FACULTY OF BUILT ENVIRONMENT

Course Code & Title: ATGB2242 Principles of Malaysian Land Law

Exercise 8

Q1. Based on your understanding, interpret the term “Strata Scheme”.

 A property development which divides buildings or land into parcels, boxes, accessory
parcels and common property in which management system and been set up. For
example, flats, apartments, condominiums, townhouses and landed houses in gated
community schemes

Q2. Explain whether the proprietor may amalgamation of strata titles?

 Yes. The proprietor may amalgamate two or more contiguous parcels/land parcels to
form one parcel/land parcel to be held under a single strata title
 But, the proprietor shall provide they share at least one common boundary, consisting of
a floor or a ceiling
 Also, there must also be adequate means of access

Q3. Elaborate the following terms in relation to the Strata Title Act 1985:

a) Strata Title

 STA 1985 is an Act to facilitate the subdivision of building into parcels and the
disposition of titles thereto and for purposes connected therewith
 Passed on 1st June 1985 and replaced the Subsidiary Titles Section of the National Land
Code which was repealed when the Strata Titles Act came into force. Its only applicable
in West Malaysia

Applicable to

 Any building or buildings having one, two or more storeys

 Building built on alienated land
 Held as one lot under final title or qualified title/ gated community
 land held under qualified title which has been duly surveyed and in respect of which a
certified plan has been approved by Director of Survey are also capable of being applied
for subdivision
FACULTY OF BUILT ENVIRONMENT
Course Code & Title: ATGB2242 Principles of Malaysian Land Law

b) Parcel

 Separate titles are issued to the individual parcels

 Strata titles are registered in the name of the owners of the parcels
 It means one of the individual units comprised therein which is held under separate strata
title

c) Accessory Parcel

 According to section 4 of Strata Title Act 1985, ‘accessory parcel’ means any parcel
shown in a strata plan as an accessory parcel which is used exclusively by the parcel
proprietor in conjunction with a parcel
 Example: car parking lots, billboard spaces, garages, servants’ quarters etc.

d) Common Property

 According to section 4 of Strata Title Act 1985, common property means so much of the
lot which is not comprised in any parcel/land parcel and part of any accessory parcel or
any provisional block as shown in an approved strata scheme
 Common property includes:
 structural elements of the building, stairs, stairways, fire escapes, entrances and
exits, corridors, lobbies, fixtures and fitting, lifts, refuse chutes, refuse bins,
compounds, drains, water tanks, sewers, pipes, wires, cables and ducts that serve
more than one parcel
 the exterior of all common parts of the building, playing fields, recreational areas,
driveways, car parks and parking areas, open spaces, landscaped areas, walls and
fences, and all other facilities and installations and any part of the land used or
capable of being used or enjoyed in common by all the occupiers of the building

Q4. Explain the purpose of Strata Management Act 2013.

 The purpose of this Strata Management Act 2013 is to provide proper maintenance and
management of buildings and common property and other related matters
 to establish a Joint Management Body (JMB), Joint Management Committee (JMC),
house rules, building maintenance fund and sinking fund and managing agents
 The Act replace Strata Titles Board and establish the Strata Management Tribunal
 The implementation of the this act is complemented by the Strata Management
(Maintenance & Management) Regulations 2015 which came into force on 2nd June
2015
FACULTY OF BUILT ENVIRONMENT
Course Code & Title: ATGB2242 Principles of Malaysian Land Law

Q5. Distinguish between “Joint Management Body (JMB)” and “Management

Corporation”

Joint Management Body (JMB)

 The members are Developers and all Strata owners
 The committee of JMB is called Joint Management Committee (JMC)
 The commencement is upon the convening of 1st AGM

Management Corporation
 The members are all Strata owners
 The committee of Management Corporation is called Management Committee (MC)
 The commencement is upon the convening of 1st AGM

Q6. Discuss the power and duties of a Management Bodies

 To determine and impose service charges or maintenance fees, including the Developer
for the unsold parcels
 To determine and impose the contribution to the sinking fund, including the Developer
for the unsold parcels
 To deposit the contribution of both charges and sinking fund to respective accounts
 To prepare, operate and maintain proper records of Charges and Sinking Fund Account
(profit and loss, balance sheet, etc.)
 To provide audited financial statements to all strata owners
 To appoint an approved company auditor to audit accounts annually
 To insure the buildings under a damage policy
 To comply with any notice or order given by the authority in respect of common
property including nuisance, repairing & improvement work
 To set up the administrative office within the common property

Q7. Contrast between “Management Fund” and “Sinking Fund” in relation to the Strata
Management Act 2013.

Management Fund
 Management Fund is authorized “charges” to strata owners
 Management fund normally used for meeting actual or expected general or regular
expenditure such as related to:
 Maintaining common property in good condition
 Paying for cleaning services, security services and amenities
 Paying for insurance premiums
FACULTY OF BUILT ENVIRONMENT
Course Code & Title: ATGB2242 Principles of Malaysian Land Law

 Complying with notice or order given by the local authority for inspection
 Minor painting of common property
 Carrying inspection, maintenance and repair of electrical wiring systems of common
property
 Paying fee for administration and maintaining audited accounts
 Paying remuneration/fee for managing agent
 Paying for allowance and other expenses of the members of Management
Committee

Sinking Fund
 Sinking Fund is authorized “contribution” by owners
 It is to be used to cover major expenses and liabilities of the strata estate likes:
 To painting/re-painting of common property (building or other structure)
 To obtain moveable property for use related to common property
 To renew or replace any fixture/fittings related to common property

End of Question Paper