theSun Property January 2018

Email your feedback and

queries to: propertyqs@

thesundaily.com

TRATA-TYPE

property is

and has been all the rage. It

is also expected to be “the

living model” if not already.

Whether in cosmopolitan cities or

suburban fringes, and as space

becomes “in want” and prices hike,

we feature our final article on

strata-related property highlighting

pertinent questions frequently

asked to which Chris Tan (CT)

gives input on.

What should one look out for

in the S&P before deciding

on buying a particular strata-

titled residential property?

CT: Buying a strata title property is

not just buying a property but

buying into a community

living regulated by law. As a

buyer, you are not only

responsible for your very own

unit but also the common

property within the

development too.

There is an ongoing obligation to

pay the monthly service charges

and sinking fund until the day you

sell the same to another owner.

Besides the S&P Agreement, you

are normally expected to sign the

Deed of Mutual Covenants too, that

regulates the relationship of the

many owners within the same

development with house rules vis-

a-vis the prescribed by-laws under

the Strata Management Act. In

addition to the compliance with

these rules, you are also expected

to participate in the management of

the common property at the

Annual General Meeting as well as

the Extraordinary General Meeting.

In the completion of the S&P

Agreement, do ensure that the

seller has no more outstanding

charges and sinking funds owing

the management and that the

deposits paid are to be adjusted

accordingly.

Can you please explain

further on ‘share units’ of

strata-titled property? How

does this affect a residential

strata-titled property owner

or what is the relation

between the owner and the

share units?

CT: Share unit has always been

there in strata living as it will

be stated in the strata title

upon its issuance. It is now

capturing the limelight, given

that it is now the basis to be

contributed into the

maintenance charges and not

the usual rate psf of the size of

your main parcel. There are

different ‘weightages’ for the

main parcel, the accessory

parcel and the type of usage to

make up the various elements

of the share unit. Suffice to say

that two units of apartments of

the exact same size might have

different share unit allocation,

if one has more accessory

parcels than the other, or one

is of commercial usage while

the other is residential.

What are some current and

common issues faced by

owners of strata-titled

residential property and how

would these be best settled?

CT: Issue 1: Contribution to service

charges and sinking funds

from the owners have always

been done on the total size (in

sf) of the main parcel. Under

the new regime since June

2015, it should now be based on

per share unit instead.

Share unit is a concept that takes

into account the size and the usage

(of different allocated weight) of

both the main parcel as well as the

accessory parcel. It’s stated clearly

in the strata title when it is issued.

It is also the basis of voting by poll,

if so requested in any General

Meeting. Share unit is therefore

now the basis of both contribution

and control as opposed to just

control in the past.

In theory, it should be a fair

method for all. The issues are:

(i) Some strata owners find

themselves paying more than

before while some strata owners

now pay less; and

(ii) The Share unit allocation under

the previous legal regimewas a

result of consultation and

discretion and not as

transparently guided under the

new law. It is a difficult process

and to adjust the process again,

particularlywhen the strata

titles have been issued, will be

tedious.

IssueNo. 2: In PhasedDevelopment

there is now a requirement to file

the Schedule of Parcels (SOP)

stating clearly the total share units

to be offered under the entire

development before one can

proceed to sell. It therefore includes

the later phases of a development

that will only be developed in the

future.

The issue is that this SOP can

only be adjusted if we can get 100%

of the owners to agree or it is a

direction from the authority. There

will be no flexibility accorded to the

developer whomight want to

change the SOP for the feasibility or

sustainability of the development,

taking into account the new

circumstances of the future, in the

best interest of the entire

development.

Another related issue would be

on the contribution of the allocated

share units by the developer for yet

to be developed phase in the

maintenance of the common

property already built and

delivered.

: Any other ‘surprises’ or areas

of concern that many strata-

titled residential property

owners are unaware of until

after purchase of such

residents?

CT: Don’t be surprised if the

property does not come with

an allotted car park, although it

is a norm to expect a car park to

come with the unit. It is

not always the case.

Like many busy

owners of a strata-

titled property who

do not have the time

to sit in at resident’s

meetings with the

management body –

many have simply

‘gone with the flow’

of things as

‘questions/disputes’

require time for

discussion.What

would you

recommend for busy

individuals who have

‘no time’ to attend

suchmeetings but can

only look at the annual/

bi-annual strata/building

management statements/

financial reports? What

should one keep an eye out

for in these financial

statements? Why is it

important to attend these

meetings; what would

owners be losing out on by

not attending and being an

‘active owner’?

CT: It is a regulated community

living and participation is

expected of every owner.

Although many have chosen to

be passive, you need to

participate or run the risk of

letting major decisions lay in

the hands of the active few.

You should keep an eye to

ensure that the charges

collected are well spent, that

collection should always be

Email your feedback and

ueries t : r ertyqs@

thesun aily.c

monitored and the performance

of the appointed property

manager.

Also, understand your rights and

obligations as a strata owner is

important, and ensure that you and

your neighbours are equally aware

of the same too.

As a tenant, and not the

owner of the ‘parcel’ – are

they bound to all the By-laws?

CT: The by-laws, additional by-laws

and amendment of such

additional by-laws made by the

Management Body shall not

only bind the owners but also

the tenants, chargees, lessees

and occupiers.

Any other important issues

that youwould like to

highlight to readers of theSun?

CT: Moving forward, strata living

will be the preferredway of

community living. Take a keen

interest to learn and understand

this livingmodel in order to get

themost out of it.

There aremanymore frequently

asked questions, especially on

management bodies, by-laws and

leakage and defects. Answers to

these can be found in Chris Tan’s

Owner’sManual&Guidebook.

Followour property column next

Friday for more insights on the

market in the local scene.

STRATASERIES

Servicechargesand

sinking fund

Disputebetween

owners&management

Voting rightsduring

meeting

Leakageanddefect

Serious

strata

> Important issues and frequently asked questions

CALLED TOCAREAND

SHARE

... SkyWorldDevelopment

Group launched its #DaretoCare

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To date, many have come on board in

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bags, each filledwith a newpair of

school shoes, socks and a pencil box.

Members of the public whowish to

make donations towards the charity

drive can get details at www.skyworld.

my/#daretocare The photograph

features SkyWorld COOLee Chee

Seng (standing, centre) with Lions

Club Puchong president Ling SewChin

(standing, third left), together with

personnel from the property firm, Lions

Club and themedia.

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JANUARY19,2018