theSun Property January 2018

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STRATASERIES
CONTINUING fromour series
of features on strata-titled
property, previously onDec
29, this weekwe feature a
pictorial and point-formarticle
highlighting important information
onmanagement bodies, the strata
management tribunal and the
commissioner of buildings, as well
as their roles and responsibilities.
MANAGEMENT BODIES
Themain purpose of setting up a
“management body” (MB) is to
“maintain andmanage the building
or land intended for subdivision
into parcels, common property and
such other relatedmatters”.
The different MBs established
during various phases/periods of
“completion” of the strata property
can be further divided into two
categories:
1)When the vacant possession of
parcels are delivered to the strata
owners BEFORE the issuance of
the strata titles.
2)When the vacant possession of
parcels are delivered to the strata
owners AFTER the issuance of
the strata titles.
FEATURES OF EACH
MANAGEMENT BODY
POWERS AND DUTIES OF THE
MB
The VITAL ROLE of anMB is to
control, maintain andmanage the
common property for the benefit,
comfort and enjoyment of the strata
owners, including its occupants.
These no doubt gives theMB
authority, but that which comes
with responsibilities.
Below are SOME of the powers
and duties of theMB:
1) Determine and impose charges
commonly known as “service
charges or maintenance charges”;
2) Determine and impose sinking
fund contributions, which serve
as a kind of reserved fund, usually
10% the rate of service/
maintenance charges;
3) Setting up and upkeeping the
maintenance and sinking fund
accounts; maintaining proper
records and annual auditing,
statements, filing, and providing
financial statements and info to
the strata owners, etc;
4) To insure building under a
damage policy via a licensed
insurer;
5) To set up a proper administration
office within the common
property;
6)To complywith notices or orders
issued by authorities pertaining
the common property, the strata
owners’ parcels, etc;
7) To enforce by-laws and
additional by-laws – fines and
such, wheremonies collected are
deposited into themaintenance
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Strata intelligence
> Important information pertaining strata-type property
account; and
8) In statutory presumption cases
where leakage and damage to
“inter-floor” and/or “partywall”
originates from the upper floor
parcel (unless the upper floor
strata owner can prove
otherwise) – theMB has to carry
out an inspectionwithin seven
days from receiving the “notice/
complaint”, determine the cause,
determine the party responsible
to rectify the defect, to issue a
certificate of inspection “Form
28”, to carry out and expenses
from responsible party in the
event the responsible party fails
to rectify the “problem” within
seven days from the date on the
Form 28.
[RefertoChrisTan’sOwner’s
Manual&Guidebookforthe
complete listofMB’spowersand
duties.]
Taking mandate
from annual general
meeting.
Performing powers
and duties in
accordance with Strata
Management Act 2013.
Compliance with the
prescribed by-laws.
Great power comes
with great
responsibility.
Features
Developer
Joint Management
Body
Management
Corporation
Subsidiary Management
Corporation
Establishment Incorporated under the
Companies Act 1965
(under the presumption
that the Developer is a local
incorporated company)
Upon the convening of the
1st AGM under Section 17
of the Strata Management
Act 2013
Upon the opening of book
of strata register under
Section 17 of Strata Titles
Act 1985
Upon issuance of
a certificate of its
establishment by the
Director of Land and Mines
under Section 17A(5) of
Strata Titles Act 1985
Commencement of
Strata Management
Operation
Upon delivery of vacant
possession of parcel to the
Strata Owners
Upon the convening of the
1st AGM
Upon the convening of the
1st AGM
Upon the convening of the
1st AGM
Legal Entity • Having perpetual succession
• Having a common seal
• May sue and be sued in its name
Members Shareholders Developer and all Strata
Owners
All Proprietors All Proprietors who enjoy
the exclusice benefit of
the designated Limited
Common Property
Management
Body
STRATAMANAGEMENT
TRIBUNAL
A tribunal is established under the
Strata Management Act (SMA).
Called the Strata Management
Tribunal (SMT) – it is established
mainly to settle disputes in relation
to strata management issues, in a
more expedient manner and via
minimal costs.
Who can be members of this
Tribunal?
They must be appointed by the
minister of urban wellbeing,
housing and local government.
The position of the chairman
and his deputy can only be
occupied by members of the
Judicial and Legal Services. A
minimum of 20 additional regular
members must comprise those in
the Judicial and Legal Service,
including lawyers with more than
seven years of experience in
practice.
The SMT only takes up issues
related to strata management.
Claims and disputes sought
cannot amount more than
RM250,000.
There is also no jurisdiction to
hear claims pertaining land title, or
estate or interest in land, or any
franchise, which is in question.
Some of the more common
disputes the SMT resolves include
those regarding outstanding
service charges, unsatisfactory
management, defect rectification
by the developer, disputes among
strata owners on leakage issues,
rejected renovation plans, etc.
Claims must be filed with the
“Tribunal Perumahan dan
Pengurusan Strata”, regardless of
the location of the parcel
concerned.
Offices are located in Putrajaya,
Penang, Johor Baru and Kuala
Terengganu.
COMMISSIONER OF
BUILDINGS
Otherwise known as COB, the
“position” can only be taken up by
an authority employed by a district
city council office e.g. MPSJ, MBPJ,
DBKL, etc.
Below are SOME of the powers
and duties of the COB:
1) To enforce the provisions of SMA
including all rules and regulations
promulgated there under;
2) To act as “trustee” for the
Common PropertyDefect
Account;
3) To appoint amanaging agent if in
any case all Strata Owners refuse
to becomemembers of
Committee or theMB fails to
carry out its duties to the
satisfaction of the COB;
4) To assist/direct theMB – in
conveningmeetings,inexercising
its duties and powers in
accordance to the SMA, in
imposing and reviewing the
Charges, and reviewing
decisions; and
5) To issuewarrant of attachment, if
required, with the aid of theMB
or police personnel, and
supervise the auction for
recovery of sums videwarrant of
attachment.
[All informationandchartsare
retrievedfromOwner’sManual&
GuidebookbyChrisTan.]
Followour final part of the series
next week on frequently asked
questions on strata-type property
and advice fromChris Tan himself
on certain issues.
STRATAMANAGEMENT BOOST ... The Valuers,
Appraisers and Estate Agents Act 1981 has been amended has been
gazetted on Jan 2, 2018 as Valuers, Appraisers and Estate Agents and
PropertyManagers Act, 1981 following amendment to Act 242. This
led to the UrbanWellbeing, Housing and Local Government Ministry
launching the ‘Register of PropertyManagers’. With this register,
strata-property owners can rely on ‘professional, well-informed and
capable’ registered propertymanagers to address their grievances and
find solutions to strata-property issues in a proper, lawful and hopefully
faster time frame. The photograph features members of the Property
Management Committeewhowill oversee the ‘sanctioned/registered
propertymanagers’, together with (fromeighth, left) FinanceMinister
II Datuk Seri Johari Abdul Ghani, UrbanWellbeing, Housing and Local
Government Minister Tan Sri NohOmar and the Board of Valuers,
Appraisers and Estate AgentsMalaysia president Nordin Daharomat
the official launch of the Register. Followour property article on Jan 26
for more exciting details.
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