12 JUNE 2019 WEDNESDAY
HOW TO SPOT A
GOOD DEAL Price is not the only factor when considering whether to buy a particular property See pages 3
INSIDE THIS ISSUE
EXPERT SHARING
SPECIAL FEATURE
SPECIAL FEATURE
Buy leasehold or freehold? P 06
Positioned for the future P 07
Strata title resolves issues P 08
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STARPROPERTY.MY 12 JUNE 2019
NEITHER A BORROWER NOR RENTER BE www.starproperty.my www.propwall.my www.ibilik.my StarProperty.my StarProperty StarPropertyTV
Assistant General Manager ERNEST TOWLE ernest@thestar.com.my
EDITORIAL Contributing Editor DAVID YEOH Acting Head of Content VIKTOR CHONG viktorchong@thestar.com.my Content VIKTOR CHONG KEVIN EICHENBERGER Video Producer ALAN KHAW alankhaw@thestar.com.my Designers KWONG CHEE OON QUEENY YONG NURUL AIDA TAJUDIN
MARKETING & SALES Head of Customer Engagement & Support IVY LEONG 03 7967 1347 ivyleong@thestar.com.my Marketing Manager FAYE TAN fayetan@thestar.com.my
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HEN friends and relatives get together, one topic There is a growing interest in co-living opportunities of discussion inevitably crops up – the high where the absolute cost of ownership is divided or By price of homes today. The older generation shared with housemates, thereby lowering the cost of ERNEST TOWLE will throw in nostalgic memories of how investment. inexpensive and bigger the choice properties were back This is a great way to start climbing the property then compared to what is available now. ladder and build home equity wealth as the initial investment Those bolder listeners will ask their elders how many is relatively small because of the number of participants in the properties they purchased then because it was “cheaper”. And almost funding process. Only the vehicle to facilitate this has to be obtained, always, the older ones would respond by saying they did not buy more and there are solutions available in the market. than what they needed – for a multitude of reasons. The central lesson is to start building equity and personal wealth. Such reasons include a low salary base, limited property choices, The buyer will then be able to have more options when the need arises difficultly in securing a mortgage, and a significant cash outlay for a in the future as it will take time to grow wealth. deposit. These considerations are not so different from current home Many voices in the market support this message. Rental is an ownership challenges. expense because the funds leave your wallet forever. Investing in your Despite having more real estate choices, wider funding avenues own property will potentially return in the form of home appreciation – and a higher income base, today’s homeowners still face not just and even generate cash flow in the form of rent. affordability issues but also loan constraints. So, what options do young Over time, this will put the homeowner in better financial stead than buyers have? being a renter for life.
STARPROPERTY.MY EVENT HIGHLIGHTS Find your dream home at the fair StarProperty.my will be hosting its next fair at IOI City Mall, Putrajaya. Mark your calendar for June 12; the five-day fair will have a wide selection of properties for aspiring homeowners as well as fun-filled activities for the family. Pre-register from May 13 to June 3 to win photobook vouchers plus free CTOS check on your credit score. Visitors can also register for the Father’s Day Kids activity, with slots from 11am, 1pm, 3pm, 5pm and 7pm (limited to 10 children per slot). The weekend will be filled with freebies with lucky draw prizes worth RM1,000 for visitors. Buyers who book their properties on the spot are entitled to Homebuyer’s Lucky Draw prizes of RM12,000.
Green convention for experts and developers Jom Beli & Menang contest StarProperty.my brings a contest that rewards you with great prizes. You could be the one driving your family to your new home in a new car. When you purchase a property at one of our fairs -- at IOI City Mall, Putrajaya, and various other shopping centres until November 2019) -- sign the Sale and Purchase Agreement (SPA) and join the contest. All you really have to do is visit our fairs (follow our Facebook page for announcements), pre-register for the “Beli & Menang” contest, submit a booking for one of the showcased properties offered by participating developers, answer a question, submit a slogan, and provide us with proof of purchase in the form of the SPA or S&P and you could be the winner of the grand prize!
