Malaysia Strata Title ACT and JMB Duty and Responsible, JMC Liability, Duty and Responsible

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ON April 12, the Building & Common Property (Maintenance & Management) Act 2007 ("the Act”) came into force in all States within Peninsular Malaysia.

The main purpose of the Act is to provide for the proper maintenance and management of buildings and the common property, AFTER delivery of vacant possession by the developer to the purchasers and BEFORE the Management Corporation ("MC”) comes into existence ("the applicable period”).

In line with the recent amendments made to the Strata Titles Act, 1985 (STA), which now allows land to be subdivided into land parcels to be held under separate strata titles, the Act will also apply to prescribed buildings on such land.

Each State Authority will appoint a Commissioner of Buildings to administer and carry out the provisions of the Act.

The Act empowers the Minister to make regulations for the better carrying out of the provisions of the Act ("the Regulations”), although at the time of writing this article, no regulations have been made or have come into force.

The choice of the word "accommodation” is certainly misleading, as accommodation usually denotes housing, lodging or quarters. Perhaps the Regulations can make it clear that the Act is intended to apply to any building or land intended for subdivision into parcels and developed for the purpose of housing accommodation, commercial use or industrial use.

It is pertinent to note that the Act defines common property, more exhaustively than the STA and the Schedule H agreement under the Housing Development (Control & Licensing) Regulations 1989 (Schedule H).

In the STA, common property means so much of the lot as is not comprised in any parcel. Schedule H extended this definition to include lifts, refuse chutes, drains, sewers, pipes, wires, cables, ducts and all facilities and installations used in common by all purchasers.

Common property in the Act is now extended to include all structural elements of the building, stairs, stairways, fire escapes, entrances and exits, corridors, lobbies, exterior of all common parts of the building, playing fields and recreational areas, walls and fences.

              

However, if the development is completed on or after April 12, 2007 then the JMB shall be formed not later than 12 months from the date of delivery of vacant possession of the parcels to the purchasers.

There are no provisions in the Act to define when a development is completed. In line with the recent amendment to the Street, Drainage and Building Act, 1974, completion should mean the issue of the relevant certificate of completion and compliance.

Until the JMB is established, the developer is responsible for the maintenance works and this includes the responsibility to insure the building against fire and other risks.

The quorum for the first meeting shall be one quarter of the purchasers who have paid maintenance charges to a Building Maintenance Account (BMA). Only purchasers who have paid maintenance charges to the BMA are entitled to vote.

It would appear that the developer is not to be included in the determination of the quorum and is also not a person entitled to vote.

It is not clear whether:

(a) a purchaser is entitled to vote if he had previously paid maintenance charges to the BMA but is at the time of the first meeting in arrears; or

(b) a purchaser who has not paid maintenance charges to the BMA is entitled to attend the meeting or be elected to the JMC, even though he is not entitled to vote.

If within half an hour of the time fixed for the first meeting, no quorum is present, then the members entitled to vote who are present shall form the quorum. Further, if after one hour, no member entitled to vote turns up or all members present refuse to be members of the JMC, the meeting cannot take place, and the developer must inform the Commissioner within the next seven days of the ill-fated meeting.

The Commissioner may then appoint a new date for the first meeting or appoint a managing agent to maintain the common property.

All resolutions at the first meeting shall be decided by a show of hands. Joint purchasers (e.g. husband and wife) are not entitled to vote except by a jointly appointed proxy. However there are no express provisions for a purchaser who is a corporation, to appoint a proxy or a representative, to attend the first meeting and to vote.

If the first meeting is successful, then within 28 days thereafter the JMB must inform the Commissioner of the name of the JMB, and register its name with the Commissioner.

The Commissioner may himself, authorise any purchaser to convene an EGM if he is satisfied that the JMB was not properly constituted.

It is pertinent to note that although the Act made provisions for rules to regulate the first meeting of the JMB, there are no provisions on how an AGM or EGM is to be conducted and it is not clear whether the rules on quorum and voting rights for the first meeting of the JMB will apply to an AGM or EGM. Perhaps such rules and other rules to clear up the uncertainties mentioned above will be contained in the Regulations or perhaps the Regulations will empower the JMB to regulate its meetings as they deem fit and proper.

The JMC shall consist of the developer and not less than five and not more than 12 purchasers. A purchaser who is elected to the JMC can only hold office for a period not exceeding three years or until the dissolution of the JMB when the MC comes into existence.

A chairman, a secretary and a treasurer shall be elected from members of the JMC. Since the developer is a member of the JMC, its representative can be elected to any of the above three positions.

Proceedings of the JMC are regulated by the First Schedule of the Act and it is pertinent to note that the developer has a vote in the JMC even though the developer has no right to vote at the first meeting of the JMB. A member elected shall continue to be a member of the JMC until he resigns, dies, becomes a bankrupt or is no longer a purchaser. Once elected, a member of the JMC is expected to devote as much time as is necessary to discharge his duty effectively.

In a forthcoming continuation of this article, the writer will examine provisions in the Act relating to the Building Maintenance Account, the Building Management Fund, the payment of maintenance charges, the managing agent, and other features of the Act.

Register of purchasers

The developer or the JMB, as the case may be, is required to maintain a register containing the following particulars for all parcels in the development area:

• allocated share unit of each parcel;

• floor area;

• name and address of every purchaser;

• name and address of solicitor for the purchaser; and

• number of parcels unsold. Rights of purchasers

A purchaser or a prospective purchaser may apply to the JMB for a certificate, certifying:

• amount of charges payable;

• time and payment of charges;

• extent to which charges have been paid;

• amount recoverable by JMB in respect of the parcel;

• the sum standing in the credit of the BMF and the sum committed or reserved for expenses already incurred;

• nature of repairs and estimated expenditure which is likely to be incurred by a purchaser; and

• amount paid or to be paid by the developer for unsold units.

House rules

The JMB is required to keep a record of house rules in force and to furnish to a purchaser a copy of such rules or make the rules available for inspection to any person who has a proper interest. A copy of the rules and amendments thereto must be lodged with the Commissioner.

Dissolution of the JMB

One month after the first meeting of the Management Corporation (MC), the JMB shall hand over to the MC, the house rules, audited or unaudited accounts of the BMF, assets and liabilities, and all records connected with the maintenance of the building and common property. The JMB itself shall be deemed to be dissolved three months from the date of the first meeting of the MC.

If the JMB fails to hand over the above, every member of the JMB (meaning the developer and all purchasers) commits an offence punishable with a fine of not more than RM10,000, and a further fine of not more than RM1,000 for every day during which the offence is continued, unless the member proves that the offence was committed without his knowledge, consent or connivance and that he had taken all reasonable precautions and had exercised due diligence to prevent the commission of the offence.

 

 

Building Maintenance Account (BMA) and Building Management Fund (BMF)

What is the difference between BMA and BMF?

The BMA is an account operated Maintenance of a building by the developer before the JMB is formed. When the JMB is formed, surplus moneys in the BMA shall be transferred to the BMF which shall be maintained, administered and controlled by the JMB.

When must BMA be opened?

If the development is completed after April 12, 2007, the developer must open a BMA in the name of the development area, before delivery of vacant possession to the purchasers. Each development area shall have a separate BMA. The developer shall deposit into the BMA, all charges received from purchasers, and all charges for unsold units. The charges for unsold units is of the same amount as that payable by the purchasers had the parcels been sold. No person may collect any charges from any purchaser for maintenance or management, unless the BMA has been opened and vacant possession has been delivered to the purchasers.

Development completed before April 12, 2007

If the development was completed on or before April 12, and the developer has immediately before that day been collecting charges for maintenance from purchasers, the developer may continue to do so until the JMB is formed. It would appear that after April 12, the developer must open the BMA immediately and deposit all maintenance charges collected from the purchasers and all charges for unsold units, into the BMA.

Moneys in BMA do not belong to the developer

Moneys in the BMA shall not be deemed to form part of the property of the developer in the event of insolvency and some sort of a statutory trust has been created over such moneys. The developer is required to keep proper accounts of the BMA and to appoint a professional auditor to audit the BMA annually. A copy of the audited accounts and auditor’s report must be filed with the Commissioner within 14 days after audit. The Commissioner has full and free access to all records relating to the BMA.

In addition, any developer of a development which has been completed but for which the MC has not been formed, shall not later than six months from April 12, submit to the Commissioner, an account audited by an auditor, of all moneys collected and expended for the purposes of maintenance and management, and sinking fund (if any) prior to April 12. Failure to do so will render the developer liable to a fine.

The BMF

The BMF shall consist of maintenance charges imposed by or payable to the JMB and all other moneys received by the JMB and such moneys shall be used for purposes of repairing and maintaining the common property.

The JMB shall also maintain a sinking fund into which shall be paid such portion of the contributions as determined by the JMB, for the purposes of painting and repainting, acquisition of property, renewal or replacement of fixtures and fittings and other expenditure.

Payment of maintenance charges

Every purchaser is liable to pay maintenance charges in proportion to the allocated share units and payment must be made within 14 days of receiving a written notice supported by a statement of charges, issued by the developer or the JMB, as the case may be. If payment is not made within the 14 days, the JMB may impose interest for late payment provided the rate shall not exceed 10% per annum.

Recovery

Where charges become recoverable by the JMB, the JMB may institute legal proceedings in court to recover the amount due, after having given to the defaulting purchaser the requisite notices. Further, if the amount of charges payable is in arrears for six months, the JMB may request the Commissioner to issue a warrant of attachment to attach any moveable property belonging to the purchaser, found in the parcel or elsewhere within the local authority area. The officer from the Commissioner’s office who is executing a warrant may effect forcible entry.

If arrears and collection charges are not paid within seven days of attachment, property attached may be sold by public auction, and the amount recovered from the auction (after deduction of collection charges) shall be deposited into BMA. Any surplus shall be paid to the person who at the time of attachment was in possession of the property.

All provisions relating to payment and recovery refer only to payment by the purchasers and there are no provisions for recovery from a developer who fails to pay charges for unsold units. A warrant of attachment may not be issued against a developer who is in arrears, as only a purchaser’s movable property can be attached.

Any person who, without reasonable excuse, fails or refuses to pay maintenance and management charges shall be liable to a fine not exceeding RM5,000 and a further fine not exceeding RM50 for every day during which the offence is continued after conviction. What may constitute a reasonable excuse not to pay, remains to be seen.

Apart from the above statutory offence, if the developer fails to pay maintenance charges for unsold units, he is liable for an additional offence under section 17(7), and may be liable to pay a fine of not less than RM10,000 but not more than RM100,000 and a further fine not exceeding RM1,000 for every day during which the offence is continued.

The managing agent

The Commissioner has the power to appoint a managing agent to maintain and manage the building or land intended for subdivision and the common property, in the event that all the members present at the first meeting of the JMB refuse to be members of the JMC, or if the Commissioner is satisfied that the developer or the JMB is not maintaining or managing the building satisfactorily.

The managing agent shall have control of all moneys in the BMA or BMF and all moneys received by him shall be paid into the BMA or BMF. He shall perform all the duties and exercise the powers as if he was acting as the developer or the JMB, including giving notice to the purchasers to pay maintenance charges and instituting proceedings to recover outstanding charges. The remuneration or fees of the managing agent shall be charged to the BMA or BMF, as the case may be.

A person shall not be appointed as a managing agent if he has a professional or pecuniary interest in the property and he shall be regarded as having a professional or pecuniary interest, if he has been responsible for the design and construction, or he or his nominees, officers or employees has any material interest in the property, or he is a partner or is in the employment of a person who has a material interest, or he or his family holds any interest in the building or land.

A managing agent is required to lodge a bond with the Commissioner, to make good any loss caused by him as a result of his failure to account for moneys received or held by him. If he fails to pay moneys into BMA or BMF or if he fails to submit requisite statements to the Commissioner, he may be liable to a fine not exceeding RM100,000 or imprisonment for term not exceeding two years or to both.

Developer to pay deposit to rectify defects on common property

It is noted that the appointment of a managing agent does not relieve the developer of his obligation to carry out repairs to the common property or make good defects in the common property, during defects the liability period and the developer still has the responsibility to carry out repairs and varied and additional works to ensure that development is constructed in accordance with plans and specifications approved by the competent authority.

The Act now requires the developer to deposit (cash or bank guarantee) with the Commissioner such sum as shall be prescribed, for purpose of carrying out works to rectify any defects in the common property after its completion. This deposit shall be paid upon handing over of vacant possession to the purchasers. Any unexpended deposit shall be refunded to developer on expiry of the defect liability period for the development. If the developer fails to comply, he can be punished with a fine of not more than RM5,000 and a further fine of not more than RM50 for every day during which offence is continued.

Power of entry

The Act empowers the Commissioner to authorise any person to enter any building or land for purpose of carrying out inspection or investigation to determine whether any offence has been committed, and books, accounts or documents may be seized on such entry.

Entry is also permitted for the purpose of executing any works required by the local authority. However, if a building or premises is occupied, no entry shall be permitted unless the occupier or a representative is present during the entry. No private dwelling shall be entered upon except with consent of the purchaser or after giving 24 hours’ notice to the occupier.

In the case of any urgent repairs or works the Commissioner may, at all reasonable times enter any building. The act provides penal sanctions for anyone who assaults, obstruct hinders or delay entry authorised by the Commissioner.

Other contracts and deeds no longer apply

The provisions of any written law, contracts and deeds relating to maintenance and management of buildings and the common property, in so far as they are contrary to the provisions of the Act, shall cease to have effect and the provisions of the Act shall have effect notwithstanding anything to the contrary contained in any agreement or contract entered into after the commencement of the Act. Further, no agreement or contract entered into after commencement shall operate to annul, vary or exclude any of the provisions of the Act.

 

 

Malaysia Strata Title Related Information and Q&A

  

Short Note On Strata Title

Posted on 6 February 2012

Q. "I am buying a condominium. The real estate agent told me that the ‘individual title’ is yet to be issued. What does it mean?”

 

A. In this case, the individual title is also known as ‘strata title’.

When you purchased a condominium, you are purchasing a parcel of air space within a subdivided building, bounded by the four walls, the ceiling and the floor. You do not own the land.

At this juncture, all the units within the subdivided building are held on one ‘master title’. It is the duty and responsibility, to apply to Land Office to ‘subdivide’ the master title, for the issuance of strata titles.

Before the issuance of strata titles, the Land Office has no records on the ownership of the individual unit. The developer is the only body that keeps the records of the ownership. Therefore, any transfer of the property must go through the developer.

And if the developer had been wound up before the issuance of strata title, the existing owner may have the difficulties in selling the unit. This is because, legally, only the developer can verify who is the owner of that parcel. If the owner is not verified, then no one dares to buy.

Hence, sometime, it takes more than 9 months to complete the transaction.

Application For Issuance Of Strata Titles

Posted on 24 August 2012

Q. My apartment was completed 10 years ago. However, as at today the developer is yet to apply for subdivision of the apartment as well as for the issuance of strata title. Is the developer offending any law?

A. Strata Titles Act 1985 was amended in 2007 and the amendments took effective from 12.04.2007.

According to S 8 of the Act, the land owner (not necessarily the developer) of the completed building, shall apply to the relevant authority for subdivision of the building within 6 months from the date of completion (the date of certificate of completion is issued).

If the land owner fail to submit its application within 6 months, it can be fined between RM 10,000 and RM 100,000, and if the land owner continuously fail to submit its application after being fined, the land owner can be further fined between RM 100 and RM 1,000 daily for the non-compliance.

However, to the best of my knowledge, there is no land owner ever been charged in court for delay in application for subdivision of building.

Can I Sell My Car Park?

Posted on August 24, 2012

Q. I have one unit of apartment. There are three car parks attached to the individual title as accessory parcels. So, may I sell one of the car parks to my neighbour?

A. S 69 Strata Title Act 1985 states that:

69. No dealing in accessory parcel independent of a parcel.

No accessory parcel or any share or interests therein shall be dealt with independently of the parcel to which such accessory parcel has been made appurtenant as shown on the approved strata plan.

Therefore, any sale or purchase of the car parks (as accessory parcel) after the individual titles been issued is illegal at law.

The new owner of the selling unit may reclaim the "ownership” of the car park been sold by the previous owner.

 

 

 

 

Can A Councillor Of Management Corporation Be Removed?

Posted on 26 August 2012

Q. We are a group of owners of an apartment. We are unhappy with the performance of the management council, particularly on some of the elected committee member. So, can we remove them from the council, or shall we wait until the next annual general meeting for a fresh election?

 

A. The members of a management corporation, can call for an extraordinary general meeting to pass a resolution to remove some or all the members of the management council, and then elect others to fill up the vacancy after the removal. These are allowed by Paragraph 2(3), Second Schedule of Strata Titles Act 1985.

However, in order to petition for an extraordinary general meeting, there must be at least one quarter (25%) of the total members agree to it, as required by Paragraph 9(2). E.g. if your apartment has 100 units, then at least 25 owners must consented for a call of extraordinary general meeting.

During the extraordinary general meeting, the quorum must be established. E.g. the extraordinary general meeting must be attended by 50 owners if the apartment has 100 units. If the quorum unable be established at the half an hour, the meeting is adjourned to the same day of next week, at same time and same venue.

Once the quorum is established, those who are presence can vote of the proposed resolution on removal. In order for a resolution to be passed, the meeting shall get a simple majority of support from those who are presence.

Can A Proxy Be Elected As A Member Of Management Council?

Posted on 28 August 2012

Q. I own an unit of condominium. I am too busy. I nominate my wife as the proxy to attend the annual general meeting of the management corporation.

Can my wife, as the proxy, be elected as a member of management council?

 

A. Let me quote the Paragraph 2, Second Schedule of Strata Titles Act 1985 for your reference:

2. Constitution of council.

(1) Subject to the provisions of this paragraph and to any rules made under the Act, the council shall consist of not less than three and not more than fourteen proprietors, who shall be elected at each annual general meeting and shall cease to hold office at the next annual general meeting.

 

 

 

Joint Management Body vs Management Corporation – When To Be Formed?

Posted on 30 August 2012

Q. I own an unit of apartment. The vacant possession of the unit was given to me by January 2012. So, when the Management Corporation or the Joint Management Body should be formed?

 

A. A management corporation is established upon the strata titles of a building are issued, as required by S 39(1) Strata Titles Act 1985.

The original land owner shall commence the first general meeting of the management corporation within 30 days from the day which at least an aggregate of a quarter of the units owners have registered the strata titles, as required by S 41 of the Act.

 

However, if the strata titles are yet to be issued, then a joint management body which comprise developer and owners would be formed.

 

As required by S 4(1) Building and Common Property (Maintenance and Management) Act 2007, the developer shall call the first general meeting within 12 months from the day of delivery of vacant possession.

 

Voting Right Of Maintenance Defaulter

Posted on 30 August 2012

Q. I have an unpaid outstanding balance on the maintenance charges. I am disputing the amount and the previous increment.

The management corporation is having its annual general meeting next month. Can I attend and vote?

 

A. If you are a proprietor, you have the right to attend the annual general meeting. There is no provisions in Strata Titles Act 1985 restricts you to attend the meeting as a proprietor.

 

 

 

However, you may not allow to vote or be elected at the meeting.

 

 

Paragraph 15 of the Second Schedule of Strata Titles Act 1985 states this,

 

 

15. Voting rights of proprietor.

Each proprietor who is not a co-proprietor shall have one vote on a show of hands, and on a poll shall have such number of votes as that corresponding with the number of share units or provisional share units attached to his parcel or provisional block and no proprietor shall be entitled to vote and to be elected to hold office at a general meeting unless all contributions to the management fund of the corporation in respect of his parcel or provisional block has been duly paid.

Therefore, you may have to settle your outstanding maintenance charges with your management corporation if you want to vote at the meeting.

Joint Management Body vs Management Corporation – Power And Duties

Posted on 30 August 2012

Q. Are there any difference on powers and duties, between a joint management body and management corporation?

A. Joint management body is regulated by Building and Common Property (Maintenance and Management) Act 2007, but management corporation is regulated by Strata Titles Act 1985.

However, in general, both joint management body and management corporation share the similar powers and duties.

S 8 of the Building and Common Property (Maintenance and Management) Act 2007 states the powers and duties of joint management body as follows:

(1) The duties of the Body include the following:

(a) to properly maintain the common property and keep it in a state of good and serviceable repair;

(b) to determine and impose charges that are necessary for the repair and proper maintenance of the common property;

(c) to insure and keep insured the building to the replacement value of the building against fire and such other risks as may be determined by the Body;

(d) to apply insurance moneys received by the Body in respect of damage to the building for the rebuilding and reinstatement of that building;

(e) to comply with any notices or orders given or made by the local authority or any competent public authority requiring the abatement of any nuisance on the common property, or ordering repairs or other work to be done in respect of the common property or other improvements to the property;

(f) to prepare and maintain a register of all purchasers of the building;

(g) to ensure that the Building Maintenance Fund is audited and to provide audited financial statements for the information to the purchasers;

(h) to enforce house rules for the proper maintenance and management of the building; and

(i) to do such other things as may be expedient or necessary for the proper maintenance and management of the building.

(2) The powers of the Body shall include the following:

(a) to collect from purchasers maintenance and management charges in proportion to the allocated share units of their respective parcels;

(b) to authorize expenditure for the carrying out of the maintenance and management of the common property;

(c) to recover from any purchaser any sum expended by the Body in respect of that parcel in complying with any such notices or orders as are referred to under paragraph (1)(e);

(d) to purchase, hire or otherwise acquire movable or immovable property for use by the purchasers in connection with their enjoyment of the common property;

(e) to arrange and secure the services of any person or agent to undertake the maintenance and management of the common property of the building;

(f) to make house rules for the proper maintenance and management of the building; and

(g) to do all things reasonably necessary for the performance of its duties under this Act.

 

 

On the other hand, S43 of the Strata Titles Act 1985 states the powers and duties of a management corporation as follows:

 

(1) The duties of the management corporation include the following:

(a) to manage and properly maintain the common property and keep it in a state of good and serviceable repair;

(b) to insure and keep insured the subdivided building or land to the replacement value thereof against fire and such other risks as may be prescribed under this Act;

(c) to effect such other insurance of the subdivided building or land as may be required by law;

(d) to insure against such other risks as the proprietors may by special resolution direct;

(e) to apply insurance moneys received by it in respect of damage to the subdivided building or land in rebuilding and reinstating it in so far as it may be lawful to do so, subject to any order made by the court under section 56;

(f) to pay premiums on any insurance effected by it;

(g) to comply with any notices or orders given or made by any competent public or statutory authorities requiring the abatement of any nuisance on the common property, or ordering repairs or other work to be done in respect of the common property or any building or land or other improvements on the lot;

(h) to comply with any such notices or orders as are referred to in paragraph (g) given or made in respect of any of the parcels, if the proprietor fails to do so within a reasonable time;

(i) to prepare and maintain, in such form as may be prescribed, a strata roll for the subdivided building or land.

