What is Strata Titles?

When buying a condominium, apartment or any gated & guarded housing scheme, is equivalent to buying a parcel of property in a building or land, which will be subdivided, with each being issued an individual strata title. The strata title is similar to a land grant, where you are basically given the right to own and occupy a piece of land, or in the case of strata titles, a stratified space within a building or a land. It is a proof of ownership, and also the final proof of the built-up area of the unit and the apportionment of the shareholding in the total aggregate units or area.

What is Management Corporation (MC) or Joint Management Body (JMB)?

With the introduction of the strata title registration, high-rise condominiums and gated & guarded developments have become popular. In order to enable the many owners to collectively manage their developments, the Strata Title Act provides for the formation of a management corporation (MC) or an association of owners to manage the completed development. Prior to the issuance of strata title, it is sometimes called Joint Management Body (JMB). The main function of the management corporation is to control, manage and administer the common property.

Who is part of the MC or JMB?

It is often misunderstood that MC/JMB comprises of the committee members elected by the unit owners and they have the absolute power to make decisions. In actual fact, all unit owners are the member of MC/JMB and everyone has their right to make decision through voting at an annual general meeting. Once a decision has been made, the committee is generally responsible for making sure the decision is put into effect or implemented by managing agent.

The MC/JMB committee can deal with most of the day-to-day issues such as authorizing minor maintenance or giving approvals in relation to by-laws. However, there are restrictions on the types of matters that the committee can decide. For example, the committee cannot make decisions that involve spending more than the amount previously set by an ordinary resolution of the body corporate (MC/JMB). If the committee cannot or make a decision on the owner’s request, the owner can present their proposal as a motion for the body corporate (JMB/MC) to decide by voting on at a general meeting (AGM).

Can we change the house rules?

All strata schemes have by-laws (House Rules) that regulate the operation of the scheme and the conduct of occupiers/residents. Common by-laws deal with such matters as pets, car parking, floor coverings, overcrowding and the use of facility.

The Strata Management Act 2013 sets out model by-laws, but each strata scheme can make additional by-laws or make amendments to such additional by-laws for regulating the control, management, administration, use and enjoyment of the property on almost anything. However, the changes has to be done through a Special Resolution of the legal owners and it must not contradict with the regulations made under Strata Management Act 2013, Section 150.

*Special Resolution – A resolution which is passed at a duly convened general meeting of which at least 21 days’ notice specifying the proposed resolution has been given, and carried by a majority consisting not less than 75% of the valid votes cast at the general meeting by a show of hands.

Can I change the exterior facade of my house once the individual strata title is issued?

Renovation or modification doesn’t come directly under Strata Title Act but it falls under others laws and regulations. So, even if you have obtained individual strata title, renovation or modification are still governed under House Rules (by-laws) and subject to local council and MC/JMB approval.

What will happen if I don’t pay my service charges?

The MC/JMB has the rights to serve on the owner a written notice demanding payment of the sum due within the period not less than 14 days from the date of the notice. If the sum remain unpaid at the end of period specified in the notice, then MC/JMB may file a claim in a court for the recovery of the sum due.

The owner, without reasonable excuse, who failed to comply with the notice is also liable to a fine not exceeding RM5,000 or to imprisonment for a term not exceeding 3 years. In case of a continuing offence, the owner is also liable a further fine not exceeding RM50 a day until the full sums due is paid.

Reference: Strata Management Act 2013

Residential property especially the luxury segment is expected to face gloomy prospects for 2015, January 22, 2015. — Reuters pic

Malaysia’s real estate market is expected to keep expanding at a lower rate this year, weighed down by Putrajaya’s cooling measures and mounting economic uncertainty, international property consultants Knight Frank said in its outlook for 2015.

The high-end property market is set to be hardest hit in the residential sector, with fewer projects reviewed or launched in the second half of 2014 compared to the first half of the year.

“Overall, the slew of macro prudential measures by the central bank has succeeded in cooling the property market.

“The market is anticipated to continue its lacklustre performance into 2015 amid uncertainties surrounding the implementation of the Goods and Services Tax (GST) in April 2015,” it said in its analysis of the local property market for the second half of last year.

In 2012, Putrajaya doubled property gains tax and prohibited developer interest bearing schemes in a bid to rein in spiralling home prices.

