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Strata & Building Management

The strata title says a different size from your SPA — what you can claim and by when

Neither the Strata Titles Act 1985 nor Act 757 contains an express provision on an area discrepancy between the certified strata plan and the SPA. Section 73 of Act 318 preserves other rights and remedies, so the claim is contractual — and the tribunal can order compensation or contract rectification, but not rectification of the register.

Quick summary

Quick answer

Best for

Buyers of units without individual strata titles, and owners whose title has been outstanding for years.

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High

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Send Lewis your building name, the charge you pay and what you are trying to decide, and he will tell you what to check first.

Title, and the gap before it

What follows takes apart neither strata Act writes a formula for this — the remedy is contractual, preserved by s.73, with the tribunal able to order compensation but not to rectify the register. Owning air space above land requires a survey, a plan and a register — which is why the timing gap is structural.

The Acts are silent on this

It is worth stating plainly, because a lot of advice implies a statutory entitlement. Neither the Strata Titles Act 1985 nor the Strata Management Act 2013 contains an express provision addressing a discrepancy between the area of a parcel on the certified strata plan and the area stated in the sale and purchase agreement. There is no prescribed formula, no statutory rate of compensation, and no self-executing right to a refund. What the Acts do instead is leave the field to other law.

Section 73 puts you back on the contract

Section 73 of Act 318 preserves all other rights and remedies. That is the provision that matters, because it means the claim is a contractual one: breach of the sale and purchase agreement, damages, or compensation on the agreement's own terms. So the first document to read is not the Act but your SPA — specifically its description of the parcel, its measurement basis, and any clause dealing with variation in area between the agreement and the final survey.

Rectifying the register is a National Land Code question

If the issue is that the strata register itself records something wrong, that is not dealt with in the strata Acts either. Section 5 of Act 318 requires the Act to be read and construed with the National Land Code, so rectification of a registration error falls under the Code's general provisions, including the Registrar's power to correct errors. That is a different application, to a different office, from a claim for compensation.

What the tribunal can and cannot do

Under s.117 and Part 2 of the Fourth Schedule to Act 757, the Strata Management Tribunal can order compensation, a refund of consideration, or the rectification or variation of a contract. Those are useful powers for an area-shortfall claim within its monetary limit. What it cannot do is rectify the strata register. So if you want money, the tribunal is a realistic forum; if you want the register changed, that is a separate route under the National Land Code.

Verify this against your own building

Ask the developer or management in writing for the current status of the strata title application and the date it was filed. Keep the reply; it is the document you will need if you ever have to escalate.

Buyer checklist

There is no formula in either Act. Section 73 of Act 318 preserves all other rights and remedies, which puts the claim on the sale and purchase agreement — breach of contract, damages, contractual compensation. Rectification of a registration error in the strata register runs through the National Land Code, because s.5 of Act 318 requires the Act to be read and construed with the Code. The Strata Management Tribunal can order compensation, a refund of consideration, or rectification or variation of a contract under s.117 and Part 2 of the Fourth Schedule — but it cannot rectify the register itself.

1

Read the SPA's parcel description, measurement basis and any area-variation clause before anything else.

2

Do not look for a statutory shortfall formula — neither strata Act contains one.

3

Note s.73 of Act 318 preserves other rights and remedies, which is what puts the claim on the contract.

4

If the register itself is wrong, that is a National Land Code rectification, via s.5 of Act 318.

5

If you want compensation, the tribunal can order it under s.117 and Part 2 of the Fourth Schedule — but not rectify the register.

Common questions

Is there a statutory compensation formula for a shortfall in area?

No. Neither the Strata Titles Act 1985 nor the Strata Management Act 2013 contains an express provision on a discrepancy between the certified strata plan area and the SPA area.

So what is my claim based on?

The contract. Section 73 of Act 318 preserves all other rights and remedies, so a shortfall is pursued as a breach of the sale and purchase agreement or under its compensation terms.

Can the register be corrected?

Rectification of a registration error runs through the National Land Code, because s.5 of Act 318 requires the Act to be read and construed with the Code.

Can the Strata Management Tribunal help?

It can order compensation, a refund of consideration, or rectification or variation of a contract under s.117 and Part 2 of the Fourth Schedule — but it cannot rectify the strata register.

Lewis Chong REN 69566

Lewis Chong

REN 69566 · IQI Global

Property advisor helping KL, JB, and Penang buyers make data-backed property decisions.

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Read the SPA's parcel description, measurement basis and any area-variation clause before anything else.

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Do not look for a statutory shortfall formula — neither strata Act contains one.

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Note s.73 of Act 318 preserves other rights and remedies, which is what puts the claim on the contract.

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If the register itself is wrong, that is a National Land Code rectification, via s.5 of Act 318.

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