The inaugural Green Build Conference (GBC) 2019 will be held on June 27, where more than 300 property developers and key proponents from related industries (real estate, green consultants, banking, and construction, among others) will gather at One World Hotel, Petaling Jaya. It is a environment-focused forum with participation from influential and renowned industry experts from Australia, Hong Kong, Singapore and Malaysia who have made an impact in the sustainable real estate industry. Three forums -- Building a Case for Green Buildings, Financing Sustainable Buildings, and Green Building Case Studies -- will provide an exciting platform for delegates to gain valuable insights and expand their knowledge by learning new strategies and the latest innovations.
LATEST HAPPENINGS Delay in demolition work at Highland Towers
Cracks at Bandar Damai Perdana under probe
Dismal Pangsapuri Angsana raises safety concerns
The planned demolition this month of two remaining blocks of Highland Towers has been delayed due to compensation issues. Ampang Jaya Municipal Council president Datuk Abdul Hamid Hussain said the Highland Towers Redevelopment Committee was in the midst of negotiating compensation with several owners of the remaining units. According to him, these legal issues have to be resolved before demolition work can be carried out. “The committee is looking at avenues to settle the matter,” said Hamid, adding that there could be legal implications if the demolition is carried out without consent from all the owners. He remarked that a new date for the demolition will be set once these issues are resolved.
Kuala Lumpur City Hall (DBKL) is investigating the cause of cracks that have appeared in several houses at Bandar Damai Perdana. Residents alleged that blasting activities at two project sites (a housing development in Alam Damai and the tunnel construction for the Langat 2 water treatment plant project in Taman Desa Cheras) are to blame. Mayor Datuk Nor Hisham Ahmad Dahlan said the investigation will take about two weeks. “Residents living near the projects lodged complaints but we are not sure if the cracks were caused by the blasting. We will look into remedial works once the investigation is concluded,” he said after visiting the two project sites as well as Bandar Damai Perdana.
Broken lifts, blocked emergency exits, dark and smelly corridors, and improper waste disposal are some of the issues at the Pangsapuri Angsana low-cost flats in Subang Jaya, Selangor. The badly maintained facilities combined with residents’ poor attitude towards cleanliness have raised health and safety concerns for people living nearby. According to Subang Jaya assemblyman Michelle Ng, a pilot programme involving blocks D and E was recently launched where volunteers were appointed as floor leaders. “It is difficult to get the residents involved because Pangsapuri Angsana has not had a joint management body for the past two decades,” she said.
STARPROPERTY.MY
Cover Story
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12 JUNE 2019
HOW TO SPOT A GOOD DEAL
Price is not the only factor when considering whether to buy a particular property
FOOD FOR THOUGHT
A rule of thumb is to purchase a house (whether for own stay or investment purposes) that you would be willing to live in. Prudent buyers should check with multiple members of the industry (developer, real estate agents, auctioneers) when searching for that sweet deal. Include macro-elements in your evaluation such as job opportunities, population growth or devolution, the density of other similar property types, absence and presence of natural disasters, and traffic conditions. People who discover great deals are those who do their homework and have access to quality and trustworthy contacts.
By VIKTOR CHONG viktorchong@thestar.com.my
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HE idea of a good property deal usually conjures up images of properties being sold below market rate. If only it were that simple. Because one man’s meat is another man’s poison when buying a house to stay, says Pepite Real Estate probational estate agent Law Yong Sein. “You wouldn’t want to buy a property that is selling at a great discount if you have to travel for two hours to reach your working place or to send your children to school,” he pointed out. Factors such as lifestyle choices, nearby amenities and crime rate should be taken into account aside from the market price of the property. Ultimately, a buyer searching for a home will find the “good deal” by balancing all these values. Removing the intrinsic variables from the decision-making process, Law breaks down the concept of a good deal into two aspects: price and potential. Price as a factor is easily explained. It is the prospect of buying a house at a price as low as possible compared to the market value at a particular time. Law says buyers have the option of getting foreclosure houses at auctions because these usually sell below the market price. “To find that good deal, do some research on the average price of houses in the vicinity of the property being auctioned,” he said.
