Buying a unit without its own strata title in Malaysia (2026): what to check

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By Jason Lim, REN 84424 · IQI Realty · Checked on 13 November 2026

This guide is for buyers from Malaysia, Singapore, Indonesia, India, China and elsewhere looking at a Johor Bahru condo, serviced residence or strata landed home whose individual strata title has not been issued yet. The short answer: you can buy it, and many JB units change hands this way. Until the title exists, the building sits on a master title in the developer’s or landowner’s name, and you buy the seller’s rights by deed of assignment. The developer’s consent is not required for that assignment under the Housing Development Act, but you need its confirmation of the records, a statement of service charges from the management body, a loan that works without a title, and a plan for registering the transfer later.

What “no individual strata title” can mean

A strata development starts on one master title covering the whole land. Under the Strata Titles Act 1985, the building is later subdivided into parcels, each with its own strata title and a share of the common property. Ask which of these stages the unit is at:

Status	What it means	How a subsale works
Strata title in the seller’s name	Fully registered	Normal transfer at the land office
Strata title issued, not yet transferred	The title exists but is still in the developer’s name	Assignment now; the transfer is registered soon after
Strata application in progress	Survey and land office stages under way	Assignment; title expected later
No application, or stalled	Possible unpaid land premium, developer problems or old project	Assignment, but with real uncertainty about timing

My guide to strata titles in Johor Bahru covers the title types in more depth.

How you own the unit meanwhile: deed of assignment

Without a title to transfer, your rights come from the chain of agreements back to the first buyer: the developer’s original SPA, any earlier deeds of assignment, and now yours. Section 22D of the Housing Development (Control and Licensing) Act 1966, inserted by the 2007 amendment, sets the rules:

• Notice, not consent. An absolute assignment takes effect when the developer receives written notice; its concurrence is not required.
• What the notice includes. The stamped SPA, the executed deed of assignment and proof that all sums due to the developer are paid.
• A register. The developer must keep an up-to-date register of purchasers until separate or strata titles are issued and registered.
• Penalties. A developer that demands consent, imposes extra payments or overcharges for confirmations faces a fine of RM50,000 to RM100,000, up to three years’ jail or both.

The Bar Council’s conveyancing practice committee explained in 2007 that the section applies to sub-sales as well as first purchases and to financing, so developer consent should no longer be a condition of completion. Section 22D covers housing accommodation under the Act; a serviced residence on commercial land can qualify if it is meant for living in, but check with your lawyer how it applies to your unit. Other statutory consents, such as state consent, still apply. Not legal advice.

Developer, JMB and financier letters to ask for

From	What it confirms	Notes
Developer	The registered purchaser, the unit details, any chargee or assignee, and amounts due under the SPA	Section 22D(4); fee capped at RM50 per request in the 2007 amendment, or a prescribed amount
Joint management body (JMB) or developer, if no JMB yet	Service charges, sinking fund and other sums owed on the unit	Section 31 certificate under the Strata Management Act 2013; fee capped at RM50
Developer’s financier, if the master title is charged	A redemption statement and a letter of disclaimer	The bank agrees not to foreclose on your unit once the redemption sum is paid
Seller’s bank	Redemption statement for the seller’s loan	Paid from your purchase money at completion

A JMB should exist: the Strata Management Act requires the developer to convene the first meeting of purchasers, which establishes the JMB, within 12 months of delivering vacant possession. Arrears can follow the unit, so get the statement before completion; see arrears and apportionment and checking condo management.

The Deed of Mutual Covenant

Many projects, especially older ones and gated landed schemes, have a Deed of Mutual Covenant (DMC) signed with the SPA. It is a private agreement with the developer about shared facilities and charges, and unlike the SPA its terms are not fixed by the housing regulations. The National House Buyers Association listed typical contents: maintenance charges, a waiver of the right to lodge a caveat, the developer’s right to cut utilities for unpaid charges, exclusion of the developer’s liability, and assignment consent fees, often valid until strata titles are issued and a management corporation is formed.

• Ask for a copy. As a subsale buyer you usually take over the seller’s obligations, sometimes by signing an adherence deed.
• Check consent and fee clauses. Where a DMC or SPA still asks for consent to assign, ask your lawyer how it sits with section 22D.
• By-laws. Strata buildings under the Strata Management Act also have by-laws on pets, parking, renovations and access cards; see condo by-laws.

Strata Titles Act timelines, and why titles run late

• Before any sale. Since 1 June 2015, when the Strata Management Act came into force, a developer cannot sell parcels until it has filed a schedule of parcels with the Commissioner of Buildings (HBA, writing in The Star, November 2015).
• Titles with the keys. The post-2015 regime aims for strata titles to be issued before or with vacant possession, and links a progress payment under the statutory SPA to the title’s issue (same source).
• Older schemes. Developers of existing schemes, including liquidators, had to apply within three months of the new law taking effect.
• Penalty. Failing to apply within the time allowed is an offence under section 8 of the Act: a fine of RM10,000 to RM100,000, plus RM100 to RM1,000 for each day it continues.

Enforcement happens. In April 2026 a Selangor state committee chairman said Johor and Melaka had fined errant developers RM10,000 to RM100,000, and named unpaid land premiums and developers unable or unwilling to finish the handover as causes of delay (The Star, 23 April 2026). He also said a JMB or management corporation could take over the developer’s role if necessary. A project that has stalled for years is a different risk from one awaiting a final survey, so ask why the title is late; see abandoned housing projects.

