Strata Management & Maintenance FAQ 2018 According to a survey carried out by REHDA Institute in 2018, the following are the Top 5 challenges in strata management, namely: dealing with the parcel owners, enforcement matters, By-laws or house rules, issues during handing over and meetings. The various challenges have been categorized as follows with suggested answers.

  1. AGM/EGM
  2. Management Body/Management Committee
  3. Handing Over
  4. Arrears
  5. By-law
  6. Deposit for Defects
  7. Strata Title Transfer
  8. Stakeholder Sum
  9. Complaint on Design

Kindly note that challenge 8 and 9 are Property Development Act than Strata Management Act issues.

Challenge 1: AGM/EGM

1.  Motion for General Meeting

Question Allowing fresh motions to be included in the extraordinary general meeting (EGM) [Provision for MC, Second Schedule Section 13]. No measures can be taken at present because this is not provided in SMA 2013. This should be recommended as normally EGM’s are called for specific motion.

Answer       

  • EGM is a general meeting called to deal with an urgent or specific matter related to the maintenance and management of a strata property
  • EGM is meant for a specific resolution. Motions are usually to be discussed during the AGM instead of the EGM
  • Any proprietor may, by notice in writing deposited at the registered office of the management body in not less than 7 days before the time for holding the general meeting, require inclusion of a motion as set out in such notice in the agenda of the next general meeting [Paragraph 13 of Second Schedule, SMA]
  • According to Second Schedule of Paragraph 12(4), SMA no motion shall be submitted at a general meeting unless –
    • Notice of the motion has been given in accordance with Second Schedule of Paragraph 12, SMA; or
    • The motion is a motion to amend a motion of which notice has been so given

2.  Poor attendance during meetings

Question Stricter enforcement by COB/Council to parcel owners to attend meetings – most low-cost owners are not owner occupiers.

Answer

  • The management committee can attract better turn-out by
    • Continuous communication and reminder through email or chatgroup
    • Avoid unsuitable dates or days such as weekdays, school holidays or long weekends or festival periods
  • Meeting can still proceed 30 minutes after the scheduled time if there is no quorum and those parcel owners entitled to vote whom are present shall constitute a quorum [Second Schedule, Paragraph 15, SMA]
  • In Section 19(2) of SMA, if within 30 minutes after the time appointed for the meeting, no purchaser entitled to vote turns up or all the purchasers present, for any reason, refuse to be members of the joint management committee, the developer or the person appointed by COB to convene the meeting shall within 7 days of the date of the meeting inform the COB of the fact and the OCB may
    • Appoint a new date for the election of the joint management committee; or
    • Appoint a managing agent under Part VI to maintain or manage the buildings or lands intended for subdivision into parcels and the common property comprised in the development area

3.  Annual Budget – Meeting Agenda

Question Agenda of First AGM – to consider and adopt the audit account first before consider annual budget [19 (1)]. This is to show a clearer picture on actual expenses vs. budget for the following year before deciding on the service charge and sinking fund

Answer

  • Agree that the right sequence should be to consider and adopt the audit account before considering the annual budget
  • The items in the agenda in the Form 5 of SMR are just a list of items and not in sequential order. The items can and should be re-arranged in proper sequence to suit the proper flow of the meeting

 

4. Attendance at General Meeting

Question Dealing with unit owners is the biggest headache. Strata units for low cost are usually rented out. Tenants refuse to cooperate and inform the where about of the parcel owners – calling for JMB/MC AGM is impossible.

Answer

  • To check the register of parcel owners (to be maintained by the developer during the Developer’s Management Period and by the JMB during the JMB period) or strata roll (to be maintained by MC during the MC period), which containing the particulars of all parcel owners in the development area including the details of solicitor acting for the SPA [Section 30(1) and Section 72(1), SMA]
  • It is recommended that the register of parcel owners / strata roll shall be kept in the management office for reference. It is a duty of the developer, the Joint Management Committee or Management Committee to prepare and maintain the record of the register or the strata roll
  • Meeting can still proceed 30 minutes after the scheduled time if there is no quorum and those parcel owners entitled to vote whom are present shall constitute a quorum [Second Schedule, Paragraph 15, SMA]
  • In Section 19(2) of SMA, if within 30 minutes after the time appointed for the meeting, no purchaser entitled to vote turns up or all the purchasers present, for any reason, refuse to be members of the joint management committee, the developer or the person appointed by COB to convene the meeting shall within 7 days of the date of the meeting inform the COB of the fact and the OCB may
    • Appoint a new date for the election of the joint management committee; or
    • Appoint a managing agent under Part VI to maintain or manage the buildings or lands intended for subdivision into parcels and the common property comprised in the development area