Spiralling household debt that has hit nearly 87 per cent as a ratio of gross domestic product also led Bank Negara Malaysia to tighten lending guidelines last year, raising the bar for potential loan applicants.

The report also said that the continued slump in crude oil price and Malaysia’s lower trade surplus could further affect the property market’s performance, and that the uncertain economy has shifted focus towards affordable housing, prompting a surplus in luxury property.

“In the high-end condominium segment, demand continues to trail supply, and with an estimated 4,929 units anticipated to enter the market by the first half of 2015, coupled with the high level of existing supply in the market, the overall outlook is one of caution,” the report said.

It further noted that housebuyers’ bookings for residential homes have yet to translate into actual sales due to the high rejection rates for loan applications while potential buyers have also held back in their purchases.

The added competition and deteriorating market may prompt developers to review their prices and alter existing marketing strategies in order to move their units.

“More developers are also widening their target catchment by marketing overseas,” it said.

But the report also pointed out the office and retail market in the city capital and in states like Penang and Johor continues to enjoy high rental and occupancy rates, and that Malaysia continues to be a popular location for overseas retailers to conduct their business operations.

“Prime and established shopping centres in Klang Valley and Penang continue to enjoy high occupancy in excess of 90; and in Johor Bahru and Kota Kinabalu, more than 80 per cent occupancy.”

Source: The Malay Mail Online

Santuari Commercial Centre, strategically located along Jalan Rozhan within the bustling township of Alma in Bukit Mertajam. It is only mere minutes drive away from Tesco hypermarket and AEON Mall.

This development comprises 30 units of 3-storey semi-detached and 1 unit of 3-storey detached shop offices with minimum built-up area of 4,500 sq.ft.

Property Project : Santuari Commercial Centre
Location : Alma, Bukit Mertajam, Penang
Property Type :Shop Offices
Built-up Area: 4,500 sq.ft. onwards
Tenure : Freehold
Total Units: 31
Developer : Airmas Group

All residential stratified properties are now categorised as “Goods and Services Tax (GST) exempt supply”, said National Home Buyers Association (HBA) secretary-general Chang Kim Loong.

Previously, only low-cost and low-medium cost properties were granted such exemption.

Being categorised as “GST exempt supply” would mean that fees charged by a management corporation (MC) or joint management body (JMB) for maintenance and management, including a sinking fund, will be exempted from GST.

Chang said a petition was sent to the Finance Ministry on Nov 28 last year, appealing to the government to amend the GST Act 2014 to enable a GST zero-rated tax supply for maintenance charges, sinking fund and all forms of related contributions or charges payable by property owners.

The petition was undersigned by HBA; the Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia; Royal Institution of Surveyors Malaysia; and Malaysian Institute of Professional Property Managers, representing six million property owners and occupiers of approximately 15,000 stratified development areas in Peninsular Malaysia.

“From the reply we received from the tax division secretary of the ministry, Datuk Siti Halimah Ismail on Jan 15, it was stated that the appeal for GST zero-rated tax supply cannot be considered for the services rendered by MCs and JMBs to residential parcel owners of stratified properties because the supplies provided by them are deemed as conducting a form of business.”

“However, the ministry is agreeable to widen its GST exempt supply by including all categories of residential stratified properties,” he told a press conference yesterday.

Chang added that amendments will now be made to Paragraph 20, Second Schedule, of the Goods and Services Tax (Exempt Supply) Order 2014.

He pointed out that any fees charged to stratified buildings or parcels that is used for purposes other than residential will still be subjected to GST standard rated tax.

Source: TheSunDaily

Sunrich Place, a freehold mixed development by GSD Land in Tasek Gelugor, Northern Seberang Perai. It is located next to the intersection of Jalan Gelugor and Jalan Arumugam Pillai, about 5 minutes drive from Sungai Dua.

This development comprises a mixed of commercial and landed residential units:

Residential:

• 2-storey terrace (27 units)
• 2-storey semi-detached (22 units)
• 2-storey bungalow (5 units)

Commercial:

• 2-storey bazzar (1 unit)
• 2-storey shop office (23 units)
• 3-storey shop office (14 units)
• 2-storey semi-detached shop office (2)

Project Name: Sunrich Place
Location: Tasek Gelugor, Penang
Property Type: Mixed development
Indicative Price: (to be confirmed)
Developer: GSD Land

Location Map: