Strata title is similar to land grants it basically gives you the right to occupy a piece of land or in your case stratified space...

Its important because once you have your title you have certain rights and privileges.

For example residents of flat, apartment, condominium and high rise buildings can form a Management Corporation (MC) to run the management and maintenance services of their property. If you don't have a strata title you cannot form and MC and you cannot vote.

Also should you decide to sell the property, the strata title enable the transfer of the property to the new owner.

Some developers refuse to apply for strata titles because they can make extra money after projects are completed by forming their own MC and collecting maintenance and other misc. fees from residents. Residents also cannot do much to oppose these developers because their rights are curtailed without strata titles.




edit:
Here is some extra information...

Took me a while to find it, sauce National House Buyers Association (HBA)

Importance of strata titles

According to statistics compiled by the House Buyers Association (HBA), problems with strata titles make up most of the complaints received from buyers. It is no secret that numerous strata title properties are still managed by the developer even though the Certificate of Fitness for Occupation (CF) were issued years ago.

The HBA's advice to house buyers is to "get, keep and preserve" the strata titles to their units for the following reasons:

As ultimate proof of ownership.

As a dealing instrument for instances of charging to banks for loans.

To facilitate disposal should they wish to sell so that they will not be imposed "consent fees" by the developer.

To be able to initiate and get involved when the Management Corporation (MC) is formed by owners of the units in the subdivided building to maintain and manage the property.

As final proof of the built-up area of the unit and ultimately, the apportionment of the share in the total aggregate units.

As long as strata titles have not been transferred, the land the common property are still owned by the developer.

Should a project be orphaned (as when the developer goes under liquidation or becomes insolvent) before strata titles have been obtained, the unit owners will have to go through a lot of trouble or might eventually have to pay for the application of the strata titles themselves.

Pay HBA a visit their site is very informative I hope this helps

This post has been edited by aaronpang: Feb 5 2007, 02:26 PM

Sometimes it's due to the garblement bureaucracy... and inefficiency.

Yes it can be tedious because it deals with common property which is owned by all the occupants of the building not just the individuals.

The rest sauce:-NST

The Act has been around for 18 years and the problems faced by housebuyers can be due to the following:
a) Old buildings (prior to the implementation of the Act) without strata titles;
b) Non-application or rejection of applications made by the developer/land owner. For the former, the lack of enforcement on the part of the authorities to compel the relevant party to make the applications also played a role;
c) Orphaned projects, where the developer/land owner has been wound up, making it more difficult for strata titles to be applied for.

Although the problems are obvious, its magnitude has been shrouded in a veil of denial. Unlike buyers faced with abandoned projects, relevant authorities show little concern for homeowners without strata titles.

This post has been edited by aaronpang: Feb 6 2007, 01:37 PM