5.  1st AGM for MC

Question Why Developer still need to convene 1st AGM for MC even though JMB has been formed and all management & accounts already transferred to JMB. [refer to Section 57, SMA]

Answer

  • It is the responsibility of the developer to call for the first AGM of MC [Section 57, SMA] to pass the full responsibility in the strata management to the purchasers
  • The first AGM of MC will only be called when the titles of a quarter of the aggregate share units have been transferred to the owners [Section 57, SMA]
  • The responsibility of the developer is to monitor the progress of the transfer of the titles from developer to the purchasers, and to call for the first AGM of the MC when a quarter of the aggregate share units have been transferred to the owners
  • For reference, there are some differences between JMB and MC
    • JMB is formed within 12 months after vacant possession and before strata title is issued while the MC comes into existence when strata title is issued
    • The JMB comprises of parcel owners and developer (one seat in the Joint Management Committee) but MC comprises solely of proprietors (or parcel owners) only
    • Both JMB and MC is a corporate body having perpetual succession but JMB will be dissolved 3 months after the first AGM of MC
    • The first AGM of MC will only be called when the titles of a quarter of the aggregate share units have been transferred to the parcel owners [Section 57, SMA]
Challenge 2: Management Body

6.  Establishment of JMB

Question Establishment of JMB – not later than 12 months from the date of VP. Purchaser request early formation of JMB (refer to Section 17, SMA).

Answer

  • It is a norm to establish the JMB on the 10th month from the 1st VP though the SMA allows for maximum of 12 months
  • To do so any earlier may not be practical as occupation of the strata units could be quite low
  • It is better to elect among residents (purchasers who have moved in to stay) as committee members than the investors (who do not stay at the strata units)

7.  Participation in the JMB

Question After the establishment of JMC, parcel owners are not actively participating in the activities organised by the JMC (refer to Section 22, SMA). Developer compelled to continue playing an active role at the management of the property to ensure matters are being taken care of.

Answer

  • The JMC elected should keep organizing engagement session with the parcel owners to encourage their involvement
  • As committee members from the parcel owners may not have the necessary experience, hence the developer through his representative as a member of the joint management committee should play an active role as continuous service to your customers
  • Engage a good property manager who will carry out the day-to-day property maintenance and management with high professionalism and etiquette

8.  Resignation of Member of JMC

Question After the establishment of JMB – there is withdrawal by elected member of the joint management committee. Proxy being appointed by individual owner should be allowed.

Answer

  • All members of the joint management committee have to be elected during the AGM
  • Should a vacancy arise, the remaining members may appoint any parcel owner to be the member as per Second Schedule Paragraph 3(5) of SMA

Reference:

Under Second Schedule Paragraph 3(5) of SMA, where a vacancy in the membership of the management committee occurs otherwise than by operation of subparagraph 3(1) or 3(3), the remaining members may, subject to subparagraph 2(8), appoint another proprietor to be a member until the next annual general meeting

  • Subparagraph 3(1): vacation of office of member of management committee
  • Subparagraph 3(3): Except where the management committee consists of all the proprietors, the MC may, at any time, by resolution at an EGM remove any member of the management committee from office and subject to subparagraph 2(8) appoint another proprietor in his place to hold office until the next annual general meeting
  • Subparagraph 2(8): For the avoidance of doubt, a proxy appointed by a proprietor shall not be eligible for election

9.  Formation of MC

Question Formation of MC disallowed by JMB

Answer

  • As one seat on the JMC is reserved for the Developer, the reason for disallowing for the formation of MC should have been discussed during the JMC meeting, and known to the developer
  • If there is no valid reasons, the developer is to inform and seek COB assistance to conduct the 1stAGM of the MC

10.  Interest to be members of MC

Question Not many people are interested to become members of MC without any incentives.

Answer

  • A minimum of 4 members is good if they are active and capable
  • A good and responsible property manager is as important as the Management Committee
  • Select a good property manager as they are the one who will carry out the day-to-day property maintenance and management

11.  Strata Property with 2 Parcels

Question Built 776 units of double storey townhouses. Each townhouse is rested on a block which is considered as strata property. As such under the Act, there need to be:

  1.  388 JMB
  2.  open 388 maintenance account, sinking fund and audited accounts,
  3.  min deposit of RM50,000 for each plot of land for defects.

