What You Should Know About Living In A Strata Landed Property In Malaysia

Strata non-landed property owners have their own set of rights. But if you live in a strata landed property, they aren’t the same. Some of these differences include responsibilities pertaining to property maintenance and fire insurance.
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In Malaysia, many are familiar with non-landed strata properties or what's often called high-rises such as condominiums and apartments, but not as much when it comes to strata landed properties

Even though these are both strata properties, strata landed properties aren’t the same as their counterparts.

 

What Is A Strata Landed Property?

A strata title is a form of ownership, usually meant for multi-level apartment blocks, and horizontal subdivisions with shared areas and facilities.

A strata scheme is thus defined as a property development that divides buildings or land into parcels and common property under a management system.

A strata landed property is basically a landed house, but with condo-style facilities such as a swimming pool and gym.

These developments may consist of bungalows, terrace, or semi-detached houses, ranging from 2- to 3-storeys in height.

 

What Should I Know As A Strata Landed Property Owner?

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If you are planning to purchase, or have already owned a strata landed property, here are some key things that you might want to keep in mind.

1) Strata landed properties are governed by the Strata Management Act 2013 (SMA) and Strata Titles Act 1985 (STA)

Land parcels with strata titles fall under the protection and governance of the Strata Management Act 2013 (SMA) and the Strata Titles Act 1985 (STA)

These govern the subdivision of buildings into parcels and strata title properties, as well as its management and maintenance.

For example, under SMA 2013, payment for maintenance fees and sinking funds are mandatory.

2) You’re responsible for the maintenance and repair of your home’s facade

The facade includes all visible parts of the building, such as exterior windows, balconies, open areas, and terraces.

Unlike how non-landed strata properties are managed, strata landed property owners will be the ones responsible for the maintenance and upkeep of their home’s facade.

For example, if your roof starts leaking, the management is not responsible for repairing it. Under the SMA, strata landowners aren’t entitled to such benefits.

This is in contrast to non-landed residences like condominiums, where the management will maintain the common property that encompasses the roof and exterior of the building, as well as common areas.

3) You’re restricted with certain rules when it comes to house renovations 

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When you buy a strata landed property, what you’re really purchasing is a parcel of land, and not a landed property.

Land parcels are regulated under the SMA, and have restrictions on renovation works.

If you're one of those who paid more for a corner unit because it has more plot space, you might not be able to expand your living area to take advantage of the larger plot space.

Additionally, you can’t alter the facade of your property until the management has given prior approval.

4) Higher maintenance costs

A strata landed development has a relatively large development footprint compared to a non-landed development.

More manpower is required for the maintenance of the shared facilities due to the larger size.

For example, more manpower needs to be catered for maintenance aspects such as gardening, security, and cleaning.

As a result, your maintenance fees will end up higher than that of a non-landed development.

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5) The larger the land parcel, the higher the service charges

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Your service charges are not determined by the size of your building, but by the size of the land parcel that you've occupied. 

If you have an end or corner lot, you’ll need to pay higher service charges even if your building is the same as your neighbours’, because the area of your parcel is larger.

6) You’re responsible for your own fire insurance

In non-landed strata developments, fire insurance is the responsibility of the management.

They have to get insurance coverage for the entire building, including all the individual building parcels.

However, in a strata landed development, the responsibility for fire insurance falls on the owner of the land parcel, so you’ll have to get your own insurance coverage.

 

The Pros And Cons Of Staying In A Strata Landed Property

You may want to understand the pros and cons of a strata landed property if you're planning to make it your new home. 

The Pros

The Cons

  • You have to pay for maintenance fees for security purposes and the upkeep of the common facilities
  • Common areas are managed and maintained by the MC
  • If some owners refuse to pay for their maintenance fees, common property may not be maintained properly due to a lack of funds
    • When owners refuse to comply, the MC has to take legal action. Legal costs will have to be borne by the management funds
  • The property is gated and guarded, which provides a sense of security
  • Even if you don’t use the common facilities, you’ll still need to pay for the maintenance fees
  • Residents get exclusive use of a variety of recreational and lifestyle facilities
  • The management has the right to not allow renovations to the facade of the building or any space extensions
  • Some strata landed developments form part of a township, which means there are nearby amenities such as schools and commercial centres
  • Higher maintenance costs than non-landed strata developments due to larger development footprint and more manpower required
  • With effective management and maintenance, property value is well-protected
 
  • Statutory regulation under SMA 2013
    • Disputes can be brought to a tribunal or civil court
 
  • Maintenance fees are mandatory for every owner of each land parcel, and they cannot avoid paying for these fees
 

 

What Are The Differences Between Landed And Non-Landed Strata Schemes?

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Landed and non-landed strata schemes DO share one thing in common.

For both, home owners must pay for the maintenance fees and sinking fund to contribute for the management and maintenance of the common property.

Here's a summary of all key differences between a landed and non-landed strata scheme:

Landed strata scheme

Non-landed strata scheme

  • The building is maintained by the owner, and this includes the roof, external walls, and facade
  • The common property and building facade is maintained by the management, using funds from the maintenance fees collected and sinking fund accounts
  • Fire insurance coverage for the property is covered by the parcel owner
  • Fire insurance coverage for the building, including any individual parcels, is covered by the management
  

Now then, we have covered all the essentials of what you need to know regarding living in strata landed property!

As you can see, there are certain aspects of living in a strata landed property that differ from that of living in a non-landed strata property.

But if you still feel that this type of development is your cup of tea, then you'll be able to enjoy the best of both worlds: larger living spaces with condo-style facilities!

 

If you’re the owner of a new strata landed property, why not take a look at our essential guide on receiving vacant possession of your new home? 

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