New Strata Laws Finally in Force-Kl

NEW STRATA LAWS FINALLY IN FORCE
Background on Malaysian Strata Law

Malaysian Strata Law has always been criticized as outdated and inadequate compared to countries like
Singapore, Hong Kong and Australia. In fact, for a very long time we did not have a single, comprehensive
source of law on the area. Following the Australian[1] experience our National Land Code 1965 did initially
contain some scattered provisions on subsidiary titles which were later repealed and replaced by the Strata
Titles Act 1985[2].
The STA 1985 was the first piece of legislation passed to specifically govern subdivision of buildings into
parcels and the subsequent issuance of strata titles[3] in Peninsular Malaysia. Though commendable, the
STA 1985 proved insufficient over time particularly in covering the aspect of management of subdivided
buildings. This then led to the enactment of Building & Common Property (Maintenance & Management)
Act 2007[4] to specifically address the issue of maintenance and management of high-rise buildings and
their common property by developers followed by joint management body and management corporation.
Co-existence of STA 1985 and BCPA 2007 further led to confusion on interpretation and application of the
law in relation to management and maintenance of subdivided buildings, which necessitated overhaul of
the law as such.
The 2013 Strata Acts

On 1st June 2015 the long-awaited 2013 Strata Acts Strata Titles (Amendment) Act 2013[5] and Strata
Management Act 2013[6], were brought into force. The STA 2013 extends the application of STA 1985 to
the Federal Territory of Labuan. Provisions in STA 1985 are amended and harmonized with the National
Land Code 1965. STA 2013 has also carved out all the provisions regarding management of subdivided
building[1] under the STA 1985 and placed it purely under the governance of Strata Management Act
2013[7]. The implementation of the SMA 2013 is complemented by the Strata Management (Maintenance
& Management) Regulations 2015[8] which duly came into force on 2nd June 2015.
Combined impact of the Strata Laws is to ensure strata titles being passed to purchasers upon delivery of
vacant possession, promote certainty on the allocation of share units from early stages of development and
greater check and balances on developers[10] at various stages of construction. This article is an effort to
raise awareness on the key changes introduced by the recent laws on developers involved in stratified
developments[11]:
Prior to Sales of Parcels
Under the new regime of law developers must now fulfill certain pre-requisites before proceeding with any sales of
parcel;
i. Certificate of Share Unit Formula (SijilFormula Unit Syer)
Developers must obtain a Certificate of Share Unit Formula (or SiFUS) to be issued by the Land
Office (PTG). This new insertion is in line with the spirit of the Strata Acts i.e. to achieve
passing of strata title with delivery of vacant possession. Accordingly, in order to obtain SiFUS
developers must ensure the following matters and documents are in place;
All relevant land matters are settled;
Receipt of payment for Land Premium (if any);
Letter of Application for Qualified Title as endorsed by Land Office (if there is no Final Title);
Receipt of Quit Rent for the current year;
Letter of appointment of Licensed Land Surveyor;
Receipt of Surveying Fees by Land Surveyor Board;
Share Unit Formula;
Schedule of Parcels signed by Licensed Land Surveyor and Architect/Engineer;
Approved Building Plans
ii. Schedule of Parcels
Section 6 of SMA 2013 makes it compulsory for developers of any building or land intended for
subdivision to file a Schedule of Parcels[12] with the Commissioner of Building before proceeding
with sales of any parcel.
Developers are not at liberty to unilaterally change the plan or legends. Any amendment to the
Schedule of Parcels can be made only (i) as per the requirement of local authority or (ii) with
agreement of all purchasers of the development. In case of such changes, developers must submit
within 30 days from the date of alteration or revision of building plans an amended schedule of
parcels[13].
To promote transparency in the development industry, the newstratalawsrequires a copy of the
Schedule of Parcels to be exhibited at a conspicuous position[14] in any office or branch office of
developers and at such place where the sale of parcels is conducted.
Super Structure Stage
Once a development reaches it super structure stage, the developer must begin the process of
applying for subdivision of building or land[15];
i. Certificate of Proposed Strata Plan (CPSP)
A new insertion has been made under section 8A of STA 1985 whereby developers must now apply for and obtain a
Certificate of Proposed Strata Plan from Director of Survey in JUPEM. This certificate certifies the proposed strata
plan which further facilitates the application of subdivision of building or land.
ii. Application for Subdivision

Under the revived section 8, STA 1985 the original proprietor of the land or building must apply for subdivision of
building or land 3 months[16] from the date of issuance of document certifying the super structure stage.
Besides complying with the time frame of application, developers must also ensure (i) the land is held under final title;
(ii) use of the land is not contrary to the land category and conditions; and (iii) the land is not subject to any charge or
lien, before making an application for subdivision of building or land.
Delivery of Vacant Possession

Common Property Defects Account
Upon delivery of vacant possession, developers are now required to deposit[17] a sum not less than 0.5% of estimated
cost of construction of development area (which includes commercial and residential components) but exclude land
costs or RM50,000 (whichever is higher) into a Common Property Defects Account, an account to be opened and
maintained by the Commissioner of Building.
Under the new law, the Common Property Defects Account allows a claim[18] against any defect in the common
property to be made by either (i) a purchaser, (ii) a proprietor, (iii) a joint management body, (iv) a management
corporation, (v) a subsidiary management corporation, (vi) managing agent or (vii) any other interested person[19].
Maintenance and Management
i. Preliminary Management Period
From the date of delivery of vacant possession until one month after the first Annual General Meeting of the
Management Corporation, developers bear the responsibility to maintain and manage the subdivided building or land
and common property. During this period developers are duty bound to, amongst other;
Determine and collect charges and contribution to sinking fund;
Establish and maintain a maintenance account until the expiry of the Preliminary Management Period (ie one
month after the first AGM);
Prepare and maintain a register of all parcel owners of the subdivided building or land;
ii. Management Corporation
Before expiration of the Preliminary Management Period, developers must hand over control of the maintenance or
management by transferring all balance of money in the Maintenance Account, administration office and all related
records, plans, warranties on their respective development to Management Corporation.
iii. Limited Common Properties and Subsidiary Management Corporation

The SMA 2013 expressly acknowledged the concept of Limited Common Properties which are common features in
mixed developments. Limited Common Properties are such part of common property that is designated for the
exclusive benefit of proprietors of two or more parcels.
For effective management of this category of common property, Management Corporation can now create one or more
Subsidiary Management Corporations and delegate the management of limited common properties to the same, for
the purpose of representing the different interests of parcel proprietors;
The creation of a Subsidiary Management Corporation (SMC) is governed closely under the new s17A STA 1985.
The Management Corporation (or its appointed professionals) to prepare, convene and facilitate an Extraordinary
General Meeting (EGM) in order to reach a comprehensive resolution on a special strata plan which must clearly
define the boundaries of limited common properties. The Management Corporation must then submit the special
strata plan, copy of the comprehensive resolutionand poll result to the Director of Land & Mines who will duly issue
a Certificate for establishment of SMC;
iv. Statutory By-Laws
The SMR 2015 provides a more complete set of by-laws in the new Third Schedule. Previously the by-laws under
STA 1985 only broadly detailed the duties of the proprietor, the functions of management corporations and outline a
few prohibitions for parcel proprietor.
The new by-laws, which contain 8 Parts and run into 15 pages is a template that is applicable during management by
the developer, the joint management body, the management corporation or the subsidiary management
corporation.These by-laws will bind these bodies to the purchaser, parcel owners or proprietors, and any charge or
assignee, lessee, tenant or occupier of a parcel, as the case may be.
The by-laws spell out general duties of the proprietor, general prohibitions against usage of parcels for illegal purposes
and specific prohibitions against various other aspects such as storage of inflammable or explosive materials, pest
control, keeping of animals and drying of laundry. Other parts of the by-laws detail out the management of common
property and its use, handling of vehicles, solid waste disposal, renovations and the power of management corporation
to take proceedings as agent for proprietors in case of defects of parcels.
To allow management bodies to function more effectively, the by-laws contain enforcement provisions which will
now allow management bodies to impose fines against defaulters and recover outstanding sums from proprietors by
applying for a warrant of attachment on movable property.
Conclusion
Implementation of the Strata Acts is undeniably received with mixed feelings; where on one hand it is applauded to
finally inject clarity and security in the sales and purchase and management of subdivided properties whilst on the
other hand, it breeds frustration in demanding property developers to be familiar and adopt a revived version of
workflow in line with the Acts. However, with the mushrooming of high-rise buildings and gated and
guarded housings, it is almost inevitable that the nation moves towards having suchan improved,comprehensive
regime of law to better govern a very fundamental need of the modern society owning a home and living peacefully
within a sharing environment.
[1] The Australian New South Wales Conveyancing (Strata Titles) Act 1961
[2] Hereinafter referred to as STA 1985
[3] STA 1985 replaced the older reference to subsidiary title in National Land Code 1965 to strata title
[4] Hereinafter referred to as BCPA 2007
[5] Hereinafter referred to as STA 2013
[6] Hereinafter referred to as SMA 2013
[7] Part VII on Management of a subdivided building, Part IXA on StrataTitles Board, Second Schedule and Third
Schedule in STA 1985 are now deleted
[8] Repeals the BCPA 2007
[9] Hereinafter referred to as SMR 2015
[10] Collectively refers to housing and non-housing developers
[11] Collectively refers to housing and non-housing developments
[12] A schedule of parcel shows the proposed share units of each parcel or proposed parcel and the total share units
of all the parcels. In case of phased development, the schedule of parcel shows the proposed quantum of provisional
share units for each provisional block.
[13] Regulation 7 of SMR 2015
[14] As provided under Section 6(5),SMA 2013
[15] Unlike the pre-2013 amendments whereby developers were required to apply for subdivisions within 6 months
from the date building is completed if the sale or agreement to sell any parcel took place before completion of the
building
[16] Upon application, the time frame can be extended for a further one month by the Director of Survey
[17] Deposit to be made either in cash or by bank guarantee
[18] During the defect liability period
[19] As per Regulation 50, SMR 2015
Category : Property & Conveyancing
NGOH Kee Hane

