December 27, 2012 in Property Management News
GMS Solutions Sdn Bhd
A title is a legal document which certifies the ownership of a property. It provides name of registered property owner, boundaries of the property as well as its dimensions and area.
An individual title is issued to a landed property such as a house (terrace, semi-detached, bungalow and villa) which has its own land.
Strata titles are issued for individual units in high-rise properties (e.g. condominiums, serviced apartments, offices, retails complex, etc.) certifying ownership, dimensions and area of the each property unit.
In strata titled properties, common areas such as corridors, club house, outdoor recreational facilities, roads, mechanical & electrical facilities, etc., known as Common Property is owned by the Management Corporation, a body comprising owners of the entire strata development and determined by the share values (Unit Share) of their respective properties. This share value is usually determined by the built-up floor area of their respective properties.
For sale of strata properties prior to the issuance of individual strata titles such sale can be executed via an instrument known as Deed of Assignment.
As the name suggest, this piece of legal instrument ASSIGNS all interests, rights, covenants and obligations attached to the subject property from the Vendor/Seller to the new Purchaser. This includes any Mutual Covenants that the Vendor/Seller might have entered into with the Developer or the previous Vendor/Seller from whom he had purchased the subject property earlier.
It is important to note that some leasehold strata titled properties have a “Restriction of Transfer.” This encumbrance is usually in the form of a requirement for such transfer (or sale) to be approved by the Land Office of the respective District where the property is located.
It is highly advisable for the Purchaser to engage the services of a conveyancing legal professional to manage the various legal documentations necessary for submission to the various local authorities and finance company for the legal completion of the Sales and Purchase Agreement.(SPA)
Posted by GMSSSB
Term of Reference 2002-1002
