About the strata
in NST-PROP A Buyer Watch Article by National House Buyers Association
One of the eye-opening amendments to our Strata Titles Act,
1985 is the formation of the Strata Titles Board as spelt out under part IX-A
and which came into being on Dec 1, 2001.
For the benefit of those who want to know how much power it wields, we dedicate
Who are “parcel owners” and what is a “management corporation”?
Before moving any further, we have to define these two terms, which are commonly
used when it comes to stratified properties.
A “parcel owner” is an owner of an individual unit contained within a sub-divided
building, which is held under separate strata title.
A “management corporation” or MC, meanwhile, is an outfit established under
Sections 39, 64 and 64A of the Act.
Jurisdiction of the Board
The Strata Titles Board has a wide range of powers and has the authority to
make the following orders:
1. Revoking amendment of by-law
The Board can order the revocation of an amendment to the by-law, the revocation
of a new additional by-law or even the revival of a revoked additional by-law.
2. Invalidating purported by-law
If any parcel owner who is entitled to vote in a meeting of an MC finds that
the MC does not have the power to create a new by-law, and if the Board concurs,
it has the authority to invalidate that new law.
3. Power to invalidate proceedings
In the event any of the provisions of the Strata Titles Act is not complied
with in relation to a meeting of the MC, the Board can either legalise or invalidate
any resolution made at the meeting.
4. Varying certain rates of interest
If the Board thinks that an MC has imposed an unreasonable rate on the interest
payable for late payment of a contribution, the Board can order that no interest
be payable, or stipulate its own determined rate.
5. Resolving denied voting rights
Acting upon a complaint by a parcel owner, and if the Board is satisfied that
a particular resolution would not have been passed at a general meeting of an
MC if the complainant:
a) was improperly denied a vote on the motion for the resolution;
b) was not given due notice of an item of business pursuant
to which the resolution was passed,
then the Board can invalidate the resolution from the date of the order. This
is provided that the complainant lodges his protest within 21 days from the
date of the MC meeting.
6. Varying amount of insurance to be provided
The Board has the power to vary the amount for which the MC has insured the
sub-divided building if it is considered not reasonable.
7. Settling dispute on aspects such as cost of repairs
The Board can settle or rectify a dispute involving defects in:
a) a parcel (such as a particular unit);
b) the sub-divided building; or
c) the common properties.
It also has the right to determine the liability of a parcel
proprietor for the cost of work carried out by the MC in the performance of
its power, duties or functions conferred or imposed by law.
8. Making or pursuing insurance claim
The Board can order the MC to pursue an insurance claim in respect of damage
to the building or any other property insured by the MC.
9. Supplying information
Following an application by a parcel owner, the Board can order an MC, the managing
agent or any member of the council to make available any information to a parcel
owner which has been wrongfully withheld.
10. Giving certain consent affecting common property
If an MC unreasonably refuses to give its consent to a proposal by a parcel
owner to effect alteration to part of the common property, the Board can order
that this consent be granted.
11. General provision
Orders may include such ancillary or consequential provisions as the Board thinks
12. Doing or refraining from doing a specified act
For the purpose of securing compliance, the Board can order an MC, the managing
agent, any member of the council or even a person with interest in a parcel
to either do or refrain from doing a specified act in the building or the common
All proceedings before the Board are opened to the public.
Penalty for contravention
A person who contravenes an order made by the Board is guilty of an offence,
and can be liable on conviction to a fine not exceeding RM10,000, to imprisonment
for a term not exceeding two years, or both.
Strata unit owners are advised to read the Strata Titles Act to get acquainted
with the rules and by-laws governing sub-divided buildings.