INTRODUCTION OF STRATA MANAGEMENT ACT 2013 (ACT 757)

Transcription

1 INTRODUCTION OF STRATA MANAGEMENT ACT 2013 (ACT 757) Gazetted On 7 th February 2013 by HRH Came into force in WP and all states on 1 st June 2015 except Penang which is on 6 th June 2015 Consequences of the new Legislation :- A) Some parts of Act 318 carved out B) Act 663 repealed and merged into Act So when does Act 757 take effect officially and overide the existing 2 laws??? A) for MC Effective 1 st June Not retrospective B) For JMB effective from the day the JMB was formed, if before 1 st June 2015 i.e. 1 st Jan 2010, the Act 757 takes effect from 1 st Jan 2010 Classification of Charges MC Contribution and operated via Management Fund JMB Developer operates BMA, JMB operates BMF and sum to be paid is charge or Maintenance charges Act 757 All sums to be paid are defined as Charges to be paid to the Maintenance Account S89(3) - Must Be deposited within 3 working days from collection 3 4 1

2 What Can Be Defined As Charges?? Quit Rent Maintenance Charges Insurance Fines Interest Anything else that has been budgeted for under the expenses which has been equally divided amongst all proprietors/parcel owners i.e. One Off Cash Call etc 5 Determining Charges To Be Paid 663 S23(2) Proportion to allocated share unit 318 S45(3)(B) proportion to share units or provisional share units of their respective parcels or provisional block 757 a) Developer to impose charges in proportion to allocated share units S12(3) b) JMB to impose charges in proportion to allocated share units S25(3) c) MC to impose charges in proportion to share units S60(3) 6 Utilization Of Sinking Fund (applies to JMB/MC) a) Painting/Repainting of any part of the common property b) Acquisition of moveable assets for the common property c) Renewal/Replacement of fittings and fixtures in common property d) Upgrading & Refurbishment of common property* e) Any other CapEx the JMB/MC deems necessary * New addition to the utilization clause **Previously under 663, it stated that any other purposes the JMB deems necessary. Not it clearly states only CapEx *** Strata Titles Act 1985 Defines Sinking Fund as Special Account Strata Tribunal To hear and determine claims specified under Part 1 4 th Schedule Members of Tribunal shall be appointed by Minister and conduct of proceedings are similar to the Tribunal for Homebuyer claims Any award shall be final and binding in accordance to a magistrate court and can only be set aside by the High Court 7 8 2

3 ...cont Tribunal Jurisdiction s105(1) & Part 1 of the 4 th Schedule Disputes on function, duty & power Cost of repairs in respect to defect in parcel, building or common property Recovery of charges from defaulters up to RM 250K Default in calling for AGM or to call for an EGM Invalidate proceeding of meetings Nullify Resolutions Revoke Amendments to bylaws Compel supply of information or documents Affirm, vary or revoke decision by COB Others specified in Part 1 of the 4 th schedule 9 Inter Floor Leakages (S142) **Applies Vertically and Horizontally for walls dividing 2 units or 1 unit with a common area Shall be presumed in absence of proof to the contrary to be caused by defect in parcel situated above. Includes accessory parcels Can be classified as any evidence of dampness, moisture or water penetration on ceiling or furnishing material of a parcel Process :- A) Affected party gives notice to person/body responsible to maintain and manage B) inspection to be carried out within 7 days of receipt of notice. Notice not necessary if emergency, whereby forcible entry is required. Emergency is deemed danger to life, property or likelihood of flooding Within 5 days from inspection, person/body responsible to manage shall issue a certificate (Form 28) to state cause of leakage and party responsible to rectify Person responsible must rectify within 7 days from the receipt of Form 28 (including the MO if the cause is from the common area piping) Any person not happy with the decision may refer to COB 10...cont Question Who is person/body responsible to manage : Developer/JMB/MC/MO Leakage During DLP If leakage is within DLP period and is not in compliance to the approval by the authorities, the affected party may claim against the developer If leakage happens during DLP and is caused by bad workmanship located in common areas, the affected party may claim against the Common Area Defects Account Failure to Comply Failure to rectify JMB/MC/MO shall rectify and all costs to be charged to parcel owner. Failure to give access 50k fine/3 years imprisonment or both Important points to take note of :- a) Any defect in any water/gas meter, drainage/sewerage pipe, water/gas meter and duct that serves more than 1 parcel is deemed to be a common area b) Any defect in any water/gas meter, drainage/sewerage pipe, water/gas meter and duct that serves only 1 parcel is deemed to be a defect of that parcel owner although it may be located or embedded in a common area