Forming 388 MC with 2 parcel owner each is impractical. We have appealed to the Minister to give exemption to comply with these requirement under Section 151. The Ministry replied that this will take time as the exemption can only be considered after consultation with National Local Government Council

Answer

  • Agree with the action taken

12.  Annual Financial Accounts

Question Unable to finalize and produce the annual financial accounts.

Answer

  • Property Manager must distribute account to JMC on a monthly basis
  • Monthly account must be presented and discussed during the JMC meeting, which must be held every 2 months, for deliberation and approval
  • Treasurer must go through the account in detail especially debtor and creditor report and the ageing
  • The JMB account has few transactions except the collection of monthly maintenance charges and sinking fund
  • It is not a complicated account and the management commitee should find from the property manager the reasons that account cannot be finalised, and then take appropriate action including making report to Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia

13.  Abuse of authority by committee members

Question Abuse of authority by JMB/MC committee members.

Answer

  • Such a committee member has to vacant office as per Second Schedule Paragraph 3 of SMA
  • To make a report to the COB for advice and action
  • Under Paragraph 3(3) of Second Schedule in SMA, except where the management committee consists of all the proprietors, the JMB/MC may, at any time, by resolution at an EGM to remove any member of the management committee from office and subject to subparagraph 2(8) appoint another proprietor in his place to hold office until the next AGM

14.  Incompetent Property Manager

Question How to deal with incompetent Property Manager?

Answer

  • Developer must set a high standard in property management during the Developer’s Management Period in order to create awareness and expectation
  • To manage expectation, it is advisable to:
    • To conduct survey every 3 months among the strata unit owners and residents (online survey) to manage expectation
    • To hold town hall meeting every 6 months to discuss any management issue
  • To appoint registered Property Manager only and the term of appointment is 1 year subject to renewal
  • To seek endorsement at the AGM on the appointment or renewal of Property Manager so that the level of service can be discussed
  • To report and seek advice from COB
  • To report and seek advice from Board of Valuers, Appraisers, Estate Agents and Property Managers Malaysia for advice
Challenge 3: Handing over

15.  Handover from Developer’s Management Period to JMB.

Question Developer offer 1 year free maintenance to all buyers but it was put under 1 account instead of 2 separate accounts for maintenance charges and sinking fund. Thus, developer is unable to call for the 1st AGM of JMB as the account cannot be audited. The developer has obtained approval from COB to delay the 1st AGM of JMB until the accounts are properly separated and audited.

Answer

  • Developer still need to open 2 separate accounts, a maintenance account and sinking fund account although the fees will be paid by the developer.
  • The establishment of maintenance account and sinking fund account is quite well spelled out in Sec 10 and Sec 11 of SMA.

16.  Timeframe of handover from developer to JMB.

Question Should take into consideration the actual practical operations i.e. issuance of JMB/MC certificate from authorities, opening of bank accounts, selection & appointment of property manager – 1 month is not sufficient.

Answer

  • It is a good practice that Developer to start preparation for handing-over 8 months after the 1st VP and to hold the 1st AGM on the 10th month
  • If submission of documents to register the JMB to COB is complete (many COB provide document submission checklist), it will take not more than 1 month for COB to issue the JMB registration certificate
  • With the JMB registration certificate, the JMB can open the Bank account
  • Thereafter the developer can transfer all monies to the JMB Bank account
  • With advance preparation the handover should be fairly smooth

 17.  Handing Over of Account

Question Developer shall hand over the accounts before the developer’s management period expires. [15 (1)]. To provide timeframe for preparation of documents for registration at COB within 30 days from the date of 1st AGM.

Answer

  • Preparation of documents for submission to COB to register the JMB would take approximately 2 weeks
  • If submission of documents to register the JMB to COB is complete (many COB provide document submission checklist), it will take 2-4 weeks for COB to issue the JMB registration certificate
  • A typical COB document checklist for registration of JMB which include:
    1. Notice of first AGM and agenda of the meeting
    2. Minutes of first annual general meeting
    3. Attendance of parcel owners
    4. Voting slip for election of committee members
    5. Voting slip for motion of the meeting
    6. List of elected committee members (designation & contact number)
    7. Copy of complete sale and purchase agreement (1 parcel owner only)
    8. Copy of sale and purchase agreement of each committee member with details of:
      1. Name
      2. I/C No.
      3. Unit No.
    9. Copy of I/C (each committee members)
    10. Statement of Account of Maintenance Charges of each committee member up to the date of general meeting
    11. Letter of appointment of proxy
    12. Copy of title and layout plan
      1. Title No.
      2. Lot No.
    13. Register of strata unit owners (as in Form 9, Strata Management (Maintenance and Management) Regulations 2015)
    14. Letter of confirmation of JMB’s official name and address

(ref : MBPJ COB document checklist)

18.  Transfer all balance of moneys

Question The period of transfer of balance of moneys in the maintenance account and the sinking fund.  [15 (1)]. To provide timeframe for issuance of JMB certificate.

