Press Release: 19th December, 2001
Reference is made to the article titled
“Buyers refusing to accept strata titles” which appeared in “The Star” newspaper
on Monday, 10.12.2001.
We commend the Deputy Minister of Land and
Co-operative Development, YB Dr Tan Kee Kwong for recently reviving the joint
committee (on high rise buildings) set up by both his ministry and Ministry
of Housing and Local Government some five (5) years ago. Even though it is
long overdue yet it is still refreshing to note the comment by Tan Sri Dr
Koh Tsu Koon and the pro active attitude when he quoted “It is time that both
ministries work closely on this issue and I am sure the Committee will be
effective if the ministries can get their act together”.
HBA would like to advise house buyers that
it is in their own interests that they should get, keep and preserve the strata
title as ultimate proof of ownership of their property. If in the future,
should they decide to sell the property, the strata title is an instrument
to enable the transfer of the property to the new owner. It is also a dealing
instrument for instances of charging to Bank for loans. When strata titles
are available, house buyers need not obtain the consent of the Developer who
imposes the so called “administrative charges” of between 1 % - 2% being their
consent fees.
With possession of strata titles, residents
of flat, apartment, condominium and high rise buildings can form a management
corporation to run the management and maintenance services of their property,
a privilege which is denied now under the law (unless strata titles are obtained).
It is most advantage for residents to manage
the property themselves or dictate the standard of living they want. They
can hire professional property managers to do so. With issuance of the strata
title and the formation of their own management corporation one can then reflect
transparency and accountability which are now lacking from many Developers
and/or their appointed managing agents.
With strata titles transferred into the
house buyers name as owners, the house buyers would not fear in the event
their Developer go under liquidation or insolvency.
Refusal to take the strata title is a retrogressive
step and is in advisable. There may be several factors that attributed to
the house owners refusing to accept the strata title.
-
Disputes over the standard of management
against the maintenance charges the Developer have been levying;
-
Non-payment of late delivery compensation
by the Developer to the house owner and the frustration the house owners
have to endure;
-
shoddy workmanship and deviation from the
built up plans not in according to the Sale and Purchase Agreement;
-
Developer not providing transparency and
accountability of the service charges and sinking funds;
-
Developer practically arm twist house owners
to pay “all outstanding charges” (though disputed) as a last effort to collect
their charges in consideration of signing the Transfer of the strata title
to the house owners;
-
Defect liabilities versus maintenance;
-
“Chicken and egg” situation – to pay the
outstanding charges first or transfer the strata title first;
-
common facilities not available despite covenanted
in the Sale and Purchase Agreement and the Deed of Mutual Covenants.
The Ministry of Land should continue to
conduct regular workshop to educate house owners on the importance of having
strata title to their property and the essence of running their own apartment.
They should conduct courses/lectures on the formation of Management Corporation
(“MC”), duties and powers of MC. They should also stress the need for strata
title to reflect the purpose for which the Strata Title Act 1985 was formulated.
HBA are willing to work with both the Ministries
to make the purpose of having strata titles more effectual.
Chang Kim Loong
Secretary General, HBA
