Contributed by Mary Lau
With reference to Datuk Chang’s response to my article, “What’s in a rate?”
Photo by Grant Lemons on Unsplash.
I would like to thank Datuk Chang Kim Loong of National House Buyers Organisation for taking the time to read my article, “What is in a rate?” and share his comments. This article is just one of a three-part article and it is to be read together with “Fixing the Strata Management Act (SMA) 2013” and “What you should know when buying into strata living”.
The articles were initially written as one but due to the length, StarProperty decided to publish them as three separate articles with my consent. At the end of each article, there is a link to the other two articles.
I do not write my articles as academic papers, meaning I do not go into too much detail. My articles are usually about 1,000 to 1,200 words and focus on the main points. I try to simplify them so that it is easier to understand. Even so, I have received feedback that they are sometimes lengthy and some parts that may be overly technical were not easy to understand.
It is a difficult task to write in simplified terms while still maintaining accurate meaning. If I need to be very specific, it would require detailed explanations and that would further increase the length of the articles. Therefore, I urge readers to email me for clarification in order not to arrive at an inaccurate conclusion of what I am trying to convey.
On the issue of using different rates during the JMB period, I have written a total of eight articles.
In my humble opinion, I would recommend readers to read all of them to have a better understanding of the main issues raised in the articles. If read in parts, my points could be taken out of context. The issues are complex and cannot be explained in one article.
I am an owner of properties in several mixed developments affected by dominant groups and the usage of different rates without sub-committees. In the articles, I have also included the experiences that other minority owners have been through.
The gist of the three articles mentioned above can be summarised as follows:
1. The usage of different rates in mixed developments without subsidiary management corporations is not the best practice. Where dominant groups exist, it can lead to abuses.
2. The usage of a single rate is not the ideal solution either, although it puts a halt, for the time being, to dominant groups using the AGM to approve these rates using their large share unit votes.
3. A proposed solution is for subsidiary management corporations to begin from delivery of vacant possession if different rates are to be used from the developer managed period.
4. If and when legislation is amended, legislators should take into consideration the plight of minority owners.
In my articles, I believe I have recognised the need to use different rates and if these rates are used, my recommendation is to have subsidiary management corporations so that the respective component owners can fix their own rates for common properties which are for their exclusive use and enjoyment, and be in charge of their own components, without interference from the main committee. In my opinion, if these three articles are read together, readers would be able to understand what I am trying to convey.
Read Datuk Chang Kim Loong's article here.
About the contributor
Mary Lau graduated from the University of Reading, England, with a BSc Land Management (Valuation Specialisation) in 1991. In 2002, she was appointed High Court Assessor in Sarawak for compulsory acquisition and compensation cases and sat on the bench with the judge. She began her training with CH Williams and later held senior positions in valuation firms such as Henry Butcher, City Valuers and was a Director at Hasmi and Associates in 1999. She began her own setups in real estate investment and other ventures by 2007. She is a licenced valuer with the Board of Valuers in Malaysia.
Disclaimer
This article is intended to convey general information only. It does not constitute advice for your specific needs. This article cannot disclose all of the risks and other factors necessary to evaluate a particular situation.
Any interested party should study each situation carefully. You should seek and obtain independent professional advice for your specific needs and situation.
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