management of strata schemes

Phases in the Maintenance and Management of Buildings and

Common Property

04/11/2023 Ainul Jaria Maidin 1

Management of Strata Schemes

Introduction• High rise developments and gated communities (GACOS) comprises common

property which requires management and maintenance.

• Part VII of Strata Titles Act 1985 provides for legal and administrative framework for regulating maintenance and management of buildings and common property.

• in 2007, Building and Common Property (Maintenance and Management) Act 2007 (“Building and Common Property Act” or “Act 663”) was enacted to fill the gap within legal framework providing for maintenance and management of buildings and common property in a strata scheme.

• Strata Titles Act 1985 (Act 318) applies to buildings where a Management Corporation has already been established after issuance of individual strata titles.

• After April 12, 2007, Building and Common Property Act 2007 applied to buildings where Management Corporation has yet to be established by setting up a Joint Management Body.

Maintained by Developer

Maintained by Joint

Management Body

Maintained by Management Corporation

Entire period is Supervised and Overseen by Commissioner of Building

Delivery of vacant

possession

Within 12 months from VP

1st meeting of Management Corporation

JMB

Main body responsible for maintenance and management of building and common property during Interim

period.

Joint Management Body is established under Act 663

COBPresident

Dispute resolution

appoint managing agent (MA) to take

over duties of developer, JMB or MC

Receive complaints from property owner, developer, JMB,

MC



MANAGEMENT CORPORATION

Estb on opening of strata register to manage affairs of building & related issues

Body corporate estb under STA not governed by CA 1965 or SA 1966. can sue or be sued

Name of MC as on Strata register

MC has rights and obligations with respect to common property under Singapore Land Titles (Strata) Act and

any breaches or failure to perform any duties imposed by Act, would entitle it to bring and maintain an action

under Act against developers for damages. MC has powers vested by law – can implement and enforce powers

within the limits of law

RSP Architects Planners & Engineers v Ocean Front Pte Ltd and anor appeal [1996] 1 SLR 113, MC.

sued developers of the condominium for faulty construction of certain areas of

common property


Developer

MCPurchasers

No Cause of Action in contract benefit of relevant clauses in spa was intended to govern the relations btw developers and purchasersBut MC can maintain an action under torts


• In Body Corporate Strata Plan No 4304 v Albion Insurance Co Ltd [1982] VR 699, a person has a cause of action against MC for damage or injury arising out of its failure to maintain common property properly.

• In Black’s case, plaintiff obtained damages against the MC for injuries he suffered as a result of a fall from an external stairway forming part of the common property. His fall was caused by the defective condition of a handrail fitted to the stairway which was a concealed danger known to MC but not to him.


• MC shall elect a council which, subject to any restriction imposed or direction given by MC at a general meeting, perform MC’s duties and conduct MC’s business on its behalf, and may for that purpose exercise any of MC’s powers.

Council of MC

Duties & Powers of MCS.43 STA


duties to common property

Overallproperty

Pay rent Maintain strata register Comply with notices

Abate nuisance insure

Abate nuisance

manage


• In Proprietors of Strata Plan No 6522 v Furney [1976] 1 NSWLR 412, Needham J - power & duty of MC extended to such things as draught resistors and waterproof flashings in order to make the common property waterproof.

• Word “repair” in New South Wales Act 1973 s.68(1)(b) clearly included renewal and making good of that which was not initially sound.


• Holland J in Jacklin & Ors v Proprietors of Strata Plan No 2795 [1975] 1 NSWLR 15 -MC cannot abdicate or diminish its statutory responsibility for the administration & maintenance of any part of common property.

• Allen v Proprietors Strata Plan No 2110 [1970] 3 NSWR 339.


• However, where part of the common property has been granted by agreement to a parcel proprietor for his exclusive use and enjoyment thereof pursuant to by-law 3 of the Third Schedule, the MC may be relieved of its obligation to maintain and keep in a state of good and serviceable repair that part of the common property referred to above.

• Jacklin’s case - much would depend on the construction of the terms of the grant itself.

Powers of MC


• (a) to recover from parcel proprietor sums spent in respect of that proprietors parcel in complying with notices or orders

• (b) to purchase, hire or otherwise acquire movable property for use by parcel proprietors in connection with enjoyment of common property;

• (c) to borrow moneys required to perform its duties


• (d) to secure the repayment of moneys borrowed by it and the payment of interest thereon by negotiable instrument or by a charge of unpaid contributions to the management fund, (whether already levied or not) by a charge of any property vested in it or by a combination of any of those means;

• (e) to collect during the initial period by way of contributions from proprietors in proportion to the share units or provisional share units of their respective parcels or provisional blocks; and

Duties & powers of proprietor before establishment of MC

S.61 STA



• (1) During period before MC comes into existence, duties of original proprietor are—

• (a) to control, manage, administer, and keep the common property in good repair;

• (b) to pay rent of the lot; • (c) to insure the building to its replacement

value against fire and to keep it so insured; • (d) to effect such other insurance policies of

the buildings as may be required by law; • (e) subject to any court order, to apply

insurance moneys received by it in respect of damage to the building in rebuilding and reinstating the building, so far as it may be lawful to do so and to pay the premiums on any policy of insurance effected by it;

Strata Titles Board - s 67A STA


• Strata Titles Board consisting of a President & Deputy Presidents and other members will be established to hear disputes between MC & Proprietors, MC & other parties

Weaknesses of STA


• STA is a relatively short statute containing 85 sections, four schedules & forms.

• Inadequacies in STA at times, poses difficulty in interpretation of some of its provisions.

• Glaring example of such shortcomings would be the lack of provisions on regulating party walls.

• At times, professionals whose sphere of work is related to provisions of STA have to resort to self-improvisation.

PRE ESTABLISHMENT OF MC

• (MANAGEMENT)• To received the unit and common property according to

plan• Property Manager – only those register with the board –

allowed to collect professional (management) fees as stated in the Act (Valuer, Appraisers & Estate Agents Act 1981)

• SECURITY – rights to be protected – not a gate keeper• MANAGEMENT TRANSPARENCY – to know the account

as in Fifth Schedule in the HDA – and what happening in the premise.


• To use and access to the common property• To request the developer made good of all

defects• To have own privacy – ( noise )• To know the status of deposits for common

utilities• Rights to get the STRATA TITLE accordingly –

to know the status of the title application


JMB

• Before implementation of Building and• Common property (M & M) Act 2007 –

residents had no say in management• With implementation of BCP (M&M) Act 2007

(April 2007) residents allowed to participate in management – to form a Joint Management Body (JMB) with developer within 12 months from delivery of vacant possession through AGM convened by developer


Role of JMB

• Maintain the common property• Determine and impose charges• Insured the building (replacement value)• Comply with orders from local authorities• Ensure Maintenance fun in order• Enforce house rule• Collect maintenance and management charge• Recover any sum expended• Make and enforce house rule04/11/2023 Ainul Jaria Maidin 24

04/11/2023 Ainul Jaria Maidin 26MAY ALLAH BLESS ALL OF YOU WITH SUCCESS

management of strata schemes

Law