What is title deed?

Title deeds are a legal deed or document constituting evidence of a right, especially to ownership of property.
Without a proper title deed, you cannot prove your ownership which will in turn affect your right to pass or transferring (conveyancing) an interest, right, or property ,  title to property to a third party.

Why I do not have a title deed?

When a developer builds a new apartment complex or development, they own that property and the plot of land, under what is known as a Master Title. If you purchased a property through a developer, most probably your property is still within the development are incorporated under the all-encompassing Master Title during the building and construction phase.

Once the construction has completed, the developer will apply for the subdivision of Master title, which will eventually dividing up the big development (under the Master Title) into smaller pieces, i,e Individual Title or Strata Title. This is when the Perfection of Transfer(POT) and Perfection of Charge (POC) comes into play whereby all the parcel owners need to register their ownership from developer to each parcel owner.

What happens if I do not have a title deed?

1. Your potential buyer may not able to secure a loan financing or you may not able to refinance the property as the bank has no security to hold in their hand (mortgage).
2. In the event that a developer wound up or went into liquidation, the parcel owner will need go through a tedious process to look for the liquidator in charge to confirm whether the individual title or strata title still in their possession.
3. Your heirs may not able to inherit the property if the title deed incapable to be found.
   

Perfection of Transfer (POT)

Basic Process of Perfection Of Transfer (POT)

Step 1: The Purchaser appoint a lawyer to prepare and sign Form 14A (Memorandum of Transfer)
Step 2: The developer shall sign the Form 14A and release the strata title deed upon confirming that all the outstanding amount including the maintenance fees had cleared.
Step 3: Form 14A sent to LHDN for adjudication to determine stamp duty and legal fees payable. (bearing in mind the professional fees shall be only 25% or 50% on the applicable rates according to Solicitor Remuneration Order 2005 depending on circumstances)
Step 4: Registration is carried out at the Land Office
Step 6: The individual/strata title deed shall issued in favour of purchaser

Documents Needed For The Perfection Of Transfer (POT)

• A copy of the purchaser’s identity card.
• A copy of the strata title deed.
• A copy of the developer’s notification of issuance of strata title
• A copy of the SPA.
• The latest assessment receipt.
• The quit rent receipt.
• The assessment receipt.
• Letter of clearance that all the maintenance fees has been cleared
• Other relevant documents.

Perfection of Charge (POC)

The Perfection of Charge (POC) is essentially a process to let the bank to registered their mortgage upon the issuance of strata title. In the event that your housing loan has not fully paid off, the bank would not simply allow you to do Perfection of Transfer unilaterally without their mortgage registered. Hence, apart from Perfection of Transfer (POT) , a Perfection of Charge (POC) is also required to get the bank’s interest fully protected. Failing which, the bank would not be able to exercise their right of auction in court in the event of any default.

Basic Process of Perfection Of Charge (POC)

Step 1: Appoint a lawyer to prepare and sign Form 16A together with Charge Annexure.
Step 2: Form 16A (Charge) is signed by the bank.
Step 3: The relevant documents are stamped at LHDN upon stamp duty are paid.
Step 4: The Form 14A and the Form 16A shall be registered simultaneously at the Land Office.
Step 5: A new strata title shall be issued (with mortgage registered) which will in turn forwarded to bank for their security for loan.
Step 6: The client will only receive a copy of the title and copy of Form 16A until and unless the loan has been fully settle.

Documents Needed For The Perfection Of Charge (POC)

• A copy of the purchaser/borrower’s identity card.
• A copy of the strata title.
• A copy of the facilities agreement/letter offer
• The latest assessment receipt.
• The quit rent receipt.
• Other relevant documents.