If you own a strata property, you will probably know what is strata law and how it works.
But if you don’t, let me tell break it down for you!
The Difference between Strata/High-rise Development & Landed Development
To be honest, if you’re not a property owner like me, I wouldn’t take the time to actually learn about the difference between landed and strata property or even find out what law is bound with all these properties.
BUT! I’ve taken some time to help simplify everything. So, let’s learn!
Strata landed home is essentially a landed house with condo-style amenities like a swimming pool and a gym. These projects may include bungalows, and terraced or semi-detached residences ranging in height from two or three stories. Here are some of the major differences between landed development and strata development.
***”Parcel” based on Strata Titles Act 1985 & Strata Management Act 2013 is defined as a single unit that is now being held or is scheduled to be held under a different strata title.
***”Accessory parcel” is any parcel that is utilised or intended to be used in combination with a parcel that is designated as an additional parcel on a strata plan,
***”Maintenance Fee” is for the predictable everyday payments like cleaning and security. The total cost of maintaining the property, the shared amenities and access points, and the total square footage of your unit will all affect how much you pay,
***”Sinking Fund” is a shared pot of money kept aside for an unexpected and large maintenance expense. The sinking fund cost is charged at 10% of the total cost of maintenance fees.
To summarise, a typical landed property is one in which the owner also owns the land on which it stands. A strata property is similar to a condominium in that the owners own a piece of the land rather than the land entirely, but it differs from a condominium in that it cannot be sold to foreigners.
What are the Elements of Strata Development?
The Latest Strata Development Trend
Now let’s move on to what is Strata Law and How It Affects Strata Property Owners!
What is Strata Law?
Strata Law controls strata properties in Malaysia, with the Strata Management Act (SMA) 2013 serving as the major piece of law.
Considering strata properties include multiple parties, from the developer to the owners to the different management organisations, laws are enforced to protect their rights as property owners.
The Strata Management Act 2013 is a rule that was put into place in 2013 to control the upkeep and administration of stratified residential projects, including:
- Condominiums
- Apartments
- Townhouses
- Landed properties in a shared development
This law attempts to provide the rules necessary to guarantee that everyone helps to maintain a better living environment.
However, what kind of ordinance/law protects us from strata property owners in Sarawak?
Development of Strata Title Legislation in Sarawak
Current Strata Title Ordinance
*** Commissioner of Buildings “COB” is to guarantee that the administration and upkeep of the common property are carried out in accordance with the law and regulations in order to promote peace among residents of strata properties for multilevel developments.
Strata Development Timeline & Legislations
Strata Management Ordinance 2019
SMO 2019 is:
- To ensure the Developer would not run away from the responsibility of managing the strata building until the management corporation of the building is fully established
- To ensure the purchaser/owner of units pays their monthly management charges promptly
- To ensure the strata building is always in a state of good repair
- Harsh penalties for offenses with an element of breach of trust (particularly, those connected with mishandling of the trust money)
- A management body is a cooperate body i.e can sue and can be sued
- Re-planning of the strata building shall be subject to the agreement of 90% of the owners (comprehensive resolution)
- Also applicable to strata landed development (gated community)
- Etc.
Despite all that, in short, SMO 2019 is basically an Ordinance to provide for the management & maintenance of buildings or land intended to be subdivided into parcels and subdivided buildings or land, and for matters connected therewith. SMO measures to ensure all stratified properties are under proper justifiable management & maintained accordingly. It is effectively enforced on 1st March 2022.
Enforcing new acts means there should be some improvement right? Here are the main features that have been improved under SSTO 2019
What about some of the new rules that are made under SSTO 2019 enforcing on the 1st of June 2022?
Government protecting your rights as a strata property owner? That’s great! But would you still have your OWN rights to voice out your opinion and complaints? Of course you do! Let me tell you what and how you utilise your rights!
Voting Rights as Strata Property Owner
Generally, important decisions are all made at strata meetings, especially the annual general meeting (AGM). Disputes can happen if parcel (don’t ask me what is parcel, refer back to the top) owners / subsidiary proprietors feel they are not being listened to, or the correct process is not followed. In every meeting, everyone has the right to voice out their worry and trouble.
Types of Meetings in Strata Management
Voting Rights
Strata Management (Management and Maintenance) Regulations, 2022 (SMMR 2022)
To complete the Strata (Subsidiary Titles) Ordinance, 2019, the government brings in Strata Management (Management and Maintenance) Regulations 2022 effectively on 1st June 2022.
The Strata Management (Management and Maintenance) Regulations, 2022 (SMMR 2022), in a very simple sense, are meant to provide the regulations to ensure everyone contributes to maintaining a better environment to live (the kind of legislation that gets things done).
It aims to consolidate the rights and responsibilities of residents, landowners, and developers to ensure suitable, efficient, and ongoing management and maintenance of the strata properties.
Adding SSTO 2019 together with the SMMR 2022 provides a more comprehensive solution to the problems that plague the management & maintenance of the common property of development, whether it is residential or commercial.
It provides the details for the performance of the functions, the exercise of powers, and the discharge of duties of the developer, JMB, MC, or subsidiary management corporation under the provisions of the Ordinance.
What Have We Concluded from the Strata Management Ordinance 2019?
Coming to the end of the Strata Law, let’s take a recap on what have you just read (although I’m pretty sure y’all can’t process all…lol)
In order to get the full details of the law relating to the maintenance of the property and the management of strata-titled property, you will have to look up Strata (Subsidiary Titles) Ordinance 2019 and Strata Management Ordinance 2019
- Aim of the SMO 2019 is to provide for the maintenance & management of buildings & common property of multi-storey buildings & sub-divided land in a proper & efficient manner to benefit & contribute to the success of the strata development
- Enforced on 1st March 2022
- SMMR 2022 are meant to provide the regulations to ensure everyone contributes to maintaining a better environment to live
- Enforced on 1st June 2022
- There are 3 types of meetings where the property owners will get the chance to cast their votes and voice out their concerns
Now then, we have covered all the essentials of what you need to know regarding living in strata landed property!
If you feel like grabbing your strata property, why not give us a call or contact us at Express Property Management & Services. Employing our agents will save your time and money, and will help minimize the risks inherent in the buying and selling process.
Ps: This article does not constitute legal advice to any specific case. The facts and circumstances of each and every case will differ and therefore will require specific legal advice. Feel free to contact us for complimentary legal consultations
Pssssssss…. To know more details of the Strata Law, you can comment down below with “I would like to ask for the ppt of SMO 2019” or you can pm us through email or even WhatsApp us :3