Bill proposes higher fines on
maintenance-fee defaulters
The Star 11/04/2001 By Lim Ai Lee
PENANG: Owners
of flats and other high-rise units who fail to pay maintenance fees to the management corporations involved may be fined up to
RM5,000 under proposed amendments to the Strata Titles Act.
Offenders
convicted in court also face a further daily fine of RM50 as long as the maintenance fee remains unpaid.
A new clause
under Section 55A of the proposed Act states that "failure to pay contributions is an offence.''
Copies of the
Bill to be tabled in the current Parliamentary sitting have been distributed to MPs.
Another clause
seeks to increase the fine imposed on developers whose application for subdivision of their buildings is not made within the
specified period.
Offenders may
be liable to a fine of between RM10,000 and RM100,000 and a daily fine of between RM100 and RM1,000 if the offence continues.
Currently, the
fine does not exceed RM5,000 while the daily fine is not more than RM1,000.
A spokesman
for a property management firm here welcomed the penalty as it would encourage more people to settle their charges.
He said that
fee collection was a major problem, adding that the average collection rate was between 50% and 70%.
"In some
cases, the collection rate is only 30% which is not even sufficient to cover maintenance costs,'' he said, adding that those who
defaulted included foreign owners and low-cost buyers.
Penang DAP
treasurer Phee Boon Poh said the amendments could have far-reaching implications on housebuyers and should be reviewed together
with the Housing Developers Act.
He cited a
case in Penang where purchasers of a flat project were asked to pay maintenance charges following the handing over of vacant
possession 10 years ago although the project had not received a Certificate of Fitness.
"Under such
circumstances, it is unfair to compel housebuyers to pay charges when the buildings are not fit for occupation,'' he said, adding
that there should be a provision that contributions should be imposed only after a project was issued with a Certificate of
Fitness.
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