Residential, Commercial Lots In Mixed-developments To Be Charged Similar Maintenance Rates

Pavither May 22, 2020

Residential, commercial lots in mixed-developments to be charged similar maintenance rates

Owners of residential and commercial lots located in a mixed development with no strata titles and managed by a joint management body would now be charged similar maintenance fees.

This comes after the Federal Court upheld a decision of the Court of Appeals on the matter, while denying Denflow Sdn Bhd and JMB Menara Rajawali permission to appeal the decision, reported The Edge.

Denflow owns the car park parcels at Menara Rajawali, which is a mixed-development in Subang Jaya. JMB Menara Rajawali serves as the joint management body for the development.

Learn more about the Strata Management Act here

The Court of Appeal on 4 October 2019 allowed an appeal by Muhamad Nazri Muhamad, a 56-year-old resident of Menara Rajawali, challenging the different maintenance charges imposed on residential and commercial units on the ground that they discriminated between residential parcels and retail shops, and were unlawful since they run against the power of the joint management committee or JMB.

Muhamad Nazri filed the appeal after the High Court dismissed his action, in which he claimed a Strata Management Act provision limits JMB’s power to determine the maintenance fees for different types of parcels, like commercial and residential parcels.

In dismissing the present appeal, Justice Datuk Rohana Yusuf, who led the three-member bench, ordered Menara Rajawali JMB to pay RM20,000 as costs, while Denflow was ordered to pay RM10,000.

The two filed seven questions of law for the apex court’s determination, in the event they be allowed to appeal.

Find out what does a property’s JMB, MC and Sub-MC do? 

Counsel Raymond Mah along with Datuk Joy Appukuttan appeared for Muhamad Nazri while counsels A Onn and SP Ng represented Denflow and Menara Rajawali JMB.

Joy noted that the Federal Court’s dismissal of the leave application affirmed the decision of the Court of Appeals.

“There cannot be different rates of maintenance charges. JMBs which have been applying different rates must immediately cease and convene an extraordinary general meeting (EGM) to fix a single rate of maintenance charges. Otherwise, they would be flouting the law,” he said.

“The decision means each property owner will pay a single maintenance or service charge rate in proportion to their share of the unit in the property.”

 

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