No strata title yet: should you buy the condo? What you really own
You have found a subsale condo you like, and the agent says the strata title - the separate land title for one unit in a shared building - is "not issued yet". You can still buy it. You own the unit through the sale and purchase agreement (SPA) and a Deed of Assignment, a document that passes the seller's rights to you, while the whole building stays on the developer's master title. Banks lend on this routinely.
The law helps on two points. Under section 22D of the Housing Development Act 1966, a housing developer cannot insist on consenting to the assignment and may charge at most RM50 to confirm its records. Under section 8 of the Strata Titles Act 1985, a developer that misses the deadline to apply for strata titles faces a fine of RM10,000 to RM100,000.
Walk away when the building is old and nobody can show a title application date, the developer has been wound up, or there is no JMB (the owners' joint management body).
Why a strata title is "not issued yet"
A strata title is the individual land title for one parcel (your unit) in a subdivided building, issued by the state land office under the Strata Titles Act 1985. Until it exists, the whole building sits on one master title in the name of the developer or landowner.
Applying is the developer's job (the Act calls it the "original proprietor"), and since the Strata Titles (Amendment) Act 2013 took effect on 1 June 2015 the deadlines are short:
| Step | Deadline under the Strata Titles Act 1985 |
|---|---|
| Developer applies for the certificate of proposed strata plan | Within 3 months of the document certifying the super-structure stage, the point where the main structure is up (section 8(2)(a)). For a building already completed, 3 months from the certificate of completion and compliance or from the first sale, depending on the case |
| Developer applies to the land office for subdivision | Within 1 month of that certificate being issued (section 8(3)) |
| Extension | Once only, by up to 1 month for each step (section 8(4) and (5)) |
| Developer signs the transfer to the buyer | Within 30 days of the strata title being issued (section 19A, as summarised by law firm Tay & Partners) |
| Buyer signs the transfer | Within 30 days of the notice to transfer, or of buying the unit if that is later (section 19A) |
| Penalty for missing the application deadlines | Fine of RM10,000 to RM100,000, up to 3 years in prison, or both, plus RM100 to RM1,000 for every day the offence continues (section 8(8)) |
So for a condo sold after mid-2015 the application should have gone in while the building was still under construction, and the standard SPA ties the handover of keys to it; the detail is in strata title vs individual title. Older buildings are a different story. Many completed in the 1990s and 2000s still have no individual titles, typically because the developer was wound up, the building differs from the approved plans, or sums owed on the land were never settled. Those are the cases this guide is really about.
Not sure whether a building is strata or landed, freehold or leasehold? Start with how to check freehold or leasehold.
Buying with a strata title vs without one
What you actually own while there is no title
Legally, the seller of a no-title unit holds the benefit of the SPA with the developer. When you buy, that benefit is assigned to you by a Deed of Assignment, and the developer is served notice so its records show you as the purchaser. You have the right to occupy, rent out, renovate within the house rules, sell on, and receive the strata title when it is issued.
The developer cannot hold your purchase to ransom. For housing covered by the Housing Development Act 1966, section 22D (in force since 12 April 2007) says the developer's consent to the assignment is not required, caps its fee at RM50 for each confirmation, and makes a developer who insists on consent liable to a fine of RM50,000 to RM100,000 (per the National House Buyers Association and law firm Miranda & Samuel). Two exceptions matter: shops, offices and other non-housing units are outside the Act, and where the developer has been wound up, the House Buyers Association reported in 2021 that liquidators were asking 2% to 3% of the price as an administration fee. Ask what the developer or liquidator will charge before you pay a deposit.
Your bank secures the loan the same way: a loan agreement with a Deed of Assignment by way of security and a Power of Attorney, instead of a charge registered on a title. This is routine conveyancing. Some banks are stricter on very old buildings with no JMB or a developer that no longer exists and may lend less or decline, so get the loan approved before you commit; see our home loan application guide and the full subsale sequence in buying subsale step by step.
When the strata title is finally issued, the developer writes to you to sign the Memorandum of Transfer, and you have 30 days from that notice. Your lawyer then "perfects" the transfer into your name and the bank's charge onto the title. Under the Solicitors' Remuneration Order 2023, as summarised in 2026 conveyancing guides, the fee for perfecting the transfer is capped at 25% of the normal scale fee if the same lawyer handled your purchase and 50% if a new one does, and the same caps apply to the charge:
| On a RM500,000 purchase | Same lawyer as the purchase | New lawyer |
|---|---|---|
| Normal scale fee for a transfer (1.25%) | RM6,250 | RM6,250 |
| Cap for perfecting the transfer | RM1,562.50 (25%) | RM3,125 (50%) |
| MOT stamp duty if your Deed of Assignment was stamped on value | RM10 | RM10 |
Add 8% service tax on the fee, land office registration fees and, on leasehold land, the state's consent fee and waiting time. Keep the stamped Deed of Assignment safe: it is the proof that lets the MOT be stamped at RM10.
Seven things to check before you pay a deposit
- Strata title application status
Ask the developer, the JMB and the seller's lawyer the same question: has the application for subdivision been lodged with the land office, when, and what stage is it at. "Applied" with a date is good. "In process" with no date on an older building is not.
- Schedule of Parcels
Ask for a copy. It shows your unit, its share units and accessory parcels (car park, store). If none was ever filed, the title process has not really started.
- Is there a JMB or MC, and does it hold AGMs?
