Clearing the air about rules of the Strata Management Act 2013

Compiled by Tharmini Kenas

Ask Me Anything is a platform for all readers to ask about all things property. If you have any inquiries, key in your questions at http://bit.ly/ AskMeAnythingProperty .

This month, Ismail Sabri, Wee & Wong partners Ng Choon Yon and Greyson Siow Wai Pin answered readers’ queries on issues concerning strata properties.

Q: The Sale and Purchase (S&P) Agreement was signed in 2012, and later the Certificate of Completion and Compliance (CCC) was issued in October 2015. Therefore, should the current Strata Management Act (SMA) 2013 rules be complied with and enforced especially for the issuance of strata title?

A: The Strata Management Act 2013 (SMA 2013) is a single piece of legislation for essentially all provisions governing the operations of management corporations within Peninsular Malaysia and Labuan. It sets out the provisions dealing with the maintenance and management of stratified properties in detail – this is where the obligation to pay maintenance fees and sinking fund arises from.

In fact, all rules set out in SMA 2013 are to be complied with whether or not the parcel of land/building is sold before the commencement of the Act (i.e. 1 June 2015), save for Part III of SMA 2013 which contains provisions facilitating land/building subdivision and issuance of strata titles.

The principal legislation governing the land/building subdivision and issuance of strata titles is Strata Titles Act 1985 (STA 1985). It is therefore necessary to refer to both STA 1986 and SMA 2013 for matters concerning the issuance of strata titles. STA 1985 has been amended via Strata Titles (Amendments) Act 2013 which came into force on 1 June 2015. In the reader’s case here, the building was completed after 1 June 2015 and the sale of the parcel took place before June 2015.

Developers are required to apply for the certificate of proposed strata plan (CPSP) three months from the date of issuance of the CCC. Supposedly after obtaining the CPSP, the developers shall then apply for subdivision and issuance of strata titles within a month from the date of issuance of the CPSP, accompanied by the schedule of parcels and other documents.

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