Master / Individual / Strata Title

Master Title

(It is master title, which developer is the land holders)

The term master title relates to a title upon which generally more than one unit of property is constructed. Hence, master title generally refers to a comparatively bigger piece of land and is registered in the name of the developer. In the event that it is not registered in the name of the developer, it might possibly be registered in the name of another proprietor plus the developer has entered right into a joint venture together with the proprietor or perhaps has acquired a specific right from the proprietor to develop the land. Typically the developer may then continue to submit an application for subdivision of the master title and the master title may likely be sub-divided into block titles or even individual titles or strata titles relying on the type of property which in turn has been constructed on the particular land.

Before the existence of Strata Title/ Individual Title, developer will be the land holders in Master Title. Developer has the right to control all the transactions of the land.

After the units are sold out, developer will apply for transfer of ownership of the land. Each unit will have separate Pemilik Tanah according to the owner of the unit. According to government rules, developer must transfer the ownership of land to the house owner within 6 months after CF is approved.

Individual Title

(Separate lease issued to owner of landed property)

An individual title consists of a title which often has been subdivided for a single unit of landed property for instance terrace houses, bungalows, semi-detached houses, shop-houses and factories.

Land holders are the owner of the landed property and this is known as individual title. However, there are some of landed property who share the facilities is consider as Strata Title.

Strata Title

(Separate lease issued to owner of sub-divided property)

Strata title is certainly a sub-divided title simply is actually meant for individual units on high-rise buildings for example apartments, condominiums, flat, service suites, townhouse including shop-offices where the particular developer has applied for strata titles for the different floors and are sold individually floor by floor.

 How to know it is Master Title or Individual Title/ Strata Title?

Check if previous S&P indicated it is individual title/ Strata title

Check Geran/Grant, it will be indicated

Check with developer for latest updated

Influence of Master Title or Strata Title/ Individual Title to owner:

Master Title: Developer is the land holder

Individual Title/Strata Title:  House owner is the land holder

If it is under Master Title, all transaction must be approved by the developer

If the property is under Master Title, but the developer is bankrupted, it is not recommended to buy the property. This is because it is difficult to get the grant and bank loan is hardly approved.

If a 10 years property which is still under Master Title, normally bank will not approved the loan.

It will influence the transaction process time.

If the property is under Master Title, buyer is unable to buy the house using the money in EPF.

Related Questions:

Q: If property under Master Title, is transaction allowed?

A: Yes, but it must be approved by developer since developer is the land holder.

Q: Can we sell the unit if transferring of land ownership by developer is in process?

A: It is allowed to do direct transfer if the application of transferring land ownership was sent. The owner does not need reapply for transfer to the buyer. However, if the application is yet send, then direct transfer is not allowed.

Q: Who should do the application of Individual Title/ Master Title?

A: Developer needs to apply with State Government and acknowledge all the units’ owner.

Q: Is that any influence if the unit is under Master Title and owner is staying in the unit?

A: If the owner does not have intention to sell the unit, it doesn’t matter. However, it is still advisable to get the title for protection purposes (in case the developer is bankrupt)

Q: If the unit is under Master Title and developer is bankrupt, should owner inform the buyer?

A: Yes, do not hide it because the buyer will know it sooner or later especially when they apply for bank loan and S&P.

Q: How to get Individual/ Strata Title if the unit is under Master Title while developer is bankrupt.

A: It is very complicated. The owner from each units can set up a committee and collect a fund (bayaran khas tanah), and apply from the state government to get back the land ownership. Owner should pressure the developer to get the Individual Title/ Master Title as soon as possible.

Announcement: Company Name Change

Highlights of Budget 2014 – Real Property Gains Tax - RPGT

Under the recent Budget 2014 announcement, the Malaysian Government has proposed a significant increase to the current RPGT rates to further curb speculative activities in the local real property market.

RPGT is a tax imposed on gains from disposal of all types of properties such as residential and commercial buildings, land and shares of real property companies. RPGT is imposed on the net gains from disposal of property after deducting the following costs:-

    Acquisition price

    Stamp duty

    Legal fees

    Renovation costs

    Commission for sales and administrative payments

For Malaysian citizens and permanent residents, RPGT is exempted for the disposal of one residential property once in their lifetime.