(2) The powers of the management corporation shall include the following:

(a) to recover from any parcel proprietor any sum expended by the management corporation in respect of that proprietor’s parcel in complying with any such notices or orders as are referred to in paragraph (1)(h);

(b) to purchase, hire or otherwise acquire movable property for use by the parcel proprietors in connection with their enjoyment of the common property;

(c) to borrow moneys required by it in the exercise of its powers or the performance of its duties;

(d) to secure the repayment of moneys borrowed by it and the payment of interest thereon by negotiable instrument or by a charge of unpaid contributions to the management fund, (whether already levied or not) by a charge of any property vested in it or by a combination of any of those means;

(e) to collect during the initial period by way of contributions from proprietors in proportion to the share units or provisional share units of their respective parcels or provisional blocks; and

(f) to do all things reasonably necessary for the performance of its duties under this Part and for the enforcement of the by-laws set out in the Third Schedule.

 

 

 

 

 

 

 

 

STRATA TITLES ACT 1985 ACT 318

Date of Royal Assent: 22 May 1985
Date of publication in the Gazette: 30 May 1985
Date of coming into force: 1 June 1985

Preamble

An Act to facilitate the subdivision of building into parcels and the disposition of titles thereto and for purposes connected therewith.

[1st June, 1985]

WHEREAS it is desired to introduce in the form of a Strata Titles Act a uniform legislation within the States of Johore, Kedah, Kelantan, Malacca, Negeri Sembilan, Pahang, Penang, Perak, Perlis, Selangor, Trengganu and the Federal Territory of Kuala Lumpur;

AND WHEREAS it is now expedient for the purpose only of ensuring uniformity of law and policy to make with respect to tenure of parcels in a building, registration of titles relating to parcels in a building, transfer of parcels in a building, leases and charges in respect of parcels in a building, and easements and other rights and interests in parcels in a building:

Now, therefore pursuant to the provisions of Clause (4) of Article 76 of the Constitution, BE IT ENACTED by the Duli Yang Maha Mulia Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and the Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows:

PART I - PRELIMINARY

1. Short Title.

This Act may be cited as the Strata Titles Act, 1985.

2. Application.

This Act shall apply only to West Malaysia.

3. Commencement.

(1) This Act shall come into force in each State on such date as the Minister may, with the approval of the National Land Council, by notification in the Gazette, appoint.

(2) This Act shall come into force in the Federal Territory on such date as the Minister may, by notification in the Gazette, appoint.

4. Interpretation.

In this Act, unless the context otherwise requires-

"accessory parcel" means any parcel shown in a strata plan as an accessory parcel which is used or intended to be used in conjunction with a parcel;

"aggregate share units" means the sum of the share units of the parcels (including a provisional block) shown in an approved strata plan;

"Board" means the Strata Titles Board established under section 67A;

"building" , in relation to a lot which is to be developed in stages, includes any building partially completed or to be erected within the lot as shown or specified in any proposed strata plan submitted for approval;

"by-laws" , in relation to a subdivided building, means the by-laws which are in force in respect of that building made under section 44 and 62 and as provided for in the Third Schedule;

"certified strata plan" means the plan prepared under subsection (1) of section 13 and certified by the Director of Survey;

"common property" means so much of the lot as is not comprised in any parcel (including any accessory parcel), or any provisional block as shown in an approved strata plan;

"council", in relation to a management corporation, means the council of that management corporation elected under section 39;

"Director" means the Director of Lands and Mines for the State and includes a Deputy Director of Lands and Mines and, in the case of the Federal Territory, the Land Administrator;

"Director of Survey" means the Director of Survey and Mapping for the State or the Federal Territory and includes a Deputy Director of Survey and Mapping ;

"Federal Territory" means the Federal Territory of Kuala Lumpur;

"floor area", in relation to a parcel, means the area occupied by that parcel;

"form", followed by a number, means the form in the First Schedule identified by that number;

"initial period", in relation to a management corporation, means the period commencing on the day on which the management corporation is formed and ending on the day on which there are proprietors, excluding the proprietor of the lot who is registered as the proprietor of a parcel or parcels or a provisional block or blocks the sum of whose share units is at least one-third of the aggregate share units;

"Land Administrator" means the Land Administrator for the District appointed under the National Land Code and includes an Assistant Land Administrator appointed thereunder;

"land surveyor" means the Director of Survey appointed under the National Land Code or a land surveyor licensed to practise as such under any law for the time being in force in relation to survey;

"location plan" means a location plan under subsection (2) of section 10;

"low-cost building" means any building certified by the State Authority under section 58;

"management corporation", in relation to any subdivided building shown in an approved strata plan, means the management corporation established under section 39, 64 or 64A;

"management fund" means a management fund established under section 45, 63 or 66;

"original proprietor" means the proprietor of the lot immediately before the subdivision of building;

"parcel", in relation to a subdivided building, means one of the individual units comprised therein, which (except in the case of an accessory parcel) is held under separate strata title;

"prescribed" means prescribed by rules made by the State Authority under section 81;

"proprietor" refers to a parcel proprietor, that is to say, a person or body for the time being registered as the proprietor of a parcel, as well as to the proprietor of a provisional block, that is to say, a person or body for the time being registered as the proprietor of a provisional block;

"provisional block" means-

(a) in relation to a proposed strata plan, a block in respect of a building proposed to be, or in the course of being, erected, for which a separate provisional strata title is applied for;

(b) in relation to an approved strata plan, such a block shown therein, for which a provisional strata title is to be registered; and

(c) in relation to a book of strata register, such a block shown therein, for which a provisional strata title has been registered;

"provisional share units" means the share value allotted to a provisional block shown in an approved strata plan;

"provisional strata title" means the title registered and issued under section 16 in respect of a provisional block;

"Registrar" means-

(a) in relation to strata titles which are dependent on Registry titles, the Registrar of Titles or Deputy Registrar of Titles for the State; and

(b) in relation to strata titles which are dependent on Land Office titles, the Land Administrator for the District;

"share units", in respect of a parcel, means the share units determined for that parcel as shown in the schedule of share units;

"special account", in relation to a management corporation, means the account established under section 46;

"special resolution" means a resolution which is passed at a duly convened general meeting of a management corporation of which at least fourteen days' notice specifying the proposed resolution has been given by proprietors who together are entitled to not less than one-quarter of the aggregate share units and who together constitute not less than one-quarter of the membership;

"storey" means any horizontal division of a building whether or not on the same level throughout and whether above or below the surface of the ground;

"storey plan" means a storey plan under subsection (3) of section 10;

"strata plan" means a location plan and a storey plan, and includes a plan of division or amalgamation of any parcels shown in an approved strata plan;

"strata register" means the register of strata titles maintained under the provisions of section 15;

"strata roll", in relation to a subdivided building, means the roll maintained under paragraph (i) of subsection (1) of section 43;

"Strata titles" means the title issued under section 16;

"subdivided building" means a building as subdivided under Part II;

"unanimous resolution" means a resolution which is passed at a duly convened general meeting of a management corporation of which at least twenty one days' notice specifying the proposed resolution has been given and against which no vote is cast.

5. Construction of the Act.

(1) This Act shall be read and construed with the National Land Code as if it forms part thereof.

(2) The National Land Code and the rules made thereunder, in so far as they are not inconsistent with the provisions of this Act or the rules made thereunder, or are capable of applying to parcels, shall apply in all respects to parcels held under strata titles.

(3) Notwithstanding subsections (1) and (2), the Yang di-Pertuan Agong may, from time to time, by order provide-

(a) for the non-application of any provision of the National Land Code to this Act; or

(b) for the application of any provision of the National Land Code to this Act subject to such variations, modifications, adaptations, additions or deletions as may be specified in the order.

(4) In the application of subsection (1) to the Federal Territory, the National Land Code shall be read as modified by the Yang di-Pertuan Agong under subsection (3) of section 5 of the Constitution (Amendment) (No. 2) Act 1973.

(5) Any reference to the State Authority in this Act in its application in the Federal Territory and in the operation of the National Land Code as modified under subsection (4), shall be construed as a reference to the Minister charged with the responsibility for land in the Federal Territory.

PART II - APPLICATION FOR SUBDIVISION OF A BUILDING

6. Buildings capable of being subdivided.

(1) Any building or buildings having two or more storeys on alienated land held as one lot under final title (whether Registry or Land Office title) shall be capable of being subdivided into parcels; and any building or buildings having only one storey on the same land shall also be capable of being subdivided, into parcels to be held under strata titles or into accessory parcels.

(2) Notwithstanding subsection (1), the State Authority may, by rules, published in the Gazette, prohibit the subdivision of buildings of any class or description as may be specified in such rules.

7. Proprietor of alienated land may apply for subdivision of a building.

(1) The proprietor of any alienated land on which there is any building which is capable of being subdivided under section 6, may subject to the provisions of this Act, apply for the subdivision thereof to the Director.

(2) Notwithstanding subsection (1), the proprietor of any alienated land held under qualified title which has been duly surveyed and in respect of which a certified plan has been approved by the Director of Survey, may apply to the Director for the subdivision of any building thereon.

(3) For the purposes of subsections (1) and (2), an application may be made notwithstanding that the building has not yet been certified by the local authority to be fit for occupation or use.

8. Circumstances in which it is compulsory for a proprietor to apply for subdivision of a building.

(1) The proprietor of any alienated land on which there is a completed building capable of being subdivided under section 6 shall, within the period specified in subsection (2), apply in accordance with section 10 for the subdivision of the building if at any time he has sold or agreed to sell any parcel in such building to any person.

(2) The period within which the requirement of subsection (1) shall be complied with is as follows:

(a) in the case of a building completed on a date after the commencement of this subsection-

(i) if the sale of, or agreement to sell, any parcel of the building, or the first of such sales or agreements, took place before that date, the period is six months from that date;

(ii) if the sale of, or agreement to sell, any parcel of the building, or the first of such sales or agreements, took place after that date, the period is six months from the date of the sale or agreement or the first of such sales or agreements;

(b) in the case of a building completed on a date before the commencement of this subsection-

(i) if the sale of, or agreement to sell, any parcel of the building, or the first of such sales or agreements, took place before that date, the period is six months from the commencement of this subsection;

(ii) if the sale of, or agreement to sell, any parcel of the building, or the first of such sales or agreements, took place after that date, the period is six months from the commencement of this subsection or six months from the date of the sale or agreement or the first of such sales or agreements, whichever is the longer.

(3) For the purpose of subsection (1) an application for the approval of the Director to the subdivision of a building shall be treated as not being in accordance with section 10 if the application is defective by reason of any material non-compliance with any of the requirements of that section pertaining to the application.

(4) The period specified in subsection (2) may, on application made before its expiry be extended once by the Director by any further period not exceeding three months.

(5) Where an application is not made within the period specified in subsection (2) and in the case of subsection (4) within the period of such extension, if any, applied for and granted in respect of a building, the proprietor shall be guilty of an offence, and liable on conviction to a fine of not less than ten thousand ringgit but not more than one hundred thousand ringgit and to a further fine of not less than one hundred ringgit but not more than one thousand ringgit for each day the offence continues to be committed.

(6) For the purposes of subsection (2), the date on which a building is completed shall be the date on which it is certified by any public or local authority to be fit for occupation or use.

9. Conditions for approval.

(1) The Director shall not approve the subdivision of any building unless the following conditions are satisfied:

(a) that it has been certified by a land surveyor-

(i) that the building or buildings are situated wholly within the boundaries of the lot in question; or

(ii) that, discounting any eave, awning, and any balcony not forming part of a proposed parcel, which project over a road reserve, the building or buildings are so situated;

and, in a case where the certificate is one under subparagraph (ii), that there subsists a permit or permits issued under section 75A of the National Land Code in respect of every such eave, awning and balcony;

(b) that, in the case of any building for the erection of which planning permission was required-

(i) it has been certified by an architect registered under the Architects Act, 1967 or by a professional engineer registered under the Registration of Engineers Act, 1967 that the building was constructed in accordance with the plans and specifications by reference to which that permission was given, stating therein the date on which such permission was given and the reference number thereof (if any); or

(ii) the case falls under subsection (6A) of section 10 and the requirements of that subsection have been satisfied;

(c) that the subdivision would not contravene any restriction in interest to which the land comprised in that lot is for the time being subject;

(d) that the subdivision would not be contrary to the provisions of any written law for the time being in force, and that any requirements imposed with respect thereto by or under any such written law have been complied with;

(e) that no item of land revenue is outstanding in respect of the land;

(f) that consent in writing to the making of the application has been obtained from every person who at the time when approval was applied for, was entitled to the benefit of-

(i) (Deleted by Act A753);

(ii) a lease of the whole or any part thereof, other than a part corresponding precisely with, or included within, one of the parcels to be created upon subdivision;

(iii) a charge of such a lease; or

(iv) a lien over any such lease;

(g) that the proposed share units assigned to the parcels by the proprietor of the lot in his application in Form 1 are equitable;

(h) that each of the proposed parcels has-

(i) adequate means of access not passing through another parcel; and

(ii) adequate means of internal communication not passing through the common property;

(i) that, where the land on which the building or buildings stand is held for a term of years, there still remains a period of not less than twenty-one years to run;

(j) that the land on which the building or buildings stand is not subject to any charge or lien.

(k) that, where the land is held under qualified title as specified in subsection (2) of section 7, the final title to the land has been registered;

(l) that the building to be subdivided has been certified by the local authority to be fit for occupation or use.

(2) In the case of an application involving a provisional block or blocks by virtue of subsection (1) of section 10A, the Director shall not approve the subdivision of any building to which the application relates unless the following additional conditions are also satisfied:

(a) that it has been certified by a land surveyor that the position of each provisional block as delineated on the location plan is wholly within the boundaries of the lot in question;

(b) that the quantum of provisional share units assigned to each provisional block by the proprietor of the lot in his application in Form 1 is equitable; and

(c) that the proprietor has given the date by when he undertakes that the construction of the building or each building to which the provisional block or blocks relate will be completed, has paid to the Director in respect of each provisional block a deposit of such reasonable amount as the Director may require, and has furnished a written statement to the effect that he agrees that the amount be forfeited to the Government in the event that, by that date or by such later date as the Director may allow, the construction of the building to which the provisional block relates is not completed or, if completed, the building has not been certified by a public or local authority to be fit for occupation or use.

10. Application for subdivision of building.

(1) Any application for the approval of the Director for the subdivision of any building shall be made in writing in Form 1 to the Land Administrator and shall be accompanied by-

(a) such fee as may be prescribed;

(aa) except in a case falling under subsection (6A), the building plans approved by the planning authority, to be submitted in triplicate;

(b) a proposed strata plan comprising a location plan, and a storey plan in respect of each storey of each building, to be submitted in triplicate containing such details as are specified in subsection (2) and (3) respectively and certified by a land surveyor as follows:

(i) that he has made a comparison of the plans to the original plans of the building and any approved amendments thereto prepared by the architect or professional engineer responsible for its construction, or, in a case falling under subsection (6A), to the plans of the building mentioned in paragraph (a) of that subsection; and

(ii) in the case of a storey plan, that the boundaries of the parcels shown thereon follow features of permanent construction appearing in the building;

(c) the certificates of a land surveyor, registered architect or registered professional engineer, referred to in paragraph (a), and subparagraph (i) of paragraph (b), of subsection (1) of section 9 and, where applicable, the certificate of a land surveyor referred to in paragraph (a) of subsection (2) of section 9;

(ca) a permit or permits referred to in paragraph (a) of subsection (1) of section 9, in a case where the certificate of a land surveyor is one under subparagraph (ii) of that paragraph;

(cb) in a case where the land is held under qualified title as specified in subsection (2) of section 7, the certified plan of the land as approved by the Director of Survey, to be submitted in triplicate;

(d) the written consents to the making of the application of every person who, at the time of the application, is entitled to the benefit of-

(i) a charge of the land;

(ii) a lease of the whole or any part thereof, other than a part corresponding precisely with, or included within, one of the parcels to be created upon subdivision;

(iii) a charge of such a lease; or

(iv) a lien over the land or any such lease;

(e) subject to subsection (7), the issue document of title of the lot.

(2) Every location plan shall-

(a) specify the number of the lot, the title number of the land comprised therein and the area thereof;

(b) delineate the boundaries and boundary marks of the lot and the position of all buildings thereon, showing which of these buildings are to be subdivided;

(c) include a vertical section of each such building showing-

(i) the floor and ceiling of each storey; and

(ii) the height of each storey;

(d) (Deleted by Act A753);

(e) contain such other details as may be prescribed.

(3) Every storey plan shall-

(a) specify the number of the lot and the title number of the land comprised therein, and the building and numbered storey thereof to which the plan relates;

(b) delineate, subject to the provisions of paragraphs (a) and (b) of subsection (5), each proposed parcel and define the boundaries thereof by reference to floors and walls showing the horizontal dimensions, without it being necessary to show the bearing;

(c) indicate in respect of each such parcel the number by which it is described in Form 1;

(d) specify the approximate floor area of each parcel;

(e) distinguish such parts as are not to be included in any of the parcels but are to become part of common property;

(f) (Deleted by Act A753);

(g) contain such other details as may be prescribed.

(4) Every proposed strata plan shall show a legend of-

(a) all parcels;

(b) all common property; and

(c) all accessory parcels, and specify therein the parcels they are made appurtenant to, irrespective of whether the accessory parcels are contiguous to those specified parcels;

(d) (Deleted by Act A753).

(5) Where an accessory parcel-

(a) consists of a building or parts thereof and is bounded by external walls, floors and ceilings, the dimensions and boundaries of such accessory parcel shall be shown in the proposed strata plan in accordance with the requirements of subsections (2) and (3);

(b) does not consist of a building or parts thereof-

(i) the external boundaries of the accessory parcel shall be ascertained from the building plans approved by the planning authority, and the accessory parcel shall be up to a reasonable height or to the extent of any projection above or encroachment below ground level by another part of the lot; and

(ii) the proposed strata plan shall show a diagram of the accessory parcel with similar dimensions as those shown on the approved plans mentioned in subparagraph (i).

(6) Every proposed strata plan shall-

(a) show the proposed share units in whole numbers of each parcel and the total share units of all the parcels; and

(b) contain such other particulars as may be prescribed by rules made under section 81.

(6A) If the plans and specifications by reference to which planning permission for the erection of the building was given are not available, so that it is not possible to give the certificate required by subparagraph (i) of paragraph (b) of subsection (1) of section 9, the application under subsection (1) shall be accompanied-

(a) in lieu of the building plans mentioned in paragraph (aa) of that subsection, by plans of the building, in triplicate, certified by an architect registered under the Architects Act 1967 as having been drawn according to the actual features of the building and as truly representing those features; and

(b) in addition to the other matters required under subsection (1), by the certificate of a duly authorised officer of the appropriate local planning authority that the building as represented by the plans mentioned in paragraph (a) was erected with planning permission but the plans and specifications by reference to which that permission was given are no longer available, and that the local planning authority is nevertheless satisfied that the building as so represented satisfies planning requirements.

(7) An application under subsection (1) may be submitted without the issue document of title to the lot if that document is in the hands of any person as chargee or lien-holder, and in any such case, the application shall be accompanied by a copy of a request by the proprietor served on that person for the production of the document at the Land Office within fourteen days of the date thereof.

(8) Upon receipt of any application under subsection (1), the Land Administrator shall endorse, or cause to be endorsed, a note of the making thereof on the register document of title, and shall then-

(a) refer the application to the Director of Survey;

(b) in the case where the land is held under qualified title as specified in subsection (2) of section 7, take appropriate action in respect of the conversion of the qualified title to final title; and

(c) in the case where the building to be subdivided has not yet been certified to be fit for occupation or use, forthwith inform the applicant to obtain the certificate of fitness for occupation from the local authority within the time specified.

(9) The Director of Survey shall thereupon check the location and storey plans and carry out or cause to be carried out such survey of the land, any of the buildings thereon or any of the parcels as he may consider desirable, and shall-

(a) advise the Land Administrator as to whether the plans are in order;

(b) notify the Land Administrator of the amount of fees to be collected upon approval of the application in respect of such survey; and

(c) notify the Land Administrator of the amount of fees to be collected in respect of the plans caused to be prepared in the event of the approval of the application.

(10) The Land Administrator shall thereupon if he is satisfied that the application and the other documents presented therewith are in order, transmit them to the Director together with his recommendations for approval or rejection:

Provided that no application shall be so transmitted without the issue document of the lot and accordingly in a case falling within subsection (7), if that document is not duly produced at the Land Office, the Land Administrator shall, if unable to secure its production, prepare or cause to be prepared, title in continuation (or where appropriate, a duplicate issue document of title only) under Chapter 3 of Part Ten of the National Land Code as if the circumstances were as specified in paragraph (c) of subsection (1) of section 166 of the Code:

And provided further that-

(a) where the land in held under qualified title, the final title thereto has been registered by the registering authority; and

(b) where the building has not yet been certified fit for occupation or use, the certificate has since obtained and has been submitted by the applicant.

10A. Application for subdivision in the case of phased developments.

(1) An application under section 10, except where it relates to a low-cost building or buildings, may include an application for the issue of a provisional strata title or titles for a provisional block or blocks in respect of a building or buildings, being a building or buildings capable according to section 6 of being subdivided, proposed to be, or in the course of being, erected on the lot in question:

Provided that no building or buildings having only one storey shall be included in the application for the issuance of a provisional strata title or titles for the provisional block or blocks.

(2) Where an application under section 10 involves a provisional block or blocks by virtue of subsection (1), the following requirements relating to the provisional block or blocks shall, in addition to the requirements of section 10 relating to the particular building or buildings to be subdivided, be observed in making the application:

(a) the application shall be accompanied by the building plans approved by the planning authority for the building or buildings to be, or in the course of being, erected, to be submitted in triplicate;

(b) the location plan shall include a legend, and shall delineate the position, of each provisional block, showing, in accordance with the approved building plans, the vertical section and dimensions of the building to which the provisional block relates;

(c) the application shall be accompanied, as forming part of the proposed strata plan, by a storey plan in triplicate in respect of each provisional block, which shall delineate the external boundaries, and show, in accordance with the approved building plans, the horizontal dimensions of the building to which the provisional block relates, without it being necessary to show any bearings; and

(d) the proposed strata plan shall show the proposed quantum of provisional share units for each provisional block.

11. Withdrawal of applications.

An application under subsection (1) of section 10 shall not be capable of being withdrawn except with the concurrence of the Director; and the Director shall not give his concurrence unless he is satisfied that the withdrawal is not, or will not be, detrimental to the interests of any person who has purchased or agreed to purchase any parcel of the building in question.

12. Powers of Director of Lands and Mines in relation to applications.

(1) On receiving any application made under section 10, the Director shall-

(a) approve the subdivision if it appears to him that the conditions specified in section 9 are satisfied; and

(b) in any other case, reject the application.

