9/26/2017

CONTENT
UDL3612 LAND LAW I
• 1. Introduction
TOPIC 7 • 2. Application for Subdivision of Building or Land
STRATA TITLES LAW IN MALAYSIA • 3. Strata Register
• 4. Phased Development
• 5. Maintenance and Management of Buildings and Common Property
• 6. Parcels and Accessory Parcels

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• 7. Common Property
& 13
• 8. Management Corporation

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1. INTRODUCTION
• NLC – subsidiary titles, w.e.f. 1/1/1966, modeled after the
Australian New South Wales Conveyancing (Strata Titles) Act
1961
• Strata Titles Act 1985 (Act 318) (‘STA’), w.e.f. 1/6/1985
• s 5(1) & (2) STA
• Building and Common Property (Management and
Maintenance) Act 2007 (Act 663) (‘BCPA’) [repealed]
• Strata Titles (Amendment) Act 2013 (Act A1450)
• Strata Management Act 2013 (Act 757) (‘SMA’)
• Strata Management (Maintenance and Management)
Regulations 2015 PU(A) 107/2015
Tay Eng Siang (FOL, MMU) (Tri 1, 2017/2018)
- Strata Titles (Amendment) Act
2013
• Came into operation on 1 June 2015
• To amend the Strata Titles Act 1985
• REMOVED provisions on management of subdivided
building (now governed by the SMA 2013).
• All applications or other matters that were in the course
of being approved, or had been approved but no strata
titles had been issued, before 1/6/2015, shall be
continued or concluded as if the STA has not been
amended by the STAA.
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- Electronic Land Administration - Strata Titles (Amendment) Act

System (“ELAS”) 2016
• Implementation in Land Registry • w.e.f. 1.1.2017 (Act A1518)
• Amendments include:
• “ELAS” integrated system relating to the electronic • Part IVA - Collection of Rent
processing of strata titles application and registration, • s 19A of STA 1985 (transfer of ownership of strata titles)
documents required to be prepared and any entry in be deleted
any document of title through the use of computer

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2. Application for Subdivision of

Cont.d
Building or Land
• Building or land capable of being subdivided: s 6(1) & • When compulsory for proprietor to apply for subdivision:
(1A) STA; definitions of ‘parcel’, ‘accessory parcel’, s 8(1); definition of ‘original proprietor’: s 4 STA
‘storey’, ‘strata titles’: s 4 STA
• ‘sold or agreed to sell any parcel in such building or land’
• The Strata Titles (Amendment) Act 2007 (Act A1290)
(w.e.f. 12 April 2007) to cover ‘gated community schemes’: • ‘super structure stage’: s 4 STA
s 6(1) & (1A) STA
• s 8A – application for certificate of proposed strata plan
• General requirements for application of strata titles
• Conditions for approval & procedure: ss 9 & 10 STA
• Application: s 7 STA
• Approving authority
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Subdivision of Building Subdivision of Land Parcel

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Essential elements of Strata

Development Scheme -Compulsory Period to apply for
Subdivision
• 1. Strata Titles (Federal Territory of Kuala Lumpur) Rules 2015
• Apply for the Certificate of Share Unit Formula [Sijil Formula Unit Syer
(“SIFUS”)] from PTG
• 2. Strata Titles(Amendment) Act 2013
• First stage: Apply for the Certificate of proposed strata plan (“CPSP”) to
the Director of Survey within the period set out in s 8(2) STA
• Second stage: Apply for subdivision within one month from the date of
issuance of CPSP
• 3. Penalty: Fine not < RM100,000 or 3 years imprisonment or
both

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Section 8(2) of the STA Transfer of Ownership of Strata Titles