July 11, 2015 at 10:57 am
Under this new Strata Law, do the management bodies has rights or jurisdiction to demand that the grass within your
compound must be cut as it is too messy/tall? I own a new corner semi-D. It was delivered 9-12 mths ago. I am
currently engaging interior designer to renovate and furnish it. But the grass in the compound has not been cut for 5
mths. They demanded it to be cut or else they will call in local council and fine me. Do they have the right to infringe
into my private compound?
Thanks.
Reply
hhq
August 10, 2015 at 10:38 am
Dear Sir,
Thank you for your interest in our article and your query. Under the new strata management regime
operating in the country with the coming into operation of the Strata Management Act 2013, you and all
strata property owners will now be bound by the mutual covenants contained in the by-laws in the Third
Schedule of the Strata Management (Maintenance and Management) Regulations 2015 (hereinafter called
the by-laws). The by-laws will bind the developer, the joint management body, the management
corporation or the subsidiary management corporation, as the case may be, and the purchaser, parcel
owners or proprietors, and any charge or assignee, lessee, tenant or occupier of a parcel. Under the by-
law the joint management body/management corporation has the power to demand you to cut the grass as
it is too messy/tall if by leaving the grass uncut you are endangering the lives of other proprietors and their
families by relying on paragraph 8(8) where it is stated that:-
8. General duties of a proprietor
A proprietor shall
(8) not use or permit to be used his parcel in such a manner or for such a purpose as to cause nuisance or
danger to any other proprietor or the families of such proprietor
The management may justify themselves by relying on this provision in demanding their request as by
leaving your lawn uncut, you are creating a condition endangering the lives of other proprietors and their
families as the tall/messy grass will likely cause hidden risk/danger such as the appearance of snakes and
be a source for bush fires which if spread will endanger the lives of other proprietors and their families in
the strata development. Such demand made could not be said as infringing your private compound if the
management does not physically trespass into your land area.
Apart from the above provision, the management may also has the right to complaint to local authority
regarding the deteriorated condition of your compound if you ignore their demand and the local authority
may intervene into the matter by issuing summons/compound/fine.
Reply
Sreether
August 18, 2015 at 7:16 pm
Under the 3rd schedule, By-Law 6 (4) and (5), is the MC entitled to deny proprietors or occupiers (tenants)
the right drive their their vehicles to their respective parking bays for non payment of maintenance charges,
where the parking bays belong to the proprietors as as accessory parcel to the apt?
Reply
hhq
January 18, 2016 at 3:29 pm
By referring to Paragraph 6 sub-paragraph 6(4) & 6(5) of the Third Schedule, by-law of the Strata
Management Regulation (Maintenance and Management) 2015, the management has the rights to
deactivate the electromagnetic access device such as the card, tag or transponder until the defaulter pays
his service charges even though the parking lot allocated is considered as accessory parcel. During the
period of deactivation of his electromagnetic access device, the management corporation may require the
proprietor to sign in a defaulters register book each time that the defaulter requires assistance for entry
into or exit from the building.
If you have further inquiries, please do not hesitate to call us at 03-2710 3818.
** HHQ accepts no liability for any loss whatsoever arising from the use of, or reliance on this reply/answer
for its accuracy, timeliness and completeness**
Reply
Soon
August 19, 2015 at 10:11 am
Hi
Im currently staying in a condominium with strate title. The maintenance was poor and Ive stop paying the
Maintenance fees for 6 months. Now the management office is threatening me that they will cut my water
supplies in 3 days. Do the management bodies has rights or jurisdiction to cut my water supplies under the
new Strata Act?
Thanks
hhq
September 4, 2015 at 2:20 pm
Community living in strata properties from 2015 onwards is now governed by the Strata Management Act
2013 (Act 757) (w.e.f. 1st June) and the Strata Management (Maintenance and Management) Regulations
2015. (w.e.f. 2nd June) . The legislations now clearly spell out the manner property owners can elect among
themselves a Management Corporation to manage the running of the common property, including the
power to determine and collect maintenance charges and impose penalties on those who default on their
payments. The penalties however do not extend to cutting water supplies. The most drastic action available
to the Management Corporation is to deactivate any access device such as a card, tag or transponder in
addition to stop or suspend the defaulter from making use of the common services provided by the
Management Corporation including any car park bay in the common property designated for the use of the
defaulter. There have been court cases prior to the enforcement of this new legislation that declared such
disconnection of water supply was illegal and ultra vires the statute.
** HHQ accepts no liability for any loss whatsoever arising from the use of,or reliance on this reply/answer
Reply
Jasper
How about the commercial stratified properties? Is it legal to perform water supply termination should the
parcel owners refused to settle the outstanding charges which is covered under the House Rules or
Additional By-Laws?
Reply
hhq
According to the Strata Management Act 2013 (Act 757) (w.e.f. 1st June) and the Strata Management
(Maintenance and Management) Regulations 2015 (w.e.f. 2nd June)statutes, the Joint Management
Bodies/Management Corporation does not in any way has the right to cut off water supply even though in
exercising its right against the defaulters. Hence, the Joint Management Bodies/Management Corporation
does not have the right to perform water supply termination as it is not the duty & right conferred upon them.
The action available to the Joint Management Bodies/Management Corporation is to deactivate any access
device such as a card, tag or transponder in addition to stop or suspend the defaulter from making use of
the common services provided by the Joint Management Bodies/Management Corporation including any
car park bay in the common property designated for the use of the defaulter. According to Section 78 & 79
of the Strata Management Act 2013 and Regulation 35 of the Strata Management (Maintenance and
Management) Regulations 2015, the most drastic action available against defaulters is to apply for
attachment to that particular property for recovery of sums due. There have been court cases prior to the
enforcement of this new legislation that declared such disconnection of water supply was illegal and ultra
vires the statute.
We hope we have been able to answer your enquiry. Should you have any other queries, youre welcomed
to come for consultation at our office (consultation fees may apply). You may also contact us at 03-2710
3818 to fix an appointment.
HHQ accepts no liability for any loss whatsoever arising from the use of, or reliance on this reply/answer
for its accuracy, timeliness and completeness.
Reply
Dr Sam Ming Tuck