(2) Where he has approved any application for subdivision of building, the Director shall-

(a) transmit to the Director of Survey the application and other accompanying documents; and

(b) notify the Land Administrator of the approval and direct him to collect from the proprietor, fees as notified by the Director of Survey under subsection (9) of section 10 and fees for the preparation and registration of strata titles.

(3) Where he has rejected any such application, the Director shall notify the Land Administrator who shall forthwith inform the proprietor and shall cancel or cause to be cancelled the note thereof endorsed on the register document of title pursuant to subsection (8) of section 10.

13. Action by Director of Survey after approval of subdivision.

(1) Upon receipt of the approved application and the other documents presented therewith and upon being informed by the Land Administrator that the fees referred to in paragraph (b) of subsection (2) of section 12 have been duly paid, the Director of Survey shall-

(a) from the relevant location plan and storey plans, prepare or cause to be prepared a certified strata plan complying with the requirements of subsection (2), with such modifications as he may consider necessary;

(b) file the certified strata plan in his office;

(c) prepare one copy of the certified strata plan for retention by the Registrar;

(d) prepare additional copies of the certified strata plan, or copies of the various folios thereof as mentioned in subsection (4), for the purpose of attaching them to the issue documents of title to the parcels which are to be created on the subdivisions; and

(e) transmit to the Director, the copies so prepared, together with the approved application and other accompanying documents.

(2) The certified strata plan referred to in paragraph (a) of subsection (1) shall be a plan delineating, on as many folios as may be considered most suitable for the purpose, the storeys of the building or buildings to be subdivided, and the parcels within each storey and every folio shall contain also-

(a) a plan of the land, showing the position of every building thereon;

(b) a vertical section of the building or buildings to be subdivided, showing the position therein of the storey or storeys to which it relates; and

(c) a schedule showing the approved share units of each parcel and the total number of share units of all the parcels.

(3) For the purposes of the preparation of any such certified strata plan, the common boundary of any parcel of a building with any other parcel, or with any part of the building which is not included in any of the parcels, shall, except in so far as it may have been otherwise provided in the relevant storey plans, be taken to be the centre of the floor, wall or ceiling, as the case may be.

(4) The number of additional copies of the certified strata plan to be prepared pursuant to paragraph (d) of subsection (1) shall be as follows:

(a) where any such plan consists of one folio only, the number of copies shall be equal to the number of parcels shown thereon; and

(b) where any such plan consists of two or more folios, the number of copies of each folio to be so prepared shall be equal to the number of parcels shown on that folio.

(5) For the purposes of this section, the certified strata plan in respect of a provisional block shall contain a plan showing the position of the provisional block and the vertical section of the block.

14. Issue of strata titles to individual parcels.

Upon receiving from the Director of Survey the documents referred to in paragraph (e) of subsection (1) of section 13, and upon being informed by the Land Administrator that the fees for preparation and registration of strata titles have been paid, the Director shall direct the Registrar to open a book of the strata register in accordance with the provisions of section 15 and prepare, register and issue strata titles in accordance with the provisions of section 16.

14A. Failure to pay amount demanded.

(1) If the proprietor fails to pay any amount demanded pursuant to subsection (2) of section 12 within one month of being served with the demand, he shall be guilty of an offence, and liable on conviction to a fine not exceeding one thousand ringgit and to a further fine not exceeding fifty ringgit for each day the offence continues to be committed.

(2) The period specified in subsection (1) may, on application made before its expiry, be extended once by the Director by any further period not exceeding one month.

PART III - REGISTRATION OF STRATA TITLES

15. Preparation and maintenance of strata register.

(1) The Registrar shall prepare and maintain for the purposes of this Act a register of strata titles to be known as the strata register.

(2) The strata register shall consist of a series of books, each relating to one lot, and every such book shall contain-

(a) an index in Form 2 to the individual parcels and, if any, appurtenant accessory parcels and to the individual provisional block, if any, comprised in the lot;

(b) a statement in Form 3 which subject to subsection (4), (5) and (6) shall-

(i) set out, or where appropriate summarise so far as they relate to matters capable of affecting any of those parcels or provisional blocks, all memorials, endorsements and other entries which appeared on the register document of title to the lot at the time the statement was authenticated by the Registrar; or

(ii) confirm that there were no such entries;

(c) a copy of the certified strata plan prepared under paragraph (a) of subsection (1) of section 13; and

(d) the register document of title to each parcel and each provisional block.

(3) The name of the management corporation, and the address for the service of documents thereon, required to be stated in the index in Form 2 shall be supplied to the Registrar by the proprietor of the lot.

(3A) Where the proprietor of the lot, after being given reasonable notice by the Registrar, fails to supply the name of the management corporation or the address for service of documents thereon as required by subsection (3), the Registrar-

(a) as regards the name of the management corporation, shall himself determine the name to be stated in the index in Form 2; or

(b) as regards the address for service, shall cause to be stated in the index in Form 2 the postal address of any building erected within the lot.

(4) For the purposes of the statement in Form 3, no account shall be taken of any lease or tenancy relating to a part of the building which corresponds precisely with, or is included within one of the parcels created on the subdivision, or of any charge of, or lien over, such a lease; but any such lease, tenancy or charge shall be endorsed on the register document of title to the parcel in question.

(5) The Registrar shall, in the case of private caveats or Registrar's caveats appearing on the register document of title to the lot, if satisfied that such caveats affect only particular parcels created on the subdivision, endorse such caveats on the register documents of title to the parcels in question.

(6) Where the Registrar is unable to ascertain to his satisfaction the caveats which affect the particular parcels, he may, instead of setting out or summarising them, endorse a statement in Form 3 to the effect that the lot is so subject to the caveats entered on the register document of title to the lot:

Provided that the Registrar may at any time thereafter, if it can be ascertained to his satisfaction that such caveats relate to particular parcels, endorse such caveats on the register documents of title to the parcels in question.

16. Documents of strata title.

(1) The Registrar shall prepare documents of strata title in respect of-

(a) a parcel; and

(b) a provisional block, if any.

(2) The documents of strata title to be prepared by the Registrar in respect of any parcel or provisional block under subsection (1) shall consist of-

(a) a register document of title in Form 4 in respect of a parcel and in Form 4A in respect of a provisional block;

(b) an issue document of title, consisting of a copy of the register document to which shall be attached-

(i) the copy of the certified strata plan or of the relevant folio of that plan prepared under paragraph (d) of subsection (1) of section 13; and

(ii) where appropriate, a copy of the statement in Form 3:

Provided that, in the case of a parcel created on the division or amalgamation of any existing parcels, the plan to be attached to the issue documents of title shall be such as may be prepared in accordance with Part V of this Act.

(3) Every document of strata title shall be prepared in the name of the person last registered as proprietor of the lot in question, or where it relates to a parcel created as mentioned in the proviso to subsection (2) in the name of the person last registered as proprietor of the existing parcel or parcels.

(4) (Deleted by Act A753)

(5) The registration of the register documents of strata title shall consist of their authentication under the hand and seal of the Registrar; and the date of registration shall be inscribed by him on every document.

(6) The provisions of sections 89 to 91 of the National Land Code shall apply to documents of strata titles as they apply to documents of final title:

Provided that where any parcel is subject to a charge or lien, nothing in section 90 of the National Land Code shall be taken to authorise the issue of the document of title thereto to the proprietor of the parcel.

17. Effect of opening of book of strata register.

(1) On authenticating the statement in Form 3 required to be contained in any book of the strata register, the Registrar shall make on the register and issue documents of title to the lot in question a memorial to the effect that the book has been opened, and that the common property is vested in the management corporation and shall return the issue document to that corporation.

(2) No entry shall thereafter be made on either of the documents of title except one affecting the common property.

(3) In its application to a low-cost building, this section shall be construed with the omission of-

(a) all the words in subsection (1) after the words "has been opened"; and

(b) subsection (2).

18. Share units of parcels.

Every parcel shall have a share value as approved by the Director and expressed in whole numbers to be known as share units.

19. Provisional share units of a provisional block.

Every provisional block shall have a share value as approved by the Director, which shall be expressed in whole numbers and taken as provisional share units.

PART IV - PROVISIONAL BLOCK: ISSUE OF STRATA TITLES UPON COMPLETION OF BUILDING

20. Application for strata titles upon completion of building.

(1) The proprietor of a provisional strata title shall, as soon as a building in respect of that title has been completed and certified by the public or local authority to be fit for occupation or use, but in any case within six months from the date the building is so certified, make an application for the approval of the Director for the issue of separate strata titles to the parcels in the completed building.

(1A) The period specified in subsection (1) may, on application made before its expiry, be extended once by the Director by any further period not exceeding three months.

(2) The application shall be made in writing in Form 5 to the Land Administrator and shall be accompanied by-

(a) such fee as may be prescribed;

(b) a certificate of an architect registered under the Architects Act, 1967 or of a professional engineer registered under the Registration of Engineers Act, 1967 that the provisional block has been completed in accordance with the approved building plan, and any approved amendments thereto;

(ba) a copy of the approved building plan and approved amendments thereto referred to in paragraph (b);

(c) a storey plan in triplicate in respect of each storey of the completed building, duly certified by a land surveyor as required under paragraph (b) of subsection (1) of section 10 and containing such details as are specified in subsection (3) of that section;

(ca) a certificate by a land surveyor-

(i) that the building is situated wholly within the boundaries of the lot in question; or

(ii) that, discounting any eave, awning, and any balcony not forming part of a proposed parcel, which project over a road reserve, the building is so situated;

and, in a case where the certificate is one under subparagraph (ii), a subsisting permit or permits issued under section 75A of the National Land Code in respect of every such eave, awning and balcony;

(cb) a certificate by a land surveyor-

(i) that the building is situated wholly within the boundaries of its position as delineated in the location plan in compliance with paragraph (b) of subsection (2) of section 10A; or

(ii) that, discounting any eave, awning, and any balcony which does not form part of a proposed parcel, the building is so situated;

(d) a certificate issued by a public or local authority stating that the building is fit for occupation or use;

(e) a statement showing the proposed allocation of the provisional share units among the new parcels; and

(f) the issue document of provisional strata title.

(3) Upon receipt of the application, the Land Administrator shall-

(a) endorse or cause to be endorsed a note of the making of the application on the register document of title of the provisional block; and

(b) refer the application to the Director of Survey and transmit to him a copy of the plan submitted under subsection (2).

(4) The Director of Survey, upon receiving the copy of the plan transmitted by the Land Administrator shall check the said plan and carry out or cause to be carried out such survey of the building or parcels as he may consider desirable, and shall-

(a) advise the Land Administrator as to whether the plans are in order;

(b) notify the Land Administrator of the amount of fees to be collected upon approval of the application in respect of such survey; and

(c) notify the Land Administrator of the amount of fees to be collected in respect of the plans caused to be prepared in the event of the approval of the application.

(5) Upon receiving the advice of the Director of Survey, the Land Administrator shall transmit to the Director, the application and its accompanying documents together with his recommendations.

21. Power of Director of Lands and Mines in relation to application.

(1) The Director shall, upon being satisfied that-

(a) the building has been completed in accordance with the approved building plan and any approved amendments thereto;

(aa) there has been no change in the number of parcels comprised in the building and the total floor area of the building, as indicated in the building plans submitted pursuant to paragraph (a) of subsection (2) of section 10A, and there has been no change in the total share units for the parcels from the quantum of provisional share units shown pursuant to paragraph (d) of subsection (2) of section 10A;

(b) the proposed allocation of share units among the new parcels is equitable;

(c) there is adequate means of access to each parcel not passing through another parcel; and

(d) there is adequate means of internal communication not passing through the common property,

approve the application.

(2) Where he has approved any application, the Director shall-

(a) transmit to the Director of Survey the application and other accompanying documents; and

(b) notify the Land Administrator of the approval and direct him to collect from the proprietor, fees as notified by the Director of Survey under subsection (4) of section 20 and fees for the preparation and registration of strata titles.

22. Action by Director of Survey after approval.

Upon receipt of the application and the accompanying documents from the Director and upon being informed by the Land Administrator that the survey fees referred to in paragraph (b) of subsection (2) of section 21 have been duly paid, the Director of Survey shall take action as specified in section 13 in respect of-

(a) the preparation of a new certified strata plan incorporating the changes made to the original certified strata plan by the storey plan referred to in paragraph (c) of subsection (2) of section 20, for filing in his office in place of the original certified strata plan; and

(b) the preparation of a copy of the new certified strata plan for retention by the Registrar and additional copies thereof for attaching to the issue documents of title of the new parcels,

and shall transmit them to the Director the copies so prepared, together with the application and other accompanying documents.

22A. Failure to apply under section 20.

Where an application under subsection (1) of section 20 is not made within the period specified in that subsection, or within that period as extended under subsection (2) of that section, the proprietor of the provisional strata title shall be guilty of an offence, and liable on conviction to a fine not exceeding five thousand ringgit and to a further fine not exceeding one thousand ringgit for each day the offence continues to be committed.

22B. Failure to pay amount demanded.

(1) If the proprietor of the provisional strata title fails to pay any amount demanded pursuant to subsection (2) of section 21 within one month of being served with the demand, he shall be guilty of an offence, and liable on conviction to a fine not exceeding one thousand ringgit and to a further fine not exceeding fifty ringgit for each day the offence continues to be committed.

(2) The period specified in subsection (1) may, on application made before its expiry, be extended once by the Director by any further period not exceeding one month.

23. Modification of strata register, issue of fresh documents of titles and cancellation of provisional document of title.

(1) Upon receiving from the Director of Survey the copies of the new certified strata plan and the other accompanying documents and upon being informed by the Land Administrator that the fees for preparation and registration of strata titles have been paid, the Director shall direct the Registrar to take action as specified in subsection (2).

(2) On being directed by the Director, the Registrar shall-

(a) replace the copy of the original certified strata plan in the relevant book of the strata register with the copy of the new certified strata plan prepared for his retention;

(b) amend the schedule of share units of the parcels and make such other alterations in the relevant book of the strata register as are necessary to take account of the changes as a result of the completion of the building;

(c) prepare, register and issue in accordance with the provisions of section 16, strata titles in respect of the new parcels;

(d) endorse on the register document of title in respect of the former provisional block a statement to the effect that strata titles (specifying the title numbers thereof) have been issued to the new parcels in the completed building; and

(e) destroy the issue document of provisional strata title.

PART V - SUBDIVIDED BUILDINGS: DIVISION AND AMALGAMATION OF PARCELS

24. Interpretation.

In this Part, unless the context otherwise requires, the words-

"affected" , in relation to a parcel, means affected or intended to be affected by a division or amalgamation;

"amalgamation" means an amalgamation of parcels;

"application" means an application to divide or amalgamate parcels;

"division" means a division of a parcel;

"new", in relation to a parcel, means resulting or intended to result from a division or amalgamation.

25. Power to divide and amalgamate parcels.

(1) A parcel proprietor may, with the approval of the Director-

(a) divide his parcel into two or more new parcels, each to be held by him under a separate strata title; or

(b) where he holds two or more contiguous parcels, amalgamate them to form one parcel to be held by him under a single strata title.

(2) For the purposes of paragraph (b) of subsection (1) any two or more parcels shall be taken to be contiguous if each of them shares at least one boundary, including a boundary which consists of a floor or ceiling, with another of them.

(3) Where the division of a parcel or the amalgamation of two or more parcels results in the creation of any additional or new common property, the proprietor shall obtain the written consent of the management corporation before making the application under section 28 for the approval of the Director.

26. Effect of division or amalgamation.

(1) On a division, the number of share units of each parcel shall be a whole number allotted by the proprietor of the divided parcel as approved by the Director:

Provided that the total number of share units of all the new parcels shall be equal to the number of share units of the divided parcel.

(2) On an amalgamation, the number of share units of the new parcel shall be a number equal to the total number of share units of the amalgamated parcels.

(3) Subject to subsections (1) and (2), Part VII shall apply in relation to a new parcel in a subdivided building as if the new parcel were one of the parcels which came into existence when the building was subdivided.

27. Conditions for approval of division or amalgamation.

The Director shall not approve a division or amalgamation unless the following conditions are satisfied:

(a) that the proposed division or amalgamation would not contravene any restriction in interest to which any of the affected parcels is subject;

(b) that the proposed division or amalgamation would not be contrary to the provisions of any written law for the time being in force, and that any requirements imposed with respect to the division or amalgamation by or under any such law have been complied with;

(c) that no item of land revenue is outstanding in respect of any affected parcel;

(d) that consent in writing to the making of the application has been obtained from every person who at the time when the approval was applied for, was entitled to the benefit of-

(i) a charge of an affected parcel;

(ii) a lease of an affected parcel or any part thereof, other than, in the case of a division, a part corresponding precisely with or included within one of the new parcels;

(iii) a charge of such a lease; or

(iv) a lien over an affected parcel or such a lease;

(da) that, where the division or amalgamation results in the creation of additional common property or new common property, the written consent of the management corporation to the making of the application has been obtained;

(e) that where an amalgamation is proposed, each new parcel will have adequate internal means of communication not passing through common property;

(f) that, where a division is proposed, each new parcel will have adequate means of access not passing through another parcel;

(g) that the proposed share units assigned to the new parcels by the proprietor in his application in Form 6 are equitable.

28. Application for approval.

(1) Any application for the approval of the Director to a division or an amalgamation shall be made in writing in Form 6 or 7, as the case may be, to the Land Administrator and shall be accompanied by-

(a) such fee as may be prescribed;

(b) a plan in triplicate, duly certified by a land surveyor and showing all the details of the division or amalgamation;

(c) a statement from the applicant of the number of share units of the new parcel or parcels;

(d) all such written consents to the making of the application as are required under paragraph (d) of section 27;

(da) the written consent of the management corporation to the making of the application as required under paragraph (da) of section 27; and

(e) the issue documents of title of the affected parcel or parcels;

(2) Upon receiving any application, the Land Administrator shall-

(a) endorse or cause to be endorsed a note of the making of the application on the register document of title to each affected parcel; and

(b) refer the application to the Director of Survey and transmit to him a copy of the plan submitted under subsection (1).

29. Action by Director of Survey.

The Director of Survey shall, upon receiving a copy of the plan transmitted by the Land Administrator, check the said plan and carry out or cause to be carried out such survey of the affected parcel or parcels as he may consider desirable and advise the Land Administrator as to whether the plans are in order and notify him of the amount of fees to be collected upon approval in respect of such survey and for the preparation of plans

30. Land Administrator to transmit application to Director of Lands and Mines.

Upon receiving the advice of the Director of Survey, the Land Administrator shall transmit to the Director, the application and its accompanying documents together with his recommendations.

31. Power of Director of Lands and Mines in relation to application for division or amalgamation.

(1) The Director, upon receiving the application and its accompanying documents from the Land Administrator, shall-

(a) approve the division or amalgamation to which the plan relates if it appears to him that the conditions specified in section 27 are satisfied; and

(b) in any other case, reject the application.

(2) Where the Director has rejected an application, he shall notify the Land Administrator who shall forthwith inform the proprietor and shall cancel or cause to be cancelled the note thereof endorsed on the register document of title under subsection (2) of section 28.

(3) Where the Director has approved a division or an amalgamation, he shall-

(a) transmit to the Director of Survey the application and other accompanying documents; and

(b) notify the Land Administrator of the approval and direct him to collect from the proprietor, fees as notified by the Director of Survey under section 29, and fees for the preparation and registration of strata titles.

32. Preparation of new certified strata plan by Director of Survey.

The Director of Survey shall, upon receiving the approved application and other accompanying documents, and upon being informed by the Land Administrator that the amount demanded in respect of his fees has been duly paid, take such action as specified in section 13 in respect of-

(a) preparation of a new certified strata plan incorporating the changes made by the division or amalgamation, for filing in his office in place of the original certified strata plan; and

(b) preparation of a copy of the new certified strata plan for retention by the Registrar and additional copies thereof for attaching to the issue documents of title,

and shall transmit to the Director, the copies so prepared, together with the application and other accompanying documents.

33. Modification of strata register and issue of fresh documents of title.

(1) Upon receiving from the Director of Survey the copies of the new certified strata plan and other accompanying documents, and upon being informed by the Land Administrator that the fees in respect of the preparation and registration of strata title to the new parcel or parcels have been duly paid, the Director shall direct the Registrar to take action as specified in subsection (2).

(2) On being directed by the Director, the Registrar shall-

(a) replace the copy of the original certified strata plan in the relevant book of the strata register with the copy of the new certified strata plan prepared for his retention;

(b) amend the schedule of share units of the parcels and make such other alterations in the relevant book of the strata register as are necessary to take account of the changes made by the division or amalgamation; and

(c) issue title in continuation to the new parcel or parcels as if he were issuing title in continuation to land subdivided or amalgamated under Chapter 1 or 3 of Part Nine of the National Land Code

33A. Effect of registration in respect of common property created upon division or amalgamation.

Upon the registration of the strata title or titles to the new parcel or parcels upon the division or amalgamation, the parts of any parcel which are created as common property shall be deemed to form part of the common property in relation to all the parcels comprised within the subdivided building.

PART VI - RIGHTS AND OBLIGATIONS ATTACHING TO INDIVIDUAL PARCELS AND PROVISIONAL BLOCKS

34. Rights of proprietor in his parcel and common property.

(1) Subject to this section and other provisions of this Act, a proprietor shall have-

(a) in relation to his parcel (in the case of a parcel proprietor) the powers conferred by the National Land Code on a proprietor in relation to his land; and

(b) in relation to the common property, the right of user which he would have if he and the other proprietors were co-proprietors thereof.

(2) No rights in an accessory parcel shall be dealt with or disposed of independently of the parcel to which such accessory parcel has been made appurtenant.

(3) No rights in the common property shall be disposed of by a proprietor except as rights appurtenant to a parcel; and any disposition of a parcel by a proprietor shall without express reference include a like disposition of the rights in the common property which are appurtenant to the parcel.

35. Rights of support, service and shelter.

(1) In favour of and against each parcel proprietor there shall be implied a right of support and a right of service.

(2) Each parcel proprietor shall be entitled to have his parcel sheltered by all such parts of the subdivided building as are capable of affording shelter and may, for the purpose of replacing, renewing or restoring any such shelter, enter upon the common property or any other parcel.

(3) The rights and obligations mentioned in subsections (1) and (2) shall be effective without memorial or notification in the strata register, and there shall be implied in respect of them such ancillary rights and obligations as are reasonably necessary to make them effective.

(4) In this section-

"right of support" means a right to subjacent and lateral support by the common property and by every other parcel capable of affording support;

"right of service" means rights to the passage or provision of water, sewage, drainage, gas, electricity, garbage, artificially cooled or heated air and other services (including telephone, radio and television services) through or by means of pipes, wires, cables or ducts.