Event Period of Time
First sale takes place + certificate of 3 months from the certificate of • New s 19A STA [deleted via Act A1518]
super structure stage is issued after super structure stage • (1) Any original proprietor shall execute the transfer of strata title
1/6/15 to the purchaser within thirty days from the date of issue of strata
Building completed after 1/6/15 3 months from CCC title by the Land Administrator or any extended period approved
by the Director upon the opening of the strata register.
and first sale took place before
1/6/15 • (2) Any purchaser shall execute complete documents of transfer of
strata title within thirty days or any extended period approved by
Building completed + first sale 3 months from CCC or date of first the Director from the date of notice of transfer of strata title being
takes lace after 1/6/15 sale, whichever later served to the purchaser by the original proprietor or from the date
of purchase of the parcel, whichever is the later.
Building completed + first sale took 3 months from 1/6/15
place before 1/6/15 • (3) Any original proprietor or any person or body appointed by a
court of competent jurisdiction or any purchaser who fails to
Building completed before 1/6/15 3 months from the date of first sale comply with subsection (1) or (2) shall be guilty of an offence and
+ first sale takes place after 1/6/15 shall, on conviction, be liable to a fine of not less than RM1,000
but not more than RM10,000 per parcel.
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3. Strata Register
• s 15(1) STA; index in Form 2 and statement in Form 3
• Documents of strata title: s 16 STA – in respect of parcel [Form
See sample Strata Title
4] and provisional block [Form 4A], if any
• Registration of register documents of strata title: s 16(5) STA
• Application of ss 89-91 NLC to documents of strata title: s 16(6)
• Form 3
STA
• Effect of opening of book of strata register: s 17(1) STA
• Limited common property and subsidiary management
• Form4
corporations allowed: s 17A STA
• Ownership of common property and custody of IDT: s 17B
• Share units of parcels: s 18 STA
• Provisional share units of a provisional block: s 19 STA
• Transfer of ownership of strata titles: s 19A STA
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5. Maintenance and Management of

4. Phased Development
Buildings and Common Property
• ‘Provisional block’: s 4 STA • w.e.f. 1/6/15 – Strata Management Act 2013 (SMA)
• Conditions for application involving provisional • Strata management legislation – pre SMA:
block/blocks: s 9A STA
• Before issuance of strata titles – BCPA 2007
• No dealing in provisional block: s 70(1) & (2) STA • After issuance of strata titles – STA
• Application for strata titles upon completion of building: Part • Repealed BCPA
IV (s 20 STA)
• JMB/JMC elected under the repealed BCPA shall be deemed to
• Failure to apply under s 20: s 20(9) STA have been established or elected under SMA and SMA shall
• Application for certificate of proposed strata plan: s 20A STA apply to such JMB/JMC
• Establishment of Strata Management Tribunal to replace Strata
• Application for subdivision of building, etc.: s 20B STA Titles Board
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Parties involved in Strata

Management
Players
Original proprietor
Developer
Proprietor / Parcel proprietor
Joint Management Body
Management Corporation
Subsidiary Management
Corporation
Building manager / agent
Regulatory bodies
Commissioner of Buildings (COB)
Land Administrator
Strata Management Tribunal
(replacing Strata Titles Board)
- Commissioner of Buildings (COB)
• s 4 SMA: Part II Administration of the Act –
Appointment of Commissioner of Buildings,
deputies and other officers
• COB shall have charge of the administration of this
SMA and may perform such duties as are imposed
and may exercise such powers as are conferred upon
him by this Act or any other written law.

