Buying Property with Individual Title And Property without Individual Title In Malaysia
What you should know about buying property with individual title and property without individual title in Malaysia?
Most properties transacted in the open market were originally purchased from housing developers. When those properties are subsequently disposed of or sold by the first purchasers in the market, they are known as the sub-sale properties.
The form of the Sale and Purchase Agreement and the process of the transaction in a sub-sale are structured mainly based on whether the property in question has a separate individual title or it is still held under the master title. The processes of the two types of the property differs.
Property with individual title
Property without individual title
There is a separate document of title of the property, either the same is held in the possession of the property owner (in cases where the owner is cash buyer or he has already settled his loan with his bank) or in most of the cases, the original title is held by the bank as a security
|There is no any separate document of title because the property is still under the master title.|
|Memorandum of Transfer (Form 14A) will be used as the instrument of transfer to effect the legal transfer of the property to one to another.||Deed of Assignment (by way of transfer) will be used to assign rights and interests in the property from one to another.|
|Upon conducting the relevant land search on the property, the land search report will be able to show the title details, category of land use, the particulars of the property owners, whether the property has been charged to any bank and whether any caveat has been entered.||Only can conduct land search on the master title.|
|Proof of ownership – name of the property owner is duly registered on the title deed of the property.||Proof of ownership – all the original Deed of Assignments made previously are the evidence to trace the beneficial owner.|
|N/A||Developer of the property will be involved in the sale and purchase transaction, such as letter of confirmation from the developer will be required, requirement to notify the developer in relation to the sale assignment and so. All these would become the essential terms and conditions in the Sale and Purchase Agreement.|
|The duly dated and stamped Memorandum of Transfer must be presented at the relevant land office together with all the necessary accompanying documents and requisite fees to effect the transfer.
|The duly dated and stamped Deed of Assignment cannot be registered at any land office. However, some necessary steps need to be taken to perfect the sale assignment, such as the notice of assignment.|
|The process of selling and buying is completed upon full settlement of purchase price and of course, issuance of a new title deed duly registered under the name of the new purchaser.||
The process of sale and purchase in property without individual title will be completed when all the rights and interests in the property have successfully been passed to the new purchaser in exchange for the purchase price of the property.
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