DID YOU KNOW THESE FACTS ON STRATA?
Written by: Felicia Soon
As a strata unit owner, you jointly own the common property in your building and are partially responsible for the maintenance of shared facilities such as sports centres, swimming pools, gymnasium, gardens and even the lifts.
According to Jabatan Perumahan Negara (JPN), there are over 6 million people (20% of Malaysia’s population) currently living in strata properties. Every year, this number increases especially in the urban areas, where the supply of new landed homes is few and far between.
The maintenance and management of strata properties has become increasingly important now as land has become scarce and expensive. As a result, Strata Management Act 2013 (SMA) requires the most important aspect of strata living which is efficient management that promotes upkeep and longevity of the building and common property.
As everyone is sharing the usage of facilities in a commonplace, it is essential to keep the building and its shared facilities in good condition. Hence, the responsibility of individual strata unit owners in paying the maintenance charges and contribution to the sinking fund is also necessary for upkeep.
Alternatively, it is also important for all stakeholders to understand their roles in strata management; be it the developer, Joint Management Body (JMB), Management Corporation (MC), Subsidiary Management Corporation (Sub-MC) all strata unit owners. Fortunately, the SMA, which is supported by the Strata Management (Maintenance and Management) Regulations 2015 (SMR), has laid down guidelines that describe the duties and responsibilities of each stakeholder.
The SMA describes four different management periods which are the Developer’s Management Period (DMP), the Joint Management Body (JMB) period, the Preliminary Management Period (PMP) and eventually the Management Corporation (MC) period.
The JMB is established under the Strata Management Act 2013 (SMA), while the MC is established under the Strata Titles Act 1985, but carries out its duties as per the SMA. The difference is that the JMB is managed by a management committee which comprises strata unit owners and developer, whereas the MC comprises strata unit owners (also known as proprietors) only.
In some strata buildings, there are designated common areas and facilities that can be utilised by some but not all strata unit owners. Therefore, a separate management body known as the Subsidiary Management Corporation (Sub-MC) will be established to maintain and manage these limited common property and facilities. The Sub-MC will also keep a separate account and only strata unit owners who have access to the limited common property will have to pay maintenance charges and contribute to the sinking fund of the Sub-MC for expenses related to its limited common property (S68, SMA).
Finally, it is important to note that until the Joint Management Body (JMB) or the Management Corporation (MC) is established, the developer is solely responsible for maintaining and managing the building and common property and facilities. The developer also has one year following the delivery of the first strata unit to a purchaser to set up the JMB which is managed by the Joint Management Committee (JMC), which comprises both the strata unit owners and the developer.