STRATA TITLES (AMENDMENT) ACT 2001
The Strata Titles (Amendment) Act 2001 (Act A1107) (‘the amendment Act’) is introduced to amend the Strata Titles Act 1985 (‘the principal Act’). The amendment Act is largely designed to improve the mechanism of the management corporation, the establishment of a new body – the Strata Tiles Board, and to regulate the relations between the original proprietor of the land on the one hand and the parcel proprietor of each unit in the subdivided building on the other.
WHAT ARE THE AMENDMENTS?
- Land Administrator in the Federal Territory – amendment to Section 4
The term ‘Director’ means the ‘Director of Lands and Mines’ in each State but in the Federal Territory, it means ‘the Land Administrator’. The functions of the Land Administrator in the Federal Territory in respect of strata titles were originally performed by the ‘Land Executive Committee’ under the principal Act. After the amendment, such functions will be performed by the Land Administrator.
- Increase in Fines– amendment to Section 8
The proprietor of the land, on which a completed building stands, is to apply for subdivision of the building. If a building is completed after the commencement of the principal Act (i.e. after 1 June 1985), the proprietor of the land is to apply for subdivision of the building within a period of 6 months from the date of the first sale (or the date of the first agreement to sell): s.8(2)(a)(ii). The 6 month period may only be extended once by the Director for a further period of 3 months at the most: s.8(4).
- Private Caveat on a Lot – amendment to Section 15
It empowers the Registrar of Titles to endorse any private caveat (or Registrar’s caveat) on the register document of titles (RDT) to a particular parcel carved out of the master titles relating to the land. Where there are private caveats (or Registrar’s caveats) on the RDT for the master titles, the Registrar is to endorse the caveats on the RDT to the particular parcels (created upon the subdivision) if he is satisfied that the caveats affect only those particular parcels: s.15(5).
However, if the Registrar is unable to ascertain whether the caveats affect particular parcels, he may endorse a statement (in Form 3) to the effect that the lot is so subject to the caveats entered on the RDT for the master titles.
- Additional Common Property– amendment to Section 25
This relates to the power of a parcel proprietor to apply for division (or amalgamation) of parcels is added. After the amendment, if the division of a parcel (or the amalgamation of two or more parcels) results in the creation of any additional common property, the parcel proprietor is to obtain the written consent from the management corporation before applying for the approval of the Director.
- Conditions for Approval of Division and Amalgamation – amendment to Section 27
Under s.27, the Director is to approval a division (or amalgamation) only when certain conditions are satisfied. After the amendment, the proposed share units assigned to the new parcels by the proprietor must be equitable. As to the meaning of ‘share units’, s.18 of the principal Act provides that ‘every parcel shall have a share value as approved by the Director, and expressed in whole numbers to be known as share units.’ In other words, every parcel has a share value expressed in terms of ‘share units’. The share value is to be approved by the Director.
- Effect of Registration of Common Property created upon a Division or Amalgamation – Section 33A
Upon the registration of titles to the new parcels after the division or amalgamation, the parts of any parcel created as common property are deemed to form part of the common property for all the parcels within the subdivided building. In other words, the additional common property created is deemed to be part of the common property for all parcels in the subdivided building.
- Establishment of Management Corporation – Section 39(2A)
Section 39 of the principal Act provides for the establishment of a management corporation for managing a subdivided building. The management corporation comprises all parcel proprietors in a subdivided building (including the proprietors of the provisional blocks in a phased development). Section 39 governs the formation and the running of the management corporation.
- New Item in the Agenda of the 1st AGM – Section 41(5)
Section 41 imposes a duty on the original proprietor of the subdivided building to convene the first annual general meeting (‘AGM’) of the management corporation.
9. Contribution Payable by Panel Proprietors – Section 41A
Section 41 provides that where the 1st AGM of the management corporation has not as yet been convened, the Director will approve the amount of contribution payable by the proprietor of each parcel (or provisional block) for the maintenance of the building and the common property. It is deemed to be the amount payable by the parcel proprietors (or provisional blocks) to the management fund.
- Application for Establishment of Management Corporation – Section 64A
Under a subsection 64(A)(1A), if the original proprietor has transferred parcels having more than ½ of the total share units (value) of all the parcels, he may apply to the Director for an order that a management corporation be established. In other words, where the original proprietor has transferred 51% of the share units (value) of all the parcels in a subdivided building, he has the right to apply to the Director for the establishment of the management corporation.
CONCLUSION
The amending Act appears to focus mainly on the running of the management corporation and the establishment of the Strata Titles Board. The Strata Titles Board is a creature of the amendment Act, whereas the management corporation has already been dealt with under the principal Act. The composition, jurisdiction, powers and functions of the Strata Titles Board are dealt with in the amending Act in great detail. The provisions in the amending Act relating to the management corporation are meant for plugging the loopholes found in the principal Act.
