LAND LAW AND SURVEY REGULATION (SGHU 3313)fght.utm.my/tlchoon/files/2015/08/6-Strata-Titles-1.pdf · LAND LAW AND SURVEY REGULATION (SGHU 3313) ... on 1st January 1966 by the National

LAND LAW AND SURVEY REGULATION (SGHU 3313)

WEEK 11-STRATA TITLES-1

SR DR. TAN LIAT CHOON07-5530844

016-4975551

1

OUTLINE

• Introduction of Strata Title

• Interpretation (S4)

• Changes in Strata Titles (Amendment) Act 2013 [Act A1450]

• Limited Common Property (S17A)

• Land Parcels With Shared Basement

2

INTRODUCTION OF STRATA TITLE

3

Introduction

The development of high-rise buildings in high-densityareas is a measure to optimise the land use and enhancethe living standard. In residential areas, occupants of highrise buildings are normally small families who wish to enjoya better life-style and have easy access to recreationalfacilities.

4

History Since the Federated Malay States Land Code 1926 didnot provide for strata title ownership, various mechanismswere put in place to meet the increasing demand for high-rise buildings.

The Malaysian strata title registration, which owed itsorigin to the Australian New South Wales Conveyancing(Strata Titles) Act 1961, was first introduced in PeninsularMalaysia on 1st January 1966 by the National Land Code1965 (Act 56) under Section 355 to Section 374 that dealtwith subsidiary titles to each of the parcels within a buildinghaving two or more storeys.

5

History The rapid housing development growth in 1970s and1980s introduced technological advancements in theconstruction industry and architectural innovations, makingthe provisions in National Land Code 1965 (Act 56)inadequate.

The provisions on strata titles in the National Land Code1965 (Act 56) were amended several times in 1977 (ActA386), in 1979 (Act A444) and in 1981 (Act A518) beforethey were repealed in 1985 (Act 318).

This legislation was enacted on 22nd May 1985,published in the Federal Gazette on 30th May 1985 andcame into force on 1st June 1985. 6

History

7

12 APRIL

2007

'subsidiary titles' in a

subdivided building

'strata titles' in a

subdivided building

into parcels

'provisional strata title'

for provisional block in a

phase development

Application allowed with“QT” and Certified

Plan

‘Strata Title

Board’ introduced

Introduced’ land

parcel’ &

Act 663

1 DISEMBER

20012 OGOS

199623 FEB

19901 JUN

19851 JUN

1966

NLC[Act56]

STA 1985[Act 318]

[Act A753] [Act A951] [Act A1107] [Act A1290]

1 JUNE

2015

Introduced’ Limited

Common Property ,Sub-MC,

SiFUS

[Act A450]

Strata Titles (Amendment) Act 1990 (Act A753)

The various amendments introduced by the 1990amendment were aimed at further improving theprocedures and processing of applications for thesubdivision of buildings, to further safeguard the interestsof purchasers of the strata scheme, improve certain aspectsof the management of a strata scheme, remove ambiguitiesin the provisions themselves, and do away with theprovisions that are anomalous when viewed in the contextof the general legislative framework of the Strata Titles Act1985 (Act 318) as a whole.

8


The 1996 amendment enabled the developers of a building to submit anapplication for such titles even if the land was still held under a Qualified Titleor if the Certificate of Completion and Compliance for occupation had notbeen issued. However, before approval could be granted in respect of theapplication, the final titles to the land had to be registered and the Certificateof Completion and Compliance issued, among other requirements.

As for the issuing of strata titles for mixed developments, comprising multi-storey buildings, the 1996 amendment resolved the problem by allowingstrata titles to be issued for single storey buildings if they were part of thesame strata scheme.

The 1996 amendment also streamlined the rules governing the functioningof the management corporation charged with the administration of a stratascheme. Procedures for voting and the tabling of special resolutions werechanged to allow for a more flexible decision-making process among councilmembers of the Management Corporation. 9


The 2001 amendment primarily provided for theestablishment of a Strata Titles Board to settle disputes, itsjurisdiction as well as matters pertaining to the proceedings andrepresentation before the Board.

