You’ve probably come across the terms “parcel”, “accessory parcel” and “common property” when signing a Sale and Purchase Agreement for a condo or apartment unit. So what do those terms mean?
Parcel
According to s4 of the Strata Titles Act 1985 (“STA”), in relation to a subdivided building, a parcel means one of the individual units comprised therein, which (except in the case of an accessory parcel) is held under separate strata title. This definition is the same as what is stated in the Strata Management Act 2013 (“SMA”).
In short, in terms of a building with multiple units (like an apartment), a parcel is one unit in said building and said unit is held under a separate strata title.
Accessory Parcel
As per s4 STA, “accessory parcel” means any parcel shown in a strata plan as an accessory parcel that is used or intended to be used in conjunction with a parcel. A common example of an accessory parcel is the parking lot that comes with the corresponding parcel.
Common Property
Under s4 STA, “common property” means so much of the lot as is not comprised in any parcel (including any accessory parcel), or any provisional block as shown in a certified strata plan.
Meanwhile, according to s2 SMA, the definition of common property is as follows:
(a) in relation to a building or land intended for subdivision into parcels, means so much of the development area —
(i) as is not comprised in any parcel or proposed parcel; and
(ii) used or capable of being used or enjoyed by occupiers of two or more parcels or proposed parcels; or
(b) in relation to a subdivided building or land, means so much of the lot —
(i) as is not comprised in any parcel, including any accessory parcel, or any provisional block as shown in a certified strata plan; and
(ii) used or capable of being used or enjoyed by occupiers of two or more parcels.
For a better idea on what common property is, examples of it are stairs, stairways, fire escapes, lifts, recreational areas and so on. It is essentially any part of the land used or capable of being used or enjoyed in common by all the occupiers of the building.
Besides, what constitutes common property may be determined by exclusion. As such, if it is not labeled as a parcel then it is common property. This was illustrated in the case of 3 Two Square Sdn Bhd v Perbadanan Pengurusan 3 Two Square & Ors; Yong Shang Ming (Third Party) whereby it was held that:
“… the definition of “common property” in the Strata Titles Act 1985 defines it by exclusion: common property is simply that which is not a parcel. Accordingly, there is no need for there to have been labels affixed to the relevant areas to be designated as common property; all the areas that are not identified as parcels will automatically be regarded as common property.”
It should be noted that although common property is enjoyed by all occupiers of the building, the owner of the common property is, as per s17B(1) STA, the management corporation. As such, it would also fall on the management to maintain the common property for the use of all occupiers.
Conclusion
In short, a parcel is an individual unit in a building consisting of multiple units while an accessory parcel is a parcel used in conjunction with the individual unit. On the other hand, common property is a lot that does not consist of any parcel. As such, areas designated as parcels or accessory parcels cannot be common property, vice versa.