Further, RPGT is also not imposed on gains from disposal of property between:-

    Husband and wife

    Parents and children

    Grandparents and grandchildren

The current RPGT rates vary from 0% to 30%, depending on the holding period. The holding period refers to the period between the acquisition date and the disposal date of the property.

To further curb speculative activities, the RPGT rates on disposal of properties and shares in real property companies effective 1 January 2014 shall be as follows:-

Procedure to Buy and Sell Property in Malaysia

 

How to Buy and Sell Property in Malaysia

Once the purchaser decides to buy a specific property, he is required to fill in an undertaking prepared by the estate agent/broker and pay the booking fee or earnest money (min 2%) evidenced by a receipt of payment. If subsequently the purchaser renegades on the intention to go ahead with the purchase, this earnest money is forfeited by the vendor. On the other hand, if the vendor renegades on the sale then the purchaser can claim double the sum of earnest money as damages for non-performance.

There are two choices:

•             Purchaser finds his own banker.

•             His lawyer can submit to his panel of bankers.

The real estate agent/broker will have to forward the following documents/details for the lawyer to prepare the Sale & Purchase Agreement [S&P]:

•             Purchaser’s & Vendor’s identity card or passport if foreigner.

•             A copy of the previous S&P from the Vendor

•             A copy of the title (if any)

Once the Sale & Purchase Agreement (S&P) is completed the lawyer will fix a date for the signing and settle the required monetary deposit of another 8% (in addition to the earlier 2% earnest money) to make up a down-payment of 10% in total.

Thereafter, the purchaser is given 3 months to settle the balance sum of the loan. In most instances, the purchaser would have taken a 70% loan from the bank and he will have to pay from his own pocket the 30% (i.e., he had earlier paid 10% during the signing S&P and pays only the differential sum of 20%). He can request the vendor another month’s extension of time subject to interest accruing at some 8% per annum.

The purchaser will hand over the balance 20% deposit to the lawyer for settling the mortgage from the bank, in order to redeem the property. Then the process of transfer can be carried on.

As the property is being redeemed and the vendor has settled all outstanding bills, the lawyer will submit the transfer form to the Land Office for registration. If the transfer form is approved, the lawyer will hand over the rest of the deposit to the vendor. At the same time, the seller has to pass the right of the property to the buyer as final realize.

 

How To Buy and Sell Property in Malaysia

1. Once the purchaser decides to buy a specific property, he is required to fill in an undertaking prepared by the estate agent/broker and pay the booking fee or earnest money (min 2%) evidenced by a receipt of payment. If subsequently the purchaser renegades on the intention to go ahead with the purchase, this earnest money is forfeited by the vendor. On the other hand, if the vendor renegades on the sale then the purchaser can claim double the sum of earnest money as damages for non-performance.
2. There are two choices:
   1. Purchaser finds his own banker.
   2. His lawyer can submit to his panel of bankers.
3. The real estate agent/broker will have to forward the following documents/details for the lawyer to prepare the Sale & Purchase Agreement [S&P]:
   1. Purchaser’s & Vendor’s identity card or passport
      if foreigner.
   2. A copy of the previous S&P from the Vendor
   3. A copy of the title (if any)
4. Once the Sale & Purchase Agreement (S&P) is completed the lawyer will fix a date for the signing and settle the required monetary deposit of another 8% (in addition to the earlier 2% earnest money) to make up a down-payment of 10% in total.
5. Thereafter, the purchaser is given 3 months to settle the balance sum of the loan. In most instances, the purchaser would have taken a 70% loan from the bank and he will have to pay from his own pocket the 30% (i.e., he had earlier paid 10% during the signing S&P and pays only the differential sum of 20%). He can request the vendor another month’s extension of time subject to interest accruing at some 8% per annum.
6. The purchaser will hand over the balance 20% deposit to the lawyer for settling the mortgage from the bank, in order to redeem the property. Then the process of transfer can be carried on.
7. As the property is being redeemed and the vendor has settled all outstanding bills, the lawyer will submit the transfer form to the Land Office for registration. If the transfer form is approved, the lawyer will hand over the rest of the deposit to the vendor. At the same time, the seller has to pass the right of the property to the buyer as final realize.

