Bill on condo services with A-G, says Ka Ting

The Star 25/02/2000

Kuala Lumpur: The proposed Bill which would allow for the setting up of a joint committee comprising buyers and developers to oversee the maintenance and management of condominium services is currently at the Attorney-General's Chambers.

Housing and Local Government Minister Datuk Ong Ka Ting added that the Building and Common Property: Management and Maintenance Bill would cover the transitional period between vacant possession and the issuance of strata titles.

"Under the law, once the strata titles have been issued, the developer has to establish a management corporation to see to building maintenance and services.

"But sometimes, the period between vacant possession and the issuance of titles can take a very long time, and it is in this instance when many problems arise," he told reporters at the Parliament lobby here yesterday.

Earlier in the Dewan, Ong told Lee Kah Choon (BN- Jelutong) that many developers had, under a separate deed, a sinking fund which buyers had to pay into in order to ensure continuing services during the transitional period.

"Although the sinking fund is not provided for under any legal provision, it is the responsibility of the developers to continue providing these services until the strata titles are obtained.

"But sometimes, there is no mutual trust as there is currently no clear indication over whose exact responsibility it is. Buyers and developers will then start accusing each other of not fulfilling their obligations and not honouring the deed.

"This is a matter which could drag on for years," he said.

For instance, Ong said some buyers would refuse to pay until all services promised were provided.

"At the same time, developers refrain from furnishing such services until all the buyers have paid up. It is a chicken and egg situation," he said.