The Creation of Strata Scheme in

Malaysia
 Property titles and their registration
• Property may be received by individuals either through
• Alienation, or
• Sale and purchase/ gifts and donation, or
• Inheritance.
• The property may be individual or strata
• In either form they have to be registered.
• In Malaysia the individual title governed by NLC and
strata titles are governed by Strata Titles Act 1985 and
Strata Management Act 2013
• Strata Titles Act deals with registration of title and
Strata Management Act is dealing with management of
strata titled properties.
 Historical background of Strata Titles
Act 1985
• The strata Titles were part of NLC referred to
them as subsidiary titles.
• A separate law was enforced in 1985
• Major amendment was to it in 2007.
• The last major changes were made in 2013
and were enforced in 2015.
• The historical development and the reasons
for the last amendment are illustrated below
The reasons behind
Amendments of 2013
• Due to the above reasons some strata
buildings had no titles for more than 25 years.
• Even though 2007 amendment addressed this
issue, however it was still less effective.
• The new law make it the duty of the developer
to apply for title early and should deliver the
title together with vacant possession to the
purchasers of a property.
• This will be discussed later.
What is Strata property and titles
 Strata Property (Scheme)
A strata property is referred to as Strata scheme.
A strata scheme involves the subdivision of
• Buildings
– Completed Strata
Common
– Intended (provisional blocks) Unit/individ Property
• Buildings and land ual parcel

– Completed
– Intended (provisional blocks)
• Land Accessory
– Completed Parcel
– Intended (provisional blocks)
Into separate individual parcels, accessory parcels and common
property.
 Buildings
• Basically subdivision of the building under the Strata
Titles Act means the production of a separate title,
known as strata title for every parcel in the building
with two floors or more,
• Scheduling the storeys, the parcels on each storey, and
the share units of each parcel on each storey
• The parcels are defined in cubic space and must be
limited in height and depth
• The provision of title for building that is completed or
intended to be constructed or under construction
• Parcels in each floor are registered in its owner name
• Common properties are registered in the MC name
• A strata subdivision of a building under s 6 STA
is required if:
– It has two or more storeys
– It is on alienated land
– It is held under final title
 Building and Land
• (s 6(1) STA) In addition to the subdivision of
building as mentioned above, a land, which
remains on the same site, where there would
be subdivided building stands, can be
subdivided into parcels.
• Each of the subdivided land parcels can be
held under strata title (individual unit) or an
accessory parcel.
s 6(1) and (1A)
Land having
two or more
buildings
Sect 6(1)
 Land
• (s6(1A)) A strata scheme may involve the
subdivision of land into parcels. The
requirements are that there shall be
– two buildings or more
– situated on the land held as one lot
– Under final title
• The parcels can be held as strata title or
accessory parcel
Sect 6(1A)
Development of the Strata Titles Act 1985 up to 2007
A subdivided development
Note:
• The act does not define land in terms of its
stratum and subterranean space held apart of
surface of the earth as in the case of
Singapore.
• The Act does mention basement (s 4, storey,
land parcel, definition of, strata plan; s 8A
(2)(3)(9); s 13(5); s 20A(2)(3)(9) ).
Regardless of whether the subdivision is of building or
land, there shall exist the following:
– A parcel or unit
– Accessory unit
– Common property, and limited common property
– management corporation/subsidiary management
corporation (entity to hold land and to sue or be sued
in its own name)
– The management corporation exists automatically
upon registration of strata building parcels.
The management Corporation consists of all owners
of parcels.
Common property
• According to S2 of Strata Management Act it is so much of area
that is
– not part of a parcel or proposed parcel
– Used or capable of being used by more than two occupiers of the area
not including accessory parcel and provisional block
• Limited common property such part of common property in a lot
– That is designated to be exclusively used by two or more proprietors
under s 17A of STA but not all of them
– For which a certificate is issued by Director that a subsidiary
management corporation is constituted under STA.
• S 34. The parcel owners have rights of users as co-proprietors
• The management of the common properties, and their
maintenance is the responsibility of the management corporation
who collects money from parcel owners monthly
• Management Corporation
– For every strata title there is need for a management
corporation.