However, Law cautions that an auction is usually dominated by many savvy players. Buyers who plan to join an auction should have a ready supply of cash or assets that are easily converted into cash. “Once you commit to a bid, you need to pay the remaining amount of the property,” he said, adding that failing to obtain loan financing for the property may result in loss of deposit. He suggests that buyers consult their real estate agents when looking for cheap homes. Good real estate agents usually have a vast property listing at their disposal and should be able to identify a fire sale (seller willing to accept a lower price in exchange for immediate cash). Law is sceptical about the idea of discovering deals through investor clubs. He said many of these clubs capitalise on their access to investor members (ready buyers) by promoting developers who give them profits. As a member of such clubs, it is the investor’s duty to find out for himself the true nature of the “great deal” being offered. “It’s not that we can’t get good deals from the recommendation of the investor club, but there might be better deals elsewhere,” Law added. He further suggests that people intending to buy from the primary market should check out the endfinancers of the project. Banks usually perform an independent feasibility study on a development, evaluating
it based on the aspects of pricing and potential. This study, among other things, determines if the house is priced reasonably besides the prospect of future capital appreciation. “Banks do this because they are giving out loans to buyers and the houses are their collateral,” Law said. Hence, a property development with the support of numerous end-financers should indicate that the house in question is fairly priced and is a safe investment. As for potential, Law advises buyers to keep abreast of the latest government policies, infrastructure projects and construction works in the neighbourhood. For example, news of factory plots being repurposed for commercial and residential lots would indicate that property prices in the nearby area are going up. Reflecting on a hypothetical situation, Law said properties in Sungai Buloh may rise proportionately with those in KLCC assuming that there is an MRT line connecting the two areas. This is because Sungai Buloh folk can have convenient access to KLCC while avoiding the traffic jams there. “Your real estate agents will be able to update you on the current infrastructure projects in their area of expertise,” said Law. Winning the game of finding a good deal involves buying houses at low prices and realising the capital appreciation that arises in the foreseeable future, he added.
“IT’S NOT THAT WE CAN’T GET GOOD DEALS FROM THE RECOMMENDATION OF THE INVESTOR CLUB, BUT THERE MIGHT BE BETTER DEALS ELSEWHERE. – LAW YONG SEIN
JOY OF OWNING A PROPERTY
Buying a property could be your life’s most significant decision. Those who make mistakes often fail to achieve the financial goals that they envisioned, not considering the cost of regret to be borne for a long time. On a different note, properties are a hedge against inflation and a lazy man's game of investing. Unlike share purchase, commodities trading or currency exchange which require frequent monitoring and a fair amount of crystal-ball gazing, properties can be left on their own to generate passive income as its value appreciates along the way. Discover more about the Joy of home ownership by visiting http:// bit.ly/2Z7TiLp or scanning the QR code.
F eatured Development
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LAKEFRONT LIVING AT E’ISLAND Affordable luxury high-rise homes in Puchong with a wealth of conveniences
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MAGINE coming home to your very own private contemporary resort of breathtaking views and serene landscapes. That is what E’Island Lake Haven Residence Puchong has in store for residents. The development makes a prominent statement in Puchong City with its four low-density towers (60 units per acre) over 19.08 acres of leasehold land. With a gross development value of RM501mil, E’Island is further complemented by a well-planned layout that allows for energetic gatherings and quiet rest. Its modern homes are set up for convenient living where amenities are paired with breathing space. The exclusive Garden Suites feature only 32 units (from 1,329sf to 1,518sf), each with a private courtyard and an open-plan design that will easily fit a family of six. Other configurations include the Family Suites, with Type A (from 881sf to 892sf) presenting affordable and practical one-plan units to accommodate a family of five. Type B (from 977sf to 1,073sf) is well laid out to accommodate a family of six comfortably. The Lakeview Suites feature Type C units (from 1,135sf to 1,263sf) that have luxury finishes with flowing layouts. Selected Garden Suites and all Lakeview Suites Type C3 come with 3 carpark bays. On top of that, E’island Lake Haven Residence also provide carpark storage space for selected Lakeview Suites for convenience of owners to store bicycle, golf sets and more. E’Island units are priced considerably lower (from RM268,000 or RM300psf) compared to neighbouring projects currently on sale.
