Strata title is how individual units in a building are owned in Malaysia: each owner holds title to their own unit and shares the common property with the other owners. A management body runs the building and collects maintenance charges and a sinking fund from the owners.
Why It Matters
- —Getting the keys is not the same as getting title, so check where your strata title stands after vacant possession.
- —Owners pay maintenance charges and a sinking fund, at least 10% of the maintenance charge by law in Peninsular Malaysia and Labuan, on top of any mortgage.
- —The closest British idea is commonhold: owners share the building with no private freeholder above them. A Malaysian title can still be leasehold, with a set term, and owners pay parcel rent or quit rent to the state.
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