THE NOTION OF STRATA LEASE SCHEME IN MALAYSIA: A REVIEW OF THE EXISTING LEGISLATIVE FRAMEWORK

Abstract

In Malaysia, leased land registration is applied to all strata titles of a multi-story building. Hence, strata lease schemes are formed through this concept. As the primary references to strata laws, there is a limitation in the Strata Titles Act 1985 and the Strata Management Act 2013, where these laws do not contain specific provisions on the development of strata lease schemes. The National Land Code [Act 828] must be referred to create a lease registration on strata title. Since no law governs a strata lease scheme, there is an unsettling debate for new legislation to safeguard every party involved in the scheme's development. Therefore, this paper aims to review whether these laws are substantial enough to uphold the requirements for constructing and administrating buildings of the strata lease scheme. The two objectives of this study are to determine what laws apply to strata lease scheme development and, secondly, whether these laws are relevant to support all parties' needs in the current development. The doctrinal and qualitative research methodologies are used to meet the objectives and cross-validate the legal reviews made through this study. It was found that nine laws are required to govern the development of a strata lease scheme. In conclusion, creating a specific law for a strata lease scheme concept may be optional. Still, one or two law updates may improve the laws' rigour and protect the parties involved in the strata lease scheme.