– Such corporation is formed from all the parcel owners
– The owners could be natural or legal
– Decisions are made through voting and carried out by
appointed working committees.
– The management corporation is responsible for the
management and maintenance of the strata lot
– For collection of fees and its expenditure as required
by law
– Details will be discussed in due course
 Strata plans
• A strata scheme requires strata plans. They are:
• Building: location plan, storey plan including plan
of Subdivision or Amalgamation of any parcels
shown in a certified strata plan.
– Subdivision plan (form 6)
– Amalgamation plan (form 7)
• There also shall be a certified building plan
• Land: location plan, delineation plan, including
plan of division or amalgamation of any parcels
shown in the certified strata plan
 Preparation of strata Plan
• There must be proper strata plans in place prepared by the
original proprietor before he applies for subdivision.
• These plans may include maps and administrative texts
explaining the proposed subdivision.
• The plans consist of those mentioned early and some
administrative textual information will be supplied during
the application for certificate of proposed strata plan and
for the registration of strata title.
• Once the application for certificate of the proposed strata
plan is made, after due process under s 8A and s 9, a
certified plan is prepared by the director of survey and
given to the director of land and mines so that the strata
titles can be registered accordingly
 The duty to apply for Strata title
• S 7 of the STA only the original proprietor can
apply for subdivision.
• Section 8 of the STA make it compulsory for
him to apply under specific circumstance.
Establishment of Management
Corporation
Opening accounts
Duties of proprietors
 MC management Period
(2) STRATA MANAGEMENT AFTER EXISTENCE OF S 46(2)
MANAGEMENT CORPORATION
• “preliminary management period” is the period
commencing from the date of delivery of vacant
possession of a parcel to a purchaser by the developer
until one month after the first annual general meeting of
the management corporation
• “initial period”, in relation to a management corporation,
means the period commencing on the day on which the
management corporation comes into existence and
ending on the day on which there are proprietors.
• This law applies to a development area, where S 46(1)

before or after the commencement of this Act—

– vacant possession has been delivered by the
developer to a purchaser; and
– the management corporation has come into
existence under the provisions of the Strata
Titles Act 1985. S 47
– no joint management body is established
under subsection 17(1) for the development
area.
 Duties and powers of developer
• 48 during the preliminary • 49 during the preliminary
management period the developer management period the
is developer cannot
– responsible to maintain and – Borrow money or give
security
manage the subdivided building
– Enter any contract for
and common property maintenance and
– To exercise the power and management beyond the
perform duties of management preliminary period
committee of MC • Breach of above duties, make
developer liable for losses
– Separate an area for suffered by parcel owner or
administration office in the MC
common area • Non compliance is offence and
– Non compliance is offence and maximum penalty is 250K or 3
maximum penalty is 250K or 3 year prison or both
year prison or both
 Duties of developer to open accounts
• Maintenance account • Sinking fund account
– An account required to – An account required to
be opened by developer, be opened by developer,
JMB, and MC under s 10, JMB, and MC under s 11,
23, 50, 60, and 66 24, 51, 61, and 67

The developer has the duty to open both accounts

according to s 50-51. failure to do so is offence,
maximum penalty is 250000, three year jail or both
 Maintenance account: deposits
• S 50 Opening of • The account is for all
maintenance account with payment from:
bank before charges are – All charges paid by
collected from parcel proprietors
owners – All or any part of charges
payable to MC under SMA
– All moneys received by MC
through any dealing (sale,
disposal, lease or any other)
– All other money which
becomes payable to MC
– Money received by MC
through collection of interest,
donation and trust
Maintenance account: expenditure
• Inspection, maintenance, and
• 50(3). The money in the account be
used for meeting the actual repair of water tank
/expected general/regular • Payment of rent and rates
expenditure necessary to common • Auditing fees for audit of accounts
properties for the followings: required to be kept and
– Daily maintaining of common maintained
property
• Administrative charges for
– Expenses of cleaning, common
property, security, and amenities maintenance of accounts as
– Insurance premiums, determined by the Commissioner
– Periodical inspections ordered by • Remuneration and fees to
local authority managing agent
– Minor painting • Allowance and other expenses of
– Inspection of all electrical wiring members of management
replacing and repairing of wiring committee as approved by
systems commissioner.