August 23, 2015 at 11:09 pm
Your article discussed about high rise buildings. What about landed strata properties? I am particularly
interested to know how the formula for share units are drawn up for landed properties, where the
development consists of a mixture of different building built-up areas, different number of storeys and land
sizes. For example, a mixture of 2-storey, 3-storey semi-Ds and bungalows, and the plot areas are different
as well.
Will this ACT be applicable if the sale was completed prior to 1 June 2015?
Reply
hhq
According to Schedule IV and Sub-rule 8(1) of the Strata Titles (Federal Territory of Kuala Lumpur) Rules
2015, the calculation of share formula units is made based on the area of parcel, weightage factors,
accessory parcels contribute to allocated share units and it is not based on whether it is landed or high rise
buildings.
According to the section 37(2) and section 45 of the Strata Management Act 2013, the provisions in the
Strata Management Act 2013 shall not effect the past operation of the repealed act and any regulations
made under the Building & Common Property (Maintenance & Management) Act 2007 so long it is not
inconsistent with the Strata Management Act 2013 and shall continue to be in force until they are revoked
by the regulations made under the new Act. Starting from 1st June 2015, the Building & Common Property
(Maintenance & Management) Act 2007 is repealed by the Strata Management Act 2013. Therefore, the
new Strata Management Act 2013 will be applicable after 1st June 2015..
Reply
ahmad
August 25, 2015 at 3:28 pm
under this new strata management act does not mention clearly on the application of this act towards
Wilayah Persekutuan and Penang. Is that means that this two states are not bound by this new Act?
Reply
hhq
The Strata Management Act 2013 extends to the whole of Peninsular Malaysia including the Federal
Territories and Penang.
Badshah Khan
Can foreigners who own a condo parcel be elected to the MC?
Reply
hhq
January 12, 2016 at 8:40 am
According to the Second Schedule of the Strata Management Act 2013 (SMA), the constitution of
management committee is stated under Section 2, which provides that proprietors of parcel are eligible for
election as members of the management committee as long as they are above 21 years old and are not
disqualified due to other reasons such as failure to pay maintenance charges before the election. There is
no requirement for the member to be a Malaysian citizen under the constitution.
Should you require further assistance, please feel free to fix an appointment with us at 03-2710 3818.
Sue
September 11, 2015 at 2:19 am
Under the new section 19A of strata title amendment act, does the time frame apply to individual strata title
issued before 1 June 2015 but yet to transfer to the Purchaser? would it be saved by section 43, saving
and transitional clause?
hhq
March 16, 2016 at 3:42 pm
As at todate, section 19A fo the Strata Title Amendment Act, 2013 has yet to be enforced.
Should you require further assistance, please feel free to fix an appointment for consultation with us at 03-
2710 3818.
** HHQ accepts no liability for any loss whatsoever arising from the use of or reliance on this reply/answer
Reply
Fiona Kueh
Thank you vey much for the useful insights of your article. Despite google-ing I could not find out how or
what was the mechanism used to enact the STA 2013 to the whole of Peninsula Malaysia as per the 4 Sept
2015 comment above; was there an official annoucement etc? So far, internet articles just state
impending, coming etc, appreciate any clarification. Is COB the best body to seek advice on the Acts
contents?
From an actual construction perspective, there is always bound to be insitu adjustments from that on
building plan, albeit minor but nonetheless may result in minor changes mainly carpark lots/areas, such as
due to adjustments of column size/orientation due to pilecap positions (sometimes due to subsurface soil
conditions), beam sizes, construction tolerance etc. To obtain 100% of purchasers to agree to a series of
resulting amendments to as-built stage is just not practical and too time consuming. Interested to hear your
learned opinion on this, thank you.
hhq
The implementation of Strata Title (Amendment) Act 2013 and Strata Management Act 2013 came into
force from 1st June 2015 in Peninsular Malaysia (including Wilayah Persekutuan Kuala Lumpur and
Wilayah Persekutuan Putrajaya) and Wilayah Persekutuan Labuan.
Strata management is under the purview of Bahagian Kesejahteraan Bandar, Ministry of Urban Welling,
Housing and Local Government.
For the Developer to file the amended and/or re-amended schedule of parcels to alter or revise any of the
location plan, storey plan, floor plan and/or any of the legend of all parcels, all common properties and all
accessory parcels pertaining to the project, the written consent from the purchasers/parcel owners must be
obtained in accordance with Strata Management (Maintenance And Management) Regulations 2015.
Furthermore, pursuant to clause 14 sub (2) of the Schedule H, no changes or deviations from the approved
plans shall be made without the consent in writing of the Purchaser unless it is required by the Appropriate
Authority.
Reply
Fiona Kueh
Dear Sir/Madam,
I wish to add I was made to understand Act 2013 only to commence in Wilayah kl, putrajaya & labuan only?
Thank you & regards.
hhq
The implementation of Strata Title (Amendment) Act 2013 and Strata Management Act 2013 came into
force from 1st June 2015 in Peninsular Malaysia (including Wilayah Persekutuan Kuala Lumpur and
Wilayah Persekutuan Putrajaya) and Wilayah Persekutuan Labuan.
Reply
Shawn Ong
September 18, 2015 at 11:00 am
The unit above my apartment has been leaking water for years on an off. The unit owner above refuses to
rectify the leakage even after years of complaints made to him and management committee. With the new
Act in force, what action can I take against them? Please advice on steps to take to solve this problem.
Thanks.
hhq
March 16, 2016 at 3:45 pm
The newly instroduce Strata Management Act, 2013 is meant to resolve the situation faced by you. With
the Section 142 presumption on inter-floor leakage, you may notify the management office (ie
developer/JMB/MC) who shall within 7 days inpect and determine the cause of the leakage. The
management will upon completing the inspection, and issue a Form 28 certificate of inspection. If the cause
of defect is attirbutable to the parcel immedieately above yours, that parcel owner shall rectify, failing which
the management office shall take step to rectify. You may refer to regulations 55- 64 of the Strata
Management Regulations, 2015 for details.
2710 3818.
Yee Peng
Hi,
I have toilet plumbing issue for my apartment. To fix it, I need to entry unit below of my apartment as the
piping was at unit below. However, we fail to contact the owner and the owner not paying the maintenance
fees for more than one year. Now management office already cut that unit water supplies and electricity.
Is there any strata act that allows us to entry that unit without owner permission? Did the owner can sue us
if we entry without his permission?
hhq
The law does not allow you to forcibly enter the unit unless (i) with the owners permission, or (ii) any rights
conferred by the Deed of Mutual Convenants (DMC) or (iii) any court order. If the DMC provides that the
Management shall have a right of access to each parcel or accessory parcel to inspect, to maintain, repair
or replace any utility service facilities by giving notice to the occupier, then the nearest possible solution is
to seek the help of the Strata Management Body of your parcel.
With regards to the notice as mentioned earlier, attention is to be placed on Rule 57 of the Strata
Management (Maintenance And Management) Regulations 2015 [P.U. (A) 107/2015] (SMR) which
provides for the time frame and duty of the person or body who is appointed to carry out the inspection ;
and Rule 63 of the SMR which provides for the right of access by the person or body carrying out the
inspection and denial of that right constitutes an offence. It is worthy to note that the Rules are relevant only
to the extent of inter-floor leakage inspection.
Reply
kelvin tang
Dear Sir/Madam,
I have a few questions about renovation to my newly vp unit:
1) can I hack the non-structural(load-bearing)wall between 2 parts of the unit?
2) can I conceal wire extension for extra power point in a structure wall?
3) can I move the fire resistant main door as the the space between the grille and the door is too long?
Thanks for helping
hhq
March 16, 2016 at 3:48 pm
The amended housing and strata laws do not cover the renovation related questions asked by you. You
may refer to your management office, or the local council for clarification.Should you require further
assistance, please feel free to fix an appointment for consultation with us at 03-2710 3818.
Reply
Frank
I am living in a strata community place in Selangor and my house is a 2 storey semi-D. Inside the strata
community area, there are 3 storey semi-D. The Developer / JMB is computing the share units based on
land size area (instead of building built-up area). Since the land size area of the 2 storey Semi-D and the 3
storey Semi-D are the same, we are paying the same maintenance charges. Is this correct? Tqvm
hhq
Under s. 81 of the Strata Titles Act 1985 (Act 318), it is provided that the respective State Governments in
Peninsular Malaysia may make rules, which among others, determine the formula for proposed share units.
Unfortunately, Selangor has not gazetted its Strata Title Rules. If we were to make use of the Federal
