking
bay. Contended that she sold the apartment excluding the parking bay.
• Held:
• Plaintiff’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 defendant’s apartment.

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3.0 REFERENCES

Land Conservation Act 1960

 Laws of Malaysia : Act 385 Land Conservation Act 1960.2006. The
Commissioner of Law Revision . Malaysia Under The Authority of The Revision of
Laws Act 1968 in Collaboration With Percetakan Nasional Malaysia Bhd.

Strata Title Act

 Jamila Hussain. Strata Title in Malaysia.1999.Pelanduk Publication (M) Sdn.Bhd.

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