Provisions were also made to empower the Director of Landand Mines in a State and the Land Administrator in the FederalTerritory to appoint a managing agent to exercise the functionsof the management corporation in the event that themanagement corporation did not function properly. For theprosecution of offences under the Strata Titles Act 1985 (Act318), the written consent of the Public Prosecutor is required.

10


The 2007 amendment changed ‘and the Federal Territory of KualaLumpur’ to ‘and the Federal Territory of Kuala Lumpur and FederalTerritory of Putrajaya’, and inserted after the word ‘building’ thephrase ‘or land’.

In this case, any alienated land having two or more buildings held asone lot under the final title shall be capable of being subdivided intoland parcels with buildings of not more than four storeys held underthe same strata scheme.

Provisions have also been made in the operation of theComputerisation System of Strata Titles in any land registry with theinsertion of the new Fifth Schedule, which allows making an entry on aDocument of Title under the Computerisation System of Strata Titles.

11


In the 2007 amendment, there are three types of application to bemade in the subdivision of a property, where the application involved(a) building only, (b) buildings and land, or (c) land only.

Finally, plans are afoot to enact legislations to overcome theproblem of maintaining common areas in high-rise developmentsbefore the setting up of the management corporation. This willalleviate the problems of maintenance and provision of services forthe residents.

The Building and Common Property (Maintenance andManagement) Act 2007 (Act 663) came into being, along with the 2007amendment on 12th April 2007 to provide for the proper maintenanceand management of buildings, lands and common properties in astrata scheme. 12

Definition of “STOREY” for land parcel;

4

3

2

1

4

3

2

1

Mean a unit which is comprised there in a subdivided land on which there is a completed building of not more

than four storey which is held under a strata title.

Definition of Land parcel in Section 4 (new provision) amended Strata Title Act

TITLE NO. BUILDNO.

STOREYNO.

PARCELNO.

GRN 4567 - - L6

Land parcel

Building parcel

Lot 123, Geran 4567 Bandar XYZ

TITLE NO. BUILDNO.

STOREYNO.

PARCELNO.

GRN 4567 M3 3 18

Strata Title for LAND PARCEL Strata Title for BUILDING PARCEL

15

16

17

18


19

Latest Legislations and its Effect

• The Strata Titles (Amendment) Act 2013 was published inthe Gazette on 7 February 2013 as Act A1450 and withthe approval of the National Land Council, appoints 1June 2015 as the date on which the Act comes intooperation in the States of Johore, Kedah, Kelantan,Malacca, Negeri Sembilan, Pahang, Penang, Perak, Perlis,Selangor, Terengganu, Federal Territory of Kuala Lumpur,Putrajaya and Labuan.

20

INTERPRETATION

21

Interpretation

Accessory parcel means any parcel shown in a strata plan asan accessory parcel which is used or intended to be used inconjunction with a parcel.

Certificate of proposed strata plan means the certificatecertifying the proposed strata plan prepared under section 8aor 20a, as the case may be.

Certificate of completion and compliance has the meaningassigned to it under section 3 of the Street, Drainage andBuilding Act 1974 [Act 133].

22

Interpretation

Certified strata plan means the plan prepared undersubsection (1) of section 13 and certified by the Director ofSurvey; section 13 or 22, as the case may be.

Common property means so much of the lot as is notcomprised in any parcel (including any accessory parcel), or anyprovisional block as shown in an approved a certified strataplan.

Land parcel means a unit delineated within the lot in whichis comprised a building of not more than four storeys which isheld under a strata title; which may have shared basement,comprises accessory parcels and common property.

23

Interpretation (S2 SMA 2013)

Common property means:(a) in relation to a building or land intended for subdivision intoparcels, means so much of the development area:

(i) as is not comprised in any parcel or proposed parcel; and(ii) used or capable of being used or enjoyed by occupiers of

two or more parcels or proposed parcels; or(b) in relation to a subdivided building or land, means so much ofthe lot:

(i) as is not comprised in any parcel, including any accessoryparcel, or any provisional block as shown in a certifiedstrata plan; and

(ii) used or capable of being used or enjoyed by occupiers oftwo or more parcels.

24

Interpretation (S2 SMA 2013)

Limited Common Property means such part of thecommon property in a lot:

(a) that is designated in a comprehensive resolutionreferred to in section 17a of the Strata Titles Act 1985 forthe exclusive benefit of the proprietors of two or more, butnot all, parcels; and

(b) for which a certificate has been issued by the Directorcertifying that the subsidiary management corporation hasbeen constituted under the Strata Titles Act 1985.

