5 THINGS TO KNOW AS STRATA TITLED PROPERTY OWNER

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5 THINGS TO KNOW AS STRATA TITLED PROPERTY OWNER




Are you residing in a condominium block, serviced residence or within a gated and guarded development? If your answer is yes, here’s the next question. Are you staying in Johor Bahru or Kuala Lumpur? If it’s a double yes, then this will apply to you. Right now, what we are going further is strata property and living in a strata property, there are some things you will need to know. According to the Strata Title Act 1985 Malaysia, strata scheme is defined as a building or a collection of buildings that has been divided into ‘lots’. The definition of lots is individual units of apartments, condominiums, townhouses, houses and etc. 

Then, in year 2013, Strata Management Act 2013 is introduced and most Malaysian homebuyers aren’t aware that the property they purchased is a strata property and their duties, obligations and rights that are spelled out in the SMA 2013. But, we’re going to share with you some of the responsibilities that you will have to abide to.

1. Be familiar with the law

SMA 2013 has lay out a clear outline of the responsibilities and limits the authority of developers, local governments and residents. The strata schemes are supposed to be small, self-governing community operating as a democracy, where the owners, who are represented by a Management Corporation (MC) can collectively decide how to well manage the property together. 

An MC can be established after the strata titles have been issued, and at least 25% of the aggregate share units that have been transferred to owners. At the same time, there is an interim body which is called Joint Management Body (JMB) that will set up to run things from the time of delivery of vacant possession by developer to purchasers. 

Then, there is a gap in time for the forming of MC, as known as Developer’s Management Period that is meant to be a grace period for owners to learn trade of managing their own property with holding hand of developer. 

2. Annual General Meeting (AGM)

Developer will have to call the residents for the very first AGM within 12 months of the first delivery of vacant possession, no later than one month after 25% of strata titles have been issued. Then, the management of strata development must hand over to MC within one month. You can play an active role in the AGM by appointing board members and the representatives for condo owner. It is also a platform for you to share important issues or if there are any unhappy matters with the management, you may voice out collectively. Most importantly, we have to cast our votes if there is necessary to increase maintenance fees

3. Pay maintenance fee on time

The maintenance of strata building is supported by sinking fund and service charges collected from residents.

Sinking fund covers the future capital expenses which are not as frequent like façade painting, refurbishment or fixtures replacement. Funds’ amount must be enough to cover all developments’ expenses. 

Service Charge is monthly payments for maintaining common facilities and common property in development such as swimming pools, elevators and security services. 

The lack of funds would paralyze numerous processes which are including physical maintenance of common areas, facilities and amenities. There are defaulters and defaulters’ name will be displayed on the communal notice board. The process of debt recovery from defaulters is tedious and costly that could lead up to court. 

4. Emergency General Meetings (EGM)

All strata owners can write in to JMB to request for Emergency General Meetings for issues pertaining to high level urgency like criminal activity around the area or main roof water tank bursting. Based on the SMA, Chairman of the committee council shall convene for EGM within 6 weeks of receiving requisition in writing form from strata owners with at least 25% of aggregate share units. Owners can seek help from the Commissioner of Building (COB) or the Strata Management Tribunal (SMT) if the management not oblige to entertain the request for an EGM.

5. Right to file a claim under SMT

In order to protect rights of strata owners, SMT was formed. It is to provide feasible solutions for disputes such as failure to perform function, duty or power that is imposed by SMA 2013 or disputes over costs or repairs of defect. SMT enables for solving disputes at minimum cost because no legal representation is allowed which eliminates high legal costs. 


At the end of the day, community strata residents must understand the importance of living in harmony and thoughtfulness with their neighbours. Because you are no longer a sole owner of the asset and your actions can affect more people than you know. 

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