Territories Strata Title Rules, which came into force on 18th June 2015 as a guide, you are correct in that
it is based on land area based on the following formula used:
The number of share units of Land Parcel = (A x 0.8) + (B x F3),
where:
(a) A is the area of the parcel
(b) B is the area of the accessory parcel; and
(c) F3 is the weightage for the accessory parcel as specified in Schedule I.
For the case of a Landed Parcel in the Federal Territories, the share units will be Ax 0.8 because in a landed
parcel there is no accessory parcel and F3 is no longer relevant.
Eunice
Hi, if the project is an ongoing one and vacant possession has already been delivered before the coming
into force of the SMA. Will the SMA be binding on those the remaining units that has not been sold out? In
other words, must the SPA and DMC be amended according to the SMA?
Thank you.
Reply
hhq
March 16, 2016 at 3:54 pm
Strata Management Act, 2013 is enforced on 1 June 2015. Section 148 provides that any contracts and
deeds relating to the maintenance and management of building and common property in as far as they are
contrary to the provisions of the SMA shall cease to have effect. Section 149 prohibit any contracting out.
You may wish to review your SPA and DMC in light of these two sections.
2710 3818.
Reply
Jerome
I would like to know more of keeping pets, eg. dogs in strata titled properties (condo). Does this newly
amended strata title superceed house rules ?
Reply
hhq
March 16, 2016 at 3:59 pm
Paragrapah 14 of the statutory By-Laws as provided in the Third Schedule of the Strata Management
Regulations, 2015 regulates the keeping of animals. Essentially, no owner shall keep any pet that may
cause annoyance, nuisance or may be dangerous to the safety or health of other owners. This statutory
regulation supercede any contradicting house rules.
Kenny
My developer handed the VP by providing a gated project but did not include any access card barrier at the
guardhouse. Only boom gates were installed. Under the strata title is it obligatory for the barrier to be
installed to ensure that the community will adhere to the strata act. If not many may not pay the required
fees as security may be lax with just boom gates.
Reply
hhq
March 16, 2016 at 4:21 pm
First and foremost, you would have to cross check with the SPA and DMC youve signed, whether or not
the service of access card barrier is being provided under the Second Schedule of the SPA as being one
of the service provided. If it is, then it is the developers contractual obligation to have access card barriers
installed as there is no provision under the Strata Management Act 2013 or the Strata Titles Act 1985 stating
such obligation.
Reply
Steven
October 1, 2015 at 2:24 pm
Hi
The toilet floor for the unit above me is leaking. I reported this to the Management office and they came to
inspect the leaks. During inspection it was found that :-
1) The concrete floor toilet above my unit is leaking
2) The big pipe where the WC or sitting bowl connects to for the unit above me has a leak at the joints.
The management body has refused to repair this saying that all they can do is just call the unit owner above
me and ask them to repair.
My question
1) Who is responsible to fix the floor leak ? The owner above or the Management body.
2) If the answer is the owner above me, who should fork out the cost or how should the cost be managed
?
3) Should the management body be responsible in fixing the leak on the floor since this is part of the floor
structure
4) On the leak at the big where the WC or sitting bowl connects to (the human waste goes into), who should
be fixing that ? The management said the owner above but I feel they are pushing their responsibilities
away
5) Which authorities or law governing body can I bring my grosses to in the event the Management body
still does not want to acknowledge or assist to fix this problem. If you can direct me to on this, thank you.
6) If the owner above me refuses to do anything or does not move to take action on repairing the faults,
what can I do.
Thank you very much.
Steven
hhq
March 16, 2016 at 4:05 pm
Regulations 55- 64 of the Strata Management Regulations, 2015 provides solution to the issue faced by you. The
management office (ie developer/JMB/MC) is oblgied to inpect and determine the cause of the leakage, and further
issue a Form 28 certificate of inspection. If the cause of defect is attirbutable to the parcel immedieately above yours,
that parcel owner shall rectify, failing which the management office shall take step to rectify and recover costs from
that parcel owner. If the management office refuses to act upon is obligations under the Regulation, you may refer to
the Commissioner of Building within your jurisdiction.
Should you require further assistance, please feel free to fix an appointment for consultation with us at 03-2710 3818.
** HHQ accepts no liability for any loss whatsoever arising from the use of or reliance on this reply/answer for its
accuracy, timeliness and completeness**
Reply
aya
October 6, 2015 at 9:27 am
The Strata Management Act 2013 Does it mentioned any where that for parcel owner who has loan in
bank must obtain a letter from bank to allow him to be in Management committee(MC)
Reply
hhq
March 16, 2016 at 4:24 pm
Reference made to your above query, kindly be informed that there is no such requirement under Strata
Management Act 2013.
You may also contact us at 03-2710 3818 to fix an appointment.
Reply
Kevin
If my condo management illegally cuts off my water supply, what are the steps i can take to lodge a
complaint or make a report against them. Thanks
Reply
hhq
According to the the Strata Management Act 2013 (Act 757) (w.e.f. 1st June) and the Strata Management
(Maintenance and Management) Regulations 2015 (w.e.f. 2nd June)statutes, the Joint Management
Bodies/Management Corporation does not in any way has the right to cut off water supply even though in exercising
its right against the defaulters. Hence, the Joint Management Bodies/Management Corporation does not have the
right to cut off your water supply as it is not the duty & right conferred upon them. You may lodge complaint against
them to the Strata Management Tribunal as what is provided under the Strata Management (Strata Management
Tribunal) Regulations 2015.
Should you have any other queries, youre welcomed to come for consultation at our office (consultation fees may
apply). You may also contact us at 03-2710 3818 to fix an appointment.
** HHQ accepts no liability for any loss whatsoever arising from the use of, or reliance on this reply/answer for its
Reply
gl
I bought a sub sale condominium in penang. Committee stopped renovation work due to extension and
change of facade.
Renovation only within my strata title boundary, though there is slight toilet extension in my unit.
Now the committee demand a floor plan to be submitted to Commissioner of building, they will only allow
renovation pending approval from COB.
If the design of renovation have been done by existing residents, and existing committee does not react ,
can I do the same ?
hhq
Reference made to your comment, there are 2 issue, (i) whether the management has the right to state that they will
only allow you to proceed with the renovation once approval have been given by the COB, and (ii) whether you are
able to continue with your renovations because other existing residents have done so without the approval from the
existing management.
With regards to the first issue, the management board has right to request for the necessary approvals from the
appropriate authority of your renovations. The management also has the discretion to only allow your renovations
after the approval of the management and, where necessary, from the appropriate authority is granted. This is provided
for under the Regulation 27 and Regulation 28 of the Third Schedule, Strata Management Act 2013 Strata
Management (Maintenance and Management) Regulations 2015. It expressly states that under Regulation 27 (1) that;
A proprietor shall not carry out any renovation works to his parcel without first obtaining a prior written approval
from the management corporation and, where necessary, from the appropriate authority.
Dealing with the second issue, we opined that prior approval from the management should be obtained before the
renovation works which involves the extension and change of facade of the parcel being started. This is because
section Regulation 27 (3) of the Third Schedule, Strata Management Act 2013 Strata Management (Maintenance and
Management) Regulations 2015 provides that if the management corporation gives its approval for any renovation
works and it is subsequently discovered that the requisite approvals from the appropriate authority were not obtained
or not properly obtained, the proprietor shall be solely responsible to the appropriate authority and the approval granted
by the management corporation for renovation works shall be deemed rescinded forthwith.
Under Regulation 16 of the Third Schedule, Strata Management Act 2013 Strata Management (Maintenance and
Management) Regulations 2015, every proprietor shall comply with the by-law or additional by-law, failing which he
shall at his own cost remedy the breach to the satisfaction of the management corporation. Thus, the management
corporation has the power to impose a fine against any person who is in breach of the by-law pursuant to Regulation
7 of the Third Schedule.
Should you require further assistance, please feel free to fix an appointment with us at 03-2710 3818.
Reply
Yew Tiong Hoo
I own a property in a shopping cum service apartment complex in Miri, Sarawak. The complex was built
more than 20 years ago. The original owner went bankrupted, and it was bought over by a new owner. This
