Hey everyone,

I'm really hoping someone can help me out here.
I'm in a bit of a mess with my condo in Klang Valley.
The developer has gone under liquidation recently and it's been 6 long years without anyone getting the strata title.

I spoke to lawyer and they told me it's almost impossible to sell without the strata title. Is it because buyers can't get loans without it?
They say only cash buyer should be ok and i dont think there are many cash buyers out there.
I'm feeling so helpless and don't know what to do.

Do I have to wait for another company or developer to take over before I can get the title?
Even if that happens, how long will it take?
What if no body take over?

I'm really freaking out because I need to sell this condo for personal reasons,
and renting it out is going to be a huge hassle.

To be honest, I'm regretting buying this place when I was just 21.
I should have done more research and not just trusted what the agent told me.

If any of you have any advice or have been in a similar situation, please share it with me. I would greatly appreciate any help or guidance.

Thanks guys, I really appreciate it.

why would another dev take over a completed project?
btw..yes..no title...hard to get loan...
good luck

mind to share the condo name?

This post has been edited by sunami: Mar 1 2023, 09:55 PM

My parent condo also same shit , still got ppl manage to get loan to buy . Puchong area near highway toll , that area whole batch no strata tittle one condo landed same case.

Still managed to sell without Strata Title and buyer able to get bank loan 5 years back, don't see any issue here, just that it takes a bit longer time for the process.

Why not try renting it out but sourcing all the labour work to 3rd party and give him/ them a small commission monthly? Its also another solution

What's the hassle to rent out the place?

You are already lucky that they liquidated only after handling over the unit with CF. There are many who got stuck without even a sight of the pillars of what they purchased for.

Since your unit is all completed and lesser than 10 years, it should still be able for buyers to get loan. Depends on the condo and the area, certain banks will still value that. Try PBB, UOB, ABB. And find a lawyer who is familiar in dealing with such situation.

usually pbb still can loan.

It's difficult but not impossible for buyer to get bank loan. And this will affect your property's market value since there is no strata title. Make sure you keep a copy of all the agreements (SPA, loan agreements, IC of the original purchaser if you bought it subsale, etc.) as the appointed liquidator will ask to see all these doc when you sell the property next time.

Off topic a bit... would liquidator act fairly in these three scenario? Since land title is in mastertitle . Liquidator has to decide which creditors get which chunk of leftover pie. i believe bangkrupted developer owes lot of money, otherwise no reason to bangkrupt

1. Individual that has paid off shophouse bank loan. .. but Land office has yet issuing strata title .. and thus no call for MOT Payment to be paid yet.. and developer bangkrupted..

2. Or better dont clear off any bankloan b4 any strata being issued .. just leave little loan amount , wouldnt cost much loan interest. .. is this "safer method " to park shophouse under bank umbrella protection ??. Liquidator wouldnt dare to bully bank as supposed to an individual owner.

What do u think ?? AS strata title issuance may take 10 /15 years in certain states in msia.

3. Can developer re mortgage completed project land mastertitle to get loan .. ending up with another land emcumberance.. And thus complicating liquidators task.. if yes .. then individual owner may lose everthing???

Thk in advance for any reply by forumers

Liquidator will not be able to sell / use your property to pay off the developer's debt to the creditor as you are the beneficial owner of the property (it will be illegal) and the developer won't be able to do anything (mortgage etc.) to the land as they are already bankrupt

Thks for the insight.. .. very clear answer !
I need to rephrase.. no3..... before being bangkrupt , while developer still holding mastertitle and before land office issue strata tittle ... can developer remortgage the mastertitle? or even still having to pay loan for land encumberances??
If yes. Then how safe is the strata ownership of individual owner when the land ( in mastertitle）is owned by others?

Thks in advance

This post has been edited by kenzotaj: Mar 16 2023, 08:28 PM

Usually bank would have obtained an undertaking from the developer not to encumber the land / master title anymore before they release the loan for your property to them. But if you are worried, do a land search on the master title now to check whether there is any encumbrances on the master title. Since the land is still under master title and the developer is bankrupt, will the liquidator help to get the strata title out?

Exactly .. Bro... for commercial shophouse.. (unlike housing dev act).. there is no 2.5% retention b4 strata title issuance.. bank already releaeed 100% loan amount to developer.. a failing heavily indebted developer wouldnt bother to spend more money to get strata title.. . also liquidators dont get the 2.5% too..
Wouldnt it better not to clear off bankloan (when customer hvnt got receive strata title).. and instead let Bankers handle all the mess and legal paperworks with liquidator.. ??
How easy is it for individual to deal with liquidator..
Any insights???? Anyone..

What do you mean to let bankers handle all the mess and legal paperworks with liquidator? Bank will not help you to push liquidator to get the strata title out. House owners should group up and talk to the liquidator instead as strata title will affect the house's market value

So u meant.. there is difference in risk for the individual homeowner ( without strata title) whether one have clear off bank loan or keep the property under bank loan @ bank group umbrella protection.
Hmmnn..
Other Sifus also think like this ??

no, bank who already lend money to existing owner wont push liquidator to get title out.

but 9 out of 10 banks wont finance a subsale for this type of property if u want to buy it now.

only owner (thru joint management body) can push liquidator, but that also they usually wont do it for free.

No, what I meant is that bank will not help to push for the strata title or deal with the liquidator. Whether you still have a bank loan or settled the loan already makes no difference. House owners have to group up and talk to liquidator.

Anyone have experienced sold a developer bankrupt condo in KL? Under 10 years, just want to know how long the process of SPA will take

Estimate 6-9 months depending how fast the liquidator revert to lawyers. You might wanna find out how much is the total cost that the liquidator will charge you before proceeding...