Units furnished with quality fittings
All units are furnished with four air-conditioners, signature brand dry kitchen cabinets and appliances and, a fridge. For the special Suites Type B4 and C3, there are additional wet kitchen furnished with Signature brand kitchen cabinets and appliances. All units are also furnished with signature brand wardrobes for master room, bathroom vanity top and shower screens. For Lakeview Suites Type C and Garden Suites Type G3 and G4, units are furnished with Signature brand walk-in wardrobe and additional Signature brand wardrobes for bedroom one. All four towers of the development are designed with dedicated double-volume grand lobby and porte cochere (covered entrance for vehicles to pass through). An elegant floating roof at the entrance invites arrivals to experience comfort and prestige.
Enjoy a full range of condo facilities
This gated and guarded sanctuary is a single-entry enclave that is protected
LEFT: Buyers of E’Island can choose from a total of 1,140 units and 13 different designs.
by a four-tier security system. Safety features include CCTV surveillance at key points such as the security boom gate, carpark entry, lift-lobby entrance and individual floors. Security is further augmented by PrimeXcess, the latest access system operated by a Bluetooth mobile phone application, and link bridges that connect to carpark floors. The pristine blue lake presents a majestic setting for the enclave and is the centrepiece of the community. A boardwalk complemented by a 500m jogging track winding along the water’s edge will draw residents from the comfort of their homes. There are a total of 30 facilities including a lakefront play pool with slides, lakefront gymnasium, boardwalk/jogging and cycling track, indoor badminton courts, futsal court, basketball court, kindergarten and nursery, as well as convenient stores. The completed condominium facilities have a low maintenance fee of RM0.20psf. Within a 10km radius are amenities that include seven medical centres, 11 shopping malls, nine schools and higher education institutions.
Special package for early birds
Early birds will enjoy a 12% (Lake View) or 15% (Garden View) rebate plus an extra 5% House Ownership Campaign special rebate. These buyers are also exempted from paying two years of maintenance fees, and will receive an additional RM10,000 in Harvey Norman vouchers and RM5,000 Ikea vouchers. This is on top of the free SPA legal fees and stamp-duty exemption. Bumiputra purchasers will receive an additional 7% discount. Under this limited-period special
Landscaped lawns lined with trees and trellises invite residents to the numerous familyfriendly facilities.
package, the Garden View units are priced from RM268,000 (RM300psf) whereas Lake View units are from RM324,000 (RM304psf).
At the doorstep of Putrajaya Rail Hub E’Island’s strategic position in the heart of Puchong City gives residents direct access to the Elite, LDP, MEX and SKVE highways within minutes, thus providing easy reach to other areas in Selangor. The development gains further prominence with the revival of the East Coast Rail Line (ECRL) that will be integrated with the Putrajaya Sentral Rail Hub which is a mere 10km away. The hub will provide excellent connectivity via multiple rail services that link the east coast as well as Port Klang and Kuantan Port. Other vital linkages include the soon-to-be-completed MRT2 (direct to Kuala Lumpur city centre) and the ongoing ERL (KL Sentral to KLIA and KLIA2), and possible connection to the
ABOVE: Type B1 features a build-up of 977sf with three bedrooms and two bathrooms.
