Everything You Need To Know About Strata Management Act 2013

Strata properties such as condominiums and apartments are getting more popular in the past 5 years. The attractive lifestyle, market demand and housing developers are the reasons why strata properties are getting more popular in the property market in Malaysia. However, there are many people who are still unaware of the Strata Management Act 2013 that came into force in 2015. It is essential that a resident understands his or her rights and obligations as a strata property owner. This article will guide you through everything you need to knowabout the Strata Management Act 2013.

1. What is Strata Management

The Strata Management Act 2013 is an act that governs the maintenance and management of common properties that hold strata title, such as condominiums and apartments. According to the Strata Management Act 2013 that came into force in 2015, all owners of strata properties such as condominiums, apartment or home within a guarded and gated compound are required to pay the project’s Joint Management Body (JMB) to take care of the properties of the development, also known as the management fees. The properties refer to the facilities and amenities available in the development, such as the corridors, rooftop, drainage and so on.

The JMB will be the official party of the development to manage the funds of management fees as they are granted the authority to collect management fees from the owners of properties. The money will be kept in a sinking fund account under the name of JMB within 3 days collection. The money collected from the management fees will then be kept for the maintenance of common property of the development.

2. Why you should pay your maintenance fee

All owners of strata properties should pay the management fees to the JMB for the management and maintenance of common property of the project. The monies collected from the maintenance fees will be kept by the JMB. The JMB is responsible to carry out major duties including:

a) Manage and maintain common property in good state and serviceable repair

b) Insure the property and effect insurance according to Strata Management Act

c) Act in accordance with orders or notices given by the local authorities

d) Help owners to prepare and maintain their registers for properties

e) Safeguard management fund accounts and provide financial statement that has been audited to all members

f) Apply the rules

The maintenance fees collected from strata owners are solely used for maintaining and ensuring common properties stay in good condition, such as:

a)Cleaning and security services

b) Acquisition of public amenities for project owners

c) Paying insurance

d) Painting work

e) Acquisition of movable properties

f ) Replacement or renewal of fittings and fixtures

g) Periodical inspection for project

h) Repairing or replacing faulty wiring

i ) Maintaining drainages and roads

j ) Maintaining and repairing water tanks

k) Upgrading and refurbishing of common property

l ) Rent and other obligatory costs

m)Audit services for accounts

n) Administration services fees

Other than the above reasons, it is also important to pay your maintenance fee to prevent poor maintenance that could result in a drop of your property value. Only a well maintained property could be resold for higher price.

3.    What happens if you do not pay your maintenance fee

The strata owner should pay the management fees within 14 days of receiving written notice from Joint Management Body (JMB) of the property. If the fees are not settled at the end of the 14 days period, enforcement will take place with no minimum amount of the outstanding fees.

a) Late fees

A late payment of 10% per annum will be imposed on strata owners who make payments late or fail to make payment.

b) Seizure of movable property

The Commissioner of Buildings has the authority to seize all movable properties, such as the furniture, television and electrical appliances that are owned by the unit owners. The seizure of movable property is carried out by a member of the Joint Management Committee (JMC) or the developer, in the presence of the Commissioner during the day.

The JMC or developer has the right to keep the movable property until the debt is cleared within 14 days. If the debt is not cleared within 14 days, the movable properties will be sold by auction, by the developer or JMC under the supervision of the Commissioner. The amount from the auction will proceed paying for the management fees.

c) Fine or imprisonment

Strata owners who have failed to keep up with management fees could be a criminal offence and be liable to a fine not more than RM5,000, or to imprisonment for a maximum of 3 years, or both.

If the issue is not solved after convicted, he or she is liable for a further fine not exceeding RM50 per day.

In conclusion, it is a crime not to pay formanagement fees. Do make sure you pay for your maintenance fees on time to avoid committing a crime, unintentionally or intentionally. After all, the JMB will be the one to help you maintain the common property of your building and ensuring safety.