36. Share unit entitlements.

The value of each parcel, except in the case of an accessory parcel where no share value shall be allotted, shown in the schedule of share units shall be taken as the share unit entitlement, and in the case of a provisional block the value shall be taken as the provisional share unit entitlement. The share units of a parcel or the provisional share units in the case of a provisional block as specified in the strata title or in the provisional strata title, as the case may be, shall determine-

(a) the voting rights of the proprietors;

(b) the quantum of the undivided share of each proprietor in the common property; and

(c) the proportion payable by each proprietor of the contribution levied by the management corporation pursuant to section 45, 63 or 66.

37. Restrictions on voting rights.

(1) Where a parcel proprietor is for any reason, unable to control his property, the powers of voting conferred on him by the Second Schedule shall be exercisable by the person who is for the time being authorised by law to control that property.

(2) Where a parcel proprietor's interest is subject to a registered charge, the powers of voting conferred on him by the Second Schedule shall, unless it is otherwise agreed between him and the chargee first entitled in priority, be exercisable by that chargee either personally or by proxy.

38. Power of court where no person is able to vote in respect of a parcel.

Where a court of competent jurisdiction on the application of the management corporation or a proprietor, is satisfied that there is no person who is able to vote in respect of a parcel, the court-

(a) shall, in cases where a unanimous resolution is required; and

(b) may, in any other case,

appoint a Public Trustee or some other fit and proper person to exercise such of the powers of voting attached to the parcel by the Second Schedule, as the court may determine.

PART VII - MANAGEMENT OF A SUBDIVIDED BUILDING

39. Establishment of management corporation.

(1) Upon the opening of a book of the strata register in respect of a subdivided building there shall, by the operation of this section, come into existence a management corporation consisting of all the parcel proprietors including in the case of phased development, the proprietor of the provisional block or blocks.

(2) The management corporation established by subsection (1) shall be known by the name appearing in the book of the strata register relating to a subdivided building, and shall be a body corporate having perpetual succession and a common seal.

(2A) The management corporation may apply to the Registrar for a certificate certifying that the management corporation is a body corporate constituted under this Act on the day specified in the certificate.

(3) The management corporation may sue and be sued.

(4) The management corporation shall elect a council which, subject to any restriction imposed or direction given by the management corporation at a general meeting, shall perform the management corporation's duties and conduct the management corporation's business on its behalf, and may for that purpose exercise any of the management corporation's powers.

(5) The provisions of the Second Schedule shall have effect in relation to the management corporation and its council.

40. Restrictions imposed on management corporation during initial period.

(1) Notwithstanding any other provisions of this Act, the management corporation shall not, during the initial period-

(a) amend, add to or repeal its by-laws in such a manner that a right is conferred or an obligation is imposed on one or more but not all, proprietors or in respect of one or more, but not all, or provisional blocks;

(b) borrow moneys or give securities; or

(c) enter into any maintenance or service contracts for any periods extending beyond the expiration of the initial period.

(2) Without prejudice to any other remedy available against the original proprietor, if a management corporation contravenes subsection (1), the original proprietor shall be liable for any loss suffered by the management corporation or any parcel proprietor as a result of the contravention and the management corporation or any parcel proprietor may recover from the original proprietor as damages for breach of a statutory duty, any loss suffered by it or him in consequence of such contravention.

41. Duty of original proprietor to convene first annual general meeting.

(1) It shall be the duty of the original proprietor to convene the first annual general meeting of the management corporation within one month after the expiration of the initial period.

(2) If the original proprietor fails to comply with subsection (1), he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one thousand ringgit.

(3) Without prejudice to the provisions of subsections (1) and (2), if the original proprietor fails to convene the first annual general meeting within the specified period, the Director may, on application by the management corporation, a proprietor or chargee of a parcel, appoint a person to convene the first annual general meeting of the management corporation within such time as may be specified by the Director.

(4) The original proprietor shall give a written notice of the first annual general meeting to all parcel proprietors constituting the management corporation not less than fourteen days before the meeting.

(5) The agenda for the first annual general meeting shall include the following matters:

(a) to decide whether to confirm, vary or extend insurances effected by the management corporation;

(b) to decide whether to confirm or vary any amounts determined as contributions to the management fund;

(ba) to determine the portion of contribution to the management fund to be paid into the special account to be maintained under section 46;

(c) to determine the number of members of the council and to elect the council where there are more than three proprietors; and

(d) to decide whether to amend, add to or repeal the bylaws in force immediately before the holding of the meeting.

41A. Contributions by parcel proprietors.

Where the first annual general meeting of a management corporation in respect of a subdivided building has not yet been convened, the proprietor of each of the parcels or provisional blocks, if any, in the subdivided building shall, commencing from the opening of the book of the strata register in respect of the subdivided building, pay to the management corporation any such sum which has been approved by the Director as the amount payable for the maintenance of the subdivided building and the common property and such sum shall be deemed to be the amount determined by the management corporation as the contributions payable by the proprietors to the management fund of the management corporation.

42. Ownership of common property and custody of issue document of title.

(1) The management corporation shall, on coming into existence, become the proprietor of the common property and be the custodian of the issue document of title of the lot.

(2) The management corporation shall have in relation to the common property the powers conferred by the National Land Code on a proprietor in relation to his land:

Provided that-

(i) except where it is specifically provided otherwise in this Act, those powers may be exercised only on the authority of a unanimous resolution; and

(ii) the corporation shall not have power to transfer any portion of the common property which forms part of the building or of the land on which the building stands.

43. Duties and powers of management corporation.

(1) The duties of the management corporation include the following:

(a) to manage and properly maintain the common property and keep it in a state of good and serviceable repair;

(b) to insure and keep insured the subdivided building to the replacement value thereof against fire and such other risks as may be prescribed under this Act;

(c) to effect such other insurance of the subdivided building as may be required by law;

(d) to insure against such other risks as the proprietors may by special resolution direct;

(e) to apply insurance moneys received by it in respect of damage to the subdivided building in rebuilding and reinstating it in so far as it may be lawful to do so, subject to any order made by the court under section 56;

(f) to pay premiums on any insurance effected by it;

(g) to comply with any notices or orders given or made by any competent public or statutory authorities requiring the abatement of any nuisance on the common property, or ordering repairs or other work to be done in respect of the common property or any building or other improvements on the lot;

(h) to comply with any such notices or orders as are referred to in paragraph (g) given or made in respect of any of the parcels, if the proprietor fails to do so within a reasonable time;

(i) to prepare and maintain, in such form as may be prescribed, a strata roll for the subdivided building; and

(j) to pay the rent of the lot.

(2) The powers of the management corporation shall include the following:

(a) to recover from any parcel proprietor any sum expended by the management corporation in respect of that proprietor's parcel in complying with any such notices or orders as are referred to in paragraph (h) of subsection (1);

(b) to purchase, hire or otherwise acquire movable property for use by the parcel proprietors in connection with their enjoyment of the common property;

(c) to borrow moneys required by it in the exercise of its powers or the performance of its duties;

(d) to secure the repayment of moneys borrowed by it and the payment of interest thereon by negotiable instrument or by a charge of unpaid contributions to the management fund, (whether already levied or not) by a charge of any property vested in it or by a combination of any of those means;

(e) to collect during the initial period by way of contributions from proprietors in proportion to the share units or provisional share units of their respective parcels or provisional blocks; and

(f) to do all things reasonably necessary for the performance of its duties under this Part and for the enforcement of the by-laws set out in the Third Schedule.

(3) The management corporation shall be deemed-

(a) for the purposes of effecting any insurance under paragraph (b) or (c) of subsection (1), to have an insurable interest in the subdivided building equal to its replacement value; and

(b) for the purposes of effecting any insurance under paragraph (d) of subsection (1), to have an insurable interest in the subject matter of the insurance.

(4) A policy of insurance taken out by the management corporation under this section in respect of the subdivided building shall not be liable to be brought into contribution with any other policy of insurance, except another policy taken out under this section in respect of the same subdivided building.

(5) Where the management corporation performs any repairs, work or act that is required or authorised by or under this Part or by or under any other written law to perform (whether or not the repairs, work or act were or was performed consequent upon the service on it by any Government or statutory authority of any notice or order), but the repairs, work or act were or was wholly or substantially the liability or the responsibility of the proprietor of a parcel only, or wholly or substantially for the benefit of some of the parcels only, any money expended by the management corporation in performing the repairs, work or act shall-

(a) in the case where the repairs, work or act were or was wholly or substantially the liability or the responsibility of the proprietor of a parcel only, be recoverable by the management corporation in an action in a court of competent jurisdiction as a debt due to it jointly and severally from-

(i) the relevant proprietor of the parcel at the time when the repairs, work or act were or was performed; and

(ii) the relevant proprietor of the parcel at the time when the action was commenced; or

(b) in the case where the repairs, work or act were or was wholly or substantially for the benefit of some of the parcels only, or wholly or substantially the liability or the responsibility of the proprietors of some of the parcels only, be recoverable by the management corporation in an action in a court of competent jurisdiction as a debt due to it jointly and severally from-

(i) the relevant proprietor of each of such parcels at the time when the repairs, work or act were or was performed; and

(ii) the relevant proprietor of each of such parcels at the time when the action was commenced,

the amount payable by any proprietor and former proprietor in respect of any parcel being not more than the proportion of the debt which the share unit of the parcel then bears to the total share units of all those parcels.

(6) A proprietor of a parcel who is not the proprietor of the parcel at the time when the repairs, work or act referred to in subsection (5) were or was performed shall not be liable to pay the management corporation any amount due under that subsection if he has, at any time on or within twenty-one days before the date he acquired the title or interest in the parcel, made a requisition in writing to the management corporation to inquire about the amount (if any) recoverable by the management corporation under that subsection in respect of the parcel and the management corporation has-

(a) certified that no amount is recoverable by the management corporation in respect of the parcel; or

(b) not given a reply to the requisition at any time within fourteen days of the date of the service of the requisition.

(7) Where the management corporation incurs any expenditure or performs any repairs, work or act that it is required or authorised by or under this Part or by or under any other written law to perform (whether or not the expenditure was incurred or the repairs, work or act were or was performed consequent upon the service on it by any Government or statutory authority of any notice or order) and the expenditure or the repairs, work or act were or was rendered necessary by reason of any wilful or negligent act or omission on the part of, or breach of any provision of its by-laws by, any person or his tenant, lessee, licensee or invitee, the amount of that expenditure of any money expended by it in performing the repairs, work or act shall be recoverable by it from that person as a debt in an action in any court of competent jurisdiction.

(8) The generality of this section shall not be prejudiced by any other provision in this Part conferring a power or imposing a duty on the management corporation.

44. By-laws for the regulation of a subdivided building.

(1) The by-laws set out in the Third Schedule shall, as and from the opening of a book of the strata register be in force for all purposes in relation to every subdivided building and shall not be amended by the management corporation.

(2) The management corporation may by special resolution make additional by-laws, or make amendments to such additional by-laws, not inconsistent with the by-laws set out in the Third Schedule, for regulating the control, management, administration, use and enjoyment of the subdivided building.

(3) The by-laws for the time being in force in respect of the subdivided building shall bind the management corporation and the proprietors to the same extent as if they constituted properly executed agreements-

(a) on the part of the management corporation with each proprietor; and

(b) on the part of each proprietor with every other proprietor and with the management corporation,

to observe and perform all the provisions of the by-laws.

(4) The management corporation shall-

(a) keep a record of the by-laws in force from time to time;

(b) on receipt of an application in writing made by a proprietor or by a person duly authorised to apply on behalf of a proprietor for a copy of the by-laws in force, supply to such proprietor or duly authorised person at a reasonable cost a copy of the by-laws; and

(c) on the application of any person who satisfies the management corporation that he has a proper interest in so applying, make such by-laws available for inspection.

(5) No by-law is capable of operating-

(a) to prohibit or restrict the transmission, transfer, lease or charge of, or any other dealing with any parcel of a subdivided building; and

(b) to destroy or modify any easement expressly or impliedly created by or under this Act.

(5A) In subsection (5) "easement" includes a right or obligation created by section 35.

(6) A copy of any by-laws made by the management corporation under subsection (2) and any amendment of any by-laws for the time being in force, certified as a true copy under the seal of the management corporation, shall be lodged by the management corporation with the Director within thirty days of the passing of the resolution by the management corporation approving the by-laws.

(7) The management corporation or any proprietor shall be entitled to apply to a court of competent jurisdiction-

(a) for an order to enforce the performance of, or restrain the breach of, any by-laws by; or

(b) to recover damages for any loss or injury to any persons or properties arising out of the breach of any by-law from,

any persons bound to comply therewith, the management corporation or the administrator, and the court may make such order against any such persons, the management corporation or the members of its council, or the administrator, as the court thinks fit.

45. Management fund.

(1) The management corporation shall establish a management fund sufficient in the opinion of the management corporation to meet the administrative expenses as may be incurred for the purposes of controlling, managing and administering the common property, paying rent, rates and premiums of insurance and discharging any other obligation of the management corporation.

(2) The management corporation may invest any moneys in the management fund, but only in such investments or in such manner as may be approved at a general meeting.

(3) Subject to section 41A, for the purpose of establishing and maintaining the management fund the management corporation may at a general meeting-

(a) determine from time to time the amount to be raised for the purposes mentioned in subsection (1);

(b) raise the amounts so determined by levying contributions on the proprietors in proportion to the share units or provisional share units of their respective parcels or provisional blocks; and

(c) determine the amount of interest payable by a proprietor in respect of late contributions which shall not exceed the rate of ten per cent per annum.

(4) On application by or on behalf of a person who is a proprietor of a parcel, or by or on behalf of a prospective purchaser of a parcel that is offered for sale, or by or on behalf of the chargee or prospective chargee of a parcel, the management corporation shall issue to that person a certificate certifying-

(a) the amount determined, pursuant to subsection (3), as the contributions of that proprietor;

(b) the time and manner of payment of the amount determined by it pursuant to that subsection;

(c) the extent, if any, to which the contribution has been paid;

(d) the amount (if any) then recoverable by the management corporation in respect of the parcel pursuant to subsection (5) of section 43;

(e) the sum standing to the credit of the management fund and the amount out of that fund committed or reserved for any expenses already incurred by the management corporation; and

(f) whether or not the management corporation has incurred any expenditure or is about to perform any repairs, work or act in respect of which a liability is likely to be incurred by the proprietor of the parcel under any provision of this Part and, if so, the estimated amount of the expenditure or the general nature of the repairs, work or act, and as against the management corporation and in favour of any person (including the member) relying in good faith on such certificate, that certificate shall be conclusive evidence of the matters certified therein.

(5) Any contribution levied under subsection (3) in respect of a parcel shall be due and payable on the passing of a resolution to that effect by the management corporation and in accordance with the terms of that resolution, and may be recovered as a debt from a proprietor of, or his successor in title to, the parcel.

(5A) Any contribution levied under subsection (3) in respect of a provisional block shall be due and payable on the passing of a resolution to that effect by the management corporation and in accordance with the terms of that resolution, and may be recovered as a debt from the proprietor of the provisional block or, where the building to which the provisional block relates has been subdivided, from the proprietors of the parcels in the building, or their successors in title, in proportion to the share units of their respective parcels.

(6) For the purposes of subsection (5) the word "proprietor" shall include the person for the time being receiving the rent of the parcel, whether as agent or trustee or as receiver, and who would receive the same if the parcel were let to a tenant.

46. Special account.

The management corporation shall maintain a special account in which shall be paid such portion of the contribution to the management fund as may be from time to time determined under paragraph (ba) of subsection (5) of section 41 by special resolution for the purposes of meeting its actual or expected liabilities in respect of the following matters;

(a) for painting or repainting any part of the common property which is a building or other structure;

(b) for the acquisition of any movable property for use in relation with the common property;

(c) for the renewal or replacement of any fixtures or fittings comprised in any common property and any movable property vested in the body corporate; and

(d) for any other expenditure not being expenditure incurred under subsection (5) of section 43 to meet a liability for maintenance or for settling any defaults in payment by a proprietor.

47. Acquisition of additional land, grant and acceptance of easements, etc.

(1) The management corporation, if authorised by a unanimous resolution, may-

(a) acquire land outside the lot to be used for purposes connected with subdivided building;

(b) grant or accept the burden of an easement imposed on the lot for the benefit of some other land;

(c) accept the benefit of an easement imposed in favour of the lot on some other land; or

(d) (Deleted by Act A753).

(2) Land outside the lot acquired under paragraph (a) of subsection (1) shall be treated and dealt with as if it were part of the common property:

Provided that land so acquired shall be held on a separate title and shall not be amalgamated with the lot.

(3) Where an instrument is executed by the management corporation in the exercise of its powers under subsection (1)-

(a) the instrument shall be valid and effective without execution by any proprietor or other person or body having an interest in the land;

(b) the receipt of the management corporation for any moneys payable to the corporation under the instrument shall be a good and sufficient discharge which exonerates the person or body paying the moneys from responsibility for the application thereof;

(c) when the instrument is lodged for registration it shall be endorsed with or accompanied by a certificate under the seal of the management corporation stating that-

(i) the resolution directing the transaction to which the instrument relates was duly passed; and

(ii) the transaction conforms to the terms of the resolution;

(d) (Deleted by Act A753);

(e) a certificate given under paragraph (c) shall, in favour of the Registrar or a party to the transaction other than the management corporation, be conclusive evidence of the facts certified.

48. (Deleted by Act A753).

49. Rating.

(1) The management corporation shall -

(a) within one month after its establishment, or within such further period as the rating authority may allow, supply the rating authority with two copies of the certified strata plan in respect of the subdivided building and with the names and addresses of the members of the council of the corporation; and

(b) keep the rating authority informed of any changes in the plan, names and addresses supplied under paragraph (a).

(2) Where a rate is levied on the common property, the management corporation shall be liable to pay the rate.

(3) For the purposes of this section the words "the rating authority" shall mean in relation to a subdivided building any authority authorised by law to levy rates.

50. Director may appoint managing agent to exercise or perform certain powers, etc.

(1) The Director may, upon complaints by a proprietor or any other person or body having a registered interest in a parcel that the management corporation has not functioned satisfactorily, if satisfied that it is in the interests of the parcel proprietors in the subdivided building concerned, appoint a managing agent to exercise the powers and discharge the duties and functions of the management corporation.

(2) Where the Director makes the appointment under subsection (1), he may also specify that the managing agent shall have and may exercise and discharge -

(a) all the powers, duties and functions of the management corporation for the subdivided building to which the appointment relates or of the council of that management corporation;

(b) any one or more of those powers, duties or functions specified in the appointment; or

(c) all of those powers, duties and functions except those specified in the appointment.

(3) The expenses incurred by the managing agent shall be charged on the management fund of the management corporation.

51. Appointment of administrator for management corporation.

(1) A court of competent jurisdiction on the application of the management corporation, a proprietor or any other person or body having a registered interest in a parcel may, appoint an administrator for the management corporation for a fixed or indefinite period and on such terms and conditions as to remuneration or otherwise as the court thinks fit.

(2) The remuneration and expenses of the administrator shall be charged on the management fund of the management corporation.

(3) The administrator shall, to the exclusion of the management corporation, have the power and perform the duties of the management corporation, or such of them as the court may direct:

Provided that this subsection shall not preclude the management corporation from applying under subsection (5) for the removal or replacement of the administrator.

(4) An administrator when appointed shall forthwith lodge with the Registrar an office copy of the order of court making his appointment.

(5) The court may, on the application of the management corporation or any person or body entitled to apply under subsection (1), remove or replace the administrator.

(6) Where an order of the court for removal or replacement of an administrator has been granted to any person, such person shall forthwith lodge with the Registrar, an office copy of such order.

(7) On any application made under this section the court may make such order for the payment of costs as it thinks fit.

52. The recovery of sum as debt due to management corporation.

(1) The payment of any amount lawfully incurred by the management corporation in the course of the exercise of any of its powers or functions or carrying out of its duties or obligations shall by virtue of this section be guaranteed by the proprietors for the time being constituting the management corporation, each proprietor being liable under such guarantee only for such proportion of the money so incurred as the share units of his parcel or the provisional share units of his provisional block bear to the aggregate share units.

(2) Where any proprietor has not discharged or fully discharged his liability for the purpose of subsection (1), the management corporation shall be entitled to recover from the proprietor in any court of competent jurisdiction as a debt due to it.

(3) Where for reasons of insufficiency of fund to meet the sum guaranteed under subsection (1), the management corporation may at an annual general meeting or at an extraordinary general meeting determine the amount to be contributed by each proprietor and decide any other issue or matter relating to the settlement of the said sum.

53. Recovery of sums due.

(1) Where a sum becomes recoverable by the management corporation from a proprietor by virtue of paragraph (a) of subsection (2) of section 43, subsection (5) or (5A) of section 45 and subsection (2) of section 52, the management corporation may serve on the proprietor a written notice requesting payment of the sum due within such period, which shall not be less than two weeks from the date of service of the notice, as may be specified in the notice.

(2) If at the end of the period specified in the notice under subsection (1) the sum or part of the sum due remains unpaid, the management corporation may serve on the proprietor a written notice demanding payment of the sum due within two weeks from the date of service of the notice; and if upon expiry of the said period, the sum due still remains unpaid, the management corporation may file a summons in any court of competent jurisdiction for the recovery of the said sum or, in addition or as an alternative to recovery under this section, resort to recovery under section 53A.

53A. Recovery of sums by attachment of movable property.

(1) In the like circumstances in which the management corporation may, by virtue of subsection (2) of section 53, file a summons for the recovery of a sum which becomes recoverable as mentioned in subsection (1) of that section, the Land Administrator may, upon sworn application in writing made by any member of the council of the management corporation, issue a warrant of attachment in Form 7A authorising the attachment of any movable property belonging to the defaulting proprietor which may be found in the building or elsewhere in the State.

(2) The warrant shall be executed by a member of the council of the management corporation or by a person specially employed by the council to execute such warrants; and a person executing the warrant shall be deemed to be a public servant for the purposes of the Penal Code.

(2A) If the management corporation encounters difficulties in executing the warrant, it may seek the assistance of the Director, and in providing such assistance, the Director may request for the assistance of a police officer not below the rank of Inspector.

(3) A person executing the warrant-

(a) may, in the daytime, effect forcible entry into any house or building or any part thereof for the purpose of executing the warrant; and

(b) shall, immediately after attachment, make an inventory of the property attached under the warrant and serve a notice in Form 7B on the person who, at the time of attachment, was or appeared to be in possession of the property.

(3A) Any tenant, sub-tenant, or occupier who, in order to avoid the attachment or sale of the movable property for non-payment of any sum due to the management corporation by the parcel proprietor, pays such sum may thereafter, in the absence of any written agreement to the contrary, deduct the amount so paid by him from the rent due or to become due by him to the parcel proprietor, and may retain possession until such amount has been fully reimbursed to him whether by deduction from the rent or otherwise.

(3B) The receipt issued by the management corporation for any amount so paid by any such tenant, sub-tenant or occupier shall be deemed an acquittance in full for the like amount of rent.

