By:
Bryan Lui (Co-Managing Partner) [bryanlui@luibhullar.com]
Harneshpal Karamjit Singh (Co-Managing Partner) [harnesh@luibhullar.com]
The Strata Management Act (SMA) 2013, has been a significant step forward for home buyer's protection. It provides clearer and more stringent provisions on managing stratified properties in Malaysia, covering residential, commercial, and mixed-use developments. The Act ensures better protection for home buyers against errant developers.
However, effective enforcement of the SMA remains a challenge. Some developers exploit legal loopholes, such as nominating their staff to attend Joint Management Body (JMB) or Management Corporation (MC) meetings to outvote individual owners on crucial issues like service charges and management policies. Developers often withhold accounting documents and use their auditors, creating a lack of transparency. Additionally, confusion persists over converting maintenance contributions from a per square foot to a share unit basis.
Impact of the Strata Management Act 2013 ('SMA 2013') according to a Strata Lawyer
The SMA 2013 aims to make the laws related to strata ownership more understandable and enforceable. It ensures that strata titles are transferred to purchasers upon vacant possession, promotes certainty of share units from the early stages of development, and implements thorough checks and balances on developers. The Act defines the roles and responsibilities of developers, joint management bodies, management corporations, and individual parcel owners, providing a comprehensive framework for strata management.
Awareness and Misconceptions About the Strata Management Act 2013
According to a strata lawyer, despite its benefits, many strata owners are unaware of their rights and responsibilities under the SMA. Owners often do not realize they are co-owners of the common property and members of the owners’ body. Developers, building managers, and local authorities should strive to educate the public about the Act. Increased awareness and participation in management activities can lead to better-managed buildings and higher property values.
Challenges Faced by Home Buyers and Investors
Home buyers and investors face several challenges under the new Act. Issues such as inter-floor leakage and lack of participation in management committees persist. Some owners are reluctant to attend JMB/MC meetings or vote on important matters, resulting in poor building management and maintenance. Additionally, the publication of defaulters' lists can lead to defamation issues, and owners must understand their rights and duties to ensure effective management.
Addressing Issues with the Strata Management Act 2013 with a Strata Lawyer
The SMA includes provisions to address these challenges, such as establishing the Strata Management Tribunal (SMT) to handle disputes and enforce penalties for non-compliance. Owners should actively participate in management and challenge any developer misconduct. The First Schedule under the Act offers a formula for maintenance contributions, aiming to provide a fair and transparent method for determining fees.
Consulting an SMA lawyer or a strata lawyer can help home buyers navigate the complexities of the Strata Management Act 2013, ensuring their rights and interests are protected.
Please contact us for a free consultation via WhatsApp (+60143000960) or E-mail (admin2@luibhullar.com) for any queries regarding Strata Management matters.
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