PERTINENT ISSUES FACED

BY DEVELOPERS IN THE
FORMATION AND
MANAGEMENT OF JOINT
MANAGEMENT BODY (JMB)
& MANAGEMENT
CORPORATION (MC)
-WHY SHOULD YOU CARE?

FOUNDER & MANAGING PARTNER

(1) Delay in the formation of the JMB &
MC and Extension of Developer
Management Period
(2) Phased Development
(3) Contribution & Participation:
Unsold units and Provisional Blocks
 Issue 1:
Delay in the formation of the JMB &
MC and Extension of Developer
Management Period
As stated by the Special Task Force to Facilitate Business (PEMUDAH) in its
meeting on 26/09/2022 Strata titles of properties must be handed over
together with the delivery of vacant possession.

Also, agents appointed by the Malaysian Department of Insolvency (MDI) to

take over the affairs of housing projects whom the developer has wound up
must not charge more than RM500 for the transfer of property ownership
for strata titles or grants that have been issued provided that all
documents having been received in order from the buyer
 Building and Common Property
Strata Titles Act 1985 (Maintenance and Management) Act 2007

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 i. Strata Titles Amendment Act 2016
ii. Strata Management Act 2013
iii. Housing Development (Control and Licensing)
(Amendment) Act 2012

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#PARTYLIKEITIS1985
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 Issue 2:
Phased Development
 (1) SHOULD DEVELOPER PAY SERVICE CHARGES &
SINKING FUND FOR UNDEVELOPED PHASE?

(2) HOW DOES THE SUBSEQUENT PHASE JOIN THE

EXISTING JMB & MC?

(3) 25% OF TOTAL SHARE UNIT TO CALL FOR AGM OF MC

(4) STRATA TITLE ISSUED IN PHASED DEVELOPMENT

 Issue 3:
Contribution & Participation:
Unsold Units &Provisional Blocks
UNSOLD UNIT PROVISIONAL BLOCK

CONSTRUCTED NOT CONSTRUCTED

COMPLETED NOT COMPLETED

NOT SOLD NOT SOLD

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SectIon59(2) SMA Section 21(2)(a) SMA

One of the power of MC is to collect Charges JMB shall have power to collect charges
from Proprietors in proportion to the share units from parcel owners in proportion to the
or the provisional share units of their respective allocated share units of their respective
parcels or provisional block parcels.

The Developer have voting rights
of those unsold parcels or unsold
provisional block.
If fail to pay charges due and
payable within stipulated time,
Developer is not allowed to cast
vote.
Medium Service
To exercise this right, Developer have to
settle all the Charges due and payable to
the management in respect of their
parcels at least 7 days before the meeting.
Para 21(2) of the Second Schedule SMA:
“A proprietor shall not be entitled to vote if, on the seventh day
before the date of the meeting, all or any part of the Charges,
or contribution to the sinking fund, or any other money due
and payable to the management corporation in respect of his
parcel are in arrears”
GET YOUR COPY FROM
SHOPEE.COM.MY

Or contact Chur Associates for

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