A Strata title is one of the title structure of ownership and control over a stated property. It is usually applied to subdivided buildings or complexes such as high-rise buildings, town houses, duplexes, flats, apartments, condominiums and commercial buildings when there are a few units of property on the same land but with separate leases.
So what does it mean to have a Strata Title?
This form of title gives individual unit holders title over the space they occupy while the land and common property are controlled by the Management Corporation (owner’s committee).
Strata schemes are designed to give property owners more control over the space they occupy. The structure of strata titles designates the Management Corporation as the owner of the land.
So why should you want a Strata Title?
1. As ultimate proof of their property ownership.
2. One need not obtain the consent of a third party (the developer) if and when you should decide to sell your property.
3. To form a management corporation (MC) by owners of the subdivided building to maintain and manage the building and to have their own by laws, usage or restrictions. Until then, owners usually do not have a say in the way the building is managed or maintained, the monies collected from maintenance charges, building funds etc.
4. As final proof of the built-up area of your unit and ultimately your apportionment of the share in the total aggregate units.
5. As long as the strata titles have not been transferred, the land and the common property are still owned by the developer. Should the developer company goes under liquidation or becomes insolvent before strata titles have been obtained, the unit owners will have to go through a lot of trouble or might eventually have to pay for the application of the strata titles themselves.