4 Defaulter Management JMB/MC S34(JMB) S78 (MC) Issue 1 st notice to make payment not less than 14 days from the date of the notice If fails to adhere, proceed to S35. Under S34(3), if convicted, may also be fined not exceeding 5K, or not exceeding 3 years imprisonment or both. For every day he ignores the notice, RM 50 is applicable in addition to the above. LOD costs can only be recovered from owner if approved in AGM or if amended in House Rules Seizure of Moveable Assets- S35 (JMB) S79 (MC) To apply, JMB / MC needs to complete 4 copies of Form 21 and submit to COB with the relevant fee of RM 20. COB may issue a warrant via 2 copies of Form A of the 3 rd schedule authorizing the JMB/MC/MO to attach any moveable property belonging to the defaulter in the building or elsewhere in the state and the warrant must indicate the person who is executing the warrant. As soon as the attachment is done, the executor of the warrant must prepare an inventory and present the inventory in the manner as described in Form B to the person at that point of time is in possession of the asset. If there is no person available at that point of time, the Form B must be placed at a location easily visible. 13 The executor of the warrant can be the JMB/MC/MO or even a specially appointed person in the presence of the COB or its officers. If there is difficulty in executing the warrant, COB may seek the assistance of the police with a rank not below Insp. If parcel owner refuses to cooperate, the executor may forcibly enter the building or parcel and make an inventory of the items as stated in Form B of the 3 rd schedule If the item is auctioned, the executor of the auction may appoint a licensed auctioneer and determine a reserve price and the sale must not be below the reserve price The auctioneer performing the auction must indicate publicly 7 days before the auction on the time, venue and date of the auction, details of the auction and reserve prices of the items 14 Tenants may make payments on behalf to avoid attachment and deduct form their rental. All costs of attachment may be included in the expense and deducted from the auction price. How about Outstanding Inherited By The New Purchaser S60 Successors in title Interest S6 3 rd Schedule 10% per annum Shame List S6 3 rd Schedule To display name, unit number and amount oweing Access Card & Facilities S6 3 rd Schedule Allowed to be deactivated upon issuance of 1 st notice. However, should not deprive access to home. Reactivation charge of not more than RM 50 allowed. May suspend his usage of facilities and parking at common areas. 15 Notice of AGM/EGM - S12 (2 ND Schedule) 14 days notice. Either Chairman and/or Secretary signature must be on the notice Must indicate date, time and venue (EGM & AGM) Must indicate each Resolution/Motion and relevant explanation (EGM & AGM) Must indicate voting rights of proxy, proprietor etc (EGM & AGM) Must attach minutes of the last AGM & Audited Accounts (AGM) Must specify any other matters to be discussed during the meeting. No more AOB Quorum is ½ of eligible proprietors. No adjournment required. 30 mins and proceed Resolution/Motion - S13 (2 ND Schedule) Must be submitted in writing to the MO 7 days before the AGM Such resolutions to be displayed on the notice board before the AGM Eligible Voters - S14 (2 ND Schedule) As long as not in default 7 days before AGM Must be displayed on all notice boards 2 days before AGM 16 4

5 AGM/EGM Proceedings 16 & 17 (2 ND Schedule) To be chaired by a chairman appointed amongst proprietors during the AGM. Cant be MO or 3 rd party i.e. lawyers. However, may have advisor present All decisions to be made via show of hands unless poll demanded. If show of hands (card), to count the number of units owned by the proprietor as stipulated on the card. If poll, as per the total share units of parcels owned. Proxies can vote on both, hands or poll Chairman shall have casting vote on both, poll or hands Minute taker to be appointed amongst those present, need not be a proprietor 17 Proxies - S18 (2 ND Schedule) If company, only need their seal, no requirement for company resolution 1 person 1 proxy only Proxy forms must be deposited at MO 48 hours prior to AGM date, otherwise cant attend and vote Proprietor S21 (2 ND Schedule) Has votes based on the number of parcels owned either via hand or poll Co - Proprietor S22 (2 ND Schedule) Has votes based on the number of parcels owned either via hand or poll But only either one may be present to vote. The other is an observer. Proxy forms must be deposited at MO 48 hours prior to AGM date, otherwise cant attend and vote If one of the co-prop is nominated for CM, the other cant be nominated. 18 Bylaws 3 rd Schedule S8 : General Duties of a Proprietor To notify MC of any change in proprietorship foe entry into Strata Roll To use his parcel only as what was approved in the plans approved by the authority S14 : Animals Cant keep any animal that contravenes the local laws of the state. (LGA 1976). 300sqmetres below 1 dog, above 300sqmetres 2 dogs max. Apartments not allowed unless received approval from DBKL S15 Laundry Cant protrude out of the parcel S25 - Clamping Can be clamped or towed away. Cost is borne by affected party. Clamp can only be removed after fine of RM any actual towing cost incurred Applies to common property, outside designated parking bays or in other owners parking bays 19 Bylaws 3 rd Schedule S27 : Renovation Replacement of floor finishing must ensure water proofing membrane continues upwards of at least 150mm high. Cant relocate door or window (unless prior written approval obtained from MC/authority) Cant permit any fitting of fixtures or any alteration or change to be made to the exterior of his parcel that will change the appearance of the common property or building façade. Façade includes external windows, balcony, terrace, common areas, open areas or all visible parts of the building which forms part of the exterior building. (unless prior written approval obtained from MC/authority) Cant install antennae or disc on the rooftop or any external part of the building (unless prior written approval obtained from MC/authority) How to define external wall? S13 of STA 318 Centre wall inside belong to proprietor, centre wall outside is external façade. 20 5