‘LET THERE BE LIGHT’ – STRATA MANAGEMENT ACT (Part 2)

The SMA though has received its Royal Assent on 5.2.2013 and gazetted on 8.2.2013 was inordinately delayed because of the governing Strata Management (M&M) Regulations as well as a host of other crossed referred laws in the Housing Development (Control & Licensing) Act, 1966 (amended 2012) its HD Regulations (amended 2015) and the new statutory Sale & Purchase Agreements. It finally was implemented by the Minister of Housing and thus came into operation on 1.6.2015.

Down Memory Lane - Ministers Credit

HBA would like to firstly thank Tan Sri Ong Ka Ting, the then Minister of Housing & Local Government for having the courage to first tabled Act 663 that gives ‘Power back to the hands of the Owners’ in the year 2007. The previous Act instilled on the Developers the mindset and recognized the rights, benefits and entitlement of the strata owners upon delivery of vacant possession. The Developers’ duty is to sell property whilst that of the owners is in forming community. The said Act 663 has worked ‘with some teething problems’ for the past eight (8) years. There were a lot of uncertainties and ambiguities. But it has since outlived its usefulness.

When Tan Sri Chor Chee Heung helmed the Housing Ministry portfolio he boldly took a notch higher in the succeeding years to table the current wholesome legislation named the STRATA MANAGEMENT BILL, in Parliament on 19.12.2012. Congratulations, to the immediate past Minister and his team at the Ministry of Housing & Local Government who have worked through unequaled weekends with the numerous stakeholders (including HBA’s volunteers) in the related industry: tweeted and tuned both the M & M aspects in the Strata Titles Act, 1985 (Act 318) and the related Housing Development legislation. Hence, the birth of the Strata Management Act (SMA). Equally important is his counterpart Minister at the Ministry of Natural Resources and Environment, YB Dato Sri Douglas Uggah Embas who had also simultaneously tabled his law ie Strata Titles Act,1985 (amendment 2012) at the previous sitting in Parliament to make the SMA a reality.

Credit too must be accorded to the current Housing Minister, YB Dato Abdul Rahman Dahlan for implementing the SMA whereupon his Ministry has assumed the task of being the caretaker of M & M as well as following-up on the past efforts of his Ministry. We were afraid that he may do another ‘U-Turn’ as what happened to our (HBA) long-drawn proposal in the mandatory implementation of the Built Then Sell 10:90 (BTS 10:90) concept in the housing industry.

(PS: We are however, dismayed that the word ‘registered property manager’ was removed from the SMA legislation which invariably opens the flood gates to unregistered property managers. This is another topic that I have written on numerous occasions)

Three-fold Legal Relationship

A person who purchases a unit in a strata development enters into a three-fold legal relationship; firstly, he is the individual owner of his unit; secondly, he is a co-owner with all other owners of the common property and the land of the strata development, and thirdly, he is automatically a member of the owners’ body to whom the management and maintenance of the scheme is entrusted. Harmony can only be achieved if the strata development is managed properly, the common property and facilities maintained adequately and regularly. The proper maintenance, efficient management and ultimately the success of the strata development will depend on a steady flow of payments to the coffers of the common fund of the owners’ body. Repeated failure to contribute to common expenses may hinder timely maintenance and efficient management and ultimately wreck the whole strata development scheme. Firstly, every strata property purchaser or owner should read and be conversant with the newly minted SMA and its related Regulations to understand his duties, obligations and responsibilities as an individual owner. Secondly, he should be aware that he is a co-owner of the common property of the strata development and thirdly that he is a member of the owners’ body formed.

Enforcement

We have repeatedly stated that Laws are only as effective as the degree of enforcement. This had been the bane of the whole situation. Wayward developers, JMBs. MCs and managing agents well know that the chances of them getting away with their wayward deeds are extremely good. Thus, ENFORCEMENT is the key to more protection. Our fundamental belief is that even the best of legislation to counter a particular situation would just remain as ornamental pieces unless strict enforcements are carried out against offenders, without fear or favour.

Our comments aforesaid are supplementary to our stand that no amount of law will be able to eliminate or solve the problems unless they are strictly enforced. As the saying goes, ‘THE LAW IS ONLY AS GOOD AS ITS’ ENFORCEMENT’.

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