new owner turned the apartment into a hotel, whilst the 4 storey part of the shopping area is mostly owned
by individual owner like me. Up to date, the strata title has not been issued and they have no intention of
doing so. Heres my problem, whenever I want to use the property as collateral to borrow money from the
bank, they refuse to sign the consent form, so I cannot secure any loan. They even go as far as saying it is
not their responsibility to get the strata title issued. They use the property like their own, even convert the
ground floor carpark into a supermarket. (own by themselves).
Here are my questions:
1. Is the law on strata property the same for Sarawak and Peninsula?
2. Who can we turn to in Sarawak for our grievances?
3. What is the law governing the time the strata title has to be issued?
4. Can we ask the management company (there themselves) for a copy of the annual account?
For your information, I have not known of strata titles being issued in Miri. By not doing so, they dont have
to expand the conversion money, moreover they cash in by charging RM2,000 to sign the consent form,
one event ask for 2% on whatever value on the instrument.
Reply
hhq
March 16, 2016 at 4:57 pm
The law on strata property in Peninsular Malaysia is governed by the Strata Title Act 1985 and Strata Management
Act 2013 (Act 757) together with its regulations. In Sarawak, it is governed by The Strata Titles Ordinance (1995).
There are separate jurisdiction and land laws governing Peninsular Malaysia, Sabah and Sarawak.
Kindly consult a lawyer who practicing in Sarawak for further clarifications.
HHQ accepts no liability for any loss whatsoever arising from the use of, or reliance on this reply/answer for its
accuracy, timeliness and completeness.
Reply
Jeannie
I would like to get some advice on water leaking problem. Im currently facing this water leaking issue within
the warranty period with developer. The developer is doing their responsibility to resolve my problem, finally
they suspect the cause might be from my above unit owner piping leaking. However, the above owner is
not corperative at all by not allowing developer to go in to do hacking at the wall where the piping conceal
they suspected is the cause of leaking. All my plaster ceiling and wall paint getting wet with no resolution.
This problem has been dragged till now (3 months) with no solution to repair my defect. I would like to know
is there any act to enforce upon the above owner under this revised act in order to resolve my problem?
Thank you.
Reply
hhq
March 4, 2016 at 5:10 pm
The law does not allow you to forcibly enter the unit unless (i) with the owners permission, or (ii) any rights
conferred by the Deed of Mutual Convenants (DMC) or (iii) any court order. If the DMC provides that the
Management shall have a right of access to each parcel or accessory parcel to inspect, to maintain, repair
or replace any utility service facilities by giving notice to the occupier, then the nearest possible solution is
to seek the help of the Strata Management Body of your parcel.
Section 142 of the SMA presumes that water penetration and dampening on a parcels ceiling is caused by
the parcel above it. The inter-floor leakage notice shall also be given by the parcel owner to the developer
(during the developers management period), the joint management body, the management corporation, or
the subsidiary management corporation, as the case may be, according to rule 56(1) of the Strata
Management (Maintenance And Management) Regulations 2015 [P.U. (A) 107/2015] (SMR),. With
regards to this, attention is to be placed on Rule 57 which provides for the time frame and duty of the person
or body who is appointed to carry out the inspection. At the same time, Rule 58 prescribes the matters to
be considered in determining the cause of the leakage ; and Rule 63 of the SMR which provides for the
right of access by the person or body carrying out the inspection and denial of that right constitutes an
offence. It is worthy to note that the Rules are relevant only to the extent of inter-floor leakage inspection.
Reply
Agnes
October 17, 2015 at 10:13 pm
This act applies to all property which is currently under construction? My condo is now almost completed and I was
informed that the developer is in the midst of applying ccc. So they have to produce strata title upon VP too?
Reply
hhq
March 4, 2016 at 4:42 pm
Dear Inquirer,
The current amended Strata Titles Act 1985 and Strata Management Act 2013 (the Acts)took effect in
June of 2015. While the newly gazetted law applies to all Strata Titles development, there are savings
provisions in the Acts that applies to property that is already under construction at the time of coming into
force of the Acts.
The requirement for Developer to deliver the vacant possession with strata titles is provided under the new
Schedule H of the Housing Development (Control & Licensing) Act 2012. In assuming that you made your
purchase by signing a pre-amendment Schedule H, there is not requirement that the Developer deliver the
propertys vacant possession together with Strata Title.
Reply
Sky
I just buy a house(2 1/2 storey) not gated but I get to know that it under strata title.
There is no maintainance and no facility.
Any reason or is it posible?
Please advise?
hhq
March 4, 2016 at 4:40 pm
Thank you for your question.
It is not uncommon that Developers will opt to subdivide the lots into Strata Titles instead of individual titles
so long that they are capable of being subdivided.
As provided under Section 6 of the Strata Titles Act 1985(Act 318), Any building having two or more storeys
on alienated land held as one lot under final title shall be capable of being subdivided into parcels; and any
land on the same lot shall also be capable of being subdivided into parcels each of which is to be held
under a strata title or an accessory parcel. Kindly check the SPA signed between the developer and your
good-self. If the title of the SPA in Schedule H, then you are purchasing a strata title property.
Reply
Carmen
October 21, 2015 at 11:03 pm
Hi !
Under the new Strata Act, how does it impact us condo owners when it comes to computation of
maintenance fees and sinking fund?
I was told by a friend that we will have to pay maintenance fee for parking space too. How will it be
calculated? By sqf or by determining how many share units to pay?
Will this be in force for all condos, new and old or only for new VP condos after the cut-off date? Thank you.
It seems not right having to pay for the parking space right ?
hhq
March 16, 2016 at 4:58 pm
Under Section 9(3)(a) & (b) of the Strata Management Act 2013, it is stated that developer is empowered
to collect service charges and sinking fund (which is equivalent to 10% of the service charge) from the
parcel owners in proportion to the allocated share units of their respective parcels.
According to Sub-rule 8(1) and Schedule IV of the Strata Titles (Federal Territory of Kuala Lumpur) Rules
2015, the calculation of share formula units is made based on the area of parcel and the entire floor parcel
multiplied by the weightage factors for that type of parcel, and if there are accessory parcels, the area of
the accessory parcel is also multiplied by a weightage factor for that accessory parcel.
This means that once the share unit is being allocated, services charges will be charged in proportion to
share units allocated, in which, it includes car parks as car parks are accessory parcels, and this calculation
of service charge applies to all stratatified properties regardless whether it is old or new.
Reply
leo
Before becoming a proper Management Corporation(MC) on 9th August 2015 via an AGM, the previous JMB (Joint
Management Board) for the year 2015 collected the fire insurance and quit rent from the owners but didnt buy the
fire insurance or pay the quit rent. The previous JMB also took money from the sinking fund purported to pay for
expenses without prior consent of the owners. In reviewing the Syabas water and TNB electricity bills for the year
2015, the new MC found there are RM 40,000 outstanding. The financial audit for year 2014 is also
not completed. The accounts are also in disarray and not handed over properly to the new MC. The previous JMB is
also not cooperating with the new MC. What can the MC do going forward given the situation above ? Thanks
Reply
hhq
November 25, 2015 at 2:25 pm
The management of strata properties is now governed by the Strata Management Act 2013 (Act 757)
( the Act) which came into effect on 1st June 2015. The reply to your query is in three parts: the accounts,
unpaid expenses and insurance premium collected but not bought and recourse.
(a) Accounts
Under the Act, on dissolution of the Joint Management Body (JMB), and the taking over by the
Management Corporation (MC), the Joint Management Committee (the Committee) will have to
surrender to the newly-formed MC, all balances in the Account and the audited accounts by 9th September
2015, i.e within a month of the date of the AGM. If , the unaudited accounts had not been made available
then, this will have to be submitted by 9th November 2015, i.e. three months of the date of AGM. Failure to
do so is an an offence under the Act and upon conviction, any or all members of the Committee can be
subjected to a fine not exceeding RM250,000 or up to 3 years imprisonment, or to both.
(b) Unpaid expenses and insurance premiums collected but not bought
As a Joint Management Committee, the Act imposes duties on the Committee, under s. 23(3) of the Act
including paying insurance premiums, quit rent and utilities charges from the Maintenance Fund. It will
appear from your letter that the Committee has failed to perform such duties imposed on them under the