HSR (High-Speed Rail). Upon completion, Putrajaya Sentral and its surrounding areas will be transformed into a city centre and get to enjoy greater capital appreciation compared to other locations within the Klang Valley. E’Island’s proximity to Putrajaya Sentral will likely attract potential rental yield and make it an attractive investment. You can contact E’island Lake Haven Puchong hotline 013-8980 899 or website www.eisland.com.my for more information or visit the following fairs to book your choice unit: • StarProperty Fair 12 – 16 June 2019 IOI Putrajaya Mall LG Central Court (Booth A07) • Bumiputera Property Expo 2019 (BPEX 2019) 22 - 23 June 2019 MidValley Exhibition Centre (Booth 3025 & 3026) • StarProperty (Bumiputera) Fair 25 - 30 June 2019 Aeon Shah Alam Mall Central Atrium (Booth A3)
WEDNESDAY 06 JUNE 2019
STARPROPERTY.MY
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E xpert Sharing
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BUY LEASEHOLD OR FREEHOLD? Understand the differences and implications when purchasing residential property By PAUL KHONG
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VERY man dreams of owning a home, with the title registered in his name. It is a symbol of success. Furthermore, property ownership may take on other meanings for different people. The following comments are often heard: the property is a hedge over inflation; it is an investment for the future; the family property is to be handed down to the next generations (therefore it should ideally be freehold); a symbol of security for the family; a retirement plan. Any legal interests in a property lie within the grant or its title. Malaysia practises the Torren System. Its main principle is “registration is everything” and “the title grant is indefeasible”. The National Land Code 1965 and the State Land Rules govern all land in the country. For example, the Selangor Land Rules 2003 covers the individual state. The law clearly states that land is a state matter and the final decision on certain matters lies in the hands of the respective state. In the title, we have different holdings such as freehold, leasehold 99 years, 60 and 30, leases and sub-leases. Freehold properties are the highest category of holdings since its tenure is forever. In other words, it is a grant in perpetuity. Leasehold comes in second because it carries the same conditions and rights except for the tenure of the title which is restricted to 99 years or less (except for Sabah and Sarawak where some old titles do carry a 999-year leasehold tenure). Today, the number of freehold titles is diminishing and newer projects are moving towards leasehold lands. Usually, freehold projects are developed from old freehold plantations that were given the titles centuries ago.
Examples of freehold areas are Puchong (previously Castlefield Estate), TTDI, Mutiara Damansara, Bandar Utama (previously Effingham Estate), SS areas in Petaling Jaya and even Setia Eco City (previously North Hummock Estate). These are generally older and established neighbourhoods. However, most areas in Petaling Jaya – except for Section 16, 17 and 19 – are generally leasehold localities. As freehold lands become scarce and pricy, developers shift their focus to secure more state- alienated lands to develop their high-rise strata projects. For example, Kota Damansara, Damansara Perdana, Kwasa Land, Sunway, and more. From a technical angle, a property that carries a full 99-year leasehold tenure will have a similar value as a freehold parcel. This is proven via the Year Purchase Table calculations where, from an income-generating angle, the difference between the two properties is identical with less than 1% variance. This variation starts to become critical when the tenure drops from 99 years down to 30 years remaining and the financial impact increases to about a 20% discount. When the leasehold reaches 10 years remaining, the discount drastically escalates to about 55% (This is effectively a 7% per annum capitalisation rate calculation over the entire period of the remaining lease with a fixed percentage annual sinking fund allocated accordingly) followed by a major drop in value on every other remaining year, down to its final expiry. Though we understand that the income-based calculations will make no sense to layman investors, we acknowledge this leasehold factor. From a valuation angle, the industrial property, the agricultural (plantation) sector and commercial properties (shopping malls) are generally less
>About the contributor: Datuk Paul Khong is the managing director of Savills (M) Sdn Bhd. Savills is a global real estate services provider listed in the London Stock Exchange with more than 600 offices and associates in over 60 countries.