25

Interpretation

Management corporation in relation to any subdividedbuilding or land shown in an approved strata plan acertified strata plan, means the management corporationestablished under section 39 17.

Parcel in relation to a subdivided building, means one ofthe individual units comprised therein, which (except in thecase of an accessory parcel) is held under separate stratatitle and in relation to a subdivided land, means one of theindividual units of land parcel.

26

Interpretation

Provisional block means:

(a) in relation to a proposed strata plan a subdivided building, ablock in respect of a building proposed to be, or in the course ofbeing, erected on building or land, for which a separate provisionalstrata title is applied for;

(aa) in relation to a subdivided land, a block in respect of theproposed land parcels for which a separate provisional stratatitle is applied for.

(b) in relation to an approved strata plan a certified strata plan,such a block shown therein, for which a provisional strata title is tobe registered; and

(c) in relation to a book of strata register, such a block showntherein, for which a provisional strata title has been registered.

27

Interpretation

Provisional strata title means the title registered and issuedunder section 16 in respect of a provisional block.

Schedule of parcels means the schedule of parcels oramended schedule of parcels prepared under the StrataManagement Act 2013.

Share units in respect of a parcel, means the share unitsdetermined for that parcel as shown in the schedule of shareunits strata register.

28

Interpretation

Subdivided building or land means a building or land assubdivided under Part II or Part IV, as the case may be.

Subsidiary management corporation in relation to limitedcommon property means the subsidiary managementcorporation created under section 17A.

Super structure stage means the stage upon the completionof building works as duly certified in accordance with therelevant by-laws make under the Street, Drainage and BuildingAct 1974 [Act 133].

29

CHANGES IN STRATA TITLES (AMENDMENT) ACT 2013

[ACT A1450]

30

Highlights

Act A1450 seeks to amend the Strata Titles act 1985 (Act 318) (“theprincipal Act”) which includes:

the insertion of a new Sixth Schedule to enable the implementation ofthe Electronic land administration System for Strata Titles in PeninsularMalaysia.

harmonizing the provisions of the principal act and its relationship withthe provisions of the National land Code 1965 (Act 56) as the principal actis construed as part of the National land Code 1965 (Act 56).

carving out the provisions in the management of subdivided buildingwhich is to be governed by the Strata Management Act 2013 [Act 757 ].

harmonizing the provisions of the principal act with the provisions of theStrata Management Act 2013 [Act 757 ].

31

Highlights

32

SECTION 9BStreamline the process of

application for low-cost buildings

SECTION 9BStreamline the process of

application for low-cost buildings

DELETE PART VII & IXA

INTRODUCE NEW

SCHEDULE

STATUTORY FORMS

SECTION 9AStreamline the process of

application for provisional blocks

SECTION 9AStreamline the process of

application for provisional blocks

SECTION 4BElectronic land administration

System for Strata Titles

SECTION 4BElectronic land administration

System for Strata Titles

SIXTH SCHEDULE [Electronic

Strata]

SIXTH SCHEDULE [Electronic

Strata]

Replace 10 forms,Introduce 3 new forms

& delete 3 forms

Replace 10 forms,Introduce 3 new forms

& delete 3 forms

AMENDMENTSOF 46 SECTIONS

32

SECTION 8AApplication for CPSP

SECTION 8AApplication for CPSP

Management of subdivided

building

Management of subdivided

building Strata Titles Board

Strata Titles Board

Seksyen 17ALimited Common Property and

Sub-MC

Seksyen 17ALimited Common Property and

Sub-MC

Seksyen 19ATransfer of ownership of ST

Seksyen 19ATransfer of ownership of ST

Seksyen 20AApplication for CPSP in respect of

provisonal ST

Seksyen 20AApplication for CPSP in respect of

provisonal ST

Seksyen 20BAplication of subdivision of

building or land in respect of provisional block

Seksyen 20BAplication of subdivision of

building or land in respect of provisional block

INTRODUCE NEW

PROVISIONS

Amendment to Section 4 (Interpretation)

Certificate of proposed strata plan means thecertificate certifying the proposed strata plan preparedunder section 8A or 20A, as the case may be.

