CHAPTER 3

STATUTORY PROVISION
CONCERNING PROPERTY
MANAGEMENT

Sr Noraini Johari, MRISM; Sr Huraizah Arshad, MRISM; Dr Ashrof

Zainuddin ABEng.
Department of Estate Management
Faculty of Architecture Planning & Surveying
UiTM PERAK
 VALUERS, APPRAISERS, ESTATE AGENTS AND
PROPERTY MANAGERS ACT 1981
 STRATA MANAGEMENT ACT 2013 (ACT 757)
 STRATA TITLES ACT 1985 (Act 318)
 STRATA TITLES (Amendment) ACT 2013
 MALAYSIAN PROPERTY MANAGEMENT
STANDARDS (MPMS)
 OCCUPATIONAL SAFETY AND HEALTH

ACT 1994
VALUERS, APPRAISERS, ESTATE
AGENTS AND PROPERTY
MANAGERS ACT 1981
 INTRODUCTION
 In the early period, PM was practiced by other
professionals :
◦ Architects, engineers, quantity surveyors, accountants,
lawyers etc.
 However, PM has become a complex activity and
requires specialist attention thus it was restricted to
whomever is registered.
Gurjit Singh
 In Malaysia, the Valuers, Appraiser, Estate Agent and
Property Managers Act 1981 regulates the profession of
property management
 Under Sec. 22I property management practice (VAEAPA
1981), a registered property manager issued with an
authority to practice by the Board shall be entitled and
authorized to undertake property management practice.
 Part VB of the VAEAP Act 1981 deal with the registration
and practice of property management
 Under Section 22I (2) these include:
a) enforcing the terms of leases and other agreements pertaining to the
property;
b) Preparing budgets and maintaining the financial records for the property;
c) Monitoring outgoings for the property and making payments out of the
income from the property;
d) Advising on sale, purchase and letting decisions;
e) Advising on insurance matters;
f) Advising on the opportunities for the realization of development or
investment potential of the property;
g) Advising on the necessity for upgrading the property or for the merging
of interests;
h) Managing and maintaining the building and facilities attached to the
building; and
i) Making or checking of inventories of furniture, fixtures, trade stocks,
plant or machinery, or other effects.
STRATA MANAGEMENT ACT 2013
ACT 757
(SMA2013)
STRATA MANAGEMENT ACT
2013 (ACT 757)
Purpose of the Act:
To provide for the proper maintenance
and management of buildings & common
property etc
Applies only to Peninsular Malaysia &
FT Labuan
Supplementary Regulations
 The implementation of SMA 2013 is supplemented by
the:
◦ Strata Management (Maintenance & Management) Regulations
2015 and
◦ Strata Management (Strata Management Tribunal) Regulations
2015.
Terminologies – refer Sec. 2
Interpretation
Common property:
 thearea not included within any individual parcel; and
 Can be used/enjoyed by the occupiers of two or more
parcels
Limited common property (LCP):
 The parts of the common property in a lot specified for
the exclusive benefit of the proprietors of two or more,
but not all parcels; and
 A subsidiary management corporation is established for
these LCP
COMMISSIONER OF BUILDING
 The Commissioner(s) of Building (CoB) and
Deputy/Deputies CoB are appointed by the State
Authority under the provisions of Sec. 4 Act 757
 The appointments are for the purpose of administering
and carrying out the provisions of Act 757
 The appointments are in respect of a Local Authority
area/areas
 The appointments shall be made by notification in the
Gazette
Powers of CoB
 COB may exercise his powers and perform his duties of
administering & carrying out the provisions according to
Sec. 4 of the Act
 CoB’s administrative duties may be carried out by his
Deputy/Deputies
 Under Sec. 4 (5), CoB may delegate in writing all or any