Act.
(c) Recourse
The Act has provided strata property owners to seek recourse through the Strata Management Tribunal
(the Tribunal). To be able to take up a cause of action against the Joint Management Committee, you will
need to show to the Tribunal that you have locus standiand your matter is within the jurisdiction of the
Tribunal and . As a Management Corporation you have locus. From the facts your matter will have fallen
within the jurisdiction of the Tribunal because your dispute or complaint against the Joint Management
Committee is concerning an exercise or the performance of or the failure to exercise or perform, a function,
duty or power conferred or imposed by this Act... .
Should you have further queries or require clarification, please feel free to contact our office at 03-2710
3818 for a consultation session.
Halim Hong & Quek accepts no liability for any loss whatsoever arising from the use of, or reliance on this
reply/answer for its accuracy, timeliness and completeness.
Reply
Chee
For properties that are not issued strata title due to unresolved developer documentation problems over 10
years, how does this new strata act assist the buyers? Thanks
hhq
March 16, 2016 at 4:08 pm
Your facts do suggest section 8(d) of the Strata Title Act, 1985 is applicable, ie the original proprietor (which can be
the developer as well) shall apply for subdivison of the building within 3 months from 1 June 2015, failing which the
original proprietor shall commit an offence and liable for fine between RM10k and RM100k or up to 3 years
imprisonment, and a further fine bewteen RM100 and RM1k for every day during which the offence continues to be
committed. You may consult Director of Survey or officer in the Land Office for assistance, or you may seek assistance
from a lawyer.
Reply
Syah
HI,
My residences is divided into 3 phases, currently only phase 1 and 2 have been handed over to purchaser
while phase 3 is yet to be develop. Is the developer responsible to pay for the monthly charges for phase 3
even though it is yet to be built?
If yes, can you advise me which section in the Act that mention it.
hhq
March 16, 2016 at 5:00 pm
There would be no monthly service charges for undeveloped phases.
Eugene Liu
With the new SMA, as an MC/JMB, are we required to have 2 separate sets of financial statements (p&l
And bal sheet)? One set for maintenance fund and another set for sinking fund.
Reply
hhq
March 16, 2016 at 4:11 pm
From the reading of Section 23, 24 and 26 of the Strata Management Act, 2015, the JMB should prepare
one set of account for maintenance fund, and another set for sinking fund.
2710 3818.
Reply
mozaiman
Is gated and guarded properties bound under this act or is there any other act for G&G. Thank you.
hhq
March 16, 2016 at 4:13 pm
If the gated and guarded scheme is a stratified land parcel scheme, then the new Strata Management Act
is applicable.
2710 3818.
Reply
KT LEE
October 30, 2015 at 11:25 am
I have been trying to read Online the latest Malaysian law Strata Management Act 2013 but could not
understand the formula stated below!
Kindly clarify the FP1 & FP2 stated in Formula for the computation of allocated share units in
Subparagraph 2.(1) in FIRST SCHEDULE [Section 8] of Strata Management Act 2013.
Reply
hhq
March 4, 2016 at 3:33 pm
Hi there. Take for instance, your residential strata unit is one at 10th floor (supposedly with public elevator
provided), while air-conditioning is not available in the common property (eg. corridor passage), your FP1
would be 1.0;
Both FP1 and FP2 are actually fixed values provided in the Table(s), while area of parcel and area of
accessory parcel are the determinants of the allocated share units.
Reply
KC2015
I will be obtaining VP of a strata titled landed property next year, but the development was launched and
sold in 2013. May I know the proper timeline for the following:
a) issuance of strata title?
b) formation of the MC?
c) developer initial management period?
d) maximum length of time of initial management period before developer is duty bound to call for the first
AGM?
Thank you.
hhq
March 4, 2016 at 5:07 pm
a) The developer must have obtained the issuance of strata title by the Land Administrator at the time of
Vacant Possession. The developer shall execute the transfer of strata title to the purchaser within thirty
days from the date of issue of strata title by the Land Administrator or any extended period approved by the
Director upon the opening of the strata register.
b) The management corporation is formed, or comes into existence, at the time of the opening of the strata
register.
c) The initial period refers to the period commencing on the day on which the management corporation
comes into existence and ending on the day on which there are proprietors, excluding the original proprietor
of the lot of land or the developer who is registered as the proprietor of a parcel or parcels or a provisional
block or blocks, the sum of whose share units is at least one-quarter of the aggregate share units.
d) The developer is bound under s.57 of the Strata Management Act 2013 to convene the first annual
general meeting of the management corporation within one month after the expiration of the initial period.
Reply
James
If upstairs unit claims his drainage blocked and wants to check my unit, what is my right. Who is responsible
if his worker damages my drainage and ceiling board in process if i were to allow?
Reply
hhq
March 16, 2016 at 4:15 pm
There is no presumption of immediate below parcel cause the drainage blockage. In any event, you should
seek the management office assistance to determine the cause. You could seek help from Commissioner
of Building within your jurisdiction too.
2710 3818.
Reply
BP
November 2, 2015 at 8:54 am
I live in a development where there are 3 and 3.5 storey houses. Some of these houses are corner units.
When the developer sold us the property 3 years ago, we had agreed to a fixed maintenance rate
irrespective of house built up size or land area.
The management corporation is now citing the new strata act to say a recalculation will be done based on
land area (but not built up). This means corner houses may have to pay more.
Is this assumption true? What recourse do we have as buyers in a situation like this as we bought the
property with the asumption the fees are the same for everyone. Also dont understand why the recalculation
is done on land area rather than built up.
Appreciate your advice.
hhq
March 16, 2016 at 5:03 pm
According to First Schedule of the Strata Management Act 2013, it is true that the calculation is based on land area
rather than built up area by referring to the formula for computation of allocated share units. Therefore, your
Management Corporation has not erred in the calculation. Besides that, under s. 81 of the Strata Titles Act 1985 (Act
318), it is provided that the respective State Governments in Peninsular Malaysia may make rules, which among
others, determine the formula for proposed share units. Unfortunately, Selangor has not gazetted its Strata Title Rules.
If we were to make use of the Federal Territories Strata Title Rules, which came into force on 18th June 2015 as a
guide, it is correct that the calculation is based on land area.
Reply
Cass
We purchased an apartment in KL in 2011 from a well known developer. After four years none of the 600
plus purchasers have received their Strata Title. What is the position of owners who purchased property
before the new act? We have had vacant possession for years but no title is in sight.
hhq
March 16, 2016 at 5:25 pm
According to section 7 of the Strata Titles Act 1985, the original proprietor may apply for the subdivision of
a building or land to the Director of Lands and Mines. Since your property is purchased in 2011, the previous
Schedule H applies, in which under the Third Schedule of the said agreement, the developer must submit
the application for subdivision of the said Building or Land (as the case may be) in order to claim the
progressive purchase price from the Purchaser or the Purchasers Financier. Thus, the developer in your
case must have already submitted the application for subdivision of building for the issuance of strata title
but the same has yet to be issued by the relevant Land Office.
Reply
Melissa
November 12, 2015 at 11:37 am
Hi, my condo has leaking from unit above as well as from common aref into my unit.the problem has been
reported to the management but they send me a letter saying that it does not fall under their esponsibility.
hhq
March 17, 2016 at 11:31 am
The newly instroduce Strata Management Act, 2013 is meant to resolve the situation faced by you. With
the Section 142 presumption on inter-floor leakage, you may notify the management office (ie
developer/JMB/MC) who shall within 7 days inpect and determine the cause of the leakage. The
management will upon completing the inspection, and issue a Form 28 certificate of inspection. If the cause
of defect is attirbutable to the parcel immedieately above yours, that parcel owner shall rectify, failing which
the management office shall take step to rectify. You may refer to regulations 55- 64 of the Strata
Management Regulations, 2015 for details.
2710 3818.
Vincent
The tenant of one of owner residing in Australia is keeping a dog which is prohibited under our house law,
He is also letting the place ona daily use and refuses to register his guest or visitors. The owner is seeking
a writ of possesion but this will take time and meanwhile we have receive many complaints from other
owners as it is a low density condo. What are our options to act against such a tenant.Thank You
hhq