Land parcel means a unit delineated within the lot inwhich is comprised a building of not more than fourstoreys which is held under a strata title; which may haveshared basement, comprises accessory parcels andcommon property.

33


Provisional block in relation to a subdivided land, a blockin respect of the proposed land parcels, for which aseparate provisional strata title is applied for.

Schedule of parcels means the schedule of parcels oramended schedule of parcels prepared under the StrataManagement Act 2013.

Special building means any building occupied beforeJune 1996 or any building occupied from June 1996 up to11 April 2007, as classified by the State Authority.

34


Subsidiary management corporation in relation tolimited common property means the subsidiarymanagement corporation created under section 17A.

Super structure stage means the stage upon thecompletion of building works as duly certified inaccordance with the relevant by-laws make under theStreet, Drainage and Building Act 1974 [Act 133].

35

Amendment to Section 4B

New section 4B to provide for the Electronic LandAdministration System of Strata Titles and the application ofa new Sixth Schedule upon the coming into operation ofthe system.

36

Amendment to Part II (Application for Subdivision)

Substitution of section 7 of the principal Act whichstates that the original proprietor of alienated land mayapply for subdivision of a building or land.

Removed the provision that allows the proprietor ofany alienated land held under qualified title which hasbeen duly surveyed and in respect of which a certifiedplan has been approved by the Director of Survey, to applyto the Director for the subdivision of any building or land

37

Amendment to Part II (Application for Subdivision)

Circumstances in which it is compulsory to applyfor subdivision of a building or land

Substitution of section 8 of the principal Act tostrengthen the circumstances in which the originalproprietor is compelled to apply for subdivision of buildingor land.

Previously, an application of subdivision is compulsoryonly upon sale or agreement to sell any parcel in a“completed building” that is capable of being subdivided.

38

New Section 8

39

S8(2)(a)

S8(2)(b)

S8(2)(c)

S8(2)(d)

S8(2)(e)

SPA

Super structure

SPA

CCC/CFO

CCC/CFOSPA

SPA

CCC/CFO

CCC/CFO SPA

3 MONTHS FROM THE DATE OFISSUANCE OF THE DOCUMENT THATCERTIFIES THE SUPER STRUCTURESTAGE

3 MONTHS FROM THE DATE OF CCC

3 MONTHS FROM THE DATE OF CCCOR SPA – WHICHEVER IS THE LATER

3 MONTHS FROM THE DATE OF THECOMMENCEMENT OF THIS ACT

3 MONTHS FROM THE DATE OF SPA

Enforcement

S8(7) - Where an application is not made within theperiod specified in subsections 8(2) and 8(3), and, within theperiod of such extension granted, the original proprietor shallbe guilty of an offence.

S8(8) fine of not less than RM10,000 but not exceeding

RM100,000; or imprisonment for a term not exceeding 3 years or both;

and to a further fine of not less than RM100 but not

exceeding RM1,000 for continuing offence

40

New Section 8A

New section 8A to provide for the application for certificate of proposedstrata plan. The certificate of proposed strata plan is required to be submittedin the application for subdivision of building etc. under section 9 of theprincipal Act.

Application for certificate of proposed strata plan

8A. (1) For the purpose of subsection 9(1), the original proprietorof any alienated land on which the building or land is capable of beingissued with strata titles shall apply for a certificate of proposed strataplan to the Director of Survey by submitting Form 10 together with thefollowing:

(a) …………………………………………………….…………………………………………………………

41

New Section 8A

42

S.8(2)(a)

S.8(2)(b)

S.8(2)(c)

S.8(2)(d)

S.8(2)(e)

SPA

Super structure

SPA

CCC/CFO

CCC/CFOSPA

SPA

CCC/CFO

CCC/CFO SPA



3 MONTHS FROM THE DATE OF CCCOR SPA – WHICHEVER IS THE LATER



1 MONTH FROM

ISSUANCE OF CPSP

Section 9

Substitution of Section 9 streamlines the process of application forsubdivision of building or land in respect of provisional strata titleusing Form 1 to the Land Administrator.

The new amendment imposes self-management on the landproprietor to obtain the certificate of proposed strata plan from theDirector of Survey prior to making application for subdivision of land.