- See more at: http://www.kualalumpurproperty.com/malaysia-property-market/buying-selling-procedures#sthash.Gig9Ovw2.dpuf

How To Buy and Sell Property in Malaysia

1. Once the purchaser decides to buy a specific property, he is required to fill in an undertaking prepared by the estate agent/broker and pay the booking fee or earnest money (min 2%) evidenced by a receipt of payment. If subsequently the purchaser renegades on the intention to go ahead with the purchase, this earnest money is forfeited by the vendor. On the other hand, if the vendor renegades on the sale then the purchaser can claim double the sum of earnest money as damages for non-performance.
2. There are two choices:
   1. Purchaser finds his own banker.
   2. His lawyer can submit to his panel of bankers.
3. The real estate agent/broker will have to forward the following documents/details for the lawyer to prepare the Sale & Purchase Agreement [S&P]:
   1. Purchaser’s & Vendor’s identity card or passport
      if foreigner.
   2. A copy of the previous S&P from the Vendor
   3. A copy of the title (if any)
4. Once the Sale & Purchase Agreement (S&P) is completed the lawyer will fix a date for the signing and settle the required monetary deposit of another 8% (in addition to the earlier 2% earnest money) to make up a down-payment of 10% in total.
5. Thereafter, the purchaser is given 3 months to settle the balance sum of the loan. In most instances, the purchaser would have taken a 70% loan from the bank and he will have to pay from his own pocket the 30% (i.e., he had earlier paid 10% during the signing S&P and pays only the differential sum of 20%). He can request the vendor another month’s extension of time subject to interest accruing at some 8% per annum.
6. The purchaser will hand over the balance 20% deposit to the lawyer for settling the mortgage from the bank, in order to redeem the property. Then the process of transfer can be carried on.
7. As the property is being redeemed and the vendor has settled all outstanding bills, the lawyer will submit the transfer form to the Land Office for registration. If the transfer form is approved, the lawyer will hand over the rest of the deposit to the vendor. At the same time, the seller has to pass the right of the property to the buyer as final realize.

- See more at: http://www.kualalumpurproperty.com/malaysia-property-market/buying-selling-procedures#sthash.Gig9Ovw2.dpuf

 How To Buy and Sell Property in Malaysia

1. Once the purchaser decides to buy a specific property, he is required to fill in an undertaking prepared by the estate agent/broker and pay the booking fee or earnest money (min 2%) evidenced by a receipt of payment. If subsequently the purchaser renegades on the intention to go ahead with the purchase, this earnest money is forfeited by the vendor. On the other hand, if the vendor renegades on the sale then the purchaser can claim double the sum of earnest money as damages for non-performance.
2. There are two choices:
   1. Purchaser finds his own banker.
   2. His lawyer can submit to his panel of bankers.
3. The real estate agent/broker will have to forward the following documents/details for the lawyer to prepare the Sale & Purchase Agreement [S&P]:
   1. Purchaser’s & Vendor’s identity card or passport
      if foreigner.
   2. A copy of the previous S&P from the Vendor
   3. A copy of the title (if any)
4. Once the Sale & Purchase Agreement (S&P) is completed the lawyer will fix a date for the signing and settle the required monetary deposit of another 8% (in addition to the earlier 2% earnest money) to make up a down-payment of 10% in total.
5. Thereafter, the purchaser is given 3 months to settle the balance sum of the loan. In most instances, the purchaser would have taken a 70% loan from the bank and he will have to pay from his own pocket the 30% (i.e., he had earlier paid 10% during the signing S&P and pays only the differential sum of 20%). He can request the vendor another month’s extension of time subject to interest accruing at some 8% per annum.
6. The purchaser will hand over the balance 20% deposit to the lawyer for settling the mortgage from the bank, in order to redeem the property. Then the process of transfer can be carried on.
7. As the property is being redeemed and the vendor has settled all outstanding bills, the lawyer will submit the transfer form to the Land Office for registration. If the transfer form is approved, the lawyer will hand over the rest of the deposit to the vendor. At the same time, the seller has to pass the right of the property to the buyer as final realize.

- See more at: http://www.kualalumpurproperty.com/malaysia-property-market/buying-selling-procedures#sthash.Gig9Ovw2.dpuf