MRED Speaker Series: Strata Title Act 1985 (Act 172)

Chris Tan during the webinar

A virtual talk titled “Strata Title Act 1985 (Act 172)” was conducted via Microsoft Teams by UTAR Faculty of Accountancy and Management (FAM) on 18 July 2020.

Invited as the speaker for the webinar was Chris Tan Chur Pim, the founder and managing partner of Chur Associates, who is also a property lawyer. Also present at the webinar was FAM Head of Programme for MBA (Building Management/Master of Real Estate Development) Dr Chin Hon Choong, lecturer Dr S. Sheelah and students.

Chris Tan first gave a brief introduction on strata management. He said that strata development is a gated guarded community which is also known as regulated community living. Strata development is a subdivision of buildings that have specific and defined boundaries from 2D to 3D component of the strata unit.

He also explained the mixed-use development, the evolution of strata development, basic fundamental of strata development today, historical overview of strata property development and management – law and regulations, differences between strata title and conventional land title, the sophistication of strata development – types and potential mutation, subsidiary management corporation and other related topics. Aside from that, he also shared several case studies that came with practical application throughout the webinar.

Chris Tan highlighted, “Housing development in Malaysia is a private sector initiative unlike our neighbour country Singapore.  Eighty-five per cent of Singapore’s housing development is done by the Housing and Development Board (HDB). Private developers in Malaysia are leading the pack, followed by the lawmaker, while the enforcement authorities are catching up all the time.”

Chris Tan showing participants the evolution of strata development in Malaysia \

Chris Tan explaining the seven basic fundamentals of strata development today

He also shared the differences between strata title and conventional land title. He said that strata title is a subdivision of building instead of conventional subdivision of land under the National Land Code (NLC). It is also a subsequent evolution to include both vertical and horizontal subdivisions from just building or buildings to both building and land that lay all within the boundary of the underlying master title - one title one scheme and one management. Strata title is a subsidiary title under the NLC with attached “ownership” of the common area within the strata scheme in terms of decision-making control, management and contribution.

“Strata title is a regulatory gated and guarded community that ensures affordability to facilitate rapid urbanisation, increased population and sophisticated land usage to meet the ever-changing demands,” he added.

Chris Tan explaining the seven basic fundamentals of strata development today

He also shared the differences between strata title and conventional land title. He said that strata title is a subdivision of building instead of conventional subdivision of land under the National Land Code (NLC). It is also a subsequent evolution to include both vertical and horizontal subdivisions from just building or buildings to both building and land that lay all within the boundary of the underlying master title - one title one scheme and one management. Strata title is a subsidiary title under the NLC with attached “ownership” of the common area within the strata scheme in terms of decision-making control, management and contribution.

“Strata title is a regulatory gated and guarded community that ensures affordability to facilitate rapid urbanisation, increased population and sophisticated land usage to meet the ever-changing demands,” he added.

Chris Tan elucidating the types and potential mutation for the sophistication of strata development

Chris Tan showing the strata development flow chart

Moreover, he also presented an important concept of Strata Title Act 1985 on subsidiary management corporation. According to him, Management Corporation is a designated limited common property and it is created by one or more subsidiary management corporation. 

Chris Tan concluded his talk by displaying the strata development flow chart.  The virtual talk then saw an active interaction between the speaker and the participants. It was followed by a Q&A session before it adjourned.

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