As a result, when the application for subdivision of building etc. ismade by the land proprietor, the Land Administrator can transmit theapplication to the Director with his recommendations without havingto postpone the process in order to get the necessary certificationfrom the land Surveyor.

43

New Section 9A

New section 9A to streamline the process of application forsubdivision of building or land in respect of provisional blocks toinclude application for the issue of provisional strata title for aprovisional block in respect of a building or land.

44

New Section 9B

New section 9B to streamline the process of applicationfor subdivision of building for low-cost building

State Authority may, on an application by a proprietor ofany alienated land or at any time on its own motion, havingregard to the location, nature of construction and the costof the building, classify it to be a low-cost building.

No building erected in a provisional block shall beclassified to be a low-cost building.

45

Section 10

Substitution of section 10 of the principal Act for conditionsof approval by the Director in consequence of the introductionof the new section 8A and the amendment to section 9 of theprincipal act.

46

Section 10

Conditions for approval

10.(1) The Director shall not approve the subdivision of any buildingor land into parcels unless the following conditions are satisfied:

(a) that the Director of Survey has issued the certificate ofproposed strata plan;(b) that the subdivision would not contravene any condition orrestriction in interest to which the land comprised in that lot is forthe time being subject;(c) that the subdivision would not be contrary to the provisions ofany written law for the time being in force and that anyrequirements imposed with respect thereto by or under any suchwritten law have been complied with;(d) that no item of land revenue is outstanding in respect of theland;

47

Section 10

(e) that consent in writing to the making of the applicationhas been obtained from every person who at the timewhen approval was applied for, was entitled to the benefitof a lease of the whole or any part thereof, other than apart corresponding precisely with, or included within, oneof the parcels to be created upon subdivision;(f) that, where the land on which the building or buildingsstand is held for a term of years, there still remains aperiod of not less than twenty-one years to run;

48

Section 10

(g) that the land on which the building or buildings stand isnot subject to any charge or lien;(h) that the proposed share units assigned to the parcelsand provisional block and provisional land parcel by theproprietor of the lot in his application in Form 1 areequitable; and(i) that the land is held under final title.

49

Section 10

(2)In a case of an application involving a provisional block orblocks by virtue of section 9A, the Director shall not approvethe subdivision of any building to which the applicationrelates unless the following additional conditions aresatisfied:(a) that it has been certified by a land surveyor that theposition of each provisional block as delineated on thelocation plan is wholly within the boundaries of the lot inquestion;(b) that the quantum of provisional share units assigned toeach provisional block by the proprietor of the lot in hisapplication in Form 1 are equitable; and

50

Section 10

(c) that the proprietor –(i) has given the date by when he undertakes that theconstruction of the building or each building to which theprovisional block or blocks relate will be completed;(ii) has paid to the Director in respect of each provisionalblock a deposit of such reasonable amount as theDirector may require; and(iii) has furnished a written statement to the effect thathe agrees that the amount be forfeited to thegovernment in the event that, by that date or by suchlater date as the Director may allow, the construction ofthe building to which the provisional block relates is notcompleted or, if completed, the certificate of completionand compliance has not been issued.

51

Section 11

Amendments to section 11 of the principal Act and to further provide the procedure for withdrawal of application for subdivision of building etc.11. (1) An application under subsection 9(1) shall not be capable ofbeing withdrawn except with the concurrence of the Director; and theDirector shall not give his concurrence unless he is satisfied that thewithdrawal is not, or will not be, detrimental to the interests of anyperson who has purchased or agreed to purchase any parcel of thebuilding in question.

(2) Where the application under subsection 9(1)is withdrawn, theDirector shall notify the Registrar or Land Administrator who shallcancel or cause to be cancelled the note thereof endorsed on theregister document of title pursuant to subsection9(3)

52

Amendment to Part III(Registration of Strata Titles)

Substitution of section 17 of the principal act in relationto the effect of the opening of the book of strata register inrespect of a subdivided building or land, and to furtherprovide for the establishment of a managementcorporation as a body corporate under the act consisting ofall the parcel proprietors including in the case of phaseddevelopment, the proprietor of the provisional block orblocks.