(4) If any person whose property is attached disputes the legality of the attachment, he may, within fourteen days of the date of attachment, apply to the Magistrate's Court having jurisdiction in the place of attachment for an order for the release of the property, and the Magistrate's Court, after making such enquiry as may be necessary, shall grant or refuse to grant the order.

(5) If the sum due is not paid within fourteen days from the date of attachment, the property attached or such portion thereof as may be sufficient to realise the sum shall be sold by public auction, unless within that period an application is made under subsection (4), in which case the property shall be held pending the decision of the Magistrate's Court and shall then be dealt with as the Magistrate's Court may order.

(6) If the Magistrate's Court refuses to grant an order for the release of the property, and that decision of the Magistrate's Court is reached within fourteen days from the date of attachment, the property shall not be sold before the expiry of that period.

(7) Notwithstanding subsections (5) and (6), if the property is of a perishable nature, it may be sold at once, and in that case the proceeds of sale shall be held pending the decision of the Magistrate's Court and shall then be dealt with as the Magistrate's Court may order.

(8) In any other case, the proceeds of sale shall be applied in satisfaction of the sum due together with the costs of the attachment and sale, and any surplus and any property not sold shall be paid or returned to the person who, at the time of attachment, was or appeared to be in possession of the property.

(9) The costs of attachment shall include the expenses of the maintenance of livestock and the custody of movable property.

(10) In this section, unless the context otherwise requires, "proprietor", in relation to the recovery of a sum recoverable by virtue of subsection (5) or (5A) of section 45 from a parcel proprietor, includes any successor in title to the parcel proprietor.

(11) Where any property is sold by virtue of subsection (7) before the expiry of fourteen days from the date of attachment, the reference in subsection (4) to an order for the release of the property shall be construed as a reference to an order for the release of the proceeds of the sale of the property.

54. Service of documents.

(1) The management corporation shall at the main entrance to the lot-

(a) cause to be continuously displayed a notice showing the name of the management corporation and the address for service of documents as shown in the book of the strata register; and

(b) cause to be continuously available a receptacle suitable for purposes of postal delivery with the name of the management corporation clearly shown thereon, where the address for service of documents shown in the book of the strata register is the postal address of a building erected within the lot.

(2) Where the address for service of documents is altered the management corporation shall forthwith notify the Registrar and the Director of the alteration, and the Registrar shall make the appropriate endorsement in the book of the strata register.

(3) A document may be served on the management corporation by sending it by pre-paid registered post addressed to the management corporation at the address shown on the book of the strata register.

(4) The provisions of section 431 of the National Land Code relating to the methods of service shall apply to this section.

(5) For the purposes of this section the word "documents" shall include summons, notice, order and other legal process.

55. Breaches of provisions of this part.

(1) If the management corporation commits a breach of any of the provisions of this Part or makes default in complying with any requirements of or duties imposed on it by any of the provisions of this Part, the management corporation and every member of its council, and any other proprietor, who knowingly is a party to the breach or default shall be guilty of an offence and shall be liable, on conviction to a penalty expressly prescribed for such breach or default, or if no penalty is so prescribed, to a fine not exceeding two thousand ringgit.

(2) Where a requirement or duty is imposed on the management corporation by this Part, any person for whose benefit, or the benefit of whose parcel that requirement or duty is imposed on the management corporation, may apply to a court of competent jurisdiction for an order compelling the management corporation to carry out that requirement or perform that duty, as the case may be, and on such an application being made, the court may make such order as it thinks proper.

55A. Failure to pay contributions.

Where any proprietor has failed to pay the contribution demanded by the management corporation in the manner set out in section 53, the proprietor shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five thousand ringgit and to a further fine not exceeding fifty ringgit for every day during which the contribution remains unpaid after conviction.

PART VIII - TERMINATION OF SUBDIVISION OF SUBDIVIDED BUILDING

56. Power of court when subdivided building is damaged.

(1) When a subdivided building is damaged but is not totally destroyed, a court of competent jurisdiction on the application of the management corporation, a parcel proprietor, or a registered chargee of any parcel, may by order, settle a scheme for the reinstatement or the continued use of the building in whole or in part and any such scheme may include provision for the transfer of the interests of the proprietors of parcels which have been wholly or partially destroyed to the other parcel proprietors in proportion to their share units.

(2) In the exercise of its powers under subsection (1), the court may make such orders as it deems necessary or expedient for giving effect to the scheme, including orders-

(a) directing the application of insurance moneys received by the management corporation in respect of damage to the building;

(b) directing payment of money by the management corporation or by the parcel proprietors or some or one or more of them;

(c) directing such amendment or replacement of the certified strata plan and such consequential amendment or replacement of the strata register as the court thinks fit; and

(d) imposing such terms and conditions as the court thinks fit.

(3) Where an application is made under subsection (1), any insurer who has effected insurance on the building to which the application relates (or on any part thereof) shall have the right to appear on the hearing of the application.

57. Termination of subdivision.

(1) The management corporation, where-

(a) the building is totally destroyed; or

(b) the parcel proprietors seek to demolish the building or, in the case of a building which has been partially destroyed, the remaining parts of the building; or

(c) there is only one proprietor for all the parcels,

may be directed by unanimous resolution to take action to terminate the subdivision of the building; and, subject to any order of a court of competent jurisdiction made under subsection (7), the management corporation if so directed shall lodge with the Registrar a notification in Form 8 together with the issue documents of title of the land and the parcels and of provisional blocks, if any.

(2) On receipt of a notification under subsection (1) the Registrar shall make a memorial of the notification in the register and the strata register, and shall inform the Director of Survey that he has done so.

(3) On the making of a memorial under subsection (2) in respect of a subdivided building-

(a) the subdivision shall be terminated and the proprietors shall cease to be proprietors of the parcels and provisional blocks; and

(b) the management corporation shall become the proprietor of the lot as the trustee of the former proprietors.

(4) Where the management corporation becomes the proprietor of the lot under subsection (3)-

(a) any registered charge on a parcel which existed immediately before the termination of the subdivision shall be converted into a personal obligation of the chargor to pay to the chargee what is due under the charge;

(b) each of the former proprietors shall continue to be a member of the corporation, having the same voting rights as he had immediately before the termination of the subdivision;

(c) the management corporation shall hold and manage the lot for the benefit of the former proprietors;

(d) the former proprietors may by unanimous resolution direct the management corporation to transfer the lot to any one or more of the former proprietors or to any other person or body; and

(e) the management corporation shall distribute any profits arising from its proprietorship of the lot (including any purchase money received on a transfer) to the former proprietors proportionately to the share units or provisional share units which they held immediately before the termination of the subdivision.

(5) Notwithstanding the termination of a subdivision under this section, the relevant book of the strata register shall continue in existence while the management corporation remains the proprietor of the lot and may be used in evidence as a record of matters relating to the subdivision before its termination.

(6) Where the management corporation, having become the proprietor of the lot under subsection (3), transfers the lot in pursuance of a direction under paragraph (d) of subsection (4)-

(a) the management corporation shall continue in existence for so long as it is reasonably necessary to wind up its affairs and shall then cease to exist; and

(b) the Registrar shall cancel the relevant book of the strata register.

(7) A court of competent jurisdiction, if it is satisfied that the justice of the case so requires-

(a) may on the application of the management corporation, a parcel proprietor or the registered chargee of a parcel make an order-

(i) directing the management corporation to take action under subsection (1) notwithstanding the absence of a unanimous resolution; or

(ii) prohibiting the management corporation from taking action under that subsection notwithstanding a direction given by unanimous resolution; and

(b) where the management corporation has transferred the lot in pursuance of a direction under paragraph (d) of subsection (4), may on the application of the management corporation, a former proprietor or a former chargee make an order for the winding up of the affairs of the management corporation.

(8) In this section-

"former chargee" means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, is the registered chargee of a parcel in the building;

"former proprietor" means a person who, or a body which, immediately before the subdivision of a subdivided building is terminated under this section, is the proprietor of a parcel in the building or of a provisional block on the land on which the building is situated.

PART IX - PROVISIONS FOR LOW-COST BUILDINGS

58. Classification of low-cost buildings.

(1) The State Authority may, on an application by a proprietor of any alienated land or at any time on its own motion, having regard to the location, nature of construction and the cost of the building, classify it to be a low-cost building.

(2) Without prejudice to subsection (1), the State Authority may by rules made under section 81, classify any type of buildings to be a low-cost building.

(2A) No building erected in a provisional block shall be classified under subsection (1) or (2) to be a low-cost building.

(3) Upon classifying any building to be a low-cost building under subsections (1) and (2), the State Authority shall issue a certificate to the proprietor of the land.

59. Application for subdivision by proprietor of low-cost building.

Upon receipt of the certificate by the State Authority under section 58, the proprietor of the land may apply for the subdivision of the building under section 10.

60. Application of this Part upon opening of a book of the strata register.

Upon approval of the subdivision of the low-cost building and the opening of a book of the strata register in respect of the subdivided building, the provisions of this Part shall apply.

61. Duties and powers of the original proprietor before the establishment of the management corporation.

(1) During the period before the management corporation comes into existence, it shall be the duty of the original proprietor-

(a) to control, manage, administer and keep the common property in good repair;

(b) to pay the rent of the lot;

(c) to insure the building to its replacement value against fire and to keep it so insured;

(d) to effect such other insurance policies of the buildings as may be required by law;

(e) subject to any order made by a court of competent jurisdiction, to apply insurance moneys received by it in respect of damage to the building in rebuilding and reinstating the building, so far as it may be lawful to do so and to pay the premiums on any policy of insurance effected by it; and

(f) to perform any other function as may be necessary for the discharge of its duties.

(2) The original proprietor may-

(a) purchase, hire or otherwise acquire movable property for use by proprietors in connection with their enjoyment of the common property; and

(b) do all things reasonably necessary for the discharge of its duties under this Part.

(3) The original proprietor shall be deemed for the purposes of effecting any insurance policies under paragraph (d) or (e) of subsection (1) to have an insurable interest in the building to its replacement value.

(4) A policy of insurance taken out by the original proprietor in respect of the building shall not be liable to be brought into contribution with any other policy of insurance except if it is another policy taken out in respect of the same building.

61A. Restrictions imposed on original proprietor during period before management corporation comes into existence.

(1) Notwithstanding any other provisions of this Act, the original proprietor shall not, during the period before the management corporation comes into existence-

(a) use the lot concerned or any part thereof as security for any loan of moneys; or

(b) enter into any maintenance or service contracts for any periods extending beyond the date when the management corporation comes into existence.

(2) If the original proprietor contravenes subsection (1), the original proprietor shall be liable for any loss suffered by the management corporation or any parcel proprietor as a result of the contravention and the management corporation or any parcel proprietor may recover from the original proprietor, as damages for breach of a statutory duty, any loss suffered by it or him in consequence of such contravention.

(3) Where any dealing in contravention of paragraph (a) of subsection (1) has been registered, such registration shall not pass any title or interest in the lot concerned or any part thereof, and the Registrar shall, upon discovery of the registration, cancel the registration, and no person or body affected by such cancellation shall be entitled to any compensation.

62. Applicability and modification of by-laws in Third Schedule during the period before the establishment of the management corporation.

(1) The by-laws set out in the Third Schedule shall during the period before the management corporation comes into existence, have effect in relation to every subdivided low-cost building and shall apply by substituting for the word "corporation" wherever it appears the words "original proprietor".

(2) The said by-laws shall bind the parcel proprietors and the original proprietor to the same extent as if they constitute properly executed agreements-

(a) on the part of the original proprietor with each proprietor; and

(b) on the part of each proprietor with every other proprietor and the original proprietor,

to observe and perform all the provisions thereof.

63. Management fund established by original proprietor.

(1) The original proprietor shall establish and maintain a management fund for the control, management and administration of the common property, payment of any rent, rates, premiums of insurance and the discharge of any other obligations.

(2) For the purposes of subsection (1) the original proprietor may-

(a) determine from time to time, the amounts to be raised;

(b) raise amounts so determined by levying contributions on the proprietors in proportion to the share units of their respective parcels; and

(c) by an action in any court of competent jurisdiction, recover from any parcel proprietor any sum of money expended for rents, rates, premiums, maintenance or repairs done.

(3) Subject to the provisions of subsection (5)-

(a) any contribution levied under the provisions of subsection (2) shall be due and payable if the original proprietor serves a written notice on the proprietor; and

(b) the contributions may be recovered from the parcel proprietors who may be sued either jointly or severally by the original proprietor in any court of competent jurisdiction.

(4) A certificate of the original proprietor shall be conclusive evidence of the amount that may be due to him under the provisions of paragraph (a) of subsection (3).

(5) The original proprietor shall on the application of any proprietor of a parcel or any person authorised in writing by the proprietor certify-

(a) the amount determined as the contribution of the proprietor;

(b) the manner in which that contribution is payable;

(c) the extent to which his contribution has been paid by the proprietor; and

(d) the amount of any rates paid by the original proprietor and not recovered by him,

and such a certificate shall be conclusive evidence of the matters certified therein.

64. Establishment of management corporation.

(1) Upon completion of the transfer of strata title in respect of all the parcels by the original proprietor, or upon the making of an order under subsection (2) of section 64A by the Director, there shall come into existence a management corporation consisting of all the parcel proprietors and the provisions of subsections (2), (3), (4) and (5) of section 39 shall apply.

(2) Upon the coming into existence of the management corporation as provided in subsection (1), the Registrar shall-

(a) having regard to subsections (3) and (3A) of section 15, enter in the index in Form 2 the name of the management corporation and the address for service of documents thereon;

(b) make on the register and issue documents of title to the lot in question a memorial to the effect that the common property is vested in the management corporation; and

(c) return the issue document of title to the management corporation.

(3) No entry shall thereafter be made on either of the documents of title except one affecting the common property.

64A. Application for establishment of management corporation.

(1) The proprietors, other than the original proprietor, of parcels having share units totalling more than half of the total share units of all the parcels may apply to the Director for an order that a management corporation be established.

(1A) Where the original proprietor has transferred parcels having more than half of the total share units of all the parcels, he may also apply to the Director under subsection (1) for an order that a management corporation be established.

(2) Upon receiving the application, the Director_

(a) in the case of an application by proprietors other than the original proprietor, if satisfied that the original proprietor has failed to discharge his duties or exercise his powers satisfactorily; or

(b) in the case of an application by the original proprietor, if satisfied that good grounds exist in support thereof,

may order that a management corporation be established.

(3) The Director shall cause copies of the order to be furnished to any one of the applicants and the Registrar.

(4) Upon receiving a copy of the order, the Registrar shall-

(a) file the copy of the order;

(b) enter a memorial in the index in Form 2 that the management corporation is established pursuant to an order under this section; and

(c) take action as specified in paragraphs (a), (b) and (c) of subsection (2) of section 64.

(5) No entry shall thereafter be made on either of the documents of title except one affecting the common property.

65. Duty of original proprietor to convene first annual general meeting.

(1) It shall be the duty of the original proprietor to convene the first annual general meeting of the management corporation within one month from the establishment of the management corporation.

(2) The original proprietor shall give a written notice of the first annual general meeting to all parcel proprietors constituting the management corporation not less than fourteen days before the meeting.

(3) If the original proprietor fails to comply with subsection (1), he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one thousand ringgit.

(4) Without prejudice to the provisions of subsections (1) and (3), if the original proprietor fails to convene the first annual general meeting within the specified period, the Director may on application by the management corporation, a parcel proprietor or chargee of a parcel, appoint a person to convene the first annual general meeting within such time as may be specified by the Director.

(5) The agenda for the first annual general meeting shall include the following matters:

(a) to decide whether the management corporation shall manage the subdivided building in accordance with Part VII or apply to the State Authority under section 67 to appoint a person or body to be charged with the duties, powers and functions of the original proprietor as provided for under this Part;

(b) in the event the management corporation decides to operate under the provisions of Part VII, to decide-

(i) whether to confirm, vary or extend insurances affected by the original proprietor;

(ii) whether to confirm or vary any amounts determined as contributions to the management fund;

(iii) the number of members of the council, and to elect the council where there are more than three parcel proprietors; and

(iv) whether to amend, add to or repeal the by-laws in force immediately before the holding of the meeting.

66. Management fund established by management corporation.

(1) The management corporation shall establish a management fund sufficient in the opinion of the management corporation to meet the administrative expenses as may be incurred for the purposes of controlling, managing and administering the common property, paying rent, rates and premiums of insurance and discharging any other obligation of the management corporation.

(2) Upon the establishment of the management fund under subsection (1), all moneys in the management fund established and operated by the original proprietor under section 63 shall be transferred to and form part of the management fund established under subsection (1).

(3) The provisions of subsections (2), (3), (4), (5) and (6) of section 45 shall apply.

66A. Breaches of provisions of this part.

(1) If the original proprietor or the management corporation commits a breach of any of the provisions of this Part or makes default in complying with any requirements of, or duties imposed on it by, any of the provisions of this Part, the original proprietor or, as the case may be, the management corporation and every member of its council, and any other parcel proprietor, who knowingly is a party to the breach or default shall be guilty of an offence and shall be liable, on conviction, to a penalty expressly prescribed for such breach or default, or if no penalty is so prescribed, to a fine not exceeding two thousand ringgit.

(2) Where a requirement or duty is imposed on the original proprietor or the management corporation by this Part, any person for whose benefit or for the benefit of whose parcel that requirement or duty is imposed on the original proprietor or the management corporation may apply to a court of competent jurisdiction for an order compelling the original proprietor or, as the case may be, the management corporation to carry out that requirement or perform that duty, as the case may be, and on such an application being made, the court may make such order as it thinks proper.

67. Duties and powers of person or body appointed by State Authority.

(1) The State Authority may, upon application by the management corporation, appoint a person or body to exercise the powers, duties and functions of the management corporation and the said person or body so appointed shall exercise the powers, duties and functions of the original proprietor provided for under this Part.

(2) For the purposes of subsection (1), the provisions of subsections (2) and (3) of section 50 shall apply.

PART IXA - STRATA TITLES BOARD

67A. Strata Titles Board.

(1) There shall be a Strata Titles Board which shall consist of a President and such number of Deputy Presidents and other members as are appointed in accordance with this section.

(2) The President, Deputy Presidents and members of the Board shall be appointed by the State Authority.

(3) No person shall be appointed as the President or a Deputy President of the Board unless he is a qualified person within the meaning of the Legal Profession Act 1976 [Act 166].

(4) Not more than twenty persons shall be appointed by the State Authority to be members of the Board in addition to the President and Deputy Presidents of the Board.

(5) The names of the President, Deputy Presidents and members appointed under this section shall be notified in the State Gazette.

(6) Except where otherwise provided by this Act, the Board shall, for the purpose of hearing and determining a dispute of which the Board has cognizance or any other matter with respect to which the Board has jurisdiction under this Act, be constituted by a division of the Board consisting of-

(a) the President or a Deputy President of the Board as chairman; and

(b) two other persons to be selected by the chairman from amongst the members of the Board appointed under subsection (4).

67B. Tenure of office.

(1) A member of the Board shall be appointed for a term of two years but shall be eligible for reappointment.

(2) A member of the Board may resign by letter addressed to the Director.

(3) The State Authority may at any time revoke the appointment of any member of the Board and fill any vacancy in its membership.

67C. Continuation of hearing.

(1) If after the Board has been constituted in relation to a dispute or matter but before the dispute or matter has been determined a member of the Board is unable to hear or continue to hear or to determine the dispute or matter or ceases to be a member of the Board, as the case may be, whether by death or otherwise, the Board shall be reconstituted in accordance with subsection (6) of section 67A and the Board as reconstituted shall hear and determine the dispute or matter or so much of the dispute or matter which has not been determined, and in so hearing may have regard to the evidence given, the arguments adduced and any interim order made during the previous hearing.

(2) Notwithstanding subsection (1) and section 67B, a member of the Board who resigns or whose appointment expires during the course of any proceedings of the Board shall for the purpose of such proceedings and until their determination be deemed to remain a member of the Board and shall continue to hear and determine the dispute or matter which is the subject matter of the proceedings.

67D. Bar to actions.

No action shall lie against any member of the Board in respect of anything done or omitted to be done by him in good faith in the execution or purported execution of his functions, powers and duties under this Part.

67E. Allowances.

(1) A member of the Board may be paid such allowances as may be prescribed under this Act in respect of each day on which he is engaged in the hearing and determining of a dispute or matter.

(2) In addition to the allowance provided for in subsection (1), the President and the Deputy Presidents of the Board may be paid such allowances as may be prescribed under this Act.

67F. Board to carry out its work expeditiously.

(1) The Board shall carry out its work expeditiously and shall make a finding or determination within 6 months from the date it is constituted.

(2) The period specified in subsection (1) may be extended by the President or a Deputy President of the Board where the dispute or matter involves complex issues.

67G. Proceedings of Board.

(1) The proceedings of the Board shall be open to the public and minutes of the Board including a note of any oral evidence given before the Board shall be kept by the President of the Board.

(2) The members of the Board shall be deemed to be public servants within the meaning of the Penal Code [Act 574].

67H. Order revoking amendment of by-law.

(1) Where, pursuant to an application by any person entitled to vote at a meeting of the management corporation (including a first chargee and chargor of a parcel), the Board considers that, having regard to the interest of all parcel proprietors in the use and enjoyment of their parcels or the common property, an amendment or revocation of an additional by-law or addition of a new additional bylaw should not have been made or effected, the Board may order that the amendment be revoked, that the revoked additional by-law be revived or that the new additional by-law be revoked.

(2) When making an order under subsection (1) in respect of an additional by-law referred to in subsection (2) of section 44, the Board may direct the management corporation to pay compensation to the proprietor of the parcel adversely affected by the additional by-law.

(3) The compensation ordered to be paid under subsection (2) is recoverable by the parcel proprietor as a debt in any court of competent jurisdiction.

67I. Order invalidating purported by-law.

Where, pursuant to an application by any person entitled to vote at a meeting of a management corporation (including a first chargee and a chargor of a parcel), the Board finds that the management corporation has made an additional by-law but that the management corporation did not have the power to make the additional by-law the Board may make an order declaring the additional bylaw to be invalid.

67J. Power of Board to invalidate proceedings.

(1) Where, pursuant to an application by a parcel proprietor or first chargee of a parcel, the Board considers that the provisions of this Act have not been complied with in relation to a meeting of the management corporation, the Board may by order-

(a) invalidate any resolution of, or election held by, the persons present at the meeting; or

(b) refuse to invalidate any such resolution or election.

(2) The Board shall not make an order under subsection (1) refusing to invalidate a resolution or election unless it considers-

(a) that the failure to comply with the provisions of this Act did not prejudicially affect any person; and

(b) that compliance with the provisions of this Act would not have resulted in a failure to pass the resolution, or have affected the result of the election, as the case may be.

67K. Order varying certain rates of interest.

