Building maintenance and management law

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<ul><li> 1. Came into force on 12 April 2007. It is an Act to provide for the proper maintenance and management ofbuildings and common property, and for matters incidental thereto.BUILDING AND COMMONPROPERTY (MAINTENANCE ANDMANAGEMENT) ACT 2007</li></ul><p> 2. The maintenance and management of buildinghousing two or more storeys and commonproperty was governed by the HousingDevelopment (Control and License) Act 1966(Act 118) and Strata Titles 1985 (Act 318). developer is responsible for maintenance andmanagement of common property beforeformation of Management CorporationPOSITION BEFORE ACT 3. POSITION AFTER ACT Section 4 of Building and CommonProperty (Management &amp; Maintenance)Act 2007 (BCP Act)- A Joint Management Body (JMB)comprises of the developer and thepurchasers are responsible to provide forthe proper maintenance and managementof buildings and common property, andfor related matters 4. For development completed before 12thApril 2007,JMB must be formed before 12thApril 2008 [Section4(1)(a)] For development completed on or after 12thApril2007, JMB must be formed not later than 12 monthsfrom the date of delivery of vacant possession[Section 4(1)(b)]FORMING OF JMB 5. Section 6(1): The agenda for the first meeting of theBody shall include the followings:a) the election of the office bearers of the Committee;b) to confirm the taking over by the Body of insuranceseffected by the developer;c) to determine the amount to be paid by the purchasersto the Building Maintenance Fund for themaintenance and management of the commonproperty of the building; 6. Section 6(1):-d) the determination of the rate of interest payable bya purchaser in respect of late payment of charges;ande) any matter connected with the maintenance andmanagement of the common property of thebuilding.JMB 7. quorum at first meeting of JMB shall be one-quarter of purchasers who has paid maintenancecharges in respect of their parcels to BuildingMaintenance Account (members entitled tovote) of developer [Section 6(2)] If within half hour after the time appointed formeeting, a quorum is not present, the memberentitled to vote who are present shall constitutea quorum [Section 6(3)] Joint purchasers shall not be entitled to voteexcept by way of a jointly appointed proxy[Section 6(5)] In the event of an equality of votes, chairmanshall have a casting vote [Section 6(6)]JMB 8. JMB Section 8(1) of Building and Common Property(Management &amp; Maintenance) Act 2007. Duties of JMB:a) To properly maintain common property and keep it ina state of good and serviceable repair;b) To determine and impose charges that are necessaryfor the repair and proper maintenance of commonproperty;c) To insure and keep insured the building to thereplacement value of the building against fire andsuch other risks as may be determined by the Body; 9. Section 8(1)d) To apply insurance moneys received by the Body in respectof damage to the building for the rebuilding andreinstatement of that building; e) To comply with any notices or orders given or made bythe local authority or any competent public authorityrequiring the abatement of any nuisance on the commonproperty, or ordering repairs or other work to be done inrespect of the common property or other improvements tothe property;JMB 10. f) To prepare and maintain a register of all purchasers ofthe building;g) To ensure that the Building Maintenance fund isaudited and to provide audited financial statementsfor the information to the purchasers;h) To enforce house rules for the proper maintenanceand management of the buildings; andi) To do such other things as may be expedient ornecessary for the proper maintenance andmanagement of the building.JMB 11. Section 8(2) of the Building and Common Property(Management &amp; Maintenance) Act 2007. The power of the Body shall includea) To collect from the purchasers maintenance andmanagement charges in proportion to the allocatedshare units of their respective parcels;b) To authorize expenditure for the carrying out of themaintenance and management of the commonproperty.JMB 12. Section 8(2)c) To recover from any purchaser any sum expended bythe Body in respect of that parcel in complying withany such notices or orders as referred to underparagraph (1)(e);d) To purchase, hire or otherwise acquire movable orimmoveable property for use by the purchasers inconnection with their enjoyment of the commonproperty;e) To arrange and secure the services of any person oragent to undertake the maintenance and managementof the common property of the building;JMB 13. Section 8(2)f) To make house rules for the proper maintenanceand management of the building; andg) To do all things reasonably necessary for theperformance of its duties under this Act.JMB 14. The Body shall be dissolved 3 months fromthe date of the first meeting of themanagement corporation for the building[Section 15(1)]DISSOLUTION OF JMB 15. Section 41 (Strata Titles Act 1985) Duty of original proprietor to convene first annualgeneral meeting.1) It shall be the duty of the original proprietor to convenethe first annual general meeting of the managementcorporation within 1 month after the expiration of theinitial period.2) If the original proprietor fails to comply with subsection(1), he shall be guilty of an offence and shall be liable onconviction to a fine not exceeding RM25,000.00 and to afurther fine not exceeding RM2000 for each day theoffence continue to be committed.DISSOLUTION OF JMB 16. Section 2 (Strata Titles Act 1985) initial period- the period commencing on the day on whichthe management corporation comes into existence and endingon the day on which there are proprietors, excluding theoriginal proprietor of the lot of land or the developer who isregistered as the proprietor of a parcel or parcels or aprovisional block or blocks, the sum of whose share units is atleast one-quarter of the aggregate share units. the period commencingon the day on which the management corporation comes into existence and endingon the day on which there are proprietors, excluding the original proprietor of thelot of land or the developer who is registered as the proprietor of a parcel orparcels or a provisional block or blocks, the sum of whose share units is at leastone-quarter of the aggregate share units.DISSOLUTION OF JMB 17. Section 15(2) The Body shall-a) Not later than 1 month from the date