• Expenses, costs or expenditure
relating to
maintenance/managment
 Sinking fund account
• 51. developer has to open and maintain sinking fund
account in the name of MC, with Bank and deposit
contributions made by proprietors
• It has to be solely used for meeting the actual and
expected capital expenditure necessary for the
following:
– Painting/ repairing any part of the common property
– Any moveable property for use in relation to
common property
– Renewal/replacement of any fixture, fittings
– Upgrading and refurbishment of common property
– Any other capital expenditure deemed necessary by
MC
 Duties of developers in relation to
accounts
• S 54. during the preliminary period – File with commissioner a certified
the developer shall true copy of the audited accounts
together with auditor report with
– Prepare accounts and records of 14 days after the accounts are
account and sufficiently explain the audited
transaction, enable true and fair
balance sheet, income and – Give to the Commissioner or his
expenditure statement, profit and loss agent full and free access to to the
statement; accounts and records of the
accounts and to make copies and
– Appoint approved company auditor to extracts of that accounts
carry out audit of account annually
which shall be audited • The commissioner shall have the
• When control of all balances of right to appoint an approved
moneys in both accounts is to be company auditor to investigate
transferred to MC the accounts etc. and the
• When the accounts are to be developer shall pay the expenses
presented at the first AGM of MC
within three months before the • Developer has to furnish returns
meeting and reports etc and in a manner
as the commissioner direct
 Duty of developer to hand over control to MC
• The developer shall within the • In case of unaudited accounts the
preliminary management period developer shall hand over audited
– Transfer control of all balance of accounts up to the date of the transfer of
moneys in both accounts to the control not later than three months after
Management Committee of the MC the expiry of the preliminary
– Hand over to the management management period;
committee of MC • Developer shall hand over the copies of
• The administration of office all the followings
• The audited accents of the – All approved plans
both accounts and if not – Any documents that indicates the
audited the unaudited ones actual location of any pipe, wire,
• All assets of MC cable etc if he believed they are
• All records necessary for located as shown on the approved
maintenance and management plans
of the the building, land and – All contracts signed by developer for
common property maintenance and management
purposes
– Copy od the schedule of parcels filed
with commissioner or the CSP
– The names and – All warrantees, manuals,
addresses of contractors, schematic drawings,
subcontractors, and operating instruction,
persons who supplied services etc for information
labour or materials about construction,
during construction installation, operation,
maintenance repair and
servicing of common
properties

Non compliance is offence and subject to penalties

mentioned above, continued offence is punished with
RM 5000 for each day of default
 Duties of residents proprietors
• 52. Proprietor means any person receiving the rent of the
parcel, a purchaser, and a developer where parcels are not sold
yet.
• Each proprietor has to pay charges and contribution to the
sinking fund to MC for maintenance and management
• During the preliminary management period, the amount is
fixed by developer, in proportion to the share unit assigned to
each parcel
• The amount contributed to sinking fund to be a sum equivalent
to 10% of the charges
• The proprietor has to pay the charges and contribution within
14 day of notice by developer
• If not paid, a written notice be service by developer and
payment by proprietor be made within two weeks,
• If still not paid summons may be filed before court, or tribunal
for recovery of the sum or as alternative resort to procedure
under s 79 which is by way of attachment of any moveable
property found in the building
• If the proprietor is not happy with amount determined by
developer, may apply to commissioner for review. The
commissioner may
– Determine the sum
– Direct the developer to appoint property manager to recommend the
sum and submit a copy thereof to commissioner
– The commissioner then determines the sum and it is final
 Prohibition on collections
• No one shall collect charges or contribution unless
– Maintenance and sinking fund accounts are opened in name
of MC
– Vacant possession is delivered to proprietors
– A developer who was collecting money for maintenance and
management and the development is completed on or
before the commencement of SMA may continue to do so
until the expiry of preliminary management period provided
it is according to SMA
 Duty of developer to convene first AGM
• S 57. The developer has the • The developer must give
duty to convene AGM within notice of first AGM, 14 day
the first month after expiry of before AGM, and the notice be
the initial period displayed in proper place
• Non compliance is an offence • The developer has to prepare
and subject to penalties the place before the first AGM
mentioned above an annual budget for 12
months
• If the developer fails to
convene the AGM, the
Commissioner on application
of a proprietor, may appoint a
person to convene AGM
within a specified period and
the developer will have to pay
for its expenses
 First AGM: proprietors' powers
• Agenda for AGM under s 58 – Consider the audited
– Determine the numbers of accounts of MC
members of management – Decide whether rot confirm,
committee and elect them if vary, or extend insurances
more than 3 proprietors effected by developer
– Consider the budget prepared – Make additional by laws
by developer – Consider any mater relating
– Decide whether to confirm or to maintenance and
change the amount management of common
determined by developer for property
charges and contributions,
– Determine the rate of interest
in relation of late payment
 Management Committee
• Every MC should have • The members shall be between 3-14 of
Management committee natural persons (2nd schedule)
(2nd schedule)
• However, where there is only three
• MC elects the
management committee proprietors and one of them is a
and for subsidiary MC its company, society or statutory body
committee is elected by their nominee should be the member
SMC (s 56) • If one proprietor than that person may
• MC may impose restriction make decision on behalf of MC
or give direction at a
general meeting of MC • The election of member be held at each
• The committee performs annual general meeting of MC
the duties of MC (s 56) • There shall be a chairman, secretary
• The committee conducts and treasurer, all natural persons,
business on behalf of MC which shall be elected by management
and exercises MC’s powers committee among its members
(s 56)
• The term of the three shall not be more
than two years consecutively
• All members of the committee shall – The nominee of the two parcel
retire at the conclusion next annual holder if the proprietor or his
general meeting nominee is elected before
• The retiring member can be elected – An absent proprietor cannot be
elected unless he has appointed
for three terms consecutively a proxy with written consent
• Persons eligible for election are: • The committee performs the
– 21 years old duties and conducts the MC’s
– Proprietor or co proprietor business and
– Nominee of a co, society, of SB • exercises any of MC’s powers
– Family member of a proprietor who • The provisions of second
owns two or more parcels and is
nominated schedule apply to the
– Proxies are not eligible
management committee
– the proprietor must have paid all
charges seven days before election
– Twp proprietors can be elected
• Member of committee may be • The meeting of committee can be
considered to have vacated his held if one person, or two if four
office if members, three if five or six
– Resigns, dies, bankrupt, no members, five if nine or ten, six if
more a proprietor, eleven or twelve, and seven if
– convicted of an offence or his thirteen and fourteen.
conduct brings discredit to – ½ the maximum number of
members
the committee
– Unsound minded
– If absent for three meetings,
– No more representative of
the entity
– Defaulted charges
– Breaches by laws
• The meeting be held at least • The committee can employ
once in two months, or as agents and servants
requested by commissioner, • It has to keep records of
or two proprietors meetings (minutes) and be
• Meeting to be chaired by displayed properly
chairmen, • Keep accounts of its
• It has to be held after a transactions, and present
notice audited copy to AGM
• Decision be made by simple • The act of management
majority vote and the committee is valid if in good
chairman has a casting vote faith
• Its resolutions be in writing,
signed by every member
 Obligations of Management
Committee
• The management committee has to do the followings before/during any
general meeting after its formation
– 14 days advance Notice of general meeting to every proprietor informing
them of
• Place, date, and time of meeting
• Each proposed resolutions to be considered
• Voting right of each proprietor and whether to vote in person or proxy at the meeting
– If it is annual general meeting, the notice Be accompanied by
• a copy of minutes of last annual general meeting
• Copy of audited accounts and audit report
• Any other matter
– No motion unless notice be given, or the motion is to amend the motion
– Request for motion to be included on agenda if
• Notice given in writing seven day days before meeting
• On receipt the matter be included in agenda and the notice thereof be displayed on the
notice board
– List of persons entitled to vote be displayed at least 48 hours before meeting
– Before holding the meeting at least one half of the proprietors entitled to vote
have to be present, in person or by proxy
– If within half an hour after the time appointed for general meeting a quorum
is not present, the proprietors present and entitled to vote can constitute the
quorum.
