4 Answers

askguru expert
Hi there!

The only penalty here is to not legally own the property under your name. This might affect you if you're planning to sell your property.

That is because, to sell, Form 14A in the Malaysian National Land Code is needed. As for the legal charge of the property with Individual Title by the owner to his/ her financier, Form 16A is applicable.

Both the transfer and the charge will involve the land office and the instruments must be presented to the land office for registration.

Read more about it here: https://www.propertyguru.com.my/property-guides/guide-legal-documents-memorandum-of-transfer-mot-15910
and
https://www.propertyguru.com.my/property-guides/what-is-strata-title-individual-title-updated-722

Hope this clarifies!
Kim Chia
There is no fine or penalty if you don't transfer but in the event you want to sell, it will take longer period to complete. If the property is more than 10 years and you do not have individual title, bank are not in favour of borrowings. You should get it done.
Kim Chia
There is no fine or penalty if you don't transfer but in the event you want to sell, it will take longer period to complete. If the property is more than 10 years and you do not have individual title, bank are not in favour of borrowings. You should get it done.
Ramlah Binti Awang
Dear Anonymous , ownership and Issuance f title I think what you meant is issuance from master title to individual title right? If so, i think I put it this way: When the individual or strata title is issued, then the owner /buyer should get it transferred from the Developer to the the owner /buyer as soon as possible. Why? 1. because, if your name as the owner /buyer is not registered in the title, the land office does not have you as recorded the owner /buyer and the National Land Code does not regard you as the registered proprietor where u cannot exercise all the rights and title as a registered proprietor 2. let say, if the developer or the proprietor of the land (master title) upon which your unit is erected wound up / passed away, who will take over this developer or the proprietor's duty to transfer your unit into your name. If the Developer wound up/individal proprietor is bankrupt, the liquidator may take over , but there is liquidator fees involved which again will definitely meant extra cost, right? If the proprietor is an individual , if the proprietor passed away, who will take over his duty on issuance of title. and do not forget other issues .... 3. If the lawyer firm notified that they will contact financier in this case, what the financier normally do, upon advise of their lawyer, the financier will exercise the Power of Attorney previously given by you to execute the MOt and then proceed to register the Financier as your attorney and your said property will be charged to your financier. and all cost will be bear by you and will be add up to the loan granted earlier, with prior notice given to you. Thank you ****************************** If you have property for sale or rent or let out and need assistance from an agent /negotiator , please do contact me at 0162953930 / www.wasap.my/60162953930. Will be at your service, in syaa Allah Thank you Ramlah.