Hi there. Pertaining to your concern, we shall refer to Paragraph 14 of Third Schedule [Regulation 5 and
28] made under the Strata Management (Maintenance And Management) Regulations 2015 [P.U. (A)
107/2015] announced by Minister under the power conferred by Section 150 of Strata Management Act
2013. This provides for the rules concerning keeping of animals in parcel, and supersedes any DMC to the
extent of its inconsistency only.
For your convenience, the paragraph is stated as below :
14. Keeping of animals
(1) In a building used for residential or dwelling purposes, a proprietor shall not keep any particular animal
in his parcel or on the common property thereof that may cause annoyance or nuisance to the other
proprietors or which may be dangerous to the safety or health of the other proprietors or which contravenes
any written law or rules and regulations of the relevant State or the local authority.
(2) A proprietor who is in breach of sub-paragraph 14(1) of these by-laws, shall within three days upon the
receipt of a written notice from the management corporation remove the particular animal from the building.
If he fails to do so, the management corporation may take whatever action deemed necessary to remove
the particular animal from the building and
(a) all cost incurred shall be charged to and imposed on the proprietor, and
(b) the management corporation shall not be liable for any damage reasonably caused to the property of
the proprietor in the process of removing such animal.
Also take note that the law does not allow you to forcibly enter the unit unless (i) with the owners permission,
or (ii) any rights conferred by the Deed of Mutual Convenants (DMC) or (iii) any court order. You may
resort to apply for court order.
Reply
ng
Dear Sir,
Would like to inquire..for a strata title development which consist of residential/ commercial shop office/
SOHO, it should be under 1 JMB or 2 different JMB as 1 for residential and 1 for commercial & SOHO?
Thanks.
Reply
hhq
March 4, 2016 at 4:54 pm
Thank you for your interest in our article. To answer your question, only one JMB may be formed for purpose of
managing a strata scheme.
Strata Titles Act 1985 together with Strata Management Act 2013 allows for designation of limited common property
and formation of subsidiary management corporation(s) to manage its respective components. However, such power
is only provided for the Management Corporation (MC) of a strata scheme and not to a Joint Management Body
(JMB).
The power to form a subsidiary management corporation is provided for under Section 17A of the Strata Management
Act.
We hope we have been able to answer your enquiry. Should you have any other queries, youre welcomed to come
for consultation at our office (consultation fees may apply). You may also contact us at 03-2710 3818 to fix an
appointment.
Reply
Kevin
I have heard that in the new strata management act, all new development must include car park allocations
clearly designated and mentioned in the SPA, and purchasers must be informed before the signing of SPA.
Is this true?
hhq
March 4, 2016 at 4:51 pm
What you state is true to a certain extent but it is clearly laid down under Part III, section 6 of the Strata
Management Act. This encompasses the dealings in building or land intended for subdivision into parcels.
Section 6(1) provides that;
(1)A developer of any building or land intended for subdivision into parcels in a development area shall not
sell any parcel or proposed parcel unless-
(a) A schedule of parcels showing the proposed share units of each parcel or proposed parcel and the total
share units of all the parcels has been filed with Commisioner under this Part.
Schedule parcels mentioned in section 6(1)(a) is defined in section 6(3)
A schedule of parcels filed under subsection (1) or an amended schedule of parcels filed under
subsection(2) shall-
(a) Comprise a location plan, storey plan and delineation plan as specified in section 8A of the Strata Titles
Act 1985;
(b) Show a legend of all parcels, all common properties and all accessory parcels, and in the case of
accessory parcels, specify in the legend the parcels they are made appurtenant to.
Therefore, with the need to file the schedule of parcels together with various requirement imposed by the
Housing Development (Control & Licensing) Act 1966 together with Strata Titles Act 1985, developers will
have the full details of the parcels and accessory parcels within the development. So, to answer your
question, yes these details should be available to the purchasers.
Reply
alfred
May I know how is the share unit calculated for landed property with a garden (corner unit)? It is the same
as for intermediate?
Reply
hhq
March 4, 2016 at 4:49 pm
Dear inquirer,
First and foremost, the share unit calculation provided under the Strata Management Act 2013 applies only
to properties that are under held under strata title.
Share unit is calculated using the following formula;
Allocated = (area of parcel x FP1 + (area of accessory parcel share units x WF2) x WF3) of a parcel.
FP1 refers to the weightage factors for the type of parcels reflecting the frequency of usage and general
maintenance of the common property. FP1 is not applicable if there is no common facilities within the Strata
scheme.
WF2 refers to the weightage factor for the whole floor parcel.
WF3 is the weightage factors for the accessory parcel. Accessory Parcel(s) shall be those areas as
demarcated as accessory parcel under your strata title.
The weightage factors shall carry the value as provided under the First Schedule of Strata Management
Act 2013.
Reply
Ng Jack Lin
December 1, 2015 at 8:30 am
Hi,
My name is Ng and here are my questions:-
1. Can vacant possession be issued if the parcel is completed earlier than is stated on the SPA while the common area
still undergoing construction?
2. I bought a SOVO late last year and the developer has demanded the purchaser to pay GST after completion of each
stages of construction as requested by the Custom of Malaysia.
My questions are, is it rightful/legal for developer to include clause of GST charges to be borne by purchaser in the
SPA signed before 1st April 2015? whether the GST should be borne by the developer instead of the purchaser?
Thank you.
Reply
hhq
March 16, 2016 at 5:29 pm
1. There is no provision in the Housing Development Act 1966 to forbid the developer to deliver vacant
possession of parcels earlier than the time period stated in the SPA even though common areas are still
under construction. The developer has to deliver the common areas as per the time frame stipulated under
the SPA or else LAD will be imposed.
2. Under the Decision by Director General of Royal Malaysian Customs (No.2) dated 25.03.2015 and
Section 188 of the GST Act 2014 states that where any supply is made under an agreement for a period or
progressively over a period whether or not at regular intervals and that period begins before the effective
date and ends on or after the effective date, the proportion of the supply which is attributed to the part of
the period on or after the effective date shall be chargeable to tax.
Thus, GST is chargeable for SOVOs even though the SPA was signed before 1/4/2015. The developer is
a registered person under the GST Act and acts as an agent to charge GST on his taxable supply of goods
and services to the purchasers, in which the developer will have to remit such payment to the Royal
Malaysian Customs.
Reply
Garden Plaza Cyberjaya Owner
December 14, 2015 at 5:31 pm
Hi,
On behalf of my fellow unit owners, I would like to seek advise with regards to how new Strata Management
Act 2013 impacts on service charges as agreed on Sales & Purchase Agreement and Deed of Mutual
Covenants, especially those signed before the revision of this Act.
In most of our DoMCs, service charge is applied based per square foot (e.g. mine is MYR0.25 psqft, signed
on 8th Sep 2011) of main parcel (i.e. unit only). However, as advised by developer in our recent VP letters,
service charge applicable to us is now based on per share units, which now includes accessory parcel (car
park, aircond ledge) on top of the main parcel.
Some of us sought legal advises, but received contradictory perspectives; its either yes, developer have
the right to change the terms of service charges without notice to purchasers based on this SMA 2013, or
no, it is otherwise and developer should honour what has been signed on SPAs and/or DoMCs.
Appreciate your advise on this, thank you in advance.
Reply
hhq
March 17, 2016 at 11:43 am
We opine that the provision of the Strata Management Act applies, ie. all share units will have to be allocated
to the parcel (which includes accessory parcel) as well, and the Charge is computed accordingly. If you are
not satisfied with the sums determined by the developer, you may rely on Section 12(7) of the Act by
applying to the Commissioner of Building for a review. of such sum.
You may also contact us at 03-2710 3818 to fix an appointment.
Reply
bryant
Hi,
On behalf of my fellow unit owners, I would like to seek advise with regards to how new Strata Management
Act 2013 impacts on service charges as agreed on Sales & Purchase Agreement and Deed of Mutual
Covenants, especially those signed before the revision of this Act.
In most of our DoMCs, service charge is applied based per square foot (e.g. mine is MYR0.25 psqft, signed
on 8th Sep 2011) of main parcel (i.e. unit only). However, as advised by developer in our recent VP letters,
service charge applicable to us is now based on per share units, which now includes accessory parcel (car
park, aircond ledge) on top of the main parcel.
Some of us sought legal advises, but received contradictory perspectives; its either yes, developer have
