Wrong land categorisation by developers one of the factors hampering strata title issuance

• “This is why we want to propose that for future developments, certain prerequisites must be fulfilled before planning permission can be granted.”

KUALA LUMPUR (July 18): One of the main challenges to timely registrations of strata titles is unresolved issues regarding land use categorisation on the developers’ part.

This was pointed out by Department of the Director General of Federal Lands and Mines (JKPTG), Strata and Stratum Titles Division director Danial Lee Abdullah during the panel discussion at the Real Estates’ Strata Conference 2024 held here last week.

Themed “Strata Governance Challenges — Path Toward Harmonious Strata Living”, the event organised by Excel Academy gathered experts to share their thoughts on improving stratified living.

Problems arise when strata titles for mixed developments are incorrectly categorised solely as residential titles, leading to discrepancies in the approved plans by the Department of Survey and Mapping Malaysia (JUPEM) and the Land Office.

“Before the Land Office can issue the title, developers must solve the issue of land categorisation, which is the most time-consuming part. This is why we want to propose that for future developments, certain prerequisites must be fulfilled before planning permission can be granted.

“At the moment, the local authorities will often sign off with conditional approvals first. Some of these developers will then delay resolving these issues even after the development is completed,” explained Danial.

With the new proposals, if JKPTG notices any discrepancies with the plans submitted by the developers when applying for their strata titles, developers will need to reapply for their Certificate of Proposed Strata Plan (CPSP) from JUPEM.

This would certainly incur extra costs and time. Hence, to prevent this, Danial advised developers to be selective when choosing land surveyors to work with, ensuring their competency beforehand, and to take an active approach in all stages of the planning approval process.

Include plans for property management from onset

Meanwhile, to ensure more thorough and efficient planning for strata developments, plans for property management should be included in the earlier stages, said Henry Butcher Malaysia (Mont Kiara) Sdn Bhd managing director PMgr Sr Low Hon Keong.

“You have to consider, during the planning stages, the costs of all the facilities intended, and how it will affect your budget and project eventually. In terms of marketing, it’s easy to get carried away with the wonder that all these facilities can generate. But in reality, are these facilities actually popular with residents and are they practical to have?

“The earlier long-term property management is taken into consideration, the smoother the handover process. Developers will also have practical solutions on hand for their purchasers, and overall maintenance costs can be reduced,” Low pointed out.

Success of mixed development depends on mall

Low also pointed out the importance of giving the mall or retail section a bigger say in the management of a mixed development.

“Individual stakeholders may have conflicting interests, but at the end of the day, the success of a mixed development depends on the owner of the mall or the retail portion of the development,” said Low.

He added that it is important to have a consistent concept and branding to continuously encourage investments into the development.

“If the voting right of the anchor owner is not at a certain level, and the management committee (MC) can simply change the branding of the development, it will jeopardise investments into the project.

“In any stratified development, it is difficult to please everyone. At the end of the day, what we want is a majority of 70% to 80% of the votes from those who attend the annual general meetings, to find a balance between fairness and the long-term sustainability of a development,” said Low.

Be transparent on house rules 

For Gamuda Land Sdn Bhd township management senior manager PMgr Dr Prashanth Kumar, it is important to let purchasers know the rules and regulations [of a mixed development] right from the onset of delivery of vacant possession (DLP) to ensure fair usage in the future.

“There has to be a lot of transparency and a certain establishment of house rules. Often, during the development planning stage, we will include all the facility rules and regulations into the additional by-laws. And during DLP, we always show the residents their facilities first, and allow them to raise any questions during a tour of the development. This is a good time to explain to the owners the guidelines, rules and regulations, facility hours, booking periods, etc, to clearly ensure that everyone [in a mixed development] has equal share,” said Prashanth.

He also emphasised the importance of working closely with management committees or joint management bodies to engage with residents through multiple avenues like physical town hall meetings, or through digital platforms designed for resident management and feedback.

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