– The chairman of meeting be elected by those present in the meeting and the
elected chairman then preside over such meeting until its end
– The matters in general meeting be decided by show of hand unless poll is
demanded by a proprietor or his proxy
– The declaration of chairman that a matter is decided by show of hand is
conclusive and evidence otherwise is needed
– Proxy can vote by show hand and by poll
– The demand for poll can be withdrawn
– Where poll is demanded the results of the poll to be the resolution of the
meeting
– Where voting equal the chairman is entitled to the casting vote
 MC Duties and Powers
– Must have election (or re-
• MC’s responsibilities (Section 59 – election) at every AGM.
62) and Sub MC (Section 64 - 67 )
– Chairman, Secretary and
and under Second Schedule
Treasurer to be elected from
• Powers of MC and Sub MC (Part V, among the Committee
Chapter 3 Section 59 dan 64). Members immediately after
• Right to claim to Strata AGM and cannot hold office for
Management Tribunal (Part IX, more than 2 consecutive years.
Chapter 3 Section 107) – Term of office is from Date of
• Second Schedule. Election until conclusion of
– Applies to both JMb and MC. next AGM.
Elected at AGM. >3 and <14 – Any Committee Member can
Natural Persons. be re-elected but cannot hold
office more than 3 consecutive
terms.
 MC’s Duties
• S. 59 Properly Maintain and manage the • Prepare and maintain strata roll
building/land and common property • Ensure the accounts are audited
• Keep it in a stat e of good and • Enforce by laws
serviceable repair • Do other things necessary for
• Determine and impose charges for proper maintenance and
proper maintenance and management management MC to keep and
maintain maintenance and
of the development area according to s sinking fund accounts (s 62)
51
• Appoint auditor
• To take insurance according to SMA or • File audited accounts with
other risks as directed by proprietors in commission
special resolution • Permit commissioner to have full
• Comply with notice of local authority or access to accounts and records of
public authority requiring abatement of accounts etc
nuisance on common property,
ordering of repairs or other work or
improvement of common property
• Regulation 28
• By laws are binding on
management corporation
and proprietors
• Read the detail by
provided under schedule
3 of Strata Management
(maintenance and
management )
Regulations, 2015
 Maintenance and sinking funds
• S 60. Where no maintenance account
and sinking fund account are opened – Determine different
under s 50(1) MC has to open them rates of charges to be
with a bank/financial institution. paid in respect of
• All moneys mentioned under s 50(2) parcels which are used
be deposited in these accounts, and for significantly
be used for purposes mentioned
under s 50(3). different purposes
• In line with requirements of s 52, for
establishment of the accounts and – Determine the interest
their maintenance MC may in general payable in respect of late
meeting payment which shall not be
– Determine the amount to be more than 10%
raised for the purposes of s 50(3)
– Impose charges on proprietors in
proportion to the share units or
provisional share units
• S 61 if sinking account is not • Other amount can be
established yet under s 51(1) MC
shall open it and maintain it. determined at a general
• All moneys paid by proprietors be meeting of MC, but it
deposited to the sinking account shall not be less than
by MC
• The deposits be used by MC
ten per cent of the
according to s 51(2) charges
• In line with s 52 the amount
payable by proprietors for
opening of the sinking fund
account shall be a sum equivalent
to the ten per cent of the charges
imposed under s 60(3)
• Furnish to commissioner • Penalty is 250000 or
returns, reports and imprisonment of maximum
accounts etc in respect of its three years or both
activities and finance in a • Member may prove that the
form directed by offence was committed
commissioner without his knowledge,
• MC failure to comply with s consent, or connivance and
62 (1-4) is an offence for have taken reasonable
which every member of precautions and exercised
management committee of due diligence to prevent the
the MC is liable commission of the offence
 Powers of MC
• S.59(2) Collect charges and
contributions to sinking fund • Do all things necessary for
• authorize expenditure for maintenance performance of its duties
and management • 59(3) Recover any money from its
• Recover from proprietors any sum owner or owners at the time of repair
expended in respect of parcels or action spent by MC required under
• Purchase, hire or acquire movable law or on order of an authority to
property for sue with enjoyment of repair a parcel or a few of them if it
common properties was his or their responsibility to do
• Employ or arrange the services of any – Recovery through court or
person to undertake the maintenance tribunal
and management – A purchaser of parcel is not
• Make additional by laws for subdivided subject to above rule, if he has
land and building and common inquired about amount due to
properties in accordance to s 70, 71 MC and MC has not replied or
• Borrow money for performance of its replied but certified that there is
duties no such due amount
• Secure the repayment of the moneys
borrowed and the payment of its interest
 Subsidiary Management Corporation
• S 63. a subsidiary management • The SMC has the same duties and powers as
corporation (SMC) shall elect its MC in respected of the limited common
management committee properties.
