Introduction to the types of Title Deeds in Malaysia

1. Individual Title

Individual Title is usually issued for landed properties like terrace houses, semi-detached houses, and bungalows. Individual Title provides the owner ownership over the entire parcel of land and the building on it. Individual Title offers the most freedom and flexibility, as the owner has total control over the property. The owner is responsible for maintaining their land and the building on it.

2. Strata Title

Strata Title is typically issued for properties that have been subdivided into multiple units of a stratified development. This applies to condominiums, apartments, or any property developed into multiple individual units. The Strata Title provides the owner with exclusive ownership rights over a specific unit and shared ownership rights in the common property (e.g. lift, staircase, carpark building, lobbies, hallways, and recreational areas like swimming pool and gym). Each unit has a distinct title deed, indicating the owner’s rights and responsibilities. The Strata Title reflects both the ownership of the individual unit and the proportionate share of the common areas. However, nowadays strata development is not limited to high-rise development anymore, it can also apply to landed properties within gated and guarded housing projects with shared common facilities with the other owners, such as club houses, leisure parks, and gated and guarded facilities. The owner of a strata property must also comply with the building management and maintenance regulations set by the management corporation. The building management can take legal action against the owner if they refuse to pay maintenance charges. Also to be noted, owners are not allowed to change the unit façade or structure before getting the management office’s approval and adhering to the rules that have been set out in the Deed of Mutual Covenants.

3. Master Title

A Master Title refers to a single, consolidated title deed for a large tract of land that has been developed or subdivided into multiple smaller parcels. Before the issuance of Individual Title or Strata Title, typically during construction, the land is usually registered under the name of the developer or proprietor under a Master Title, which represents the entire development or project. It is only after the completion of the subdivision and the issuance of the Individual Title or Strata Title that the Master Title is effectively replaced by Individual Title or Strata Title deeds. The Master Title belongs to the developer or proprietor and covers the entire parcel of land. When the land is subdivided, each new parcel (e.g. housing lots or commercial units) will receive its own Individual Title or Strata Title deed.

4. Leasehold Title vs Freehold Title

A Leasehold Title refers to land or property that is held on lease from the state government for a specified period, typically with a maximum time limit of up to 99 years. When a Leasehold Title is issued, the property owner has the right to occupy and use the property for the duration of the lease period. Upon the expiration of the lease, ownership reverts to the state government, or the owner may pay a lease extension premium after the period ends. Leasehold properties are usually priced lower compared to freehold properties due to the finite period of ownership.

A Freehold Title is the most straightforward and secure form of land ownership in Malaysia. It indicates that the owner has outright and perpetual ownership of the land, without any expiration date or need for renewal. This type of title provides the property owner with complete control over the land, subject to land use restrictions. Freehold land can be sold, transferred, or inherited without restriction related to time. It is often considered more valuable compared to leasehold land due to its permanence.

Conclusion

Understanding the different types of title deeds is essential for anyone involved in property transactions in Malaysia. Whether dealing with a freehold or leasehold title, Individual Title or Strata Title, each type carries its own legal implications and responsibilities for the property owner.