sensitive to the long leasehold versus freehold factors. The biggest impact of the leasehold factor is on the residential house buyer. Developers understand the market perception and factor it into their product pricing. Every investor tends to look for a landed property with a freehold title, which is perceived as the ultimate position. Anything less will call for a discount on price and lessen its appeal. Younger buyers are less demanding on this leasehold issue, possibly due to various factors such as: 1. Freehold factor may not be a priority at the point of purchase as compared to affordability. 2. The purchased unit is a temporary shelter; owners will upgrade in the future. 3. They are young couples buying a property for themselves rather than for the next generation. 4. The prices of leasehold properties are more attractive, and other factors such as location and amenities may be the tipping point. As a tradition, family properties are handed down to the next generations. Though many of us may not live till 100, the traditional culture of passing the property down is always prevalent like in the movie Crazy Rich Asians. Therefore, from a market perception viewpoint a final discount will always be loaded on leasehold
residential properties. The critical factor for leasehold is the remaining tenure which is the main reason for the difference in value in the later years. This factor should have little or no impact if the leasehold is 99 years, but it becomes imminent with 30 years remaining. This becomes critical when it reaches 10 years. There is a possibility of renewing the leasehold title but it is subject to a new premium payable to the state; renewals are usually sought within the last 10 years or less before its expiry. The leasehold renewal rights rest with the state and is not a lawful right of the leasehold owner. However, residential properties usually stand a higher chance of renewal, unless the state has some major redevelopment plans for that area.This is applicable for all properties but the residential sector takes a bigger discount when the leasehold factor comes into play. As a rule of thumb, a residential house or building is expected to have a 50-year lifespan. By right, a 99-year leasehold should actually be sufficient. Taking real-life examples, we can observe that the rejuvenation factor in the neighbourhood of Petaling Jaya Sections 1 to 3 (the PJ Old Town area) is rather weak when the leasehold shortens below the 50-year tenure. These areas are blighted and the redevelopment of existing old houses becomes minimal. The neighbourhoods age with the times and lose their shine.
Disclaimer: The article is merely the contributor’s personal view and opinion. It does not represent the stand of any media, firm or association. The views, thoughts, and opinions expressed in the text belongs solely to the interviewee. The information contained herein is not intended to be a source of advice or credit analysis with respect to the material presented, and the information and/or documents contained in this article do not constitute investment advice.
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F eature
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POSITIONED FOR THE FUTURE Royal Institution of Surveyors Malaysia values the vital role of geospatial information
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E use GPS navigation from our car or cellphone to commute daily, to locate the nearest nasi lemak outlet, to find the best holiday deals, to grab a ride, and more, without a second thought. These are examples of using geospatial information, which is defined as data referenced to a place – a set of geographic coordinates – that can be gathered, manipulated and displayed in real time. The same platform is now a
Organiser
Co-Organiser
major contributor to economic transformation in many countries through e-services and e-commerce. “Future innovation and advancement will benefit smart construction, precision agriculture and driverless vehicles,” said Royal Institution of Surveyors Malaysia president Sr Haji Mohammad Azmi Mohd Zin, adding that there is still a lack of awareness and understanding of the vital and integrative role of geospatial information. “Information that is accessible, that reflects the
physical world (both natural and built), that provides the digital version of our world where all human, economic and environmental activities take place, is necessary for a smart society. All countries and all sectors need geospatial information for national development and decision-making,” he said. According to Azmi, Geospatial information describes the geographic and built features, their relationship to other features, to humanity and its activities. “Within our professional
21 st
Azmi (right in blue) planting a tree at FRIM Selandar Research Station Melaka during Global Surveyors’ Day recently.
INTERNATIONAL SURVEYORS’ CONGRESS
“Surveying The Future” Incorporating
“FUTURE INNOVATION AND ADVANCEMENT WILL BENEFIT SMART CONSTRUCTION, PRECISION AGRICULTURE AND DRIVERLESS VEHICLES
The International Seminar on United Nations Global Geospatial Information Management 20th - 21st June 2019 | Hotel Istana, Kuala Lumpur
We should always be ‘surveying the future’ to keep pace with the times, continually monitoring events, trends and drivers so that competent, timely, evidence-based responses can be made
PLENARY SESSION SPEAKERS
Mr. Greg Sco� United Na�ons Secretariat
Dr. Lesley Arnold Director, Geospa�al Framework Ltd.
Mr. Timothy Trainor Chief Geospa�al Scien�st, USA
Mr. Sanjay Kumar CEO, World Geospa�al Industry Council
Prof. Yeah Kim Leng Professor of Economic, Sunway University
Mr. Kees de Zeeuw Director, Kadaster Int.