Answer

  • If submission to COB is complete (Many COB provide document submission checklist), it will take not more than 1 month for COB to issue the JMB registration certificate
  • With the JMB registration certificate, the JMB can open the Bank account
  • Thereafter the developer can transfer all monies to the JMB Bank account
  • See answer to Q17 also

19.  Opening of JMB Bank account

Question To provide timeframe for JMB open bank account.

Answer

  • As soon as after the 1st AGM, the JMC should approach the Bank to make necessary arrangement including to sign all necessary documents for the opening of Bank account
  • Once the JMB registration certificate is issued by COB and presented to the Bank, the account can be opened almost in one day
Challenge 4: Arrears

20.  Arrears

Question Owners of strata unit have large outstanding debt of unpaid maintenance charges, sinking fund and other payments. [33]

Answer

  • Recovery proceeding should start early and not allow outstanding debt to accumulate to several months
  • Recovery proceeding as set out in Section 78, SMA are:
  1. The committee member of Management Body to issue the notice of demanding payment of the sum due within the period as may be specified in the notice which shall not be less than 2 weeks from the date of service of the notice
  2. If any sum remains unpaid at the end of the period specified in the notice, the committee members may file a summons or claim in a court of competent jurisdiction or before the Tribunal for the recovery of the said sum
  3. The committee member may also make an application in writing to COB to recover the sums by attachment of movable property
  4. While the Management Body is recovering the sum due, following actions can be taken as stated in the Third Schedule (By-laws) Paragraph 6 of SMR:
    1. The defaulter shall pay interest at the rate of 10% per annum on a daily basis or at such rate as shall be determined by the Management Body at a general meeting, until the date of actual payment of the sum due
    2. The Management Body may prepare a defaulter’s list showing the names of the defaulting proprietors, their respective parcels and the amount of the sum that remains unpaid, and may display the list on the notice boards in the building provided that such list shall be updated by the Management Body at the end of every following calendar month
    3. The Management Body may deactivate any electromagnetic access device issued to a defaulter until that the any remaining sum has been fully paid, together with a charge not exceeding RM50 that may be imposed by the Management Body for the reactivation of his electromagnetic access device. During the period of deactivation, the Management Body may require the defaulter to sign in a defaulter’s register book each time that the defaulter requires any assistance for entry into or exit from the building or the development area
    4. The Management Body may stop or suspend a defaulter from using the common facilities or common services provided by the Management Body
    5. The Management Body may enter into any instalment payment scheme in writing with a defaulter to enable the defaulter to settle his outstanding sum
    6. The Management Body may accept payment of any sum due by a defaulter which is made by his chargee, assignees, successor-in-title, lessee, tenant or occupier, and any of the aforesaid persons who had made such payment shall be deemed to be irrevocable authorised by the defaulter to do so

21.  Owners fail to pay arrears even after issuing written notice. [34(2)]

Answer

  • Refer to answer in Q21

22. Recovery of sums by attachment of movable property. Parcel owners fail to pay the arrears in maintenance fees after a written notice demanding payment of the sum been served to the parcel owners. Developer then submit a sworn application in writing to COB to obtain a warrant of attachment of Form A of the Third Schedule.

Answer

  • Agreed with the action taken. The recovery of sums by attachment of movable property is well spelled out in Regulation 35 of SMR.

 23. Non-payment of service charges especially from absentee foreign owners.

  • Developer must take stern action during Developer’s Management Period as provided for by the By-laws including to file the claim at the Strata Management Tribunal
  • For absentee foreign owners, Developer/management committee may locate the owner by referring to the register of parcel owners (to be maintained by the developer during Developer’s Management Period or to be maintained by JMB during the JMB period) or strata roll (to be maintained by MC during the MC period), which containing the particulars of all parcels in the development area including the details of solicitor acting for the SPA [Section 30(1) and Section 72(1), SMA]
  • Developer/JMB/MC can recover charges from the tenants (ref Section 79(5), SMA)
Challenge 5: By-laws

24.  Vandalism

Question Parcel owners causing vandalism, bringing 2-wheel vehicles in the lift, and obstructing the pathway of utility meter reading.

