I came across a condo without strata title issued, only with master title.....I'm wondering what are the impact? If the master title is still having loan with the bank. What will happen and condos have been built, and there are people staying....

This post has been edited by mrsbean: May 22 2017, 09:51 PM

Parking, interested to know. From my understanding, if developer took loan in the first place, the master title already being caveat and need the bank's concern before development.

However, I am not very sure with the impact of master titles with loan. Besides, many houses still without title.

PARKING to learn.

if already about 7-10 years no strata title, usually most bank will not finance. if buy cash then of course no problem.

if master title still having loan with bank (in this case the bank is called the 'master chargee'), whenever the owner of a unit want to sell, the owner (the owner's lawyer will do) have to get a disclaimer letter from the master chargee.

basically that letter is to say 'whether for that particular unit, does developer still owe money to the bank for it?'

if they dont owe already (usually there won't be any monies owed) then the master chargee via the letter will say something like "ok i know this unit no monies owe already, i wont kacau ur unit if i foreclose the land (eg developer default on the loan)"

as a buyer, no issues on this master chargee thingy. the more worrisome thing is when the strata title will be issued - whether developer has submitted, or if they havent submit then why havent submit.

If it is younger than 10 years, not much issue. But if it is beyond 10 years, you will have a hard time letting go of these properties since very few banks would finance these properties - as far as I know, only Ambank and PBB would finance older properties that are still with Master title

So even if you manager to grab one that is 8 or 9 years old, once you want to exit the market will you get the strata title? and if not, will the developer sill be around?

In addition, if the demand is low due to the difficulty to secure loans to buy the properties there, the price will fall. Case in point: Cyberia Smart Homes, RM350k you can get 2k sqft townhouse units

These are the issues that you will face.

This post has been edited by wild_card_my: Jun 2 2017, 02:12 AM

hard to sell later and banks usually wont give loan

I wrote an article about this not too long ago, take a look. In short, try to avoid these properties... they are not that much cheaper than the ones with master/strata title and you will find it difficult to dispose of them in the future.

https://faizazmi.com/2017/02/16/buying-prop...just-walk-away/

so long still no strata title?

this is normal, especially for older properties. Errant developers who decide to spend the money they should spend on subdividing the lot, into other projects. I wont name names, but some of them are so notorious about this.

Menyusahkan orang

I am interested in this sub sale apartment. However found out that the owner havn't obtain his strata title. This is not due to the developer but because the owner is now residing oversea and he did not have the time to complete the process to obtain his strata.

Owner is rushing his lawyer to obtain strata now but i believe this will take some time.

Would it be okay if i book this unit now? or it is risky to do so? I really like this apartment and the price is just right.

I thought we should avoid property without strata because of some legal implication and difficulties in getting a loan? Or those are referring to property where developer refuse to issue strata/banckrupt.

You got it right.

When developer is developing a land or building a high-rise... all units will be based on Master title, and the owners are "assigned" a plot on the master title... (sometimes for landed properties the developers would already subdivide ahead of time but that is a different story)

developers will start subdividing the plots into individual or strata titles after the VP... now they are supposed to do it immediately, but back in the days they can take their sweet time to do so. you want to avoid these properties, especially the ones which are older than 10 years and the developers still havent subdivide the land... if after 10 years they havent subdivided the land who is to say that they will anytime soon?

If the property is still below 10 years for master title with the developer still around and not bankrupt then you can still apply loan to purchase the property.

However if it's above 10 years then only selective banks can still do for the loan

And yes you're right that there is a risk involved in terms of dealing with Master title such as developer going bankrupt which will make it harder to obtain your strata title and will affect your future buyer who wants to apply for housing loan to buy from you.

It's always best to get the strata title as soon as possible

Dear insurance agent, this is inaccurate.

1. For some developers that have been blacklisted, even if the property is younger than 10 years, some premier banks will not finance them. Why are they being blacklisted? Because of their previous projects that have yet to be given strata title after many years after completion.

2. Also, getting strata is not up to the home owner but on the developer. It's not like you can apply for it on your own. So you can't "get the strata title as soon as possible". You just need to wait, or at best, buy undercon properties from renowned developer or get subsale properties that already have strata or individual titles to begin with.

This post has been edited by wild_card_my: Aug 9 2017, 09:53 PM