What is a title? It can be the name of a book or an artistic work. A title can also be an honorific when you address someone – for example, “Mr” or “Miss” . It might very well be used to describe a person’s title or high social rank too – like “Director” or “King”.
However, we are not talking about such titles! In this case we are looking at title in a legal aspect. In particular, titles used in property.
A property title can be defined as a bundle of interests, a document or deed that provides evidence of a person’s rights to or ownership of the property.
I will like to share with you what do we look at the most here in Singapore – namely the Land title and the Strata title. What I will be trying to do though, is to lay it out as simple to understand as possible and avoid getting too technical about it.
If you are interested to explore the concept of property titles in further technical detail – I would highly recommend getting a lawyer to advise you further.
Some background first..
All land in Singapore ultimately belongs to the State. The management of land in Singapore is done by the Singapore Land Authority (SLA). There’s land with 2 different tenures – Freehold or Leasehold, which can come in typical tenure periods of 99-year or 999-year.
The Government holds State Land too which can be sold to developers to build according to a fixed purpose/usage already decided by the Government.
The Land Title Act and Land Titles (Strata) Act dictates the registration of titles to property here in Singapore.
Land Title
The land title is a document which shows the person(s) rights to or ownership of a piece of land in Singapore. This piece of land can be identified by an unique lot number which clearly describes its size. In such a case, the owner has rights to use the land inclusive of the airspace above and soil below. The owner will be issued a Certificate of Title.
But of course, to what extent this space above, on and below can be used are subject to other regulations too. For example, buying a land plot that allows only a detached house at maximum 3 storey, you wouldn’t be able to split and build 2 semi-detached houses of 5 storeys.
Strata Title
A Strata Title is a document which shows the person(s) rights to or ownership of a property unit that is clearly defined by its boundaries (an airspace within a development). A lot number is assigned too, but with a distinction to show that this is a strata unit. This is issued to owners who bought an unit within an apartment building or land with shared common property. The document is known as a Subsidiary Strata Certificate of Title.
For example, you bought a unit in a condominium, cluster housing or townhouses. You and your neighbours within the same development will then each be issued a Strata Title. You will have no interest in the land itself and the common property.
It is good now to address a point which I believe some people may not be fully clear of. While the above does clearly describe owning a unit in an apartment building gets you a Strata Title, this does not apply to HDB flats. Why so? This is because you never really owned a HDB flat. HDB flats are public housing to accommodate affordable living. Basically, you are just leasing the HDB unit on a fixed 99 year lease.
But of course, I wouldn’t say this is good or bad. If you look at HDB resale prices in 2021, it has been a good year for these lessees. HDB flats can also be transacted or passed on in a will, so it’s not too bad! Indeed, public housing such as HDB flats are unique to Singapore.
Conclusion
So, what title do you have for your property? I have not got into great depth, but I hope it is sufficient for you to differentiate and identify by yourself.
Are you curious on what title do you get for a certain development? Reach out to us!
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