Note: This article does not only apply to condominiums, but to any other high rise properties as well.
Living in a condominium does have its fair share of pros and cons. Despite having a management that is responsible of maintaining the services and amenities in the condo, there may be some cases where the management disregards their responsibilities and leave the condominium in a state of despair. You may have had to deal with issues with the management, and might not be sure on how to resolve the issues. Well, there are several issues in which condo owners may sue their management for.
The condominium management essentially takes on different forms over the course of few years after the condominium has been developed:
- Developer – The people who developed the property will be in charge for the first year after the condominium is developed.
- Joint Management Body (JMB) – After the first year, the developer will have to conduct an Annual General Meeting (AGM) to form a new management comprising of homebuyers and the developer.
- Management Corporation (MC) – Once all units have been issued their strata titles, a final management body is formed that will run the management.
Here are several issues that a condo owner can sue their management for:
Poor maintenance
Proper maintenance is essential for a condo management to be responsible of to ensure that the building is in an optimum condition, and provides comfort to the residents. However there are many instances where managements partially, or completely disregard maintenance in the condominium to the extent that the building is in a rundown condition. A poorly maintained condominium not only creates inconvenience and discomfort to residents, but it could potentially become a hazard.
The Strata Management Act (SMA) 2013 allows for residents to sue condo managements for disregarding their responsibilities.
- Section 48(1) – A developer shall, during the preliminary management period and subject to the provisions of this Act, be responsible to maintain and manage properly the subdivided building or land, and the common property.
- Section 48(4) – Any developer who fails to comply with subsection (1) commits and offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
Delay in Issuing Strata Titles
A strata title is one of the title structures of ownership and control over property, usually applied to subdivided buildings or complexes. This title is issued to homeowners to give them the ownership of the property he/she purchases in the condominium.
Although the issue of strata titles may take a long time, it is important that it is issued to the homeowners as soon as possible. This is because, as mentioned earlier, a Management Corporation (MC) can only be formed once all units of a condominium have received their strata titles. The delay in issuing strata tiles may disrupt the flow of the formation of the management, which may lead to the lack of administrative measures taken to properly maintain the condominium.
Based on the Strata Title Act 1985, it is stated that it is legally required that the developers issue the strata titles to homeowners within a period of 3 months after the condominium has been developed. Residents of the condominium will have the rights to take legal action against developers if they fail to do so.
Failure to Create Maintenance and Sinking Fund Accounts
Maintenance funds is intended to pay for the day-to-day, short-term expenses to keep the amenities of a condominium in good condition, while sinking funds is for large scale repairs or major works on a building. It is important that the management creates these fund accounts to properly maintain the condominium’s condition. Failure to do so may lead to unforeseen predicaments due to the unsystematic organization of funds to maintain the building.
Based on Section 10(1) of the SMA 2013, it is stated that “A developer shall open one maintenance fund account in respect of each development area with a bank or financial institution”, while Section 11(1) states that “A developer shall open one sinking fund account in respect of each development area with a bank or financial institution”.
If the management fails to adhere to this, they may be subjected to a RM250,000 fine or be jailed for a maximum of 3 years.
Not Insuring the Property against Damage
According to Section 93(1) of the SMA 2013, it is stated that “Any person or body who has a duty or is responsible under this Act to maintain and manage any building shall insure such building under a damage policy with a licensed insurer in accordance with the part.
It is further explained in the Act that the damage policy should insure the condominium from a range of incidences such as, damage by fire, lightning, and explosion, and also bursting or overflowing of water tanks and pipes.
Although home buyers commonly buy their own insurance policies for their units, it’s important to also have a damage policy provided by the condominium management which may possibly insure a larger scope of damage.
