7/28/2019 EDBFM4 Law Article 3

1/2

MANAGING THE TOWER OF BABEL

A Stratified Discourse On The Finer Points Of The Strata Management Bill 2012

In what can be concluded as a good start to speak a single language of the stratified property sector, the

Strata Management Bill 2012 has been laid before Parliament for it's endorsement. Overall, the Bill has

some satisfying interpretations, but not to some quarters though who have taken umbrage on theproposed qualifications required of them to provide their management services to this industry.

Stratified properties such as flats, apartments, condominiums, office towers and shopping malls areregulated by the Strata Title Act 1985 (post individual strata title issuance) and the Building And

Common Properties Maintenance And Management Act 2007 (pre individual strata title issuance). The

2007 Act was hailed as the missing link long heralded to solve the issues faced in the management ofcommon properties. It gave the power to individual owners to regulate the common property of the

buildings their properties were part of and in many ways the opportunity to enhance the value of one's

property through good management and well grounded maintenance.

Why then the need to enact another law that will repeal it? Well, it would seem that the 2007 Act had

plenty of loopholes that needed plugging. Who really could manage stratified properties? Were the

enforcers of the 2007 Act able and willing to take the necessary action against the abusers of theenactment? How to efficiently address a mixed development that consists of both residential and

commercial properties? What were the rights, duties and obligations of the Developer in relation to the

unsold units of property? These are just some of the perennial issues now addressed by the Bill.

Simply put, the door has been left open for both registered property managers under the Board of

Valuers, Appraisers and Estate Agents, and as well non-registered property managers to manage

stratified properties. The cost of management and the distinct expertise required for different types ofproperties were taken into account by the proposers of the Bill to justify the open competition, albeit at

the last minute after some intense lobbying to bring this point across.

The opponents to this proposed portion of the law are of the view that a regulated industry will enhance

management standards by bringing about accountability as the Board has wide reaching powers to take

action against errant registered property managers under the Valuers, Appraisers and Estate Agents Act1981. The proponents however point out that this may result in a monopoly and that there aren't

sufficient numbers of registered property managers to undertake the task. The arguments from both

parties go more deeply than what has just been said. There is talk that the Government will set up anindependent board that will regulate the property management of stratified properties, but this is left to

be seen.

The Bill has allowed for the creation of the Strata Management Tribunal that will address disputes suchas the convening and conduct of general meetings, costs or repairs to defects in individual units and

areas designated as common property, recovery of arrears of maintenance and service charges and

contributions to the sinking fund, variations to interest rates on late payment of maintenance andservice charges and contributions to the sinking fund and even to affirm, vary or revoke a decision of

the Commissioner of Buildings, amongst other powers. The Tribunal will indeed bring much relief as

the most common complaint thus far is the failure of the Commissioner of Buildings to effectively acton the complaints of management corporations and joint management bodies. What is important is that

the Tribunal be actually constituted and working. A previous initiative under the Strata Titles Act 1985

which was amended in 2000 to enable the creation of a Strata Titles Board, never came to fruition.

7/28/2019 EDBFM4 Law Article 3

2/2

Mixed developments consisting of both residential and commercial stratified properties and where the

strata title has been issued can now have a subsidiary management corporation in addition to the usual

management corporation to cater for the exclusive benefit of those owners with limited commonproperty. This would be a boon for the efficient running of retail and other commercial property located

within stratified properties, as often the rate of the maintenance and service charges and the

contribution to the sinking fund can be an issue where the common property is not utilized by thecommercial unit owners. However, it would appear that this privilege has not been extended to a

situation where the strata titles have yet to be issued, thus leaving some potentially unsatisfied owners

who will have to deal with the developer or joint management committee (of the joint managementbody) accordingly.

It is mandatory now for the developer to file a Schedule of Parcels with the Commissioner of Buildingswhich clearly delineates the common property. This will prevent any form of miscommunication as to a

potential buyer's understanding of what are the areas that constitute the common property and

accordingly the developer will be held responsible for any unauthorized changes.

These are just some of the proposed changes amongst a plethora of enhancements that are a positive to

the well being of managing stratified properties. Time will tell if the changes bring forth better

managed properties with the perceived increase in value, as truly that is the barometer for measuringthe success of the Strata Management Bill 2012.

By Jeyakuhan S. K. JeyasingamLL.B (Hons) London, CLP

Advocate & Solicitor (High Court of Malaya)

Email: kuhan.rsc@gmail.com

The content of this article is intended to provide a general guide to the subject matter. All opinions and

observations expressed are that of the writer's own and in no circumstance shall be construed as advice.

mailto:kuhan.rsc@gmail.commailto:kuhan.rsc@gmail.com