Importance of Individual or Subsidiary Title

 

Clause P of the Sale and Purchase Agreement (S&P) for Vistana Heights states:

‘The developer shall use its best endeavours and take all necessary steps to obtain separate issue of the document of title for the property….’

Convincing homeowners at Vistana Heights of the critical issues I’ve uncovered has been incredibly challenging. There seems to be little interest in the potential consequences of these findings.

An individual land title in a housing estate is vital for several reasons, as it directly affects property ownership, legal rights, and financial implications.

 Key points include:

Clear Proof of Ownership: An individual land title establishes unambiguous legal ownership of a specific parcel of land within the estate. This protects homeowners from disputes or claims by others. Without it, ownership under shared or strata titles can remain unclear, creating legal vulnerabilities.

Enhanced Marketability and Value: Properties with individual titles are more appealing to buyers due to their clear ownership and fewer restrictions. This increases resale value and simplifies the selling process compared to properties under group or strata titles.

Vistana Heights Specifics:

A letter from DBKK (Dewan Bandaraya Kota Kinabalu) indicates that the issuance of individual land titles requires the provision of road reserves, drainage reserves, and other infrastructure. While compliance was noted, an as-built survey from April 2019 inaccurately depicts the drainage reserve (simpanan parit) behind houses D17 to D18 as intact, aligning with the original 1995 development plan and the amended 2018 plan. In reality, this drainage reserve collapsed due to a landslip before 2011. This discrepancy raises serious concerns about the accuracy of the as-built survey, the amended development plan, and the documentation submitted for the Occupancy Certificate (OC).

Given these and other inconsistencies, it is uncertain whether DBKK will issue individual land titles as promised by the developer in Clause P, potentially undermining homeowners’ legal and financial security.