• The committee has to perform the • MC will have powers over the remaining
duties and conduct the business of common property areas (s 64(2).
the SMC within the limitations • Provisions of chapter 3 (ss 56-62) shall apply to
imposed by SMC or direction of SMC SMC as it applies to MC
• All owners of the parcels within • Nevertheless, SMC shall have
limited common property area are – Its own maintenance account and sinking
members of SMC fund account for the common expenses of
its limited common property and limited
• At least one member of the common property
management committee of SMC be – Require the owners of parcels in the area
member of the management to pay charges and contributions
committee of the MC – Enforce by laws
• The members of SMC may call for – Control, management and administration
meeting and hold meeting and pass of its limited common property
resolutions as MC members
• Schedule 2 also applies to SMC
• S 64(4) SMC and MC are different entities
– SMC can not enter into any in the name of MC and MC has no
liability for contracts or debts and legal cost incurred by SMC
• SMC may take insurance for risks not covered by MC and
for amount more than what is insured by MC
• Both MC and SMC have the same insurable interest in
their respective common properties
• The SMC may manage any common property or the
limited common property of another SMC upon an
agreement signed by the SMC and MC or other SMC
• The expenses of SMC come from the owners who have
exclusive right to a common property according to the
formula set under s 65 of SMA 2013
• The SMC shall open • The judgement against
maintenance account MC relating to SMC area
and sinking fund is against the SMC
account (s66, 67) • The amount can be
• The proprietors sharing divided according to the
the limited common formula for allocation of
property area shall pay share units .
charges and
contributions (68)
according to the
amount set by SMC
 Financial and non financial
obligations of parcel proprietor
Mohammad Tahir Sabit
 Proprietor
• Proprietor
– S 4 STA: registered proprietor of parcel for time being including of
provisional block
• original proprietor
– S 4 STA means the owner of immediately before the subdivision of
building
• Parcel owner
– S 4 SMA: The purchaser of the parcel [under s 5(2)] or the developer in
cases of those parcels which are not sold yet
– Successor in title to the parcel (s 68)
• Occupier
– S 4 SMA: Person that is in actual occupation or control of the parcel
but does not include lodger
– Person receiving the rent as agent or trustee or receiver
 Duties of proprietors
• All charges and contributions collected by management (the
developer, JMB, MC, and the SMC) under ss s 10, 23, 50, 60, 66 and
11,24,51, 61, 67 have to be deposited into maintenance account
and sinking fund account. They are due and payable
• The proprietors, or anyone succeeding them in title to the parcel,
consisting of MC and SMC have to pay to the management the
above charges and contributions under s 52, 68
• The charges and contributions are due and payable on the passing
of resolution by SMC and in a manner specified therein.
• S 52. The payment be made within 14 days of notice. If not paid,
developer in the name of MC may recover the sum according to s
78.
• Proprietor has to pay interest at the rate of 10 % per annum to the
developer calculated on a daily basis.
• Proprietor may apply to commissioner for review of the sum
 Duties of proprietors
• S 77. Duty of proprietor to pay as a debt any amount spent or
incurred by MC in the course of its powers and duties e.g. s 59
payment by MC on behalf of proprietor in compliance with order of
local government or another authority, or spent on the repair of
parcel or parcels (59(3)).
• 77(2) The amount payable as debt by proprietor must be equivalent
to share units of his parcel. Also s 59(4).
• Fine imposed by MC due to breach of by laws by proprietors,
occupiers and invitees
• 59. a proprietor of parcel who is not the proprietor of it at the time
when the repairs or work was was done shall not be liable for any
payment due if
– he has enquired in writing about any amount recoverable by MC 21
days before he get title, and the MC has certified that no amount is
recoverable or
– has not given a reply to requisition within 14 days
• The proprietor has the duty to pay for any
money spent by MC under s 59(6) for wilful,
negligent act or omission in breach of any
provision of its by laws by himself, his tenant,
lessee, licensee or invitee.