the right to change the terms of service charges without notice to purchasers based on this SMA 2013, or
no, it is otherwise and developer should honour what has been signed on SPAs and/or DoMCs.
Appreciate your advise on this, thank you in advance.
Reply
hhq
March 17, 2016 at 11:41 am
We opine that the provision of the Strata Management Act applies, ie. all share units will have to be allocated
to the parcel (which includes accessory parcel) as well, and the Charge is computed accordingly. If you are
not satisfied with the sums determined by the developer, you may rely on Section 12(7) of the Act by
applying to the Commissioner of Building for a review. of such sum. You may also contact us at 03-2710
Reply
lex
December 23, 2015 at 10:57 am
Hi HHQ,
We have an old shoplot house (about 40+yr) 4 storey building located in KL under Federal territory which we own 1
unit out of total 8 unit and the developer had been liquidated.
As all units are tide to 1 master title and no individual strata for 8 units.
The assessment tax (cukai pintu) is separated under individual owner name but cukai tanah is not separately issue
which just one copy under shop owner name.
Now we are wonder how we could proceed to obtain the
individual strata title for each unit?
Looking forward to your reply.
Thank you.
Best regards,
Alex
Reply
hhq
March 16, 2016 at 5:30 pm
You will have to appoint a licensed land surveyor to apply for subdivision of the Master Title into Block Title which
then only individual strata title can be applied for. The premium and fees are to be borne by the individual owners.
We hope we have been able to answer your enquiry. Should you have any other queries, youre welcomed to come
for consultation at our office (consultation fees may apply). You may also contact us at 03-2710 3818 to fix an
appointment.
Reply
Mdm Yoong
Can JMB use cash to pay for all maintenance expenses?
Reply
hhq
March 18, 2016 at 9:02 am
The JMB is allowed to use maintenace fund to pay maintenance expenditures, so long as all payments are accounted
for. There is no prohibition of using cash to make such payment, but for prudence sake, such payment should be
limited to petty sum.
Reply
Pauline Lim
The recent AGM was attended by only 6 (who were committee members), out of the 120 owners. It was then resolved
that all owners have to make a mandatory contribution of RM600 each towards the tiling of the common staircase.
The work has yet to begin. Most owners find the amount excessive and feel that the committee was not transparent.
We intend to get a petition going to reverse the resolution, as we felt that the committee should seek the consent of all
owners in writing before going ahead with the tiling. Is this correct, as the Building And Common Property Act 663
(2007) was silent on this procedure.
Will the petition reverse the resolution?
How many signatories have to be obtained to effect the petition?
Owners with outstanding arrears. Can they petition?
Can the committee hold an EGM later to over-ride the petition?
Thank you.
Reply
hhq
March 18, 2016 at 9:00 am
The Building And Common Property (Maintenance and Management) Act, 2007 has been repealed. You
should read Strata Management Act. We opine that you should follow the provisions provided in the Second
Schedule of the SMA, which is the constitution of the JMB (your facts suggested that is a JMB that is in
charged), and call for an EGM. You may rely on para. 11 of the said Schedule, by having signatures from
parcel owners who are together entitled to at least of aggregate share units request so, which requisition
shall state the object of meeting and deposit the smae at the registered office of the JMb. Alternatively, you
may procure COB to give JMB direction in writing to hold the EGM in overturning the aggreived decision.
2710 3818.
Reply
Udo Classen
January 14, 2016 at 11:15 am
Is it legal in malaysia under the strata act to have separate OC for one project consisting of 2 building bloks?
If yes from which date than starts the time frame to call for the first AGM to form JMB?
Thanks for your help
Reply
hhq
March 18, 2016 at 8:57 am
OC or rather known as Certificate of Completion and Compliance (CCC) is issued in accordance with Street,
Drainage and Buildings Act. Once the CCC is issued and vacant possession is delivered to the purchaser,
then the developer is obliged under section 18(1) and 17(1) of the Strata Management Act to call the first
AGM of the JMB not later than 12 months from the date of delivery vacant possession of a parcel to a
purchaser.
2710 3818.
Reply
Tan
March 3, 2016 at 12:39 am
Appreciate your advice re long overdue BMF from one of the owners in our condo. A few LODs have been
sent but we have not been successful.
hhq
March 16, 2016 at 5:39 pm
If the parcel is owner occupied or tenanted, you may proceed with apply for an attachment through
Commissioner of Buildings. You may refer to Section 35 and 79 of the Strata Management Act, 2013 and
Regulations 35 43 of Strata Management Rules for details.
Alternatively, you may recover the due sum from the Stata Management Tribunal and prohibit the defaulter
from enjoying the common facilities.
Reply
Tan
March 14, 2016 at 12:49 am
Appreciate your reply re QUORUM : since when is quorum not needed for Condo AGMs
Reply
hhq
March 16, 2016 at 5:39 pm
The quorum is 50% of the proprietors entitled to vote being present, either in person or by proxy. If such
quorum is not present within 30 minutes after the appointed time of General Meeting, the proprietors who
are present forms the quorum.
Reply
Ian
March 14, 2016 at 11:51 am
Can a proprietor nominates more than 1 person for election, if he is holding more than 50% of the total
share units/parcels? ie. to have more than 50% of the number of JMB/MC members.
Reply
hhq
March 23, 2016 at 3:28 pm
There is no such restriction in the Strata Titles Act 1985 or the Strata Management Act 2013. This means
that a proprietor may nominate more than 1 person for election regardless of the total number of shares
he/she holds. So long as a person is at least 21 years of age and is a proprietor/co-proprietor of a parcel,
he/she shall be eligible for election as a member of the management committee of a management
corporation.
2710 3818.
Reply
Geoffery
March 14, 2016 at 2:40 pm
My condo unit is not tenanted, can the MC charge for minimum water charges of RM5 per month even
though I have not used any water?
Reply
hhq
March 23, 2016 at 3:29 pm
The MC is allowed to charge minimum water charges as the water meter of your condominium unit now is under bulk
meter (an assumption on our side as insufficient information was given on the matter).
The water tariff differs from types of properties. Information on water tariffs can be found at the link below:
http://www.syabas.com.my/consumer/water-bill-water-tariff
Reply
Raja Ahmad Tajuddin
March 22, 2016 at 10:37 am
Dear Sirs,
During a AGM to established a MC, the developer claims that only those Proprietors are eligible to vote and to be
nominated for office bearers. This leaves the majority of Condo unit owners, not eligible to vote and to be nominated
in the AGM for MC. They define Proprietors (based on ACT 318 that was repealed ) as those who have perfected the
MOT for Strata Title. Are the developers definition correct ? If yes, what was the intent of this clause in ACT 757,
where the majority of the condo unit owners, about 75%, have not processed the MOT for the Strata Titles.
Reply
hhq
March 30, 2016 at 1:59 pm
The Strata Titles Act 1985 (Act 318) is not being repealed, thus, the developer was right in citing the definition of
proprietor from the Act which is quoted verbatim as follow:
a parcel proprietor, that is to say, a person or body for the time being registered as the proprietor of a parcel
Should you have further queries or require clarification, please feel free to contact our office at 03-2710 3818
or hhqkl@hhq.com.my for a consultation session.
** HHQ accepts no liability for any loss whatsoever arising from the use of,or reliance on this reply/answer for its
Reply
Mimi
March 22, 2016 at 10:21 pm
Re: Vacation of the member of management committee.
The 2nd Schedule Section 2(5) and 3 are referred.
Our Secretary were elected among the members of the management committee. Subsequently, she
resigned due to personal reasons.
Questions:
(a) Can the members of the management committee elect the new Secretary or do we have to hold an
EGM or AGM?
(b) If we do have to hold an EGM or AGM, where does it state in law (or case law) that we have to do so?
(c) If question (b) is in the affirmative, would it not be a waste of time and effort to hold an EGM or AGM
every time there is a vacant position? What is the rationale?
Thank you.
Reply
hhq
March 30, 2016 at 2:00 pm
Paragraph 3(5) of the Second Schedule of the Strata Management Act 2013 states that where a vacancy
in the membership of the management committee occurs, the remaining members may appoint another
proprietor to be a member until the next AGM. In answering your question (a), the management committee
may appoint another proprietor as the secretary of the committee.
Should you have further queries or require clarification, please feel free to contact our office at 03-2710
3818 or hhqkl@hhq.com.my for a consultation session.
Reply

New Strata Laws Finally in Force-Kl

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New Strata Laws Finally in Force-Kl

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NEW STRATA LAWS FINALLY IN FORCE

Background on Malaysian Strata Law

The 2013 Strata Acts

ii. Application for Subdivision

Delivery of Vacant Possession

iii. Limited Common Properties and Subsidiary Management Corporation

NGOH Kee Hane

Dr Sam Ming Tuck

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