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Strata titles: Developers have the upper hand
NST 28/06/2004

KUALA LUMPUR, Sun. - More enforcement officers and civil servants trained in strata title matters are needed as shortcomings in the system play into the hands of developers.

Land and Mines Department director (strata titles section) Dr Azimuddin Bahari said many developers did not even bother to apply for them. An estimated 196,000 home-owners nationwide are still waiting for their strata titles.

Developers benefit by delaying strata-title issuance as they are allowed to demand payments for maintenance, sinking funds and repair fees. These services can only be undertaken by residents' committees through management corporations once individual strata titles have been issued.

Azimuddin said insufficient manpower in enforcement and prosecution had been cited as contributory factors, but the lack of commitment among developers was the single biggest obstacle.

Owners of stratified building units accuse errant developers of charging fees over which owners have little say, while developers blame land offices for not efficiently processing strata title applications.

Without strata titles, developers can include provisions not provided for in the sale and purchase agreements.

House Buyers Association statistics show that last year 33,722 owners in 187 projects had lodged complaints, of which 28 per cent concerned the non-issuance of strata titles, and 19 per cent arose from disputes involving the management and maintenance of the buildings.

Azimuddin said although the Strata Title Act was comprehensive, it was not effectively enforced because of the lack of officers and trained staff.

"The Act specifies actions to be taken in the event of discrepancies but, unfortunately, enforcement is not solid enough."

It was recently reported that only Penang had established a Strata Title Board to tackle problems faced by owners.

The board's investigation of complaints has resulted in two developers convicted of offences under the Act. Eight cases are pending in court.

In the Federal Territory, several cases are pending with the Attorney-General's Chambers.

Azimuddin said strata titles fell under the purview of the Housing and Local Government Ministry, while his department was under the Natural Resources and Environment Ministry.

A committee involving senior officials of both ministries had met on the issue and was trying to resolve problems.

"Both ministries are drafting an amendment to the Strata Title Act to consider old buildings as special buildings and issue strata titles for them without Certificates of Fitness."

 

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