Your home loan without a strata title

• Assignment instead of a charge. With no title to charge, your bank takes an assignment of your rights as security; section 22D treats a financier as a new purchaser for notice purposes.
• More checks. A financier’s lawyer typically searches the master title, the developer and the parties, seeks the developer’s undertakings, and, where the master title is charged, a redemption statement and letter of disclaimer from the developer’s bank (Malaysian Bar, May 2022).
• An undertaking from your lawyer. The bank’s lawyer usually asks your lawyer to undertake to complete the transfer once the title is issued.
• Apply early. Banks set their own policies on units without titles. Get a loan answer before you pay more than the earnest deposit, and make the offer subject to the loan. See JB home loans in 2026 and the bank’s letter of offer.

At the land office: searches now, perfection later

A search on the master title shows the developer or landowner as owner, plus any charge or caveat over the whole land; it will not show you. Once strata titles exist, Johor allows online private searches of strata titles through eStrata Johor (Johore Bar Committee, Circular No. 11/2025). See land title searches and caveats.

When the title is issued, the owner at that time has the transfer (Form 14A) registered in their name at PTG Johor or the district land office, and any lender registers its charge. This step, known as perfection, carries legal fees and disbursements; agree in the SPA who pays them. My guide to the memorandum of transfer covers registration.

Foreign buyers

State consent and Johor’s minimum price, generally RM1 million for most residential property (New Straits Times, April 2026), apply whether or not the unit has its own title. How consent is applied for while the unit sits on the master title is a question for your lawyer and PTG Johor before you sign. See state consent in Johor and Johor’s minimum price and quota.

Checklist before you sign

Check	Why
Title status and the reason for any delay	A pending survey and a stalled project are different risks
Full chain: original SPA and every stamped deed of assignment	Your rights depend on an unbroken chain
Developer’s confirmation of the registered purchaser	The seller must be the person on the developer’s register
Master title search: charges and caveats	A charged master title needs the developer’s bank’s letter of disclaimer
JMB or developer statement of sums due	Unpaid service charges can follow the unit
DMC and by-laws	Charges, restrictions and any consent clauses
Car park bays	Which bays come with the unit, and how they are recorded; see accessory parcels and extra car parks
Loan approval in principle	Some lenders are more cautious without a title
Who pays for perfection	Avoid a dispute when the title arrives

Selling such a unit later follows the same path in reverse; gathering these papers early shortens the sale (see selling without an agent and the subsale timeline).

Where to buy if this matters to you

Title status depends on the building, not the area, so check each project. As a starting point:

• Mount Austin and Tebrau, Setia Indah and Molek: many completed condos, some older ones still on master titles.
• JB Sentral and Bukit Chagar and Danga Bay: high-rises of different ages, including serviced residences.
• Iskandar Puteri and Permas Jaya and Senibong: many newer projects; ask about the strata application at handover.

Compare areas on my JB property map.

More Johor living guides: Strata titles explained · Subsale property risks · Buying an older condo · Choosing a conveyancing lawyer

Frequently asked questions

Can I buy a condo in Malaysia that has no individual strata title?

Yes. The purchase is done by SPA and deed of assignment, with written notice to the developer, and the transfer is registered at the land office later, once the strata title is issued. It takes more documents and checks than a titled unit.

Do I need the developer’s consent to buy a subsale unit under a master title?

For housing accommodation under the Housing Development Act, no. Section 22D, added in 2007, says the developer’s concurrence is not required for an absolute assignment; the developer must be given notice and must confirm its register on request for a capped fee.

What is a Deed of Mutual Covenant?

A private agreement between the developer and buyer about shared facilities, maintenance charges and related rules, usually signed with the SPA. Its terms vary by developer. A subsale buyer generally takes over the seller’s obligations under it.

Can I get a home loan for a unit without a strata title?

Often, yes. The bank takes an assignment of your rights as security instead of a registered charge, and its lawyer makes extra checks on the developer and the master title. Lenders set their own policies, so get an answer before you commit.

What happens when the strata title is finally issued?

The owner at that time has the transfer registered in their name at the land office, and any lender registers its charge. This is called perfection and carries legal fees and disbursements, so agree in the SPA who pays them.

What is the penalty if a developer delays applying for strata titles?

Under section 8 of the Strata Titles Act 1985, failing to apply on time is an offence with a fine of RM10,000 to RM100,000, plus RM100 to RM1,000 for each day it continues. The Star reported in April 2026 that Johor had fined errant developers.

Buying in JB and want the title checked?

Tell me the project, the unit and whether you are buying with a loan. I will share what I know about the title status, collect the developer and management documents your lawyer needs, and show you titled alternatives if you prefer them. You can also book an appointment for viewings, or a Zoom consultation if you are abroad.

Sources: Strata Titles Act 1985 (Act 318), sections 6 and 8, data synced September 2026; Housing Development (Control and Licensing) (Amendment) Act 2007 (Act A1289), section 22D, text published by the National House Buyers Association; Malaysian Bar Conveyancing Practice Committee, “Q&A on amended housing law”, 2007, accessed November 2026; Malaysian Bar, Datuk Chang Kim Loong, “Conveyance lawyer: Professional service trumps theoretical knowledge (Part 2)”, 30 May 2022; Strata Management Act 2013 (Act 757), sections 17 and 31, data synced September 2026; National House Buyers Association, on Deeds of Mutual Covenant, 1 February 2004; The Star, “‘SiFUS’ with the ultimate goal: vacant possession with strata”, HBA column, 28 November 2015; The Star, “Strata titles: Errant developers to face legal action”, 23 April 2026; Johore Bar Committee, Circular No. 11/2025, online private searches of strata titles via eStrata Johor, 2025; Malay Mail, strata by-laws under the Strata Management Act 2013, 29 September 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 13 November 2026, not legal or financial advice. Title procedures, fees and lender policies change and depend on the project; confirm with your lawyer, the developer, the management body, your bank and PTG Johor before you sign or pay.