Where, pursuant to an application by a parcel proprietor for an order under this section, the Board considers that the management corporation for the subdivided building to which the application relates has determined an unreasonable rate as the rate of interest payable for the late payment of a contribution levied under section 45, the Board may order that no interest be so payable or that the interest so payable be at a rate specified by the Board instead of the rate so determined.

67L. Order where voting rights denied or due notice of item of business not given.

(1) Where, pursuant to an application by a person under this section, the Board is satisfied that a particular resolution would not have been passed at a general meeting of a management corporation but for the fact that the applicant-

(a) was improperly denied a vote on the motion for the resolution; or

(b) was not given due notice of the item of business pursuant to which the resolution was passed,

the Board may order that the resolution be treated as a nullity on and from the date of the order.

(2) Where-

(a) an order under subsection (1) is made in respect of a resolution making an additional by-law amending, adding to or revoking another additional by-law; and

(b) the additional by-law made pursuant to that resolution is in force,

the additional by-law shall, subject to its having been or being amended, added to or revoked under subsection (2) of section 44, have force and effect on and from the date the order is so made to the same extent as it would have had if the resolution had not been passed.

(3) An application for an order under subsection (1) may not be made after 21 days after the date of the meeting at which the resolution was passed.

67M. Order varying the amount of insurance to be provided.

Where, pursuant to an application made by a parcel proprietor or the chargee of a parcel, the Board considers that the amount for which the management corporation for the subdivided building concerned has insured the subdivided building under subsection (1) of section 43 is not reasonable, the Board may order the management corporation to vary that amount to a specified amount.

67N. Board may settle disputes on the costs of repairs etc..

The Board may, pursuant to an application by a management corporation, a parcel proprietor or a chargee in possession of a parcel, make an order for the settlement of a dispute, or the rectification of a complaint with respect to any defects in a parcel, a subdivided building and its common property or the liability of a parcel proprietor to bear the costs of or any part thereof for any work carried out by a management corporation in the exercise or performance of its powers, duties or functions conferred or imposed by this Act and the by-laws in connection with the subdivided building.

67O. Order to make or pursue insurance claim.

Where, pursuant to an application by a parcel proprietor, the Board considers that the management corporation for the subdivided building to which the application relates has unreasonably refused to make or pursue an insurance claim in respect of damage to the building or any other property insured by the management corporation under this Act, the Board may order the management corporation to make or pursue the claim.

67P. Order to supply information or documents.

Where, pursuant to an application by a parcel proprietor, the Board considers that the management corporation for the subdivided building or any member of its council to which the application relates, or managing agent for the subdivided building, has wrongfully withheld from the applicant information to which he is entitled under this Act, the Board may order that management corporation, managing agent, or any member of the council to supply or make available the information to the applicant.

67Q. Order with respect to certain consents affecting common property.

Where, pursuant to an application by a parcel proprietor, the Board considers that the management corporation for the subdivided building to which the application relates has unreasonably refused to consent to a proposal by that parcel proprietor to effect alterations to the common property, the Board may order that management corporation to consent to the proposal.

67R. General provisions relating to orders under this Part.

(1) An order made by the Board may include such ancillary or consequential provisions as the Board thinks fit including costs to be paid by the applicant, a management corporation or any person against whom the order is made or costs to be paid by a party for making a frivolous application to the Board.

(2) For the purpose of securing compliance with an order under this Part, the Board may order a management corporation or any member of its council, a managing agent or any other person having registered interest in a parcel or an occupier to do or refrain from doing a specified act with respect to a subdivided building and the common property.

67S. Representation before the Board.

(1) An applicant for an order under this Part may appear before the Board or may be represented by counsel who may examine witnesses and address the Board on behalf of the applicant.

(2) A management corporation appearing before the Board may be represented by counsel or a member of the council of the management corporation.

67T. Witnesses may be summoned before the Board.

(1) The Board may summon any person to attend before the Board at the time and place specified in the summons to give evidence and to produce books, documents or writings in his custody or control which he is required by the summons to produce.

(2) A person served with a summons under subsection (1) who, without reasonable excuse, disobeys the summons shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding six months or to both.

(3) A person shall not be bound to produce any books, documents or writings not specified or otherwise sufficiently described in the summons or which he would not be bound to produce upon a subpoena for production in a court.

67U. Board may administer oath or affirmation.

(1) The Board may administer an oath or affirmation to a person appearing as a witness before the Board, whether or not he has appeared in answer to a summons, and may examine the witness upon oath or affirmation.

(2) A person appearing as a witness before a Board-

(a) shall not refuse to be sworn or to make an affirmation;

(b) shall not refuse to answer any question relevant to any proceedings before the Board which are put to him by the Board or by any person entitled to appear before the Board in those proceedings; and

(c) shall not knowingly give false testimony in any evidence given by him to the Board.

(3) A witness before a Board shall have-

(a) the same protection; and

(b) in addition to the penalties provided by this Act, the same liabilities,

as he would have had if he had been a witness before a court.

67V. Penalty for contravention of certain orders.

(1) A person who contravenes an order made by the Board to do or refrain from doing a specified act shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

(2) A document purporting to be a copy of an order made by the Board shall be admissible in evidence and shall, until the contrary is proved, be deemed to be an order made by the Board.

67W. Time when order takes effect.

Except where provision is otherwise made by this Act or to the extent that the Board specifies in an order, an order of the Board shall take effect when a copy of the order, certified by the Board to be a true copy, is served-

(a) except as provided in paragraph (b), on the management corporation for the subdivided building to which the order relates; or

(b) where the order requires a person to do or refrain from doing a specified act, on that person.

67X. Appeal to the High Court on point of law.

(1) No appeal shall lie to the High Court against an order made by the Board under this Part except on a point of law.

(2) Where an appeal is made to the High Court, the Court may confirm, vary or set aside the order or remit the order to the Board for reconsideration together with such directions as the Court thinks fit.

(3) The filing of a notice of appeal shall not operate as a stay of execution of an order or suspend the effect of an order unless the Board or the High Court, as the case may be, otherwise orders and any stay or suspension of an order may be subject to such conditions as the Board or High Court thinks fit.

PART X - MISCELLANEOUS

68. (Deleted by Act A753).

69. No dealing in accessory parcel independent of a parcel.

No accessory parcel or any share or interests therein shall be dealt with independently of the parcel to which such accessory parcel has been made appurtenant as shown on the approved strata plan.

70. No dealing in provisional block.

(1) No provisional block or any share or interests therein shall be dealt with.

(2) Where any dealing of a provisional block has been registered, such registration shall not pass any title or interest in the said provisional block, and the Registrar shall, upon discovery of the registration, cancel the registration and no person or body affected by such cancellation shall be entitled to any compensation.

71. (Deleted by Act A753).

72. (Deleted by Act A753).

73. Other rights and remedies not affected by this Act.

Nothing in this Act shall affect any other rights or remedies which a proprietor or chargee of a parcel or a management corporation may have, in relation to any parcel or the common property, conferred by any other written law.

74. Jurisdiction of the Magistrate's Court.

Any offence under this Act may be tried by a Magistrate's Court and such Magistrate's Court shall, notwithstanding the provisions of the Subordinate Courts Act, 1948 or any other written law, have power to impose the maximum penalty provided for by this Act.

75. Legal proceedings.

(1) Every application to the court under this Act shall be by summons in Chambers.

(2) Where there is provision for a sum to be recoverable by any person or any authority from any other person or authority the sum shall be recoverable by an action for debt in any court of competent jurisdiction.

76. Management corporation as representative of proprietors in legal proceedings.

(1) Where proprietors are jointly entitled to take legal proceedings against any persons or are liable to have legal proceedings taken against them jointly, where such legal proceedings are proceedings for or with respect to common property, the legal proceedings may be taken by or against the management corporation, and any judgments or orders given or made in favour of or against the management corporation in any such legal proceedings shall have effect as if they were judgments or orders given or made in favour of or against the proprietors.

(2) Where a proprietor is liable to make a contribution to another proprietor in respect of a judgment debt arising under a judgment referred to in subsection (1), the amount of that contribution shall bear the same proportion to the judgment debt as the share units of the parcel or the provisional share units of the provisional block of the first-mentioned proprietor bear to the aggregate share units.

77. Power of management corporation to take proceedings as agent for proprietors in case of structural defects.

Where-

(a) the condition of any parcel in a lot affects or is likely to affect the support or shelter provided by that parcel for another parcel in the same building or the common property; and

(b) the proprietor of the parcel in that condition has neglected or refused within a reasonable time to take such action as is necessary, or for the purpose of exercising any other right or enforcing any other remedy available to him to have that condition rectified,

the management corporation or the original proprietor under Part IX, as the case may be, may, as agent for the proprietor of the parcel in that condition but at its own expense, take any of the proceedings referred to in paragraph (b).

78. Costs in proceedings by proprietors against management corporation.

(1) In any proceedings brought by one or more proprietors against the management corporation, a court of competent jurisdiction may order that any moneys (including costs) payable by the management corporation pursuant to an order of the court made in those proceedings shall be paid, only in respect of such parcels as are specified in the order and in such proportions as may be so specified, by the management corporation out of contributions levied for the purpose.

(2) Where the court makes an order under subsection (1), the management corporation shall, for the purposes of paying the moneys ordered to be paid by it, levy contributions in accordance with the terms of the order, and pay the moneys out of the contributions paid pursuant to that levy.

79. Limitation Act 1953 not to extend to common property.

No action shall be brought by any person claiming title by adverse possession to the common property of a lot or to any accessory parcel or any part thereof created under this Act, and the provisions of the Limitation Act, 1953 relating to adverse possession shall not extend to such common property and accessory parcel.

80. Power of entry by public or local authority.

A public or local authority which is authorised by any written law to enter upon part of a lot for the purposes of exercising any power conferred on it, may enter upon any other part of that lot if it is necessary to do so in order to exercise that power.

80A. Prosecution.

No prosecution shall be instituted for an offence under this Act or any rules made under this Act without the consent in writing of the Public Prosecutor.

81. Power of state authority to make rules.

(1) The State Authority may by notification in the Gazette, make rules not inconsistent with this Act for giving effect to the provisions of this Act, and in particular but without limiting the generality of the foregoing power in respect of all or any of the following matters:

(a) the fees to be paid for any procedures or functions required or permitted to be done under this Act and the remission of such fees;

(aa) the fees to be paid in respect of applications made to the Board under this Act and the remission of any such fees;

(ab) the practice and procedure of the Board;

(b) the convening of the first annual general meeting of a management corporation;

(c) the composition, nomination and election of members of the council of a management corporation of a subdivided building;

(d) the types of buildings to be classified as low-cost buildings; and

(e) any matter which by this Act is required or permitted to be prescribed or is necessary or convenient to be prescribed for carrying out or giving effect to any provisions of this Act.

(2) Rules made under subsection (1) may provide for matters which differ in their application according to such factors as are specified in the rules.

(3) Rules made under subsection (1) may prescribe a penalty for any breach or contravention thereof of a fine not exceeding one thousand ringgit.

82. Transitional provision.

(1) The State Authority may, for the purposes of applying the provisions of this Act to subdivided buildings, subsidiary titles, parcels, common property, management corporations and councils which were in existence prior to the commencement of this Act, with or without modifications, additions or exclusions to or in respect of any such subdivided buildings, subsidiary titles, parcels, common property, management corporations or councils and for purposes incidental thereto, make rules providing for such modifications, additions or exclusions and such transitional, consequential or saving provisions as the State Authority may deem to be necessary or expedient.

(2) Until rules are made under subsection (1), nothing contained in this Act shall apply to any subdivision of a building effected, or to any subsidiary title issued, or to any parcel, common property, management corporation or council in existence, prior to the commencement of this Act, and the provisions of the National Land Code shall continue to apply thereto in the same manner as before the commencement of this Act.

(3) Nothing contained in the Fourth Schedule shall affect the provisions of the National Land Code in their application to any subdivision of a building effected, or to any subsidiary title issued, or to any parcel, common property, management corporation or council in existence, prior to the commencement of this Act.

83. Repeal and amendment of provisions of the National Land Code.

(1) The provisions of the National Land Code as shown in Part I of the Fourth Schedule are repealed.

(2) The provisions of the National Land Code as shown in the first column of Part II of the Fourth Schedule are amended in the manner set out in the second column thereof.

84. Amendment of Forms.

The Minister may, with the approval of the National Land Council, by order notified in the Gazette of the Federation, amend or substitute any of the Forms in the First Schedule.

85. Transitional provision with respect to rules, orders, etc.

Any rule, order, regulation, direction, notice or notification made, given or issued before the commencement of this Act under the provisions of the National Land Code repealed by subsection (1) of section 83 shall, if it could have been made, given or issued under any corresponding provisions of this Act, continue in force, and have the like effect, as if it had been so made, given or, as the case may be, issued.

Accessory Parcel in Strata Development

 

Published in I property Magazine

If you thought you only have to attend meetings at work, think again, if you are a strata development owner. One important aspect of strata ownership is that by law, annual meetings that have to be convened. An annual general meeting (AGM) is a yearly opportunity for owners to be active in their strata development community. From time to time, the elected Council or Owners may want to have other special meetings to conduct business between the AGMs.

These meetings are called the extra-ordinary meetings. This article refers to the Strata Titles Act, 1985 (STA), where strata titles have been issued to the development. For strata developments which are pending issuance of titles, there is another set of legislation – Building and Common Property (Maintenance and Management) Act, 2007 which has almost the same set up for formation of a body to control and govern the strata development.

First AGM – Get your strata titles first

Unfortunately, there are some purchasers who mistakenly withhold transferring of their strata titles for the wrong reasons. We have come across many committee members of Pro Tem Committees or Residents’ Association who have inside knowledge of the ‘mismanagement’ of the developer and are dissatisfied with the conditions, whether financial or technical, and believe that by withholding the transfer, the developer/original proprietor would not be able to call for the First Annual General Meeting to end the initial period of the Management Corporation (MC).

This belief is wrong for the following reasons:

1. Any existing grouses do not negate the fact that the transfer of strata titles completes the sale and purchase agreement.

2. Grouses have to be handled collectively, and the MC or Joint Management Body (if strata titles are not issued yet) is the legal body to oversee the common complaints of their bodies.

3. Now that the required sum of the aggregate share units have been reduced to one-quarter (1/4) from one third (1/3) following the recent amendments to the STA, other owners will not agree with the committee but will go ahead and do what is legally necessary to transfer their own titles to themselves and effectively be qualified to attend the first annual general meeting called by the original proprietor or developer.

In an example, of a strata development with 200 units with equal sizes, lets say one parcel‘s share units is 130, the total share units would be 26000 share units. If the original proprietor owns 30 units (unsold units), its share units would be 3900 share units. The required quota to end the initial period would be only be 5525 or roughly 43 parcels (1/4 X 22100 (26000-3900)). This quota excludes parcels registered under the original proprietor.

As you can see, it only takes around one quarter (1/4) of the total parcels to end the initial period to form the owners’ MC. There are some purchasers, who argued that, since they have paid in full for the purchase and have been contributing towards the common fund, they should be allowed to attend the general meetings.

Unfortunately, the law requires that only registered parcel proprietors be allowed to attend these meetings and have a say in how their strata development is run. Some meeting organizers may allow non-registered owners to attend the meetings but without voting or speaking abilities.

STA S.4. – Interpretation.

"proprietor” refers to a parcel proprietor, that is to say, a person or body for the time being registered as the proprietor of a parcel, as well as to the proprietor of a provisional block, that is to say, a person or body for the time being registered as the proprietor of a provisional block unless expressly provided otherwise;

How important is the First Annual General Meeting?

The Strata Titles Act, 1985 (Act) provides that it is the duty of the original proprietor/developer to convene the First Annual General Meeting within a month of achieving the quota of transferred strata titles.

STA S.4. Interpretation.

"initial period”, in relation to a management corporation, means the period commencing on the day on which the management corporation is formed and ending on the day on which there are proprietors, excluding the proprietor of the lot who is registered as the proprietor of a parcel or parcels or a provisional block or blocks the sum of whose share units is at least one-quarter of the aggregate share units;

If the original proprietor fails to do so, he shall be guilty of an offence and liable on conviction to a fine not exceeding twenty-five thousand ringgit (RM25,000) and to a further fine not exceeding two thousand ringgit (RM2,000) for each day the offence continues to be committed. The developer is therefore bound by law to convene a meeting whether or not the owners are ready to takeover management and maintenance of the strata development so long as the pre-requisite requirements have been achieved..

The agenda for the First Annual General Meeting is spelled out in the Act as well. The agenda for the first annual general meeting shall include the following matters:

• to decide whether to confirm, vary or extend insurances effected by the management corporation;

• to decide whether to confirm or vary any amounts determined as contributions to the management fund;

• to determine the portion of contribution to the management fund to be paid into the special account to be maintained under section 46;

• to determine the number of members of the council and to elect the council where there are more than three proprietors; and

• to decide whether to amend, add to or repeal the bylaws in force immediately before the holding of the meeting.

These are serious matters which will affect the unit owners and every effort should be taken by the unit owners to attend this meeting. In this meeting, the number of council members will be determined and can only be changed at the next general meeting. These are your fellow owners who would be representing you for the next year or so. Efforts should be made to get to know them.

The first meeting would also decide on whether or not the contributions to the management fund should be varied. Varying, normally would mean an increase as the council members would have to take into consideration, fees or salaries to pay to a management company or for staff employed, replacements or repair works to the common property now that the building has aged or due to neglect, etc.

It is at this meeting where special resolutions are passed to add or amend the By-Law of the strata development. By-laws are for regulating the control, management, administration, use and enjoyment of the strata development. The Act provides a model By-Law, however this is insufficient for most strata developments which have been operating under other governing documents like the Deed of Mutual Covenants, House Rules etc. The MC may by special resolution make additional by-laws, or make amendments to such additional by-laws, not inconsistent with the by-laws set out in the Third Schedule.

All of the governing documents are tools for the Corporation to run smoothly and for the owners to live peacefully within the community. However, it is also not practical for the strata development to create a working By-Law in one day. The By-Law has to be carefully developed / adopted from other documents. In reality, strata property buyers have to prepare in advance before the first annual general meeting is called.

The National House Buyers Association (HBA) has disseminated information and guided / provided general advice to several strata development owners to prepare for transition from developer MC to owners’ MC. Interested parties can approach HBA by appointment on the days the Association’s Advice Centre is opened to the public. Check out http://www.hba.org.my for more information or write to info@hba.org.my for prior appointments which are normally held on Saturdays when our volunteers are available to do public service.

Business at General Meetings

For meetings other than the first annual general meeting, the agenda is normally set out in the by-laws. If not, the Council will normally follow a fairly standard agenda which includes:

• call the meeting to order

• elect or appoint a chairperson

• proof of notice of meeting

• call the roll and establish the quorum

• amend and adopt the agenda

• read and dispose of minutes of the previous meeting

• officers report

• committee reports

• financial report (annual audited financial statements, budget, appointment of auditors)

• old business

• new business (often includes owners’ questions and comments)

• election of Council members

• Voting

• adjournment

The Act and the Corporation` By-laws will determine a parcel proprietor`s voting rights. First, if title to the unit is mortgaged, the end-financier may want to attend the meeting and vote, the owner cannot vote. This rarely happens but the Act requires that the end-financier be informed of this meeting and borrower should get permission to be appointed as proxy to attend the meeting. Second, if a registered proprietor owes money to the Corporation before the meeting, neither the owner nor any mortgagee on that unit can vote. Owners need to understand that they must be current with their contributions and other financial obligations to the Corporation to enable them to vote. They must pay any outstanding amounts the day before the meeting.

Preparation for parcel owners

Just as the Council prepares, so must owners prepare for the AGM. Consider the following steps:

• watch out for notices on upcoming meeting (usually sent out well before the actual notice of the meeting).

• think about any items you may want to discuss at the AGM. Write the items in a letter and send it to the Board.

• read the by-laws, meeting notice, agenda and any information sent with the meeting notice. Prepare your comments and questions. Get ready to discuss motion and vote on motions.

• think about ways you can contribute to the strata development by volunteering.

• pay your service charges and any other money owed to the Corporation by the day before the meeting.

• arrange to attend the meeting or complete, sign and give your proxy to someone on your behalf. If you choose a proxy, inform that person of your questions or comments to pass on.

• if you choose to attend the meeting, plan to arrive half (1/2) an hour early for registration and take all your documents with you (by-laws, meeting notice, documents sent with the meeting notice, budget, financial statements, etc.)

The success of a strata MC can only come from active participation from its members. Whether one participates in the meetings or volunteers to be a council member, strata owners should know that major decisions are made at these meetings and should strive to attend each and every meeting called. The spirit of caring for others in the community can only improve one’s life and not make it worse.

       

Why have a residents’ association (Persatuan Penduduk)?

A residents' association (RA) is a group of residents who have come together from an area, estate or block because they want to raise issues that affect them. Residents' associations are concerned about:

 

 

Ø Dog nuisance

 

 

Ø Repairs

 

 

Ø Rents

 

 

Ø Noise nuisance

 

 

Ø Crime on the estate

 

 

Ø Anti-social behaviour

 

 

Ø Area housing office (Majlis Perbandaran Sepang) performance

 

 

Ø Vandalism

 

 

Ø Play groups

 

 

Ø Future improvements

 

 

Ø Youth issues

 

 

Ø Play facilities

 

 

Ø Raising funds

 

 

Ø Day trips

 

 

Ø Pensioners' clubs

 

 

Ø Increasing a sense of community

 

 

Ø Council policies

 

 

 

 

 

Why start an association?

An RA that is democratically elected and has more voice and influence in getting things changed, than one individual voice.

 

An RA can influence housing policies, via the area housing forum and Majlis Perbandaran Sepang Council.      

 

Tenant groups and the council work together to select the right targets, concentrate on the real problems and find the best solutions.

 

You can meet people from your area and organise social events.

 

You will be building up the community spirit of your area.

 

It enables people on the same area to share experiences, skills and knowledge.

 

You can lobby for improvements to your area by talking directly with local authorities involved in proposed schemes to change the local area.

 

It gives people on an estate the information from which to progress to other forms of tenant involvement such as tenant management organisations.

 

RAs can become the main local body for consultation when the council undertakes major projects.

 

 

Tips for Dutis and Responsible 

 

Role of Sub-committee

Housekeeping Committee To oversees issues relating to domestic refuse, bulk refuse, streets lights, road & drainage and common area grass cutting. The committee shall monitor & handle all related complaints and bring forth all issues to Majlis Perbandaran and relevant authorities.

Playground Committee To oversees all issues relating to our Taman Playground, that is grass cutting, playground equipment and trees & plants. The committee will monitor & handle all playground related complaints and bring forth all issues to Majlis Perbandaran and relevant authorities.

