HBA: Keep strata titles

New Straits Times 20/12/2001 By Koh Lay Chin

Kuala Lumpur, Wed. - The House Buyers Association today advised house buyers to "get, keep and preserve" the strata titles to their high-rise apartment units as ultimate proof of their property ownership.

HBA secretary-general Chang Kim Loong said the title was very important and to refuse it was a retrogressive step.

He was referring to a recent newspaper report when Deputy Land and Co-operative Development Minister Dr Tan Kee Kwong said that the ministry had received complaints from developers about owners refusing to accept the titles.

"If in the future, should they decide to sell the property, it enables the transfer of the property to the new owner. It is also a dealing instrument for instances of charging to banks for loans," he said. He said with the strata titles, house buyers need not obtain the consent of the developer who imposed administrative charges of between one per cent to two per cent as their consent fees.

With possession of strata titles, residents of flats, apartments, condominiums and high rise buildings could form a management corporation to run the maintenance services of their property.

This, he said, was a privilege denied under the law unless strata titles were obtained.

"With strata titles transferred into the house buyers' name as owners, the house buyers need not fear if their developer goes under liquidation and insolvency," he said.

Chang said there were several possible reasons why owners refused the titles, among them were disputes over the standard of management against maintenance charges the developers have been levying and shoddy workmanship and deviation from the built-up plans not in accordance to the Sale and Purchase Agreement.

He also cited a 'Chicken and egg situation' as another reason - whether to pay the outstanding charges or transfer the strata title first.

Chang said HBA commended Tan for recently reviving the joint committee (on high rise buildings) set up by both his ministry and Ministry of Housing and Local Government five years ago.