Answer

  • Under Paragraph 20 in the Third Schedule (By-laws) of SMR, the Management Body may without prior notice, remove or confiscate any property of a proprietor obstructed the common property
  • To seek advice from COB for appropriate action or solution
  • To educate the parcel owners of community living

25.  Renovation and extension

Question Renovation and extension for landed parcel [By- laws Third Schedule Part 7 Section 28 (1)]

Answer

  • Paragraph 28(1) of SMR stated that unless prior approval in writing has been detained from the appropriate authority and the management body, a proprietor shall not:
    1. Construct another floor level to his parcel (e.g. to split the level of any portion of the existing floor in the parcel by adding platforms)
    2. Relocate any external door or window of his parcel
    3. Remove or make changes to any building safety feature in his parcel and notwithstanding such approvals, the proprietor shall indemnify and keep indemnified the management body against any liability which may be incurred or suffered as a result of such removal
    4. Shift any plumbing and sewerage system in a parcel
    5. Change or upgrade the whole electrical system in a parcel; or
    6. Illegally connect or tap electricity supply
  • Paragraph 29 of SMR stated other prohibitions including:
    1. Hacking, drilling and punching of nails or screws into walls are strictly prohibited within 300mm of any concealed or embedded pipes and electrical conduits. A proprietor shall ensure that all contractors are required to use a metal detector before any hacking or drilling of such walls, or punching of nails or screws into walls. The proprietor shall ensure that the contractors are also required to check the as-build building plans and drawings kept at the office of the management body
    2. A proprietor shall not cause or permit any fitting or fixture or any alteration or change to be made to the exterior of his parcel that will affect or change the appearance of the common property or building façade or encroach onto any part of the common property without the prior written approval of the management body. Building façade shall include external windows, balconies, terraces, common areas, open areas and all other visible parts of the building which constitute or form part of the exterior appearance of the building
    3. A proprietor shall not install any television/radio antenna or disc on the rooftop or on any external part of the building without the written consent of the management body
    4. Save and except for air-conditioning condensers which are already installed, the installation of outdoor air-conditioning condensers shall be positioned at the designated areas approved by the management body. The mounting of any air-conditioning on any other exterior areas of the building is strictly prohibited. All exposed pipes are to be laid in suitable conduits/ducts and to be painted according to the colour of the exterior building façade. The outlet of the discharge pipe shall be placed at the nearest floor trap provided at the approved designated area or connected to a common designated discharge pipe, as the case may be. A proprietor shall ensure that his contractor installs all air-conditioning units according to the standard specification and such air-conditioner units shall not cause vibration, annoyance and discomfort to other occupiers
  • Contractor can be barred from entry if they are carrying out any work against the By-law
  • To seek advice from COB for appropriate action

 26.  Renovation and extension

Question Owners of strata units have covered the balcony and converted the area into office space. The renovation work has changed the building façade and jeopardizes the issuance of strata title. [32]

Answer

  • This is against the Paragraph 29(2) of By-law under the Third Schedule of SMR
  • A report should be made to COB for further action if owner refuse to remove the cover constructed
  • The question is how could contractor be allowed into the strata property to carry out such work or why supervision was not carried out by the property manager to stop the work?

27. By-law and Additional By-law

Question Restriction in renovation By-laws under Third Schedule Part 7 Section 28 (1)] Suggest adding on additional subsection of (g) make changes on the entrance door and installing grille/gate/awning roof/window/floor or wall to the foyer or any exterior of the parcel that will affect or change the appearance of the common property. To add clause in the by-laws for control measure

Answer

  • It is a good idea to introduce additional by-law to the schedule By-law to control change to entrance door, installation of grille etc.
  • Installing awning roof and window will change the façade of the building and is against the Paragraph 29(2) of By-law under the Third Schedule of SMR
  • However it is a common practice for developer to issue a suggested main door grille design in order to blend with the main door and the building architecture
  • Kindly note that Installing grille is against the BOMBA fire safety guideline

28.  By-law and Additional By-law

Question Agenda of First AGM – No agenda for adoption of SMA By-laws by existing JMB/MC as many still using their current house rules instead of following SMA By-laws. [Section 19(1)]