Event & Fund-raising Committee To seek funding for our resident association & to carry activities relating to our resident association objectives as stated in the Constitution. Strata Management (Maintenance and Management) Regulations 2015 P.U. (A) 107 of 2015; Federal Subsidiary Legislation 26 May 2015 (Date of Publication in Gazette: 01 June 2015; Effective Date: 02 June 2015) | Source: Attorney General’s Chambers E-Federal Gazette STRATA MANAGEMENT ACT 2013 Please Download HERE for more information............................... STRATA MANAGEMENT (MAINTENANCE AND MANAGEMENT) REGULATIONS 2015 ARRANGEMENT OF REGULATIONS PART I PRELIMINARY Regulation 1. Citation and commencement 2. Interpretation 3. Prescribed fees 4. Forms 5. By-laws PART II DEALINGS IN BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS 6. Schedule of parcels 7. Amended schedule of parcels 8. Schedules to be signed, etc., by Commissioner PART III ASSIGNMENT OF SHARE UNITS WHERE NO SHARE UNITS HAVE BEEN ASSIGNED 9. Allocated share units 10. Allocated share units to be signed, etc., by Commissioner PART IV MANAGEMENT BY DEVELOPER BEFORE EXISTENCE OF MANAGEMENT CORPORATION AND BEFORE ESTABLISHMENT OF JOINT MANAGEMENT BODY 11. Handing over by developer to joint management body PART V MANAGEMENT BY JOINT MANAGEMENT BODY BEFORE ESTABLISHMENT OF  MANAGEMENT CORPORATION 12. First annual general meeting of joint management body 13. Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by joint management body 14. Certificate of establishment of the joint management body 15. Handing over by joint management body to management corporation PART VI MISCELLANEOUS PROVISIONS APPLICABLE BEFORE ESTABLISHMENT OF MANAGEMENT CORPORATION 16. Moneys collected by developer prior to establishment of joint management body 17. By-laws for developer's management period and for joint management body 18. Register or parcel owners 19. Certificate of amount payable by parcel owner or prospective purchaser 20. Notice to demand payment of sum due by purchaser or parcel owner 21. Services of any person or agent to maintain and manage common property PART VII MANAGEMENT BY DEVELOPER BEFORE FIRST ANNUAL GENERAL MEETING OF MANAGEMENT CORPORATION 22. Handing over by developer to management corporation PART VIII MANAGEMENT AFTER FIRST ANNUAL GENERAL MEETING OF MANAGEMENT CORPORATION 23. First annual general meeting of management corporation 24. Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by management corporation PART IX SUBSIDIARY MANAGEMENT CORPORATION AND LIMITED COMMON PROPERTY 25. First annual general meeting of subsidiary management corporation 26. Notice of first annual general meeting of subsidiary management corporation 27. Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by subsidiary management corporation PART X MISCELLANEOUS PROVISIONS APPLICABLE TO MANAGEMENT CORPORATION AND SUBSIDIARY MANAGEMENT CORPORATION 28. By-laws for management corporation and subsidiary management corporation 29. Strata roll 30. Certificate of amount payable by proprietor or prospective purchaser 31. Notice to demand payment of sum due by proprietor 32. Services of any person or agent to maintain and manage common property PART XI PROVISIONS FOR JOINT MANAGEMENT BODY, MANAGEMENT CORPORATION AND SUBSIDIARY MANAGEMENT CORPORATION 33. Constitution of joint management committee, management committee and subsidiary management committee 34. Annual general meeting PART XII RECOVERY OF SUMS BY ATTACHMENT OF MOVABLE PROPERTY 35. Application for attachment of movable property 36. Inventory after attachment 37. Appointment of auctioneer, reserve price and bids 38. Notice of auction 39. Procedure at the auction 40. Record and statement of sale 41. Costs of attachment and sale 42. Attachment to cease if sums due are paid PART XIII MANAGING AGENT APPOINTED BY COMMISSIONER 43. Management agreement 44. Bond 45. Charges and contribution to the sinking fund during management by managing agent PART XIV DEPOSIT BY DEVELOPER TO RECTIFY DEFECTS ON COMMON PROPERTY 46. Notice by developer of intention to deliver vacant possession 47. Amount of deposit to rectify defects 48. Mode of payment of deposit 49. Bank guarantee 50. Common Property Defects Account 51. Notice to developer to rectify defects 52. Appointment of registered architect, registered engineer, registered quantity surveyor or registered building surveyor by Commissioner 53. Recovery of expenses by Commissioner 54. Refund of unexpended deposit or further sums PART XV INTER-FLOOR LEAKAGE 55. Meaning of inter floor leakage 56. Notice of that parcel affected by inter-floor leakage 57. Inspection of affected parcel 58. Matters to be considered in determining cause of leakage 59. Certificate of inspection 60. Inter-floor leakage caused by defective workmanship, etc. within the defect liability period 61. Inter-floor leakage caused by or attributable to a parcel 62. Inter-floor leakage caused by or attributable to common property or limited common property 63. Access 64. Reference to Commissioner PART XVI DAMAGE TO PARTY WALL 65. Meaning of party wall 66. Meaning of damage to a party wall 67. Provisions relating to inter-floor leakage shall apply PART XVII ENFORCEMENT 68. Order requiring attendance of any person 69. Order to provide translation PART XVIII OFFENCES 70. Aiding and abetting PART XIX MISCELLANEOUS 71. Revocation 72. Savings FIRST SCHEDULE SECOND SCHEDULE THIRD SCHEDULE STRATA MANAGEMENT ACT 2013 STRATA MANAGEMENT (MAINTENANCE AND MANAGEMENT) REGULATIONS 2015 IN exercise of the powers conferred by section 150 of the Strata Management Act 2013 [Act 757], the Minister after consultations with the National Council for Local Government makes the following regulations: PART I PRELIMINARY Citation and commencement 1. (1) These regulations may be cited as the Strata Management (Maintenance and Management) Regulations 2015. (2) These Regulations come into operation on 2 June 2015. Interpretation 2. In these Regulations- "Act" means the Strata Management Act 2013 [Act 757]; "Common Property Defects Account" means the separate trust account which shall be opened and maintained by the Commissioner under subregulation 50(1); "Bond" means the bond in Form 12 to be lodged with the joint management body under subregulation 21(2) or with the management corporation or the subsidiary management corporation under subregulation 32(2), as the case may be, or the bond in Form 23 to be lodged with the Commissioner under subregulation 44(1); "Form A" means the warrant of attachment in Form A in the Third Schedule to the Act; "Form B" means the notice and inventory in Form B in the Third Schedule to the Act; "Strata roll" means the roll to be prepared and maintained under subsection 72(1) of the Act; "Director" has the meaning assigned to it in section 4 of the Strata Titles Act 1985; "Director of Survey" has the meaning assigned to it in section 4 of the Strata Titles Act 1985. Prescribed fees 3. The fees payable under these Regulations shall be as prescribed in the First Schedule. Forms 4. The forms referred to in these Regulations are those contained in the Second Schedule. By-laws 5. The by-laws referred to in these Regulations are those contained in the Third Schedule. PART II DEALINGS IN BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS Schedule of parcels 6. (1) Before a developer of any building or land intended for subdivision into  parcels sells any parcel or proposed parcel in a development area, the developer shall file with the Commissioner a schedule of parcels as required under subsections 6(1) and 6(3) of the Act together with six copies of Form 1 and payment of the prescribed fee. (2) In the case where the sale of a parcel in any building or land intended for subdivision in a development area or such sale took place before the commencement of the Act, the developer shall include in the schedule of parcels and in Form 1, the building or buildings or land or lands in which a parcel or parcels thereof have been sold. (3) If the plans or legend filed with the Commissioner together with Form 1 are altered for the reason that the building plans approved by the local authority are altered or revised- (a) due to a requirement of the local authority; or (b) with the agreement of all purchasers of the parcel in the development area and such alterations or revisions have been approved by the local authority; the developer shall, within thirty days from the date of alteration or revision of the building plans, or within such extended time as the Commissioner may grant, file with the Commissioner a revised schedule of parcels together with six copies of Form 1A and payment of the prescribed fee. (4) The provisions of subsection 6(3) of the Act shall apply mutatis mutandis to the revised schedule of parcels filed under subregulation (3). (5) Any developer who fails to comply with subregulation (2), (3) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. Amended schedule of parcels 7. (1) In the case of any phased development, before the developer sells any parcels in any provisional block, the developer shall file with the Commissioner an amended schedule of parcels as required under subsections 6(2) and 6(3) of the Act, together with six copies of Form 2 and payment of the prescribed fee. (2) If the plans or legend filed with the Commissioner together with Form 2 are altered or revised for the reason that the building plans approved by the local authority are altered or revised - (a) due to a requirement of the local authority; or (b) with the agreement of all purchasers of parcels of all affected provisional block in the development area and such alterations or revisions have been approved by the local authority; and provided that there is no change in the proposed quantum of provisional share units for the affected provisional block, the developer shall within thirty days from the date of alteration or revision of the building plans, or within such extended time as the Commissioner may grant, file with the Commissioner a revised amended schedule of parcels together with six copies of Form 2A and payment of the prescribed fee. (3) The provisions of subsection 6(3) of the Act shall apply mutatis mutandis to the revised amended schedule of parcels filed under subregulation (2). (4) Any developer who fails to comply with subregulation (2) or (3) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. Schedules to be signed, etc., by Commissioner 8. After the schedule of parcels, revised schedule of parcels, amended schedule of parcels or revised amended schedule of parcels, as the case may be, has been filed with  the Commissioner together with the payment of the prescribed fee, the Commissioner shall - (a) sign all six copies of Form 1, Form 1A, Form 2 or Form 2A, as the case may be, and all six copies of the schedule of parcels, revised schedule of parcels, amended schedule of parcels or revised amended schedule of parcels, as the case may be, and return three copies to the developer; (b) submit one copy of Form 1, Form 1A, Form 2 or Form 2A, as the case may be, and one copy of the schedule of parcels, revised schedule of parcels, amended schedule of parcels or revised amended schedule of parcels, as the case may be, to the Director; (c) submit one copy of Form 1, Form 1A, Form 2 or Form 2A, as the case may be, and one copy of the schedule of parcels, revised schedule of parcels, amended schedule of parcels or revised amended schedule of parcels, as the case may be, to the Director of Survey; and (d) keep one copy of Form 1, Form 1A, Form 2 or Form 2A, as the case may be, and one copy of the schedule of parcels, revised schedule of parcels, amended schedule of parcels or revised amended schedule of parcels, as the case may be, in the office. PART III ASSIGNMENT OF SHARE UNITS WHERE NO SHARE UNITS HAVE BEEN ASSIGNED Allocated share units 9. (1) Where the sale of a parcel by a developer was made before the commencement of the Act and no share units have been assigned to each parcel by the developer's licensed land surveyors, any person or body who has a duty or is responsible under Part IV of the Act to maintain or manage any building or land intended for subdivision into parcels and the common property, shall within ninety days from the date of commencement of the Act or within such extended time as the Commissioner may grant, assign the share units for each parcel in accordance with the formula set out in the First Schedule to the Act in Form 3. (2) Four copies of Form 3 shall be filed with the Commissioner together with payment of the prescribed fee. (3) If the person or body mentioned in subregulation (1) fails to assign the share units for each parcel or if any purchaser is not satisfied with the assignment of share units to his parcel, the Commissioner shall appoint any other person or body to assign the share units for each parcel in accordance with the formula set out in the First Schedule to the Act. (4) The person or body appointed under subregulation (3) shall, within ninety days from the date of his appointment or within such extended time as the Commissioner may grant, file with the Commissioner the assignment of share units for each parcel in Form 3 together with payment of the prescribed fee, and- (a) in the case where the person or body who has the duty or is so responsible had failed to assign the share units for each parcel, the person or body who has the duty or is so responsible shall pay all expenses incurred for that purpose by the person or body appointed under subregulation (3); or (b) in the case where a purchaser was not satisfied with the assignment of share units to his parcel and the difference in the share units so assigned does not exceed ten per cent, the purchaser shall pay all expenses incurred for that purpose by the person or body appointed under subregulation (3), and if the difference in the share units so assigned exceeds ten per cent, the person or body who has the duty or is so responsible shall pay all expenses incurred for that purpose by the person or body appointed under subregulation (3). (5) In determining the share units to be assigned to each parcel, the person or body who has the duty or is responsible under subregulation (1) or the person or body appointed under subregulation (3) may - (a) rely on information contained in the sale and purchase agreement between the developer and the purchaser of each parcel; (b) rely on information contained in the approved building plans relating to the building or buildings in the development area; or (c) appoint a licensed land surveyor to carry out a survey of each parcel in the development area, and the person or body who has the duty or is so responsible shall pay all expenses incurred for that purpose. (6) A licensed land surveyor appointed under paragraph (5)(c) or any person authorised by him shall be given access to each parcel as shall be necessary for him to carry out the survey of the parcel. (7) Any person or body who fails to comply with subregulation (1), (2) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. (8) Any person who refuses the licensed land surveyor appointed under paragraph (5)(c) or any person authorised by him access to any parcel for the purpose of carrying out the survey of a parcel, or obstructs, hinders or delay the licensed land surveyor or any person authorised by him in effecting such entry for such purpose, commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. Allocated share units to be signed, etc., by Commissioner 10. Upon receipt of Form 3 and payment of the prescribed fee, the Commissioner shall- (a) sign all four copies of Form 3 and return or submit one copy to the person or body who has the duty or is so responsible; (b) submit one copy of Form 3 to the Director; (c) submit one copy of Form 3 to the Director of Survey; and (d) keep one copy of Form 3. PART IV MANAGEMENT BY DEVELOPER BEFORE EXISTENCE OF MANAGEMENT CORPORATION AND BEFORE ESTABLISHMENT OF JOINT MANAGEMENT BODY Handing over by developer to joint management body 11. The handing over by the developer to the joint management body under subsection 15(1) of the Act shall be with Form 4. PART V MANAGEMENT BY JOINT MANAGEMENT BODY BEFORE ESTABLISHMENT OF MANAGEMENT CORPORATION First annual general meeting of joint management body 12. (1) The written notice of the first annual general meeting of the joint management body to be given by the developer to all purchasers and a copy of such written notice to be displayed at a conspicuous part of the development area under subsection 18(3) of the Act shall be in Form 5. (2) If any purchaser, not less than seven days before the time for holding the first annual general meeting, gives a notice in writing to the developer requiring the inclusion of a motion in the agenda of the first annual general meeting, the developer shall give notice of the motion to all purchasers and a copy of the notice of the motion shall be displayed on the notice board of the development area at a conspicuous part of the development area. Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by joint management body 13. Within twenty-eight days after each general meeting of the joint management body at which the Charges are confirmed or varied, the joint management body shall issue a notice in Form 5A to all purchasers to inform the purchasers of the amount of Charges, contribution to the sinking fund and the rate of interest in respect of any late payment imposed by the joint management body in that annual general meeting and a copy of Form 5A shall be displayed on the notice board of the joint management body at a conspicuous part of the development area. Certificate of establishment of the joint management body 14. Upon an application by the joint management body, the Commissioner may issue a certificate under subsection 20(2) of the Act in Form 6. Handing over by joint management body to management corporation 15. The handing over by the joint management body to the management corporation under subsection 27(2) of the Act shall be with Form 7. PART VI MISCELLANEOUS PROVISIONS APPLICABLE BEFORE ESTABLISHMENT OF MANAGEMENT CORPORATION Moneys collected by developer prior to establishment of joint management body 16. Any developer of a development area which has been completed before the commencement of the Act, but for which a management corporation has not been established shall, not later than six months following the establishment of the joint management body, submit an audited accounts as required under subsection 29(1) of the Act to the Commissioner in Form 8. By-laws for developer's management period and for joint management body 17. The by-laws having effect in relation to every building or land intended for subdivision into parcels and common property and which shall bind the developer and the purchasers during the developer's management period and the joint management body and all parcel owners constituting the joint management body are as set out in the Third Schedule. Register of parcel owners 18. The register of parcel owners to be prepared and maintained by the developer during the developer's management period or by the joint management body under subsection 30(1) of the Act, as the case may be, shall be in Form 9. Certificate of amount payable by parcel owner or prospective purchaser 19. (1) Upon application by or on behalf of any person specified in section 31 of the Act, and on receipt of the prescribed fee, the developer or the joint management body, as the case may be, shall within twenty-one days, issue a certificate containing the information prescribed under section 31 of the Act in Form 10. (2) Any developer or joint management body who fails to comply with subregulation (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. Notice to demand payment of sum due by purchaser or parcel owner 20. Any written notice demanding payment of any sum due by a purchaser or parcel owner which is required to be served under subsection 34(1) of the Act shall be in Form 11. Services of any person or agent to maintain and manage common property 21. (1) If a joint management body shall employ or arrange and secure the services of any person or agent to undertake the maintenance and management of the common property of the building or lands intended for subdivision into parcels under paragraph 21(2)(f) of the Act, the joint management body shall enter into a management agreement with such person or agent. (2) If the person or agent is not a registered property manager, he shall not act to undertake such maintenance and management of the common property unless he has lodged with the joint management body a bond in Form 12 to be given by a bank, finance company or insurer. (3) The amount of the bond shall be a sum that is equivalent to the remuneration or management fees for a period of twelve months or a sum of fifty thousand ringgit, whichever is higher. (4) A copy of the management agreement under subregulation (1) and the bond under subregulation (2) shall be filed by the joint management body with the Commissioner together with payment of the prescribed fee within thirty days from the date of the management agreement or the bond, as the case may be. (5) Any person who fails to comply with subregulation (1), (2), (3) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. PART VII MANAGEMENT BY DEVELOPER BEFORE FIRST ANNUAL GENERAL MEETING OF MANAGEMENT CORPORATION Handing over by developer to management corporation 22. The handing over by the developer to the management corporation under subsection 55(1) of the Act shall be with Form 13. PART VIII MANAGEMENT AFTER FIRST ANNUAL GENERAL MEETING OF MANAGEMENT CORPORATION First annual general meeting of management corporation 23. (1) The notice of the first annual general meeting of the management corporation to be given by the developer to all proprietors and a copy of such written notice to be displayed at a conspicuous part of the development area under subsection 57(3) of the Act shall be in Form 14. (2) If any proprietor, not less than seven days before the time for holding the first annual general meeting, gives a notice in writing to the developer requiring the inclusion of a motion in the agenda of the first annual general meeting, the developer shall give notice of the motion to all proprietors and a copy of the notice of the motion shall be displayed on the notice board of the management corporation at a conspicuous part of the development area. Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by management corporation 24. Within twenty-eight days after each general meeting of the management corporation at which the Charges are confirmed or varied, the management corporation shall issue a notice in Form 15 to all proprietors, including the proprietors of any provisional block, to inform the proprietors of the amount of Charges, contribution to the sinking fund and the rate of interest in respect of any late payment imposed by the management corporation in that general meeting and a copy of Form 15 shall be displayed on the notice board of the management corporation at a conspicuous part of the development area. PART IX SUBSIDIARY MANAGEMENT CORPORATION AND LIMITED COMMON PROPERTY First annual general meeting of subsidiary management corporation 25. (1) Within one month after the subsidiary management corporation has been established under the provisions of the Strata Titles Act 1985, all proprietors who constitute the subsidiary management corporation shall hold a first annual general meeting of the subsidiary management corporation which shall be convened by the management corporation. (2) If the management corporation fails to convene the first annual general meeting of the subsidiary management corporation within the period specified in  subregulation (1), the Commissioner may, on the application of any one of the proprietors who constitute the subsidiary management corporation, appoint any person to convene that meeting and the management corporation shall pay all expenses incurred for that purpose. (3) Any person or body who fails to comply with subregulation (1), commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. Notice of first annual general meeting of subsidiary management corporation 26. (1) A notice of the first annual general meeting of the subsidiary management corporation shall be given by the management corporation to all proprietors who constitute the subsidiary management corporation in Form 16 and a copy of such written notice shall be displayed on the notice board of the management corporation at a conspicuous part of the development area. (2) If any of the proprietors who constitutes the subsidiary management corporation, in not less than seven days before the time for holding the first annual general meeting, gives a notice in writing to the management corporation requiring the inclusion of a motion in the agenda of the first annual general meeting, the management committee shall give notice of the motion to all proprietors who constitute the subsidiary management corporation and a copy of the notice of the motion shall be displayed on the notice board of the management corporation at a conspicuous part of the development area. Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by subsidiary management corporation 27. Within twenty-eight days after each general meeting of the subsidiary management corporation at which the Charges are confirmed or varied, the subsidiary management corporation shall issue Form 17 to all proprietors who constitute the subsidiary management corporation to inform the proprietors of the amount of Charges, contribution to the sinking fund and the rate of interest in respect of any late payment imposed by the subsidiary management corporation in that annual general meeting and a copy of Form 17 shall be displayed on the notice board of the subsidiary management corporation at a conspicuous part of the development area. PART X MISCELLANEOUS PROVISIONS APPLICABLE TO MANAGEMENT CORPORATION AND SUBSIDIARY MANAGEMENT CORPORATION By-laws for management corporation and subsidiary management corporation 28. The by-laws having effect in relation to every subdivided building or land and common property and to bind the management corporation or the subsidiary management corporation, as the case may be, and to bind all the proprietors constituting the management corporation or the subsidiary management corporation, as the case may be, are as set out in the Third Schedule. Strata roll 29. The strata roll prepared and maintained by the developer during the preliminary management period or by the management corporation under subsection 72(1) of the Act shall be in Form 18. Certificate of amount payable by proprietor or prospective purchaser 30. (1) Upon application by or on behalf of any person specified in section 73 of the Act, and on receipt of the prescribed fee, the management corporation or the subsidiary management corporation shall within twenty-one days, issue a certificate containing the information prescribed under section 73 of the Act in Form 19. (2) Any management corporation or subsidiary management corporation who fails to comply with subregulation (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. Notice to demand payment of sum due by proprietor 31. Any written notice demanding payment of any sum due by a proprietor which is required to be served under subsection 78(1) of the Act shall be in Form 20. Services of any person or agent to maintain and manage common property 32. (1) If a management corporation or subsidiary management corporation shall employ or arrange and secure the services of any person or agent to undertake the maintenance and management of the common property of the subdivided building or lands, under paragraph 59(2)(f) or subsection 64(1) of the Act, the management corporation or subsidiary management corporation shall enter into a management agreement with such person or agent. (2) If the person or agent is not a registered property manager, he shall not act to undertake such maintenance and management of the common property unless he has lodged with the management corporation or subsidiary management corporation a bond in Form 12 to be given by a bank, finance company or insurer. (3) The amount of the bond shall be a sum that is equivalent to the remuneration or management fees for a period of twelve months or a sum of fifty thousand ringgit, whichever is higher. (4) A copy of the management agreement under subregulation (1) and the bond under subregulation (2) shall be filed by the management corporation or the subsidiary management corporation with the Commissioner together with payment of the prescribed fee within thirty days from the date of the management agreement or the bond, as the case may be. (5) Any person or body who fails to comply with subregulation (1), (2), (3) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. PART XI PROVISIONS FOR JOINT MANAGEMENT BODY, MANAGEMENT CORPORATION AND SUBSIDIARY MANAGEMENT CORPORATION Constitution of joint management committee, management committee and subsidiary management committee 33. For the purposes of subparagraphs 2(7)(c) and 2(9)(c) of the Second Schedule to the Act, a member of the immediate family of a parcel owner or proprietor means his spouse, child, adopted child, step-child, sibling and parent. Annual general meeting 34. (1) A joint management body, management corporation or subsidiary management corporation, as the case may be, shall hold its annual general meetings in accordance with subparagraph 10(2) of the Second Schedule to the Act. (2) If any joint management body, management corporation or subsidiary management corporation fails to hold any annual general meeting, the joint management body, the management corporation or the subsidiary management corporation, as the case may be, commits an offence and shall on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. PART XII