53

Amendment to Part III(Registration of Strata Titles)

New section 17A allowing the designation of limited common propertyand the creation of subsidiary management corporation to enhance themanagement for strata scheme.

17A. (1) The management corporation may designate limited commonproperty and create one or more subsidiary management corporations onlyfor the purpose of representing the different interests of parcel proprietors byway of comprehensive resolution conducted under the Strata ManagementAct 2013.

54

New Section 19A

New section 19A, which was originally the provision of section 40A of theprincipal Act amended to regulate the transfer of ownership of strata titles.

Transfer of ownership of strata titles

19A. (1) Any original proprietor or any person or body appointed by acourt of competent jurisdiction shall execute the transfer of strata title tothe purchaser within one month from the date of issue of strata title bythe Land Administrator or any extended period approved by the Directorupon the opening of the strata register.(2) Any purchaser shall execute complete documents of strata title withinone month or any extended period approved by the Director from thedate of notice of transfer of strata title being served to the purchaser bythe original proprietor or from the date of purchase of the parcel,whichever is the later.(3) …………………………………………

55

Amendment to Part IV(Provisional Block: Issuance of Strata

Titles)

Substitution of section 20 of the principal Act tostipulate the circumstances in which it is compulsory for aproprietor of provisional strata title to apply for strata title.

This amendment further provides the relevant timeperiod for such application to be made.

56

New Section 20

57

S.20(2)(a)

S.20(2)(b)

S.20(2)(c)

S.20(2)(d)

SPA

Super structure

CCC/CFOSPA

SPA

CCC/CFO

CCC/CFO SPA





New Section 20A

New section 20A as a consequence of the amendments insection 20 streamlines the process of application for certificateof proposed strata plan in respect of provisional strata titleusing Form 10 to the Director of Survey.

58

New Section 20A

Application for certificate of proposed strata plan

20A. (1) The proprietor of the provisional strata title shall, assoon as a building or land is capable of being issued withstrata titles, make an application for the approval of theDirector of Survey for the issuance of the certificate ofproposed strata plan to the parcels within a period of threemonths from the issuance of the certificate and shall submita proposed strata plan to the Director of Survey bysubmitting Form 10 together with the following:

(a) ………………

(b) ………………

59

New Section 20B

New section 20B streamlines the process of applicationfor subdivision of building or land in respect of provisionalstrata title using Form 5 to the Land Administrator.

The period of time for such application to be consideredis also reduced as a result of the introduction of the newprocess of application.

60

New Section 20B

Application for subdivision of building, etc.

20B. (1) The proprietor of provisional strata title shallmake an application for approval to the Director withinone month from the issuance of the certificate ofproposed strata plan using Form 5 to the LandAdministrator and shall be accompanied by —

(a) ……………………….(b) ……………………….

61

New Section 21

Substitution of section 21 of the principal Act pertaining tothe power of the Director of lands and Mines to approve anyapplication for subdivision of building etc. under section 20B.

62

LIMITED COMMON PROPERTY (S17A)

63

Limited Common Property and Subsidiary Management Corporations Allowed

[S17A ST(A)A 2013]

(1) The management corporation may designate limitedcommon property and create one or more subsidiarymanagement corporations only for the purpose ofrepresenting the different interests of parcel proprietors byway of comprehensive resolution conducted under theStrata Management Act 2013.

64

Limited Common Property and Subsidiary Management Corporations Allowed

[S17A ST(A)A 2013]

(2) Limited common property designated by acomprehensive resolution passed by the managementcorporation shall:

(a) describe, identify or define the boundaries orarea of the limited common property in the specialplan;(b) specifies each parcel comprised in that specialplan whose proprietors are entitled to the exclusivebenefit of the limited common property; and(c) conform with any other details as may beprescribed by the Director of Survey.

65

66

LAND PARCELS WITH SHARED BASEMENT

67

Land Parcels With Shared Basement

Optimization of land use through space saving design.

Shared basement with accessory parcels and commonproperty.

68

T H A N K YO U

69

Documents

LAND LAW AND SURVEY REGULATION (SGHU 3313)fght.utm.my/tlchoon/files/2015/08/6-Strata-Titles-1.pdf · LAND LAW AND SURVEY REGULATION (SGHU 3313) ... on 1st January 1966 by the National