Sr Chan Keat Lim Director of Survey JUPEM
Prof. Mushtak Al-Atabi Provost & CEO Heriot-Wa� University
Mr. John Kedar Director Int. Engagement Ordnance Survey
Dr. Andrew Barnicoat Geoscience Australia
SIMULTANEOUS SESSION SPEAKERS
Mr. Khoo Sze Boon President QS Division, SISV
Dr. Wang Hong Kok Principal Lecturer, TAR UC
Sr Khaidzir A Rasip Managing Director, Ian Sco� Int.
Mr. Premendran Pathmanathan GM, REA Asia
Sr Mohd Hanafi Moghni Deputy Director (BS), UiTM, Shah Alam
Sr Hasnan Hashim Senior Lecturer, UiTM Perak
Sr Sharifah Noraini Noreen Syed Ibrahim Al-Jamallullail PP Sr Dr. Noushad Ali BIM Director, IPIM SB Naseem Ameer Ali Director, CIC-QS Services SB
Mr. Johnson Yu Director, World Cloud Ventures
Assoc. Prof. Sr Azmi Hassan Sr Dr. Azhari Mohamed Prof. Dato’ Dr. Shatri Mansor Geostrategist, Professor Ins�tute & Perdana, UTM DG of Survey & Mapping 1, Faculty of Engineering, UPM JUPEM
Sr Chin Keh Liang Director JUB Central SB
Sr Mazlan Mohd Tahir Senior Lecturer, UKM
CONTACT FOR REGISTRATION / EXHIBITION: MS. HANIE / MS. ESTHER: 603 79551773 | 603 79569728, E-MAIL: secretariat@rism.org.my
– AZMI MOHD ZIN
domain, it is about boundaries, plans, maps and charts, our valuation and property data, our estimates, costing and construction cost, our building condition and related information concerning planned or soon-to-be-built structures,” he said. Azmi noted an emerging “data ecosystem” for sustainable development leveraging on integrative capacities of geospatial information to provide evidence on places, people, events and activities so that citizens, businesses, organisations and governments can make informed decisions. The 2030 Agenda for Sustainable Development – a global plan of action for people, planet and prosperity – is envisaged to profoundly improve the lives of everyone and transform our world for the better. “The broad and transformative nature of the 2030 Agenda provides tremendous opportunity for our profession to meet the demand for new data acquisition and integration approaches, for timely and reliable data, including earth observations and geospatial information,” said Azmi. This year, the 21st International Surveyors’ Congress (ISC) includes a one-day Kuala Lumpur International Seminar on United Nations Global Geospatial Information Management. It is held in conjunction with a UN Expert Consultation and Meeting from June 18 to 21. This UN activity is hosted by the Malaysian Government through the Department of Survey and Mapping, Ministry of Water, Land and Natural Resources Malaysia. Organised by the Royal Institution of Surveyors Malaysia, the first day of the 21st ISC seeks to improve awareness and understanding for the unprecedented data necessary for sustainable development, and to embrace the digital transformation towards smarter infrastructure, cities, economies and communities. The second day covers parallel technical sessions related to property surveying, quantity surveying, building surveying, geomatics and land surveying – the four divisions of RISM.
S pecial Feature
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STRATA TITLE RESOLVES ISSUES This legal instrument is vital for properties that are subdivided into parcels
The following are simplified steps on how to get your strata title.
Scenario A: Developer yet to transfer strata title to house buyer
“A STRATA TITLE ALSO ACTS AS A DEALING INSTRUMENT WHEN IT COMES TO CERTAIN PROCESSES INVOLVING THE PROPERTY, FOR INSTANCE, CHARGING IT TO THE BANK FOR A LOAN. – NG CHOON YON
1. Buyer needs to check with the Land Office if the developer has actually applied for the strata title. 2. In the event that the developer has applied for the strata title, buyer or lawyer (appointed on behalf of the buyer) shall check with the developer on the transfer of strata title. 3. Developer informs the buyer that the strata title is issued. 4. Buyer appoints a lawyer to draft Form 14A memorandum of transfer to the Land Office to transfer title from the developer’s name to the buyer. 5. Lawyer writes to developer for the necessary information once documents are signed. 6. Lawyer applies for stamp duty with Lembaga Hasil Dalam Negeri. 7. Buyer pays the stamp duty. 8. Lawyer compiles the necessary documents and presents to Land Office to transfer the name.