RECOVERY OF SUMS BY ATTACHMENT OF MOVABLE PROPERTY Application for attachment of movable property 35. (1) To apply for a warrant of attachment in Form A under subsections 35(1) or 79(1) of the Act, the developer, any member of the joint management committee, any member of the management committee, any member of the subsidiary management committee or any managing agent appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, as the case may be, shall submit a sworn application in Form 21. (2) Four copies of Form 21 shall be submitted to the Commissioner together with payment of the prescribed fee. (3) If the Commissioner decides to issue the warrant of attachment, the Commissioner shall deliver two signed copies of the warrant of attachment in Form A to the person or body who made the sworn application and the Commissioner shall state the name and particulars of the person who shall execute the warrant of attachment. Inventory after attachment 36. (1) Immediately after the attachment, the person who executed the warrant of attachment shall prepare an inventory of the movable property attached and shall serve a notice in Form B on the person who, at the time of the attachment, was or appeared to be in possession of the property. (2) If no such person was or appeared to bein such possession, then the notice in Form B shall be placed in a conspicuous part of such place where the attachment took place. (3) All movable property attached shall be kept in the premises or where the attached movable property are found or elsewhere in the State unless the person who executed the warrant is of the opinion that such movable property attached should be kept at a different place for safe keeping or control. Appointment of auctioneer, reserve price and bids 37. Where any movable property attached under subsection 35(1) or 79(1) of the Act is to be sold by auction under subsections 35(8) or 79(8) of the Act, the person or body conducting the auction- (a) may appoint a licensed auctioneer to conduct the auction; (b) shall fix a reserved price for the movable property so attached; and (c) shall only accept any bid that it is not less than such reserved price. Notice of auction 38. (1) The person or body conducting the auction shall give not less than seven days' public notice before conducting any sale by auction, which states- (a) the date time and place at which the sale is intended to be held; (b) particulars of the movable property to be offered for sale; and (c) the reserve price that has been fixed in respect of any movable property offered for sale. (2) A notice shall be deemed to have been adequately given if- (a) it is displayed on the door of the premises in which the movable property attached is found, if applicable; (b) it is displayed in a conspicuous place in the building or in such other manner as may be approved in writing by the Commissioner; and (c) deemed fit by the person or body conducting the auction, it has been published in a newspaper generally read in the place where the sale is to take place. (3) With the approval in writing of the Commissioner, the period of notice provided for in subregulation (1) may be reduced. (4) All sales by auction shall be held in places open to the general public. Procedure of the auction 39. (1) The person or body conducting the auction shall obtain at the auction the highest possible price for the movable property for sale, and shall not dispose of any such movable property by private treaty except with the consent of the proprietor first. (2) Where the reserve price of any movable property has been achieved or is exceeded then the highest bidder is entitled to be declared the purchaser. When any movable property is sold at the auction the person or body conducting the auction shall forthwith audibly declare the name of the actual purchaser. If any dispute arises as to who is entitled to be declared the purchaser of the movable property, it shall be auctioned again forthwith. (3) On payment of the purchase money at the auction, the person or body conducting the auction shall give a receipt to the successful bidder and the successful bidder shall be deemed to be the absolute owner of the movable property purchased. (4) Where movable property is put up for sale by public auction in lots, each lot shall be deemed to be the subject of a separate contract of sale. (5) If at the auction no bid is received at all or a bid is received not at the reserve price or less than the reserve price, the movable property in question shall be withdrawn from sale, and the Commissioner may- (a) direct that the movable property be put up for auction on a subsequent date, either at the same or at a new reserve price, and the provisions of regulations 35, 36, 37, 38, subregulations 39(1), 39(2), 39(3) and 39(4), and regulation 40 shall apply mutatis mutandis to the subsequent auction; or (b) direct that the movable property be returned to the person who, at the time of attachment, was or appeared to be in possession of the movable property in question. (6) If at the subsequent auction, no bid is received at all or a bid is received not at the reserve price or less than the reserve price, the Commissioner shall withdraw the movable property in question from the sale by auction and direct that it be returned to the person who, at the time of attachment, was or appeared to be in possession of the movable property in question. (7) The Commissioner shall not be required to be present at any auction. Record and statement of sale 40. (1) The person or body conducting the auction shall keep a record of all sums of money received by him at the auction. (2) The person or body conducting the auction shall, within seven days after the sale, serve on the defaulting parcel owner or proprietor, by registered post, a record and statement in Form 22, which sets out- (a) the proceeds of sale; (b) the application of the proceeds of sale in satisfaction of the sum due, together with the costs of the attachment and sale, except where subsection 35(10) or 79(10) of the Act applies; (c) whether there is a surplus or a shortfall in the proceeds of sale; (d) a list of the movable property attached which have not been sold, if any; (e) a notice that if there is a surplus, the defaulting parcel owner or proprietor is required to collect the surplus from the office stated in the notice within thirty days after the auction, and that if a claim is not so made, the surplus shall be paid to the developer or joint management body or management corporation or subsidiary management corporation, as advance payment towards Charges and contribution to the sinking fund; (f) a notice that if there is movable property attached which have not been sold, such movable property have been left at the premises or the place where the attachment took place, or elsewhere in the State or if kept at a different place, that the defaulting parcel owner or proprietor is required to collect them from the different place stated in the notice within seven days after the auction, and if not so collected, the defaulting parcel owner or proprietor shall be liable to pay storage charges specified in the notice, and that such movable property shall then be dealt with in any manner as deemed fit by the person or body conducting the auction; and (g) a notice that if there is a shortfall, it must be paid up immediately by the defaulting parcel owner or proprietor. (3) For the purpose of returning or leaving the movable property that has not been sold under paragraph (2)(f), the person or body conducting the auction shall- (a) have similar access as that granted for executing a warrant of attachment under the Act or under these Regulations; and (b) not be liable for any loss, damage or lost items suffered by any relevant party. Costs of attachment and sale 41. The costs of the attachment and sale payable by the defaulting parcel owner or proprietor to the person or body conducting the auction shall include- (a) the prescribed fee paid to the Commissioner for filing Form 22; (b) the expenses for the maintenance of livestock, if any; (c) the cost of appointing an auctioneer, if any; (d) the cost of advertisement of the auction, if any; (e) where it is necessary to place a watchman to secure or have custody of the movable property attached, the costs incurred in hiring the watchman or watchmen; (f) where it is necessary to keep possession of the movable property attached, the costs incurred in such custody which may include but not limited to costs of transportation, insurance, storage and security; and (g) a sum of three hundred ringgit or a sum equivalent to three per cent of the amount due, whichever is higher, as an administrative charge for having to recover the sums by attachment. Attachment to cease if sums due are paid 42. If the parcel owner or proprietor, or any tenant, subtenant or occupier, as the case may be, or any person on his behalf, pays the sums due by the parcel owner or proprietor together with the costs of the attachment and sale incurred up to date, the attachment of the property shall cease forthwith and any auction fixed shall be cancelled. PART XIII MANAGING AGENT APPOINTED BY COMMISSIONER Management agreement 43. (1) At the time of appointment of a managing agent under subsection 86(1) or 91(3) of the Act, the Commissioner shall specify- (a) the period of appointment; (b) the remuneration or fees of the managing agent as agreed upon between the managing agent and the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, with the concurrence of the Commissioner, or the amount of remuneration or fees of the managing agent as determined by the Commissioner under subregulation (2); and (c) the amount of bond required to be lodged by the managing agent with the Commissioner. (2) If the remuneration or fees of the managing agent could not be agreed upon between the managing agent and the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, the Commissioner shall determine the remuneration or fees of the managing agent which shall be charged to the maintenance account. (3) Within fourteen days from the date of appointment, the managing agent appointed by the Commissioner shall enter into a management agreement with the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, in Form 23, and the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, shall sign the management agreement within the fourteen days specified. (4) If the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, does not sign the management agreement in Form 23, the Commissioner may appoint any purchaser, parcel owner or proprietor, as the case may be, to sign the management agreement on behalf of the developer, joint management body, management corporation or subsidiary management corporation, as the case may be. (5) Any person or body who fails to comply with subregulation (3) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. Bond 44. (1) Any person appointed by the Commissioner as the managing agent shall lodge with Commissioner a bond in Form 24 which shall be given by any bank, finance company or insurer before acting as a managing agent. (2) The amount of the bond shall be determined by the Commissioner at the time of appointment of the managing agent. (3) Any managing agent who fails to comply with subregulation (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. Charges and contribution to the sinking fund during management by managing agent 45. (1) If a managing agent has been appointed by the Commissioner under subsection 86(1) or 91(3) of the Act and the Charges or contribution to the sinking fund to be paid by a purchaser, parcel owner or proprietor in respect of his parcel has not been determined by the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, for any reason whatsoever, the amount of the Charges to be paid by a purchaser, parcel owner or proprietor under the Act shall be determined by the managing agent in proportion to the allocated share units or share units of each parcel and the amount of contribution to the sinking fund to be paid shall be a sum equivalent to ten per cent of the Charges. (2) Any purchaser, parcel owner or proprietor who is not satisfied with the sums determined by the managing agent under subregulation (1) may apply to the Commissioner for a review and the Commissioner may- (a) determine the sum to be paid as the Charges or contribution to the sinking fund; or (b) instruct the managing agent to appoint, at the cost and expense of the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, a registered property manager to recommend the sum payable as the Charges or contribution to the sinking fund and submit a copy of the registered property manager's report to the Commissioner. (3) Upon receiving the report under subparagraph (2)(b), the Commissioner shall determine the sum payable as he thinks just and reasonable, and any sum so determined by the Commissioner shall be deemed to be the sum payable as the Charges or contribution to the sinking fund. PART XIV DEPOSIT BY DEVELOPER TO RECTIFY DEFECTS ON COMMON PROPERTY Notice by developer of intention to deliver vacant possession 46. (1) A developer shall, within twenty-one days prior to the delivery of vacant possession of a parcel to a purchaser, give a written notice to the Commissioner of his intention to deliver vacant possession in Form 25 together with the prescribed fee. (2) Form 25 shall be accompanied with a certificate of the estimated costs of construction from the developer's architect or engineer in charge of the development on the development area. (3) For the purpose of subregulation (2), "estimated costs of construction" means the cost of constructing the development area for the purpose of residential, commercial or industrial use, or a combination of such uses, and includes financial costs, overhead costs and all other expenses necessary for the completion thereof but excludes land cost. Amount of deposit to rectify defects 47. (1) Upon receipt of Form 25, the Commissioner shall determine the amount of deposit required to be deposited by the developer under subsection 92(1) of the Act, which shall not be less than zero point five per cent of the estimated costs of construction or fifty thousand ringgit, whichever is higher. (2) The Commissioner shall notify the developer of the amount of deposit in Form 26. Mode of payment of deposit 48. The amount of deposit stated in Form 26 shall be paid by the developer to the Commissioner, in cash or bank guarantee, upon the developer handing over vacant possession of a parcel in the development area to a purchaser. Bank guarantee 49. For the purpose of subsections 92(1) and 92(4) of the Act, any bank guarantee shall- (a) be valid for the whole of the defect liability period of the common property; and (b) be irrevocable, unconditional and payable on demand. Common Property Defects Account 50. (1) The Commissioner shall place all deposits or further sums paid in cash into a separate income bearing trust account known as the Common Property Defects Account which shall be opened and maintained by the Commissioner with a bank or financial institution separately from other accounts of the local authority. (2) The Commissioner shall open and maintain one Common Property Defects Account in respect of each development area. (3) The following persons shall be entitled to make a claim against the Common Property Defects Account during the defect liability period of the common property- (a) a purchaser; (b) a proprietor; (c) a joint management body; (d) a management corporation; (e) a subsidiary management corporation; (f) a managing agent appointed by the Commissioner under subsection 86(1) or 91(1) of the Act; and (g) any other interested person, with the permission of the Commissioner. (4) A claim against the Common Property Defects Account shall be made in Form 27 together with payment of the prescribed fee. Notice to developer to rectify defects 51. (1) Upon receipt of Form 27, the Commissioner shall within fourteen days give a notice to the developer specifying- (a) the defects of the common property which are required to be rectified; (b) the time within which the rectification works shall commence; (c) the time within which the rectification works shall be completed; and (d) that the rectification works shall be carried out with due diligence to the satisfaction of the Commissioner. (2) If the developer is unable to complete the rectification works within the time period specified in the notice, the developer shall at least seven days before the expiry of the time period apply to the Commissioner for an extension of time, who may in his discretion, grant or refuse any extension of time. Appointment of registered architect, registered engineer, registered quantity surveyor or registered building surveyor by Commissioner 52. (1) If a notice given to the developer under subregulation 51(1) has not been complied with by the developer or has not been complied with to the satisfaction of the Commissioner, the Commissioner may appoint a registered architect, registered engineer, registered quantity surveyor or registered building surveyor, as the case may be, for any of the following- (a) to quantify the works necessary to rectify the defects of the common property; and (b) to carry out or cause to be carried out all or any of the rectification works. (2) The Commissioner shall give the developer notice of the appointment of the registered architect, registered engineer, registered quantity surveyor or registered building surveyor within seven days of such appointment and upon receipt of such notice, the developer shall not be entitled to carry out or continue with any rectification works without the written consent of the Commissioner. Recovery of expenses by Commissioner 53. The Commissioner may recover all expenses reasonably incurred by him in the exercise of his powers under this Part in relation to the Common Property Defects Account, and where the cost of the rectification works exceeds the deposit or further sums paid by the developer, the developer shall pay the shortfall within fourteen days after receiving a written notice from the Commissioner, failing which the developer shall pay interest at the rate of ten per cent per annum on a daily basis. Refund of unexpended deposit or further sums 54. Any unexpended deposit or further sums deposited with the Commissioner together with any accrued income thereon, shall be refunded to the developer by the Commissioner on the expiry of the defect liability period of the common property, or in the case where a notice to the developer to rectify the defects has been issued by the Commissioner under subregulation 51(1), upon the completion of the rectification works to the satisfaction of the Commissioner, whichever is later. PART XV INTER-FLOOR LEAKAGE Meaning of inter-floor leakage 55. (1) For the purpose of this Part, "inter-floor leakage" means any evidence of dampness, moisture or water penetration- (a) on the ceiling that forms part of the interior of a parcel, common property or limited common property, as the case may be; or (b) on any furnishing material, including plaster, panel or gypsum board attached, glued, laid or applied to the ceiling that forms part of the interior of a parcel, common property or limited common property, as the case may be. (2) For the purpose of Part XV of these Regulations, a parcel includes an accessory parcel which is used or intended to be used in conjunction with a parcel. Notice that a parcel is affected by inter-floor leakage 56. (1) A purchaser, parcel owner or proprietor, whose parcel is affected by an inter-floor leakage may give notice to - (a) the developer, during the developer's management period under Part IV of the Act or during the preliminary management period under Part V of the Act; (b) the joint management body; (c) the management corporation; or (d) the subsidiary management corporation; as the case may be. (2) In a case where a managing agent has been appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, a copy of the notice given to the managing agent shall be deemed to be a notice given to the developer, the joint management body, the management corporation or the subsidiary management corporation, as the case may be, and a copy of the notice shall be extended to the Commissioner. Inspection of affected parcel 57. Any developer, joint management body, management corporation or subsidiary management corporation, or any managing agent appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, as the case may be, shall as soon as practically possible, or within seven days from the date of receipt of the notice given under regulation 56, carry out an inspection of the affected parcel, any other parcel and the common property or limited common property, to determine- (a) the cause of the inter-floor leakage; and (b) the party responsible to rectify any defect that has caused the inter-floor leakage. Matters to be considered in determining cause of leakage 58. In determining the cause and the party responsible to rectify any defect, the following matters shall be taken into consideration- (a) the presumption under section 142 of the Act that the defect is within the parcel above the affected parcel, common property or limited common property; (b) any defect in any water meter, water pipe, drainage pipe, sewerage pipe, gas meter, gas pipe and duct that serves more than one parcel is a defect of the common property or limited common property; (c) any defect in any water meter, water pipe, drainage pipe, sewerage pipe, gas meter, gas pipe and duct that serves only one parcel is a defect of that parcel, even though the water meter, water pipe, drainage pipe, sewerage pipe, gas meter, gas pipe and duct may be situated on or embedded in common property or limited common property or void space above the ceiling or wall or floor, as the case may be; and (d) any defect of any parcel, common property or limited common property during the defect liability period of the parcel or the common property or the limited common property, as the case may be, which is due to defective workmanship or materials or that the parcel, common property or limited common property was not constructed in accordance with the plans and description approved by the appropriate authority, shall be the responsibility of the developer. Certificate of inspection 59. Within five days from the date of completion of inspection of the affected parcel, any other parcel or the common property or limited common property or within such extended time as the Commissioner may grant, the developer, joint management body, management corporation or subsidiary management corporation or any managing agent appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, as the case may be, shall issue a certificate of inspection in Form 28 to state the cause of the inter-floor leakage and the party responsible to rectify it. Inter-floor leakage caused by defective workmanship, etc. within the defect liability period 60. (1) Where the inter-floor leakage occurs within the defect liability period of the parcel and it is due to defective workmanship or materials or that the parcel was not constructed in accordance with the plans and description approved by the appropriate authority, the purchaser, parcel owner or proprietor may make a claim against the developer pursuant to the sale and purchase agreement made with the developer. (2) Where the inter-floor leakage occurs within the defect liability period of the common property or of the limited common property, as the case may be, and it is due to defective workmanship or materials or that the common property or limited common property was not constructed in accordance with the plans and description approved by the appropriate authority, the purchaser, parcel owner or proprietor may make a claim against the Common Property Defects Account pursuant to subregulation 50(4). Inter-floor leakage caused by or attributable to a parcel 61. (1) Where the inter-floor leakage is caused by or is attributable to a parcel or any part thereof, the purchaser, parcel owner or proprietor of that parcel shall, without prejudice to his right to seek indemnity from any other party, shall take all necessary steps and measures to rectify the inter-floor leakage within seven days of receipt of Form 28. (2) If he fails to do all the necessary steps mentioned in subregulation 61(1), the developer, joint management body, management corporation or subsidiary management corporation or any managing agent appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, as the case may be, shall immediately take all the necessary steps and measures to rectify the inter-floor leakage and shall charge and recover all cost and expense from the party responsible to rectify the inter-floor leakage. Inter-floor leakage caused by or attributable to common property or limited common property 62. Where the inter-floor leakage is caused by or is attributable to common property or limited common property and occurs after the defect liability period of the common property or limited common property, the developer, joint management body, management corporation, subsidiary management corporation or managing agent appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, as the case may be, without prejudice to his right to seek indemnity from any other party, shall take all necessary steps to rectify the inter-floor leakage within seven days of the date of issue of Form 28. Access 63. (1) The person or body carrying out the inspection of the affected parcel or any other parcel, common property or limited common property under regulation 57 or in carrying out the works to rectify the inter-floor leakage, shall have access to the affected parcel, any other parcel, common property or limited common property on seven days' written notice. (2) Any purchaser, parcel owner, proprietor or occupier of the affected parcel or any other parcel who fails to give access to the affected parcel or any other parcel to the person or body carrying out the inspection pursuant to subregulation (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand or to imprisonment for a term not exceeding three years or to both. (3) The requirement of notice in subregulation (1) shall not be applicable in any case of emergency, and forcible entry may be effected. (4) In this regulation, "emergency" includes any matter or circumstance that materially increases the likelihood of flood or danger to life or property that would result from inter-floor leakage. Reference to Commissioner 64. (1) Any person who is not satisfied with any decision made against him under any of the regulations in this Part may refer to the Commissioner and the Commissioner shall determine the cause of the inter-floor leakage and the party responsible to rectify it. (2) The Commissioner may appoint a registered architect, registered engineer, registered quantity surveyor or a registered building surveyor to assist him in such determination and the cost of such appointment shall be borne by the party responsible to rectify the inter-floor leakage. (3) All parties shall comply with any decision made by the Commissioner. PART XVI DAMAGE TO PARTY WALL Meaning of party wall 65. For the purpose of this Part, "a party wall" shall mean a wall that is located between separate parcels or located between a parcel and the common property or the limited common property, as the case may be. Meaning of damage to a party wall 66. For the purposes of this part, "damage to a party wall" shall mean any evidence of dampness, moisture, water penetration or other damage- (a) on the wall that forms part of the interior of a parcel, common property or limited common property, as the case may be; or (b) on any furnishing material, including plaster, panel or gypsum board attached, glued, laid or applied to the wall that forms part of the interior of a parcel, common property or limited common property, as the case may be. Provisions relating to inter-floor leakage shall apply 67. In a case where a parcel is affected by damage to a party wall, the provisions of regulations 55, 56, 57, 58, 59, 60, 61, 62, 63 and 64 shall apply mutatis mutandis. PART XVII ENFORCEMENT Order requiring attendance of any person 68. Any order in writing by the Commissioner or authorized officer to require the attendance of any person who appears to be acquainted with the facts and circumstances of the case, under subsection 131(1) of the Act, shall be in Form 29. Order to provide translation 69. Any requisition orally or in writing by the Commissioner or the authorized officer to any person to furnish a translation in the national language of any book, register, document or other record under subsection 134(1) shall be in Form 30. PART XVIII OFFENCES Aiding and abetting 70. Any person who knowingly and wilfully aids, abets, counsels, procures or commands the commission of any offence under any provision of these Regulations shall on conviction, be liable to a fine not exceeding fifty thousand ringgit or to a term of imprisonment not exceeding three years or to both. PART XIX MISCELLANEOUS Revocation 71. Any regulations made under the Building and Common Property (Maintenance and Management) Act, 2007 are revoked. Savings 72. Any Rules under the Strata Titles Act 1985 [Act 318] which provide for management of buildings and was made by the Minister responsible for matters relating to land, and in force immediately before the commencement of this Regulations, shall continue to be in force as if this Regulations had not been made. To view the SCHEDULES, refer to pages 170 through 252 of the PDF Version. Made 26 May 2015  [KPKT/PUU/(S)/8/09; PN(PU2) 729] DATUK ABDUL RAHMAN DAHLAN Minister of Urban Wellbeing, Housing and Local Government Please Download HERE for more information...............................

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