Step-by-step Malaysia guide showing how a project moves from the developer’s master title to individual (landed) or strata titles, including CPSP ? subdivision ? issuance ? perfection, plus buyer checklists.
From Master Title to Individual or Strata Title: How New Developments Progress (Malaysia)
Buying a new launch? You’re often purchasing when the land is still under a master title owned by the developer. After construction, that master title is converted into individual titles (for landed homes) or strata titles (for multi-storey/stratified projects). This guide walks through the end-to-end path, what documents to expect, and how buyers protect themselves along the way.
Stage 1 — Master Title & Sales (SPA)
- Master title: The land is held under a single title by the developer (original proprietor). Purchasers contract via the statutory S&P forms under the Housing Development regulations: Schedule G for landed and Schedule H for strata.
- Landed vs Strata SPAs: Schedule G (landed/individual titles) vs Schedule H (strata). These set progressive billings, VP requirements and post-VP obligations.
Stage 2 — Landed route: Subdivision under the National Land Code (NLC)
For landed phases, the developer applies to the Land Administrator to subdivide the master title into separate lots. Once approved and surveyed, new individual titles are created for each lot and registered.
Stage 3 — Strata route: CPSP ? Subdivision ? Strata titles
- Certificate of Proposed Strata Plan (CPSP): After main structural progress, the developer obtains CPSP from JUPEM (Director of Survey) within the time frames in section 8 of the Strata Titles Act (STA) 1985 as amended.
- Apply for subdivision to strata: Within one (1) month of CPSP issuance, the developer must lodge the formal subdivision application with PTG for strata titles.
- Issuance & registration: Upon approval and survey plan certification, strata titles are issued and registered to each parcel. (Modern processes may run on the electronic strata titles system.)
Stage 4 — Vacant Possession (VP) & early management (strata)
After CCC and VP, the developer manages the common property for a period and must convene the first JMB AGM within 12 months from VP under the Strata Management Act 2013.
Stage 5 — Transfer to purchasers & “Perfection”
- When titles are out: The developer transfers the individual or strata title to each buyer. If a loan was used, the financier’s charge is also registered.
- Perfection of Transfer (POT) & Perfection of Charge (POC): If you bought earlier “under master title”, your lawyer will later perfect the transfer (and charge) when the titles are issued—so your name (and the bank’s charge) appear on the actual title.
Key differences: Individual vs Strata titles
| Aspect | Individual Title (landed) | Strata Title (multi-storey/stratified) |
|---|---|---|
| What it represents | Your lot on the ground (land + building) | Your parcel (unit) + share units in common property |
| How it is created | Subdivision under the NLC via Land Administrator | CPSP ? strata subdivision under the STA 1985 |
| Management body | Local authority by-laws; no JMB/MC | JMB (then MC) manages common property under SMA 2013 |
| Typical SPA form | Schedule G (HDA) | Schedule H (HDA) |
Buyer protections & timing tips
- Ask when CPSP was (or will be) obtained and diarise the one-month deadline for the developer’s strata subdivision application.
- Track title issuance status during/after VP so your lawyer can instruct on POT/POC promptly.
- Understand your SPA: Know whether you’re on Schedule G (landed) or H (strata) and the implications for VP, defects, and management.
- For strata: Note that the first JMB AGM must be held within 12 months of VP; owners should participate to set budgets, by-laws and elect council.
Simple flow (new launch ? your name on title)
- Developer owns master title and sells under Schedule G/H.
- Construction ? CCC/VP. (Strata: obtain CPSP.)
- Landed: Subdivide to individual titles (NLC). Strata: Apply for subdivision within 1 month of CPSP ? strata titles issued.
- Developer executes transfers to buyers; banks register charges.
- Where you bought “under master title”, your lawyer completes POT/POC once titles are out.
FAQs
Is buying under a master title risky? It’s common for new launches. Mitigate by using the HDA statutory SPA, confirm the developer’s obligations/timelines for title application, and monitor for POT/POC later.
Who applies for individual/strata titles? The developer (original proprietor). For strata, they must apply within one month of CPSP issuance.
When will a JMB be formed? The developer must convene the first JMB AGM within 12 months after VP.