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- Strata Management before MC is established
Management by developer before
joint management body is established
(Chapter 2 SMA ss 9-16)
Duties and powers of developer during
developer’s management period: s 9 SMA
• General duties: developer shall be
responsible to maintain and
manage properly any building or
land intended for subdivision into
parcels and the common
property: s 9(1) SMA
• Special duties: s 9(2) SMA and s
9(4) SMA
• Powers: s 9(3) SMA
Tay Eng Siang (FOL, MMU) (Tri 1, 2017/2018)
6. Parcels and Accessory Parcels
• s 4 STA: ‘parcel’, ‘land parcel’
• s 2 SMA: ‘parcel’
• Duty to maintain, repair and replace things which
form part of a parcel are the parcel proprietors’ sole
duty.
• parcels independently of the parcels
Tay Eng Siang (FOL, MMU) (Tri 1, 2017/2018)
Establishment of ‘joint management
body’ (‘JMB’) before the setting up of
management corporation: (Chapter 3
– ss 17- 28 SMA)
JBM shall be established upon the
convening of the first AGM of that JMB:
s 17(1) SMA; s 17(5) SMA
Body corporate having perpetual
succession an a common seal: s 17(2)
SMA
May sue ad be sued in its own name: s
17(3) SMA
s 17(4) SMA: Joint Management Body
(JMB) comprising of developer and
purchasers
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Miscellaneous provisions (Chapter 4 Part Transitional and saving provisions
IV, ss 29-36 SMA) due to the repealed of the
BCPA2007 (Chapter 5 Part IV, ss
37-45 SMA)
Duty of developer in respect of Charges for Reference to repealed Act and savings
building or land intended for subdivision into provision: s 37 SMA
parcels completed before commencement of Existing body and committee: s 38
this Act: s 29 SMA SMA
Register of parcel owners: s 30 SMA Existing accounts or funds: s 40 SMA
Right of parcel owner or prospective Incumbent Commissioner of
purchaser: s 31 SMA Buildings and other officers: s 41
By-laws for building or land intended for SMA
subdivision into parcels: s 32 SMA Existing notices, orders, etc.: s 42
Recovery of sum as a debt due to JMB: s 33 SMA
SMA Pending applications, etc: s 43 SMA
Procedure on recovery of sums due: s 34 SMA Pending appeals: s 44 SMA
Recovery of sums by attachment of moveable Existing regulations: s 45 SMA
property: s 35 SMA
Moneys not required for immediate use: s 36
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• s 4 STA: ‘accessory parcel’.
• ss 6(1) STA accessory parcel within or outside the
building
• Definition of ‘accessory parcel’ in s 4 & s 16 STA: no
strata title for accessory parcels.
• s 2 SMA: “accessory parcel”
•
• s 36 STA: ‘except in the case of an accessory parcel where
no share value shall be allotted’
• ss 34(2) & 69 STA: no dealing of rights in accessory
• s 79 STA: no adverse possession
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7. Common Property
• s 4 STA ‘common property’
• s 2 SMA ‘common property’
• s 2 SMA ‘limited common property’
• s 2 SMA ‘comprehensive resolution’
Tay Eng Siang (FOL, MMU) (Tri 1, 2017/2018) Week 12 & 13
- Limited Common Property &
Subsidiary Management Corporation
• New s 17A STA
• MC may designate limited common property and create 1 or more
subsidiary MC to represent the different interests of parcel
proprietors by way of comprehensive resolution
• “limited common property” – such part of the common
property designated for the exclusive benefit of the proprietors
of 2 or more parcels
• “comprehensive resolution” – a resolution which (i) is
considered at a MC general meeting (at least 30 days’ notice has
been given) and (ii) at the end of 60 days after the general
meeting is convened, the valid votes for the resolution is at least
2/3 of the aggregate share units.
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Cases on common property:
• Golden Connection Sdn. Bhd. v CSH Enterprise Sdn. Bhd.
[1995] 3 MLJ 731; [1995] 1 LNS 71
• I & P Inderawasih Sdn. Bhd. v Binariang Communications
Sdn. Bhd. [1998] 6 MLJ 667; [1998] 4 CLJ 705; aff ’d
[2000] 3 MLJ 321 CA; [2000] 3 CLJ 789 CA.
• Plaza Pekeliling Management Corporation v IGB
Corporation Berhad & Anor [2003] 1 LNS 210
• Lee Wah Bank Ltd v Chi Liung Holdings Sdn. Bhd. [1984]
2 MLJ 262 FC
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Administration of the Sub-MC
• A sub-MC shall elect a subsidiary management committee
• The sub-MC shall comprise all the parcel proprietors for
whose exclusive benefit the LCP is designated.
• The sub-MC may call and hold meetings and pass
resolutions in the same manner s MC.
• At least one member of the subsidiary management
committee shall be a member of the MC management
committee.
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- Duty for Maintaining & Repairing

- Duties and Powers of the Sub-MC
Pipes, Cables & Ducts
• Same powers and duties as the MC with respect to any matter that • s 59(3) SMA
relates solely to the LCP.
• Establish its own maintenance account and sinking fund account • By-law 3(2) Third Schedule to Strata Management
for the common expenses of its LCP.
(Maintenance and Management) Regulations 2015
• Sub-MC shall not enter into any contract or sue in the name of MC
and the MC shall have no liability for contracts made or debts or PU(A) 107/2015
legal costs incurred by the sub-MC.
• Can only obtain insurance against risks that are not insured by the
•
MC or for amounts in excess of amounts insured by the MC.
• Tsui Sai Cheong & Anor v MCST No 1186 (Loyang
• Subject to a payment of a fee not exceeding RM50, the MC or sub- Valley) & Ors [1996] 1 SLR 603
MC, shall issue a certificate certifying arrears f maintenance
charges/sinking fund arrears etc.
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- Common property maintenance - Ownership of common property

