Enforcement the key

NST-PROP 25/05/2001 By Nicholas Mun

Legislation alone will not solve the problems of strata management. What is needed is a good follow through in the form of  strict and vigilant enforcement to ensure that the aims of the proposed Building and Common Property (Maintenance and Management) Act are achieved. Aside from this, strict enforcement on the applications and issuance of strata titles is needed. Also crucial is the attitude of parcel owners. After all, the proposed Act aims to give them more say in the management of the building until the strata titles are issued. The general lack of interest of parcel owners in participating in the management and maintenance of the building may be a stumbling block to the effectiveness of the legislation.

Proper enforcement will redress problems

The effectiveness of the proposed Building and Common Property (Maintenance and management) Act rests on its enforcement

The proposed Building and Common Property (Maintenance and Management) Act eagerly awaited by property developers and parcel owners alike will only be effective in addressing strata property management woes if it is properly enforced.

Real Estate and Housing Developers' Association (Rehda) president Datuk Eddy Chan Lok Loi said: "The concern is not whether the proposed Act can address management and maintenance problems What is crucial is the enforcement of the Act."

The proposed Act aims to address the problematic interim period between the issuance of the Certificate of Fitness for Occupation and strata titles. This period when the management of the building is still vested in the developer or a property management company it appoints is often marked by poor collection of service charges, allegations, of non-provision or provision of sub-standard services and maintenance and an inevitable deterioration of the building.

The proposed Act will make it compulsory for the formation of a Joint Management Committee comprising representatives of the developer and owners of strata units between the time the CFO is issued and the strata titles. This will give parcel owners a greater say in the management and maintenance of buildings they live in.

There will also be a mechanism for the resolution of disputes between the parties involved through the appointment of Building Commissioners to supervise buildings requiring strata titles. In addition, some punitive measures may await parcel owners who default in the payment of their charges.

The proposed Act is a good move on the part of the Government to address the problems in this area of the property industry, but its success or failure will be judged on how well it is enforced. Some have voiced concern on whether the proposed Act will be as effective as its Singapore equivalent.

Chen said whether the act would be as comprehensive as its Singapore equivalent is irrelevant. He added that the Singapore experience is instructive due to strict enforcement of the legislature there.

Chen said if properly enforced, stratified property owners could look forward to greater participation and transparency in the management and maintenance of their buildings pending the issuance of strata titles and formation of the management corporation.

The issue of enforcement aside, the lack of interest of parcel owners can be a stumbling block to its success.

Persatuan Pengurusan Kompleks (PPK) Malaysia president Richard Chan Chee Keong said; "Parcel owners' lack of interest and poor response is common even in commercial strata properties."

"The problem is very apparent where strata units have been sold as opposed to them being retained by the developer for rental. Often, only 10 per cent of the owners attend the meetings and even fewer are willing to take part in the building's management and maintenance," he added.

House Buyers' Association secretary-general Chang Kim Loong said although the proposed Act would "plug the gap" that exists between the issuance of the CFO and strata titles, it is only "a good interim measure."

"Ultimately, what is of utmost importance is that applications and issuance of the strata titles are expedited."

Chang said if this is done, the proposed Act will by and large be unnecessary.