Assessing The Most Suitable Valuation Approaches And Methodologies For Stratum Title In Malaysia
Sr. Faziah Abd Rasid
The National Land Code (NLC) was amended in 1990 to enable the state authority to issue stratum title for underground space. Stratum Title can be separated from land titles issued for surface land. This is stipulated in Part 5(A) under Section 92A to 92G. According to Section 92G (1), underground land can be used for any purpose provided approval is obtained from the authority, which is the federal government.In relation to underground development with many utilities, the appraisal of real estate related to underground land use involved some unusual circumstances. Ordinary appraisal concerned with a total bundle of rights referred to as fee simple interests and it is generally assumed that the use and enjoyment of real property rights relates to the surface of the land. However, there are several below-surface uses of land that require a real estate appraisal.In this research study, it is the intention to look on the legislation issues related with Stratum Title, to examine the differences exist between Stratum Title and underground development in other countries. Also to determine the factors that affecting the stratum interest and to assess and analyses the valuation issues that impact on Stratum Title and renew possible valuation approaches and methodologies that could be applied in the Malaysian context.