Scenario B: Developer yet to apply for strata title
By VIKTOR CHONG viktorchong@thestar.com.my
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OR some homeowners, having a strata title is of little significance. They may not see the necessity to perfect the transfer (having the strata title in his name) due to the legal fees and stamp duty incurred. Without the title, however, they will be frustrated once they attempt to sell the property or refinance it. According to Ismail Sabri Wee and Wong partner Ng Choon Yon, the strata title is basically a separate individual title issued for a certain type of property whereby the building or land is subdivided into a number of parcels. It specifies the ownership details, area of the particular unit and accessory parcel. In other words, it acts as the final proof of the built-up area of the owner’s unit and apportionment of the share in total aggregate units. Among others, the strata title gives the owner control over the individual high-rise unit or strata landed ones. It enables the owner to be involved in the maintenance and management of the strata property.
Furthermore, it facilitates disposal of the property -- a vendor wishing to sell off his property with a strata title does not need to get the developer’s consent or pay any arising consent fees.
Legal hurdles to overcome “As long as the strata title has not been transferred, the land and common property are still owned by the developer according to the land registry,” said Ng. Nevertheless, the beneficial ownership of that particular parcel has already been assigned to the purchaser or the financial institution following the execution of the sale and purchase agreement (S&P) and/or deed of assignment. Without a strata title, the owner (beneficial owner) has to procure all the S&P documents for the property. Assuming that the property changed ownership a few times, the current buyer will need to procure the S&P from the very first point of transaction (first purchaser with the developer), then the S&P between the first purchaser (now seller) with the second
purchaser, and so on till the final transaction. “There is a huge process to go through if there are any missing documents in between the length of transactions,” said Siow Wai Pin, another partner at Ismail Sabri Wee and Wong, who pointed out that a police report has to be filed. With the possession of a strata title, however, the owner can easily prove his ownership through a land search. Previously, it was the norm for owners of strata properties to take up to several years to obtain their strata titles. According to Siow, the enforcement of the Strata Titles (Amendment) Act 2013 and Strata Management Act 2013 enunciated that strata titles need to be issued upon vacant possession of the property. As a consequence, prolonged delay in the issuing of strata titles should no longer be the case today. The enforcement of the amended Act of June 2015 expressly safeguards the rights of owners and buyers by stipulating vacant possession with strata title. It will still be a long journey for buyers of older strata projects where this issue has yet to be resolved.
"FOLLOWING ENFORCEMENT OF AMENDMENTS TO STRATA TITLES ACT AND INTRODUCTION OF STRATA MANAGEMENT ACT 2013, STRATA TITLES NEED TO BE ISSUED UPON VACANT POSSESSION OF THE PROPERTY. – SIOW WAI PIN
1. Buyer needs to check with the Land Office if the developer has actually applied for the strata title. 2. Buyer discovers that the developer did not apply for strata title. 3. Buyer has to file a complaint with the Commissioner of Buildings to get the developer to apply for the strata title. 4. Developer informs the buyer that the strata title is issued. 5. (Next steps similar to scenario A)
Scenario C: Developer undergoes liquidation and did not apply for strata title 1. Liquidator opens a Book of Strata with the Land Office. 2. On behalf of the developer, liquidator informs the buyer that strata title is issued. 3. Buyer appoints a lawyer to draft Form 14A memorandum of transfer to the Land Office to transfer the developer’s name to the buyer. 4. Lawyer writes to the liquidator for the necessary information once documents are signed. 5. (Next steps similar to scenario A)
Know your expenses: Discover the detailed amount of stamp duty and legal fees payable when perfecting your strata title by visiting http://bit.ly/2X4atjK or scanning the QR code.