of his powers or functions EXCEPT his power of
delegation
 Such delegation may be revoked at any time by the CoB
 The CoB may carry out the revoked duty/function
himself after the revocation
Part III – Before Sale of Parcels
Sec. 6 (1) – prior to sale of any strata
parcel, the developer must:
(a)File with the CoB a Schedule of Parcels
showing the proposed share units of each parcel
& total share units of all parcels
(b)If it is a phased development, file with the CoB
the Schedule of Parcels showing the proposed
quantum of provisional share units for each
provisional block
Sec. 6 (3) Contents of Schedule of
Parcels (SoP)
a) location plan, storey plan and
delineation plan as per Sec. 8A of STA
1985;
b) a legend of all parcels, all common
properties and all accessory parcels
(specify which parcel they are attached
to)
Sec. 6 (3) Contents of Schedule of
Parcels
c) certificate by developer’s licensed land
surveyor that buildings or land parcels shown
in the SoP are capable of being subdivided
under STA 1985;
d) certificate by developer’s architect/engineer
that all specified parcels are constructed in
accordance with the law and capable of being
subdivided.
e) any other details as specified by the CoB
Sec. 6 (4) & (5)
The proposed share units in the amended
SoP for phased developments shall be the
allocated share units assigned to each
parcel and capable of being approved
under STA 1985
The copy of SoP shall be exhibited at all
times in a conspicuous position in the
developer’s office
Part IV: Before MC – Developer’s
management period
 Sec. 9: upon handing over of a development & issuance
of Vacant Possession, the property will be managed by
the Developer
 The developer’s duty to maintain and manage the
property continues until 1 month after the establishment
of the Joint Management Body (JMB)
 This scenario occurs when the development is still not
issued with strata titles
Developer’s Management Period –
Chapter 2
• Duties: REFER TO SEC. 9 (2)
• Sec. 9 (4) – all moneys in the maintenance account DO
NOT belong to the developer;
• If the developer faces any court proceedings, he shall
pay for it from his own money;
• The maintenance account shall be administered by a
trustee
• The balance will be transferred into the maintenance
account in the name of the JMB
Developer’s Mgmt Period
• PLEASE REFER TO CHAPTER 2 ON DUTIES AND
POWERS
Developer to pay deposit to rectify
defects – subsection 92
A developer of a building shall deposit in cash or bank
guarantee with the CoB such sum determined by the
CoB for the purpose of carrying out any work to rectify
any defects in the common property after the completion
of the common property.
 The deposit is paid upon handing over of VP.
 If the deposit is insufficient, the CoB may direct the
developer to deposit additional sum within 14 days.
 Deposit not used will be refunded to the developer on
the expiry of the defect liability period (DLP).
JOINT MANAGEMENT BODY -
CHAPTER 3 Section 17
• When is the JMB formed?
• The JMB is established upon the convening of its first
annual general meeting (FAGM) as follows:
a) if vacant possession (VP) delivered before this Act,
JMB must be formed not later than 12 months from
the commencement of this Act; or
b)if vacant possession (VP) delivered after this Act,
JMB must be formed not later than 12 months from
the date of delivery of VP of a parcel to a purchaser.
JOINT MANAGEMENT BODY -
CHAPTER 3 Section 17
• The JMB is:
• A body corporate having perpetual succession and a common
seal;
• Can sue and be sued in its name;
• Comprises the developer and the purchasers.