Under section 17 of the Strata Management Act 2013 the first AGM must be held, and the JMB formed, within 12 months of vacant possession (handover of keys), title or no title. A building with no JMB years after completion is a serious red flag. What a working JMB looks like is in our owners' guide to JMB, MC and AGMs.
- Is the developer still an active company?
A developer that has been struck off or wound up cannot sign your transfer; a liquidator has to, and that costs time and money. Check the project on Semak Projek for the housing ministry's (KPKT) sick or abandoned flags, or send us the name and we look up the company status as well.
- Master title search
Your lawyer searches the master title at the land office: tenure and expiry date if leasehold, registered charges, caveats, and whether quit rent is in arrears. Charges or caveats on the master title can block or delay the strata titles.
- Maintenance charges and sinking fund
Under section 31 of the Strata Management Act 2013 a prospective purchaser can ask the developer or JMB for a certificate showing the unit's charges and any arrears, for a fee of not more than RM50. Have the seller clear arrears before completion; a building may deactivate access cards on a unit that owes. How the charges work is in maintenance fee and sinking fund.
- The SPA's clauses
Have your lawyer draft the SPA and Deed of Assignment so the seller must hand over the original SPA, the full chain of stamped assignments and all developer correspondence, and sign the MOT later if needed. See legal pitfalls when buying property.
The Act deliberately does not wait for strata titles. From vacant possession the developer must run a maintenance account and a sinking fund, and within 12 months hold the first AGM that forms the JMB (section 17), which then sets charges, enforces by-laws and sues for arrears. Disputes about charges, management and the developer's duties go to the Strata Management Tribunal, which hears claims up to RM250,000 (section 105); a purchaser without a title can file (section 107), and lawyers are generally not allowed at the hearing (section 110), which keeps it cheap. The Commissioner of Buildings (COB) at your local council - DBKL in Kuala Lumpur, MBPJ in Petaling Jaya and so on - supervises JMBs and acts on complaints about a developer that will not hand over.
What this Act cannot do is issue your title. That stays a Strata Titles Act and land office matter, which is why the application date is the single most important question.
Buy the no-title unit, or walk away?
- The building is less than about ten years old and the title application has a lodgement date
- A JMB or MC is active, holds AGMs and shows you its accounts
- The developer is an active company with a track record you have checked
- Your bank has issued a letter of offer at the margin you need
- The asking price reflects the extra perfection costs and the wait
- Nobody - developer, JMB or seller - can say whether an application was ever lodged
- The developer is struck off, in liquidation or listed as sick or abandoned on Semak Projek
- There is no JMB years after completion, or the accounts are not available
- The master title carries charges, caveats or quit-rent arrears nobody can explain
- Banks are declining or cutting the margin on this building
WhatsApp the Sifu the project name and the unit you are looking at. We check the project's status on the KPKT register, tell you what is known about its strata title progress and management, and whether a comparable project in the same area - see our area pages for Cheras, Setapak and others - gives you a cleaner title position for similar money. It is free for buyers: we refer you to a licensed agent and work on a referral arrangement, explained in how we are paid. We answer subsale questions all the same.
Questions buyers actually ask
Is it safe to buy a condo without a strata title?
Usually yes, if the building is newish and the title application is in progress. You own through the SPA and Deed of Assignment, and banks finance it. The risk sits in old buildings with no application, no JMB or a defunct developer.
Can I get a housing loan if the strata title is not issued?
Usually yes. The bank takes a loan agreement with a Deed of Assignment and a Power of Attorney as security instead of a registered charge. Some banks are cautious on very old buildings or wound-up developers, so get the loan approved before you pay a deposit.
How long does a strata title take in Malaysia?
The developer's deadlines are short; the wait in practice is not fixed. Since 1 June 2015 the Strata Titles Act 1985 gives the developer 3 months from the super-structure stage to apply for the proposed strata plan certificate and 1 month after that to apply for subdivision (section 8). The Act sets no deadline for the land office to finish, and buildings older than 2015 with a wound-up developer or plan deviations can wait far longer. Ask for the application date.
Do I pay stamp duty twice without a strata title?
No. The value-based duty (1% to 4% in tiers) is paid once, on the Deed of Assignment. When the title is issued, the Memorandum of Transfer is charged a nominal RM10, provided you can produce the stamped assignment.
What does perfection of transfer cost?
A capped legal fee plus land office fees. Under the Solicitors' Remuneration Order 2023, as summarised in 2026 conveyancing guides, perfecting the transfer costs at most 25% of the normal scale fee with your original lawyer and 50% with a new one: RM1,562.50 or RM3,125 on a RM500,000 purchase, plus 8% service tax and registration fees. The perfection of the bank's charge is capped the same way. On leasehold land add the state's consent fee and time.
Can I sell a unit that has no strata title?
Yes, by assigning your SPA to the next buyer the same way you bought it. For housing under the Housing Development Act the developer's consent is not needed (section 22D) and its confirmation fee is capped at RM50. The buyer's lawyer will want the full chain of stamped assignments, so keep every original.
What happens if the developer winds up before titles are issued?
Your rights under the SPA survive; the process gets slower and can cost more. The liquidator stands in for the developer to apply for titles and sign transfers. The National House Buyers Association reported in 2021 that liquidators were asking owners 2% to 3% of the price as an administration fee. Owners usually have to act together through the JMB, and a private caveat on the master title protects your interest meanwhile.
Tell us the project and the unit. We check the developer's status and the project on the KPKT register, share what we know about the title application, and tell you honestly whether the asking price is worth the wait and the extra legal step.