The Strata Management Act 2013 has a built-in protection mechanism for strata unit owners – the key is to ensure that owners make it a point to participate in the decision-making with regards to any service charges or maintenance fees of the development as soon as possible.
Under normal circumstances, the developer has 1 year from the delivery of the first strata unit to purchaser to set up a JMB. The JMB consists of both strata unit owners and the developer (no strata title yet). Once strata titles have been issued, and 25% share units have been transferred to the owners, an MC (owners only) can then be formed. Once the MC is formed, the owners can then decide on the level of property maintenance and management they want and the fee they are willing to pay for them.
A book of strata register would have been opened during the JMB period. The only thing preventing the formation of an MC is the requirement that at least 25% of the aggregate share units be transferred to the owners. The problem is that there could be many owners who are unwilling to pay the stamp duty in the Memorandum of Transfer in order to obtain their strata title and hence the requirement to have a minimum of 25% of the aggregate share units transferred may not be achieved.
- EdgeProp.my
