"If I complain, I'll have to pay more"
11/08/2002
By Tay It Tuan, Director Asset Services, CB Richard Ellis
Source: http://www.cbre.com.sg/marketwatch/features_110800.html
Where to go and why…
Many years ago, while visiting a friend living in a private apartment, I
noticed water dripping from the ceiling of the lift lobby. To prevent
water puddles from forming, someone had placed a small tin to catch the
drippings. Two weeks later, when I visited my friend again, the water
seepage was even more serious. Now, instead of placing a tin to catch the
water droplets, a pail was placed below the wet spots on the ceiling.
Being in the property management profession, I could not resist asking my
friend why he had not asked the management to resolve the water seepage
problem. His answer: "What for? If I complain more, I'll have to pay
more".
A logical answer! But in today's context, this is not how some of us will
react when put in a similar situation. As condominium living gains
popularity in Singapore, more people are now increasingly aware of the
Land Titles (Strata) Act governing management corporations. Unlike in the
past, joint-owners (subsidiary proprietors) of condominiums today know
more of their rights and the application of the Act.
The concept of condominium management is not entirely new. It was first
introduced in Singapore through the passing of the Land Titles (Strata)
Act (the Act) in 1967 after it was successfully practised in New South
Wales, Australia. With a condominium concept, a residential building can
be subdivided into many units or lots. Each of the lots will have a
separate legal title, which will enable the lots to be disposed off more
easily.
The Act also provides that all the subsidiary proprietors in the
condominium form a corporate body known as the Management Corporation
(MC). The MC has a legal identity and can therefore sue and be sued in its
own name. It is responsible for the control, management, and
administration of the shared facilities and the common property of the
condominium.
Within the MC there is a management council consisting of elected
subsidiary proprietors. The council is responsible for the actual running
of the condominium. The MC at its Annual General Meeting may appoint a
managing agent to assist the council to administer the day -to -day
activities of the estate.
The source of power for regulating the control, management, use and
enjoyment of the lot, and common property is in the by-laws. By-laws are
derived from two sources: those that are contained in the First Schedule
of the Act and those made by the MC.
In the First Schedule some of the by-laws concern noise interference,
obstruction of lawful use of property, and behaviour of subsidiary
proprietors and occupiers. To supplement the by-laws in the First
Schedule, the MC is empowered to make its own by-laws. However the by-laws
made by the MC must not be inconsistent with those in the First Schedule
and must fall within the Act; otherwise the by-laws will not be valid.
Hence whenever some subsidiary proprietors, who are conversant with the
Act, notice a fault or a misconduct of their condominium's affairs, they
may not hesitate to complain. In some cases they may expect an instant
answer and a quick solution to the issues they raise. This results in the
role of managing a condominium being one that is an endless task of
handling various complaints, including those that are unreasonable or
trivial.
For this reason not many subsidiary proprietors are willing to volunteer
themselves as council members to administer the affairs of the management
corporation. Like a company that is managed by its board of directors, a
management corporation needs a council to administer the estate on a
day-to-day basis for the benefit of all the subsidiary proprietors.
An efficient management corporation will depend to some extent on the
personality, and business acumen of the chairman, its office bearers and
members. Self-confidence, fair-mindedness and the ability to arrive at the
correct decision at the spur of the moment are some of the necessary
qualities required of council members to handle conflicts.
It is important for us to realise that in a condominium, with many people
living and sharing the resort-like facilities, a host of problems may
arise when the people bring along with them their own standards, cultural
experience, expectations and their own definition of " fair play". Thus
its only natural that communal living inevitably gives rise to complaints
and disputes.
Although there is no duty on the part of council members to intervene, it
is quite common for council members to try to resolve the differences
between the parties. In many cases the task of resolving the conflicts is
time consuming and difficult. And in extreme instances, the aggrieved
parties may wish to take their case to the Strata Titles Board.
The Strata Title Board was established in 1988 to ensure that the
subsidiary proprietors are protected fairly in disputes arising from the
use and occupation of lots in subdivided buildings such as the
condominium. The Board acts in a quasi-judicial capacity to resolve these
disputes. The establishment of the Board has also enabled cases to be
resolved more expeditiously.
From the records of the applications to the Strata Titles Board, most of
the disputes were found to be mainly in respect of defects in individual
units, which resulted from water leakage or dampness from an upper unit
penetrating to a lower unit. In some of these cases the Board required
that the owners of the upper units remedy the defects. In other cases the
responsibility to remedy the defects were shared in some manner.
While complaints and disputes usually stem from defects, there are also
other reasons that may give rise to conflicts. For example, a complaint
may arise when a council member who does not perform his fiduciary duties
and his personal interests are subservient to those of the council and the
management corporation.
Lately there is also a concern that the present Act needs to be revised to
make it relevant to our present day conditions. For example the Act does
not have a provision for a council member to declare that he is an
undischarged bankrupt. Today an undischarged bankrupt can hold office,
manage funds and perform fiduciary duties. It has been suggested that the
Act be amended to prevent him from holding office.
With rapid changes in our economy and in technology, our life lifestyles
have been inevitably affected. We have come to expect a higher standard
when living in a condominium. But the success of managing the MC depends
very much on the involvement and the participation of the subsidiary
proprietors. It also requires a certain amount of "give and take" attitude
to help smoothen any frictions between them.
However, the attitude of a few subsidiary proprietors today is different.
Unlike the past, if the present subsidiary proprietors were put in the
same situation of water leakage, they might stand up for their rights and
complain. And if we were to ask them for their reason, they would probably
reply, "If we complain more, we'll get more - better services."
So the question now is, "Will this be our attitude axiom for better
services?" |
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