A strata property can best be defined as a type of development where the piece of land or building has been divided into lots, which are also known as parcels. Think: Condominiums and apartments.
The option to live in one comes with its own set of pros and cons. On one hand, you’ve got easy access to a myriad of facilities right at your doorstep.
Hosting barbecue parties on the rooftop can be done as and when you wish, and a dip in the pool is just a lift’s ride away. But on the other hand, such luxuries do come at a cost.
The cost of a sinking fund and maintenance fees, plus the cost of having to cope with inconsiderate owners, are just some of the drawbacks you’ll face.
Money matters involving the proper usage of said maintenance fees/sinking fund are also a notorious headache for strata property owners.
But strata living doesn’t necessarily have to be a nightmare, especially if you know how to fully exercise your rights.
Here are the main things you’d need to know, no matter if you’re looking to buy, or are already staying in one!
1) Go the extra lengths to make sure you receive your strata title
If you’re buying a high-rise unit, you should be receiving your strata land title as soon as you’ve paid for the stamp duty and down payment.
Of course, this isn’t always the case. There have been plenty of news reports where the issuance of land titles are delayed for years on end, compared to them actually being on time.
Case in point: Taman Puchong Prima saw residents who had been waiting for 14 years to receive their land titles! But hold on, what is this land title we’re talking about?
When a land title is issued to you, it acts as the ultimate legal proof of ownership that the property is rightfully yours.
Without your land title, selling your property or passing it on to a beneficiary becomes very difficult – you’d have to go through the developers, and in most cases, will need to fork out extra because of this.
It might even affect your ability to obtain financing, as banks are not very likely to approve your loan for a property that still doesn’t have its relevant title for over 10 years!
Now, the two most common types of a land title are individual and strata titles. Individual titles are typically issued for landed properties, where the homeowner is the only owner of the whole piece of land.
Strata titles, as mentioned earlier, are for developments which have been separated into portions. They don’t always mean high-rises though; landed properties can be strata properties as well!
An example would be a townhouse that’s in a gated development which contains condo-style facilities such as the pool and fitness centre.
And when it comes to those landed types, did you know that the bigger the land parcel size which you’ve occupied, the higher the service charges?
That’s not all; when it comes to house renovation works, there are certain restrictions and rules from the management which you’d need to follow.
So, what can you do if you’ve bought a strata property, but haven’t received your title yet?
If your developer has declared bankruptcy, you would need to refer to the appointed liquidator. You can also approach the respective Land Office for consultation on your case.
If not, simply bring the issue up in your committee’s next Annual General Meeting (AGM).
2) Get involved during the Annual General Meeting (AGM)
Speaking of AGMs, you probably know that your high-rise or landed gated community holds these annual meetings amongst either the MC, JMB or Sub-MC.
Whew, that’s a lot of acronyms!
The Management Corporation (MC), Joint Management Body (JMB) and Sub-Management Corporation (Sub-MC) are management bodies which oversee the operations and safety of the community’s residents.
That means A WHOLE LOT OF DUTIES, from collecting maintenance fees and imposing house rules, to upkeep of the property and managing a register of all parcel owners – plus everything in between!
In strata developments, annual general meetings (AGM) should be held annually for all relevant issues to be discussed. But here’s the thing, committee members aren’t the only ones allowed to be present!
One representative from each unit within the development has the right to attend, speak their mind, and make their respective vote.
After all, if you’ve been dutifully paying your monthly maintenance fees – wouldn’t you like for a platform where you have a say in where the funds are going?
3) Pay your monthly maintenance fees on time
We mentioned that each unit within a strata development is allowed to exercise their power to vote during an AGM.
Well, hopefully you’ve been paying your maintenance fees on time! If not, say goodbye to that privilege.
Having outstanding payments means you aren’t allowed to cast your vote, and you’ll lose that right until you’ve paid off the necessary amount that’s due.
Of course, you shouldn’t need US to tell you why you should be paying your maintenance fees (in full, and on time, okay!).
But just in case you need a refresher course: See, the maintenance fees that you pay monthly goes to not only the general upkeep of the property and its cleanliness, but also to something called a sinking fund.
This is something like a pool of funds that’s set aside for large, unforeseen expenditures. These include large scale repairs, or major works on the building and its surroundings.
So unless you don’t mind algae in your condo’s pool, lifts that are constantly out of service, and the inability to have your say in how these issues are solved – DO pay your maintenance fees!
4) Get to know the laws that govern strata properties
With strata properties, owners possess their own respective parcel of land, but share all the facilities that come with it like the gym, swimming pool, and children’s playground.
These shared facilities are known as ‘common property’, and it’s precisely these that make it highly necessary for laws to be clearly laid out in writing. It gets messy otherwise!
Otherwise referred to as simply the SMA 2013, this act ensures that there’s a strict framework in place for proper maintenance and management of strata properties.
It essentially brings together the interests and roles of various stakeholders in order to ensure suitable, efficient, and ongoing administration of the development.
Some of the laws set out in the SMA 2013 include the cost for the sinking fund, which is set at 10% of the total maintenance fees.
5) Know your rights, and how to exercise them
Good news! As a strata property owner, you’re able to speak up on matters related to how your place of residence is being managed.
Say, for, example, the committee members in the JMB are carelessly misusing the maintenance funds. You can actually vote them out of office!
Annual General Meetings (AGM) aside, you can also call for what’s known as an Extraordinary General Meeting (EGM).
EGMs are usually held when there are urgent matters to be discussed after the AGM has already taken place. Because sometimes, pressing issues like robberies can’t wait months to be resolved.
Other rights you have as a strata property owner include the right to file a claim under the Strata Management Tribunal (SMT).
Apart from the ones mentioned above, there are still a few other rights you have as a strata property owner too. Yes, more power to you!
As citizens, employees and even owners of strata properties – we have the privilege of certain rights we can exercise. But when it comes to strata properties, it’s really as simple as being considerate and putting ourselves in each other’s shoes. This includes knowing what you can and cannot do as a strata property owner, be it landed or high-rise!
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