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Is condominium living for
you?
01/06/2003 Published in Malaysian Business - Housing & Property By National House
Buyers Association of Malaysia
Questions to ask if
you're thinking of buying a condo
People buy
condominiums for a myriad of reasons.
Many condominiums have security services
and amenities.
If you are thinking
about buying a condominium unit to live
in, here are some questions to consider:
1) Are you a good neighbour?
Condominium residents share walls,
floors/ceilings, hallways, entrances and
parking areas with their neighbors.
Respect for other people's right to the
quiet enjoyment of their homes is part
of the arrangement. Your neighbours will
appreciate (and hopefully reciprocate)
your efforts to turn down the volume,
walk softly, close your doors quietly
and limit your vacuuming to reasonable
hours.
2) Are you willing to follow the
community's rules?
In every community, small or big, rules
and regulations are required for
everyone's benefit. Condominium owners
are bound by the covenants, by-laws and
all other conditions and rules as set by
the original proprietor or the
Management Corporation (MC). These
various covenants cover everything from
special assessments and the election of
the association's officers to the
allocation of parking spaces and the use
of recreational facilities. Owners who
fail to follow the rules can be fined,
and complaints with the relevant
authorities for seizure of an owner's
property can be made if the fines or
assessments are not paid. I
4) Are you comfortable with joint
financial responsibility?
The management and maintenance of a
condominium depends on the contribution
from all owners through monthly payments
of maintenance charges and regular
contributions in the building fund and
other payments. Delinquent payments will
cause disruption to the management and,
in the long run, affect the overall look
of the condominium. You should feel
comfortable about paying your
maintenance charges for as long as you
are the owner of the unit.
Condominium owners, must also come to an
agreement (by consensus or vote) on a
variety of maintenance and repair
matters. Should an older roof,
unreliable security gate or re-painting
be replaced or considered this year or
next year? Should a special assessment
be collected for an emergency repair or
extra service? How much money should be
spent on landscaping? How many guards
are needed?
5) Are you prepared to volunteer your
time for association business?
Owners of a condo are all automatically
members of the MC, formed under the
Strata Titles Act, 1985. It is also
possible for a temporary committee to be
formed before individual strata titles
are issued. The MC's office bearers are
made up of volunteer owners. True, some
condominium owners never volunteer.
However, your lack of participation will
be noticed by your neighbors,
particularly in a smaller building.
Being part of the community means you
should take your turn at serving on the
board of directors, joining a special
committee, getting estimates for repairs
or taking responsibility for other tasks
that benefit the group as a whole. If
you're willing to pitch in, you'll earn
the gratitude and respect of your fellow
owners.
Ultimately, the decision about whether
or not a condo living is right for you
all comes down to your individual
preferences and tolerance levels.
THINGS YOU SHOULD KNOW
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Consider the total monthly cost of ownership, rather than the price of the condo unit. In addition to mortgage payments, condominium owners are responsible for quit rent, assessment tax, insurance, monthly maintenance charges, building fund, additional car-park rentals etc.
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One attraction of living in a condo is the 24-hour security. However, with people living in close quarters, there are trade-offs. There is also a degree of uncertainty about who your neighbours are as condo residents tend to be more mobile than landed property owners. Condo values tend to depend very much on the management services and problems will arise if they are not managed well.
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For the purchase of a condo unit, the laws governing the sale and purchase agreement is under Schedule H – Buildings intended for sub-division under the Housing Development (Control & Licensing) Act. Strata Titles Act, 1985 covers everything regarding strata titles including the formation of a Management Corporation and the duties of developers and condo owners.
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If a condominium is still under developer control (which means individual strata titles have not been issued), the governing documents and rules that unit owners, their tenants, guests are to obey are decided by the Developer from the SPA date. These governing documents and rules go by different names depending on the developer. Examples include “Deed of Mutual Covenant”, “bylaws”, “the rules and regulations” or “house rules”.
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