• Management corporation must manage and properly • ss 17(1) STA

maintain subdivided building and common property
• MC – proprietor of common property
keeping it in a state of good and serviceable repair: s
59(1)(a) SMA •
• Paragraph 3 Third Schedule, Strata Management • undivided share by each proprietor: s 36 STA
(Maintenance and Management) Regulations 2015
•
• ss 77, 85, 150(2), 59(2), 50(3) SMA
• Perbadanan Pengurusan Taman Bukit Jambul v Kerajaan
• sinking fund account monies: s 51(2) SMA Malaysia [2000] 1 MLJ 399; [2000] 5 CLJ 98
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- Transfer of common property 8. Management Corporation

• NO power to transfer any portion of common property which
form part of the building / land on which the building stands
• s 34(3) STA
• no share / rights in common property can be disposed of except as
appurtenant to the lot or parcel in question.
• • Management Corporation, typically its management committee
• Doreen Tan Ying Ying v Chong Tet On [1986] 1 MLJ 504; [1985] 1
LNS 93
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• Body corporate – s 17(3) & (4) STA (as amended 2013)
• Legal responsibilities & obligations and broad-ranging powers
• Enforce by-laws: s 59(1)(h) SMA
• Power to do all things ‘reasonably necessary’ for the
performance of its duties under SMA and the enforcement of
the by-laws: s 59(2)(j) SMA
(‘council’ under STA unamended) can take action in a court or
(now) before Strata Management Tribunal (replacing Strata
Titles Board). See also s 143 SMA
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Duties of MC
• Responsible for the maintenance and management of the common Specific duties and powers
properties.
• Imports the duties and powers of the MC as provided under the
unamended STA • Financial duties and powers: ss 59(1),(2), 60(3), 62(3),
• Consolidated formal lists of duties and powers: ss 59(1), 62, 70, 72 SMA 74, 80 SMA
• Specific powers: ss 59(2)(a)-(j), 60(3)(c), (4), (5), (6), 74(1), 77(3), 143 SMA • Financial duties of the management committee:
• Third Schedule to Strata Management (Maintenance and Management) Second Schedule to STA and SMA
Regulations 2015
• Keeping of Finance Data and Accounts Records
• Management corporations have a range of financial powers and
responsibilities and manage significant financial assets on behalf of • Owner Contributions – maintenance account and
owners skinning fund account
• s 77 SMA
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Recovery of debt Decision-making of a MC

• s 75(2) STA
• SMA retains the provisions of STA (unamended): s 102 SMA
• Power to recover as a debt owed: ss 77, 78 & 79 SMA
• Offences: s 78(3) SMA
• Management corporation can recover a debt due to the maintenance
and sinking fund accounts from owner’s successor-in-title to the
parcel: s 60(4) & 61(4) SMA
• Warrant of attachment of moveable property: s 79 SMA
• • show of hands and polls: paragraphs 21(1) & 22 Second Schedule SMA
• John Denis De Silva v Crescent Court Management Corporation [2006] 3 MLJ
631; [2006] 2 CLJ 605
• Ho Siew Choong v On-Kward Realty Sdn. Bhd. & Anor’s case [2000] 8 CLJ
175
• A management corporation makes a decision / passes a resolution
when its members vote at a general meeting.
• A management committee (previously council) shall perform the
management corporation’s duties and conduct its business on its
behalf: s 56(1) SMA
• SMA imports from STA (unamended) provision relating to voting
pattern
• Resolutions: ordinary, special, unanimous resolution and
comprehensive
• No provision in SMA for a management committee to delegate the
exercise of any of its powers or duties to one of its members.

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Strata Management Tribunal

• Replaces Strata Titles Board (repealed)
• Established under s 102 in Part IX of SMA
• Jurisdiction: s 105(1) and Part 1 of Fourth Schedule SMA –
RM250,000.00
• Duty: to assist the parties to negotiate an agreed settlement: s
112(1) SMA
• Parties eligible to file a complaint: owner, management
corporation, managing agent, purchaser. See the list in s 107(a)-
(h)
• Orders: s 117(3) and Part 2 of Fourth Schedule SMA

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