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Thread: Freehold vs 99yrs property

  1. #21
    Join Date
    Dec 2002

    Default Re: Freehold vs 99yrs property

    Quote Originally Posted by zero o View Post
    For strata titles, under normal buy and sell scenarios, the seller sells only his apartment.

    But the other point to take note of is the apartment has an attached "share value" of the entire estate. A strata title does not mean that you do not own the land, it merely refines it further to say that no one individual owns it directly, but it is collective ownership. The collective share values owns the land the apartment sits on. No single owner can transact this land, but collectively, the owners can pool together and agree to a collective sale of the land and everything on it. (If strata titles dont own the land, then logic dictates that they cannot sell the land in an enbloc scenario.)

    In enbloc, it is not the value of the apartment that drives the value, it is the amount of land that the apartment sits on plus a few other factors like plot ratio and height limit. Thats why we have a situation whereby one's unit may only worth $0.5 mil in the resale market whereas in an enbloc scenario, the amount one can get is $2 mil.
    Yes, that's right. On that basis, the owner get to sell his unit on whatever price and pay the fee (whatever that is) to the strata title xxxxxx.

    Individual does not have the whoel right on the land and can only act on together as collective.

    Most of the cases in M'sia too, the estate comprising detach, semi-detach or bungalow, as long as under the strata title, they don't have the rights to re-develop their land though deem as freehold, management approval is required prior to any autthorities submission approval. Singapore should be similar.

  2. #22
    Senior Member melvin's Avatar
    Join Date
    Jun 2005

    Default Re: Freehold vs 99yrs property

    Type 1: Fee Simple
    Fee, fee simple, and fee simple absolute, all having the same meaning, may be defined as the largest possible estate in real property. The owner of this estate may use it and dispose of it during his lifetime or by his will as he desires, or if he do not make any such disposition, the real property automatically passes at his death to his heirs without any future limitation, other than the four limitations mentioned above, which it must be remembered affect all real property. The instrument creating the estate contains usually the words "to A and his heirs and assigns forever." Most realty is held in fee simple, and the term "Ownership" ordinarily indicates such a right. A fee simple is therefore the subject of the usual commercial transaction in the sale of realty. All other estates in real property are less than and some part of the fee simple. When gathered together they make a complete fee. This "splitting up" of the fee simple is usually as to quantity or time.

    Type 2:

    Estate in Perpetuity


    Leasehold is a form of property tenure where one party buys the right to occupy land or a building for a given length of time. As lease is a legal estate, leasehold estate can be bought and sold on the open market and differs from a tenancy where a property is let on a periodic basis such as weekly or monthly. Until the end of the lease period (often measured in decades; a 99 year lease is quite common) the leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to the owner. Terms of the agreement are contained in a lease, which has elements of contract and property law intertwined.

    The term estate for years may occasionally be used. This refers to a leasehold estate for any specific period of time (the word "years" is misleading). An estate for years is not automatically renewed.

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