Answer

  • Item (g) of the agenda of annual general meeting as per Form 5 of the SMR is to make any additional By-laws
  • As the first AGM is conducted by the developer, it is the responsibility of the developer to propose to adopt the SMR scheduled By-laws and to propose any additional By-laws

Reference:

The By-laws set out in the Third Schedule of SMR and any additional BY-laws made under the Strata Management Act 2013 shall bind the developer, the JMB, the MC or the Subsidiary MC, as the case may be, and the purchaser, parcel owners or proprietors, and any chargee or assignee, lessee, tenant or occupier of a parcel to the same extent as if the By-laws or the additional By-laws have been signed or sealed by each of the person or body mentioned above and contain mutual covenants to observe, comply and perform all the provisions of the By-laws or additional By-laws [Paragraph 1 of Third Schedule, SMR]

Challenge 6: Deposits for Defects

29.  Common Property Defects Account

Question 1 It is unfair and unreasonable for developers to pay deposit defects in the common property in addition to stakeholder sum held by solicitor which already cover the cost of repairing defects to the building & common areas. [92 (1)]

Answer

  • The retention sum held by the lawyer is in respect of defects within the parcel (Strata unit) and is a percentage of the purchase price of the a parcel (Strata unit)
  • It does not cover defects in the common property or common facilities, such as lift, common area fire fighting and electrical system, swimming pool, guard house, gymnasium equipments, road and drain, landscape etc.

Question 2 There is no provision in the Act on how the deposit will be utilised for the rectifications:

  1. Should individual owner apply?
  2. JMB has no contractual relationship in this aspect. Can they act on behalf of the owner?
  3. How is the deposit to be controlled? [92 (1)]

Answer

  • The deposit is to be utilised to rectify defects in the common property or common facilities if developer fail to do so [Sec 92, SMA and Regulation 50, SMR]
  • All deposit will be placed under the Common Property Defects Account during the defect liability period of the common property [Regulation 50, SMR]
  • The control of deposits rest with the COB [Regulation 50, SMR]
  • The Regulation 50(3) of SMR allow for the following persons to make a claim against the Common Property Defects Account:
    • A purchaser
    • A proprietor
    • A JMB
    • A MC
    • A Sub-MC
    • A Managing Agent appointed by the COB
    • Any other interested person, with the permission of the COB
  • As common property and common facilities are jointly owned by all parcel owners, it is better for the JMB or MC to carry out any rectification (if developer fail to so). In so doing the JMB or MC is acting on behalf of all parcel owners
Challenge 7: Strata Titles Act

30.  Transfer of Title

Question Parcel owner did not transfer name into parcel title.

Answer

  • There is no Law compelling the transfer
  • Without transferring the title, the owner has not right to vote and to stand for election for the Management Committee of the Management Corporation
  • Government has proposed that stamp duty for transfer be paid upfront and all MOT forms duly signed. Once the strata title is issued, transfer can be effected by the lawyer without any delay
  • This regulation was proposed in the Strata Titles (Amendment) Act 2013 under Section 19A, but it was not enforced. Subsequently, Section 19A was deleted in the Strata Titles (Amendment) Act 2016 which was gazetted on 9 September 2016. Thus, currently there is no Law compelling the transfer
Challenge 8: Housing Development Act

31.  Stakeholder Sum

Question HDA Act – Schedule H, Clause 30 (Defect Liability Period): The withholding of the release of stakeholder sum requested by owners in the event developers fail to rectify the defects within the DLP both for the parcel units or said common property. The ambiguity of this provision may cause confusions and double accounting with the deposit developers need to pay to COB.

Answer

  • This clause (clause 30 of Schedule H in SPA) applies to defect within a parcel area
  • For defects in the common property and common facilities, it is covered under Section 92 of SMA where the developer is required to submit a deposit in cash or bank guarantee with COB and such sum as may be determined by the COB for the purpose of carrying out any work to rectify any defects in the common property of the development area after the completion of the common property
  • The amount of deposit as per Regulation 47(1) of the SMR shall not be less than zero point five per cent of the estimated costs of the construction or fifty thousand ringgit, whichever is higher
Challenge 9: Design

32.  Complaint on Design

Question Owners like to directly complain to Association i.e. REHDA/LAM on the design/work that they dislike or not prefer even though it is not a defect.

Answer

  • Design (good or bad) is a sale & purchase issue. It is natural for owners to refer to REHDA, PAM or LAM for a third party opinion
  • Suggest holding on-on-one or regular town hall meetings to face the owners to explain and resolve any issues that that they may have.