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Strata T itles Act 1985: A Time Bomb?

Background

Strata title properties are parcels of properties in a building to be subdivided into separate

parcels. Examples of properties with strata titles are office suites, parcels in a commercial

complex, apartments, flats, condominiums and townhouses. When strata titles for such

properties are issued, the master title for the lot of land on which the subdivided building has

been erected thereon, continues to exist and will be registered in the name of the developer

or, when the book of strata register is opened, in the name of the management corporation

(MC). It is pertinent to note that the master title is issued under the NLC and not the STA.

Owners of properties with strata titles tend to face certain problems which are not faced by

owners of landed properties.

The first problem is a major and common complaint relating to the period of time it takes for

strata titles to be issued. Sometimes this delay is attributable to the developer or its financier,

and sometimes, to the relevant authority responsible for issuing the strata titles.

There are sufficient provisions in the STA to regulate the period within which a land

proprietor (usually also the developer) must apply for the strata titles in a completed

development, failing which the land proprietor shall be guilty of an offence and liable on

conviction to a fine of not less than RM10,000 but not more than RM100,000 and a further

fine of not less than RM100 but not more than RM1,000 for each day the offence continues to

be committed.

However, the lack of enforcement of such provisions is a sore issue, as one hardly hears of or

learns of anyone being convicted for such an offence. In the meantime, and until the coming

into force of the Housing Development (Control and Licensing) (Amendment) Act 2006,

owners of properties with strata titles will have their sub-sale transactions or re-financing

transactions inordinately delayed as the consent of their respective developers is required

before the property owners can proceed with these transactions. The Amendment Act has

done away with the requirement of obtaining the developers consent before a sub-sale or

refinancing transaction.1

Objective

Provide a more pragmatic approach to resolve the problem arising from Strata Title.

Give opinion regarding the amendments in 2007 and its efficacy.

Scope1

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Chapter 1: Introduction of Strata Title Act

Background and Development

The need for Strata title Act

Chapter 2: Duty of Developer to apply for Strata Title

S8 Strata Title Act

-developers are mandated by the Strata Titles (Amendment) Act 2007 to transfer strata

titles to parcel proprietors (or purchaser) within 12 months from the date of issue of strata

titles by the Land Administrator or face a RM1,000 to RM10,000 fine per parcel.

Problems- The delay of issuance or non-issuance

Statistics Complaints of delay in getting ST, HBA

Chapter 3: Effects of Amendment in 2007

A solution?

Further amendment needed?

Amendments promised by Housing and Local Government Minister Datuk Wira

Chor Chee Heung- June 2010

Chapter 4: Opinion

Interview s: This involves collecting information and opinions from academicians or legalists

who are well-versed in this area. Interview with them will help to update and have a better

view of the topic. Proposed interviews as below:

Roger Tan Kor Mee, former Bar Council Conveyancing Practice Chairman,

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Andrew Wong Fook Hin, senior member of Bar Council Conveyancing Practice

Committee

Associate Professor Dr. Ainul Jaria Maidin, academician

Chapter 5: Conclusion and suggestion for Reform

Addressing the shortcomings of Strata Title

Suggestions

Methodology

Library research

Interviews