• If the Management Corporation (MC) is established

before the FAGM of the JMB,
• No JMB shall be established; and
• Part V (on MC) of this Act shall apply
JOINT MANAGEMENT BODY – duty
to convene FAGM of JMB
 Sec.18: It is the duty of the developer to convene the
FAGM of the JMB within the period specified
 Procedure for convening the FAGM:
i. The developer gives a written notice of the FAGM of the JMB to ALL
purchasers not less than 14 days before the FAGM
ii. A copy of the written notice is displayed at a conspicuous part of the
development area
iii. The developer prepares and places before the FAGM of the JMB for
consideration an annual budget to set the estimated expenditure required to
properly maintain and manage the buildings and common property for 12
months immediately following the FAGM
JOINT MANAGEMENT BODY –
failure to convene by developer
If the developer fails to convene the
FAGM of the JMB within the specified
period, the CoB may appoint any person
to convene the FAGM of the JMB at any
time the CoB thinks fit, and the costs to
be borne by the developer.
JOINT MANAGEMENT BODY –
agenda of the FAGM of the JMB
 Section 19:-
The agenda for the FAGM of the JMB shall include the
following matters:
a) To determine the number of members of the joint
management committee (JMC) and to elect the
members of the JMC;
b) To consider the annual budget prepared by the
developer;
c) Subject to subsections 25 (2) and (3), to determine
the amount to be paid by a parcel owner as the
Charges, and contribution to the sinking fund;
JOINT MANAGEMENT BODY (agenda
con’t)
d) To determine the rate of interest payable by a
parcel owner in respect of any late payment of the
Charges, or contribution to the sinking fund;
e) To consider the audited accounts specified in
subparagraph 14(1)(b)(ii);
f) To confirm the taking over by the JMB of
insurances effected by the developer under this
Act;
g) To make additional by-laws; and
h) To consider any other matter connected with the
maintenance and management of the common
property of the building.
JOINT MANAGEMENT BODY – duties
& powers
 Section 21 : DUTIES OF JMB
a) To properly maintain and manage the building and the
common property and keep it in a state of good and
serviceable repair;
b) To determine and impose the Charges to be deposited
into the maintenance account for the purpose of the
proper maintenance and management of the building
and the common property;
c) To determine and impose the contribution to the sinking
fund to be deposited into the sinking fund account for
the purpose of meeting the actual or expected
expenditure specified under subsection 24(2)
JOINT MANAGEMENT BODY (con’t)
d) To effect insurance according to this Act or to
insure against such other risks as the parcel owners
may by special resolution direct;
e) To comply with any notice or order given or made
by the local authority or any competent public
authority requiring the abatement of any nuisance
on the common property, or ordering repairs or
other work to be done in respect of the common
property or other improvements to the property;
JOINT MANAGEMENT BODY (con’t)
f) To prepare and maintain a register of all parcel
owners of the building;
g) To ensure that the accounts required to be
maintained by the JMB under this Act are audited
and to provide audited financial statements for the
information to its members;
h) To enforce the by-laws; and
i) To do such other things as may be expedient or
necessary for the proper maintenance and
management of the building and the common
property.
JOINT MANAGEMENT BODY –
powers
Please refer to Subsection 21(2)
 JOINT MANAGEMENT
COMMITTEE
Section 21 (1)
- JMB to elect a JMC that shall perform the JMB’s duties and
conduct the JMB’s business on its behalf, and may for that purpose
exercise any of the JMB’s powers.
Second Schedule – constitution of JMC
The JMC shall consist of;
◦ the developer
◦ not less than 3 and not more than 14 natural persons who shall be
elected at each annual general meeting (AGM) of the JMB
◦ Every member retires from office at the conclusion of the next
AGM and is eligible for re-election but no member shall hold
office for more than 3 consecutive terms.
JOINT MANAGEMENT COMMITTEE
(con’t)
 From among the members of the Committee elected, there
shall be a chairman, a secretary and a treasurer who are
natural persons;
 No chairman, secretary or treasurer shall hold office for
more than 2 consecutive years.
 Eligibility for election as JMC member:
◦ At least 21 years of age;
◦ A parcel owner or co-owner;
◦ Nominated for election by a parcel owner which is a
company/society or such like;
◦ Not an owner but is an immediate family member of a parcel owner
who owns 2 or more parcels and is nominated by that owner.
JMC – persons not eligible for
election
These persons are not eligible for election as JMC:
a proxy appointed by a parcel owner;
On the 7th day before the election, the parcel of
the nominees are in arrears;
Any other co-owners of the same parcel are also
a candidate;
total nomination of any parcel owner and his
nominees exceeds the threshold number for
election (49% of JMC members)
An absent parcel owner
JOINT MANAGEMENT COMMITTEE
(con’t)
 FIRST SCHEDULE [subsection 11(4)]
1. Times and places of meetings.
- The Committee is to hold as many meetings as are
necessary for the efficient performance of its functions.
- The meetings are to be held at such places and times as
the chairman may decide.
- BUT, the chairman shall not allow more than 2 months
to lapse between meetings.
- The chairman shall call for a meeting if requested to do
so in writing by the Commissioner or by at least 2
members of the Committee.
Pleaserefer to Second Schedule of
Act757
JOINT MANAGEMENT COMMITTEE –
Vacation of office
Second Schedule (3)
(1) A person who is the chairman, secretary or treasurer or
a member of a JMC shall vacate his office as such
member if he:
a)resigns;
b)dies;
c)becomes a bankrupt;
d)is no longer a parcel owner;
e)has been convicted on a charge of:
i.an offence involving fraud, dishonesty or moral
turpitude;
THE END