Strata title in the air? Just pay the quit rent

The Sun 02/03/2003

Penang: The Land and Cooperative Development Ministry has come up with a brilliant way to resolve the non-issuance of strata titles to owners of high rise units - charge them quit rent!

In a typical cut-and-paste problem solving approach, the ministry will propose the amendments to the National Land Code 1965 and Strata Title Ownership Act 1985 b December; to make it compulsory for owners of units and premises in multi-storey buildings to pay quit rent.

The ministry's deputy minister, Dr Tan Kee Kwong said that at present, the quit rent for units in such buildings was paid by the building management firm or the project developer.

"The amendments are necessary as many project developers and building management corporations have failed to settle the quit rent and this had delayed the issuance of strata titles," he said after attending a meeting on strata title ownership issues here.

Tan said the proposed amendments would be tabled at the National Land Code Council meeting to be chaired by Acting Prime Minister Datuk Seri Abdullah Ahmad Badawi, at the end of this year.

Tan said  his ministry was getting feedback from the Housebuyers Association and the Architects Association of Malaysia (PAM) on the proposed amendments.

He said the ministry's Legal Adviser was also studying appropriate provisions that would be included in the amendments to both Acts.

Tan said that there were developers who had yet to settle survey fees claiming that they did not have enough money, even though the projects has been completed and issued with Certificate of Fitness for Occupation (CFO). He said the amendments would enable the government to make it compulsory for developers to pay the survey fees before the CFOs were issued.