• The amount would be a debt recoverable in
any court or before the Tribunal
 Manner of recovery of debts
• 77(3) Where any proprietor has not paid fully
his liability the MC or SMC can recover it in
the court of a competent jurisdiction or the
tribunal as a debt due.
• MC or SMC may demand any amount as
determined by by them in AGM or EGM due
to insufficiency of fund to meet the sum
guaranteed by Proprietors under 77(1)
 Procedure for recovery
• 78 where the sum becomes recoverable by MC under s 52(4), 60(4),
60(5). 61(4)(5) or 77(3) or by SMC under s 68(4) MC or SMC may
serve on the proprietor a written notice demanding payment of the
sum due within a period not less than 14 days from the date of
service
• If not paid within the given period, MC or SMC can file summons or
claim in a court or the tribunal for recover of the said sum, or resort
to the procedure under s 79.
• Non compliance with notice under 78(1) is an offence punishable
with maximum of five thousand ringgit or three years jail or both,
and if continued fifty for each day
• 79. the commissioner may on sworn application in writing by a
member of Management Committee issue a warrant of attachment
in Form A of the Third Schedule authorising attachment of any
movable property belonging to the defaulting proprietor within the
building or elsewhere
• The warrant be signed by member of management committee in
front of commissioner
 Procedure for recovery
• The execution of the warrant may be assisted by commissioner who
in turn can seek the assistance of police officer not below the rank
of inspector
• The warrant or attachment is executed
– by forceful entry in day time into any house or building or any part of
them.
• the person executing warrant after attachment make an inventory
of the property attached and serve notice in Form B of the third
Schedule on the person who was at the time in possession of the
property
• Any subtenant or subtenant or occupier may recover the money
from land or parcel owner.
• The tenant can have possession of the property until he is paid
• 79(7) The legality of the attachment may be disputed if within 14
days from the date of attachment apply to Magistrate court
 Procedure for recovery
• Within 14 day payment to MC be made. If not the property
attached or part of it may be sold by auction conducted by
MC under supervision of commissioner. If application to
Magistrate is made then auction would be pending the
decision of the court
• The property cannot be sold if magistrate orders the
release of property, and if sold its proceeds to be returned.
• Perishable property has to be sold at once and its proceeds
have to be held pending Magistrate decision
• The proceeds have to be used for payment of sum due and
the cost of attachment including storage and maintenance
of the property if any. Surplus can be returned to one who
was in possession of the property.
• Read Strata Management (Maintenance and
Management) Regulations 2015 as following
– R 35 application for attachment of moveable property
– Reg 36 inventory after attachment
– Reg 37 appointment of auctioneer, reserve price, etc
– R 38 notice of auction
– Reg 39 procedure at the auction
– Reg Record and statement of sale
– Reg cost of attachment and sale
– Reg Attachment to cease if sums due are paid
 Proprietors Rights
• S 31, 73. payment of RM 150 fees to management the list of the
following be given to owner and other relevant persons:
– The amount of charges and contributions to the sinking fund
– The time and manner of payment of such charges and contributions to
the sinking fund
– Arrears of charges, and contributions to sinking fund
– Amount standing in to the credit of maintenance account and the sum
in the account committed or reserved for expenses and already
incurred by management
– The sum standing in the account of sinking fund and the sum
committed for or reserved for expenses already incurred by the
management
– The nature of repairs and estimated expenditure or that has been
incurred by the management, the performance of work to be done or
about to be done the liability for it is likely to fall on the parcel owner
• 2nd schedule, 8, 21, 22 the right to vote for
each proprietor and proxy for co-proprietors
• The right to sue MC, SMC or developer
• The right to enjoyment of common properties
• The MC is consisting of parcel owners and
therefore every one of them has the right to
be member of it.
• The Registration of Dealings
1. Definition
2. Principles of mirror and curtain
3. Indefeasibility of title
4. Exception to indefeasibility of title
5. Conclusion

Deadline: 30/12/16