Use your rights to make things better

Once you buy a strata property, the value of your property is unwittingly bound to the overall management of the whole development. Naturally, a building that enjoys a high level of security, looks aesthetically pleasing and has minimal disruptions to daily living will enjoy a higher capital appreciation.

Most owners are content to let a fervent few run the management. If it is excellently-managed, good for you. However, if there are areas that need improvement, as a co-owner, you have every right to make sure your property is up to standard. By not exercising your rights as a proprietor, your comfort and the investment value of your property could be compromised.

Rights to be heard

You may not be able to join the Joint Management Body (JMB) or Management Corporation (MC), but you can have a say in the decision-making process of the management by voicing your concerns, grievances and suggestions, and have them effected through an annual general meeting (AGM) or an extraordinary general meeting (EGM).

The National House Buyers Association (HBA) honorary secretary-general, Chang Kim Loong, points out that for strata owners, be they residential, commercial or mixed, the Strata Management Act 2013 (SMA) has quite clearly delineated how he or she can use his or her right to vote, either in person or by proxy in a general meeting (GM).

Here, he elaborates on some of the provisions stipulated in the SMA.

1 Many proprietors, in their protest against bad management, have stopped making payments for service charges. However, that is the last thing you should do, because that effectively cancels out your rights to participate in the GM. Make sure your payment of all maintenance fees and sinking fund are up-to-date. Even if you have been paying regularly and have arrears for only a small sum, you will still have no right to vote or be voted into office during the GM. However, you may still be allowed to voice your opinions, provided the chairman allows it.

2 If you have paid without fail, you have every right to know how much money has been collected and how every sen has been spent. If you think the accounts are unclear or certain expenditures are unnecessary, you can raise your concerns. You can also make proposals for how to utilise the funds for improvement, such as repainting.

3 Most managements do not arbitrarily raise their maintenance charges because, naturally, that will invite tons of protests, unless the increase is justified. If the resolution to the raise is passed and you still do not agree to it, you can apply for a review of the funds to the Commissioner of Buildings (COB). The contacts can be obtained online. In Kuala Lumpur, for instance, the KL Municipal Council has its team to attend to complaints from owners under eight zones according to location.

4 As best as you can, you should make time to attend GMs. However, if you really can’t make it, don’t simply forgo your rights without making an effort to find a proxy. You may appoint anyone who is 18 and above to represent you by filling up the prescribed proxy form. Make sure the form is submitted not later than 48 hours before the GM, or it will be invalid.

5 Most people appoint their fellow residents to be their proxies, but one person can be a proxy to only one other owner, besides his own. The next best candidate for proxies would be the joint owners of other units, because one parcel is entitled to only one vote regardless of the number of joint owners. Alternatively, the SMA does allow non-residents to act as proxies. However, it is best to get someone who is knowledgeable and experienced and can contribute effectively and constructively in the GMs.

6 For joint owners, even if they have not been appointed as proxies, they can still participate in the GMs, unless the number is extraordinarily large, in which case the chairman may restrict the numbers attending the meeting for possible reasons such as over-domination or disturbance.

7 A proxy holder can participate in the GM with full voting rights but cannot be elected as office bearer. Only a proxy who is an official representative of a unit owned by an organisation can hold office.

Rights for claims

If the management acted wrongly in any way, or contravened any regulations, you could seek legal redress at the Strata Management Tribunal (SMT). The SMT is in fact one of the most significant privileges for strata owners under the SMA.

Former Minister of Urban Wellbeing, Housing and Local Government Datuk Rahman Dahlan had said the SMT provides a proper avenue for aggrieved parties to channel any issues related to strata management such as leakage, defects in common property, recovery of charges, maintenance fee defaults and other disputes.

He said the SMT should be seen as an alternative platform that is simple, affordable and quick in solving problems and addressing complaints, whereby stakeholders no longer have to go through the court process, which is often tedious and costly.

President of the SMT Roger Tan adds that currently, the tribunal can hear and determine any claims that do not exceed RM250,000. You can also file a claim if you disagree with the costs of repairs in the common property of strata parcels. If you suspect any misuse of funds, you can file a claim to compel a developer, JMB or MC to supply the required information or documents for verification.

Failure to comply with an award made by the tribunal is a criminal offence, and upon conviction, the offender can be fined up to RM250,000 or jailed for not more than three years, or both. He or she can also be further fined up to RM5,000 per day after conviction until full settlement.

Rights to peaceful enjoyment

Within a community, there are bound to be some occupants who encroach on the rights of other inhabitants from peaceful enjoyment of the premises. A typical example is discarding cigarette butts from their balconies, which often land on other units. Another common disregard of house rule is excessive noise past midnight.

If repeated reminders are ignored, managing partner of Chur Associates, Chris Tan points out that the Strata Management Regulations 2015 (SMR) does spell out actions that can be taken against residents who breach resolutions and by-laws.

First, they can be fined. The amount for different offences can be determined in the GM. If the resident fails to pay the said penalty, the JMB/MC may recover the outstanding sum by either filing a claim in court or in the SMT.

If this fails, the JMB/MC may apply to the COB to have the transgressor’s moveable properties, such as furniture, electrical items, or fittings, auctioned off. Section 79(11) of SMA stipulates that the proceeds from the sale shall be used to pay the penalty plus the cost of the recovery process. Any surplus and property not sold shall be returned to the owner.

Should the above actions be insufficient, amendments or additional by-laws can be passed in the GM via special resolutions, so long as they do not contravene with any written laws and statutory by-laws.

It is crucial to have a clear picture of your rights so that you can duly utilise it, not just to ensure your personal shelter is safe and sound, but also to contribute to an overall better-managed property which in turn creates value through its good upkeep and maintenance.

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This story first appeared in TheEdgeProperty.com pullout on June 9, 2017. Download TheEdgeProperty.com pullout here for free.