Strata & Building Management
Why your terrace house has a strata title — and what changes because of it
Section 6(1) of the Strata Titles Act 1985 allows subdivision of a building with two or more storeys on alienated land into parcels, and land on that lot to be subdivided into parcels. Section 6(1A) allows alienated land with two or more buildings to be subdivided into land parcels. A land parcel is defined as a unit of not more than four storeys (excluding shared basement) comprising accessory parcels and common property.
Quick summary
Quick answer
Best for
Risk level
Buyer action
| Best for | Buyers of units without individual strata titles, and owners whose title has been outstanding for years. |
|---|---|
| Risk level | High |
| Buyer action | 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. |
Ownership in the legal sense
What follows takes apart landed strata means shared common property, a management body and a maintenance charge on a house. Buyers routinely miss this. Share units decide your charge, your vote and your share of the land. They are worth checking.
The amendment that enabled landed parcels
Before the Strata Titles (Amendment) Act 2013, strata title was confined to buildings. Section 6(1) originally allowed subdivision of a building on alienated land into parcels, but not the land itself. The 2013 amendment introduced s.6(1A), which allows alienated land holding two or more buildings to be subdivided into land parcels. The amendment came into force on 1 June 2015, so schemes created before that date would not use this structure, and older advice saying 'land cannot be held under strata title' predates the change.
What a land parcel is
A land parcel is defined in the Act as a unit delineated within a lot, comprising a building of not more than four storeys (excluding any shared basement), which may have a shared basement, and comprising accessory parcels and common property. The four-storey limit is not arbitrary — it reflects the structural and fire engineering implications of taller buildings in a subdivided scheme. The definition also makes clear that a land parcel is not freehold land on the classical model: it comprises both the building and the common property of the whole lot.
The obligations that follow
A buyer of a land parcel still owns a parcel, not a standalone lot. Section 52(1) of Act 757 imposes charges on proprietors, and s.52(8) makes no distinction between proprietors of building parcels and proprietors of land parcels. So maintenance charges and sinking fund contributions are due. The Strata Management Act applies, including the prescribed by-laws, the powers of the management body, and the Strata Management Tribunal's jurisdiction. Common property is shared, and the management corporation or joint management body has the same duties to maintain it as it does for a building scheme.
Why the structure matters for risk
A landed unit in a strata scheme is not equivalent to holding a standalone freehold lot, despite appearances. If the scheme's structural integrity is compromised, the management body's duties and powers over common property come into play. If the scheme is wound up, individual proprietors are liable for proportional shares of the liabilities. And if there is a dispute about use, access, or obligations, the management corporation's by-laws and the Strata Management Tribunal's jurisdiction apply. Buyers should read the scheme's additional by-laws and understand how the common property — including any shared basement or common land — is defined and managed.
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
A landed property — a terrace, a semi-detached house, or a single bungalow — can sit under a strata title. This was introduced by the Strata Titles (Amendment) Act 2013 and came into force on 1 June 2015. A land parcel is defined as comprising a building not more than four storeys (excluding shared basement), accessory parcels, and common property. The practical consequence is that a landed buyer still has a management body, still pays charges under s.52(1) of Act 757, still has common property, and still falls under the prescribed by-laws. It is not a recent loophole; it is a deliberate statutory structure introduced to allow strata title on land in schemes with multiple landed units.
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| 1 | Check when the scheme was established — if before 1 June 2015, it was not using the land parcel structure introduced that date. |
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| 2 | Ask whether the scheme is structured under s.6(1) (building parcels) or s.6(1A) (land parcels). |
| 3 | Read the definition of common property for the scheme — it may include shared basement, common land, or both. |
| 4 | Understand that charges under s.52(1) apply equally to land parcel proprietors as to building parcel proprietors. |
| 5 | Read the scheme's additional by-laws to see how common property and access are regulated. |
Common questions
Can a terrace or bungalow be held under strata title?
Yes, as a land parcel under s.6(1A) of the Strata Titles Act 1985, introduced by the Strata Titles (Amendment) Act 2013 and effective from 1 June 2015.
What is a land parcel?
A unit within a lot comprising a building of not more than four storeys (excluding shared basement), accessory parcels, and common property.
Do I still have charges and a management body if I own a land parcel?
Yes. Section 52(1) of Act 757 imposes charges on all proprietors, whether of building parcels or land parcels. The management corporation or joint management body manages common property and enforces by-laws equally for both.
Is there a limit to how tall a building in a land parcel can be?
Yes. A land parcel comprises a building of not more than four storeys, excluding any shared basement. This reflects structural and fire safety considerations for subdivided schemes.
Lewis Chong
REN 69566 · IQI GlobalProperty advisor helping KL, JB, and Penang buyers make data-backed property decisions.
Related reading
Use one buyer framework across different news.
How your maintenance charge is actually calculated — share units, not floor area
Malaysian maintenance charges are apportioned by allocated share units under the Strata Management Act 2013, not by floor area — s.8(1) sends the computation to the First Schedule, and s.12(3), s.25(3) and s.60(3) apply it through the developer, JMB and MC periods. Here is how to read your own bill and when a different rate is lawful.
Lewis Conclusion
If you only remember one thing: ask for your share unit figure, not your square footage. It is the number that sets your bill and your vote for as long as you own the unit, and it is printed on documents you are entitled to see.
The sinking fund explained
The sinking fund is a statutory capital reserve set at a minimum of 10% of the maintenance charge under ss.12(4), 25(4), 52(3), 61(3) and 68(3) of Act 757. It may only be spent on capital items — painting, replacing fixtures, upgrading common property — and a general meeting may raise the rate but never drop it below 10%.
Lewis Conclusion
Ask two questions before you buy into any high-rise: what is the sinking fund balance, and when were the lifts, the roof and the external paint last done. If the balance is small and those items are old, the shortfall is coming to you as a special levy — it is only a question of which year.
What actually happens if you stop paying maintenance charges
Stopping payment of maintenance charges triggers a statutory sequence, not a negotiation: a Form 11 notice from a JMB (s.34(1)) or Form 20 from a management corporation (s.78(1)) giving not less than 14 days, interest capped at 10% per annum, then a debt claim, a warrant of attachment over your movable property, or criminal prosecution.
Lewis Conclusion
Withholding charges is the one protest that cannot work, because arrears also disqualify you from the committee and from voting — the exact levers you would need to fix whatever you are protesting about. Pay under protest, then fight it at the tribunal or the AGM where you still have standing.
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Check when the scheme was established — if before 1 June 2015, it was not using the land parcel structure introduced that date.
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Ask whether the scheme is structured under s.6(1) (building parcels) or s.6(1A) (land parcels).
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Read the definition of common property for the scheme — it may include shared basement, common land, or both.
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Understand that charges under s.52(1) apply equally to land parcel proprietors as to building parcel proprietors.