of the firstmeeting of the management corporation, handover to management corporation-i. the house rules;ii. the audited accounts of the BMF or, if such accountshave not been audited, the unaudited accounts;iii. all assets and liabilities of the Body;iv. records related to and necessary for the maintenanceof the building and its common property; and 18. Section 15(2)b) if only unaudited accounts have been handed overunder subparagraph (a) (ii); not later than 3 monthsfrom the date of the first meeting of the managementcorporation, hand over to the managementcorporation the audited accounts of the Body.DISSOLUTION OF JMB 19. If the Body fails to comply with this section, everymember of the Body commits an offence and onconviction, be liable to a fine not exceeding RM10000; AND Liable to a further fine not exceeding RM1000 forevery day during which offence is continued afterconviction [Section 15(3)]OFFENCE 20. Section 15(4) - EXCEPTION: Where an offence under this section has beencommitted by the Body, every member of theBody shall be deemed to have also committedthat offence unless, having regard to all thecircumstances, he proves-a) that the offence was committed without hisknowledge, consent or connivance; andb) that he had taken all reasonable precautions andhad exercised due diligence to prevent thecommission of the offence. 21. Section 11(1)Joint Management Committee may perform theBodys duties and conduct the Bodys business onits behalf, and may for that purpose exercise anyof the Bodys power. 22. Section 11(2): Committee shall consist of: the developer not less than 5 and not more than 12 purchasers whoshall be elected at the annual general meeting of theBody and shall hold office for a period notexceeding 3 years or until the dissolution of theBody in accordance with Section 15, whicheverearlier. Section 11(3) - From among the members of theCommittee elected under subsection (2), there shall beelected a chairman, a secretary and a treasurer. Section 11(4) - provision of the Schedule shall apply tothe Committee. 23. FIRST SCHEDULE - [subsection 11(4)] Times and places of meetings.- The Committee is to hold as many meetings as arenecessary for the efficient performance of itsfunctions.- The meetings are to be held at such places andtimes as the chairman may decide.- BUT, the chairman shall not allow more than 2months to lapse between meetings.- The chairman shall call for a meeting if requestedto do so in writing by the Commissioner/ by atleast 2 members of the Committee. 24. FIRST SCHEDULE - [subsection 11(4)] Quorum - - The chairman and at least half of themembers of the Committee shall form a quorum at anymeeting of the Committee. Continuation of office.- A person shall continue to be a member of theCommittee until that person:a) resigns;b) dies;c) becomes a bankrupt;d) is no longer a purchaser 25. FIRST SCHEDULE - [subsection 11(4)] Casting vote - If on any question to be determined bythe Committee there is an equality of votes, thechairman shall have a vote in addition to hisdeliberative vote. 26. FIRST SCHEDULE- [subsection 11(4)] Committee may invite others to meetings.- The Committee may invite any person toattend any meeting or deliberation of theCommittee for the purpose of advising orassisting the Committee on any matter underdiscussion, BUT any person so attendingshall have no right to vote at the meeting ordeliberation.- Person invited shall be paid allowances. 27. FIRST SCHEDULE - [subsection 11(4)] Resolution of Committee.- A resolution is taken to have been passedat a meeting of the Committee if:a) all members of the Committee have beeninformed of the proposed resolution inwriting, or reasonable efforts have beenmade to inform all members of theCommittee of the proposed resolution; and 28. FIRST SCHEDULE [subsection 11(4)] b) the resolution in writing is signed by everymember of the Committee indication agreementwith the resolution, and in the absence of suchagreement by every member of the Committee, ameeting has to be held. 29. FIRST SCHEDULE- [subsection 11(4)] Minutes.- The secretary of the Committee shall causeminutes of all their meetings to be maintainedand kept in a proper form.- Minutes of meetings of the Committee, ifduly signed, shall be admissible in any legalproceedings as a prima facie evidence of thefacts stated in them without proof.JMC 30. FIRST SCHEDULE - [subsection 11(4)] Minutes.- Every meeting of the Committee in respect ofthe proceedings of which minutes have been somade shall be deemed to have been dulyconvened and held and all members at themeeting to have been duly qualified to act.- A Committee shall cause copies of the minutesof all its meetings to be submitted to theCommissioner as soon as practicable.JMC 31. FIRST SCHEDULE [subsection 11(4)] Procedure - The Committee may regulate its ownprocedure. 32. FIRST SCHEDULE[subsection 11(4)] Disclosure of interest.- A member of the Committee having any interest in anymatter under discussion by the Committee shall discloseto the Committee the facts of his interest and its nature.- A disclosure shall be recorded in the minutes of theCommittee and, after the disclosure, the member havingan interest in the matter shall not take part nor present inany deliberation or decision of the Committee. 33. FIRST SCHEDULE- [subsection 11(4)] Validity of acts and proceedings.- No act done or proceeding taken under this Actshall be questioned on the ground of:a. any vacancy in the membership of, or any defectin the constitution of, the Committee;b. contravention by any member of the Committee;orc. any omission, defect or irregularity not affectingthe merits of the case.JMC 34. FIRST SCHEDULE - [subsection 11(4)] Members to devote time to business of Committee.- The members of the Committee shall devote suchtime to the business of the Committee as is necessaryto discharge their duties effectively.JMC 35. Section 13 - On application by or on behalfof a person who is a purchaser, or by or onbehalf of a person who is a prospectivepurchaser, the Body shall issue to thatperson a certificate certifying-a) the amount of charges payable by a purchaser;b) the time and manner of payment of the amountof charges;c) the extent, if any, to which the charges havebeen paid;RIGHT OF PURCHASER 36. d) the amount, if any, then recoverable by the Body inrespect of the parcel;e) the sum standing to the credit of the BMF and the sumin the account that has been committed or reserved forexpenses already incurred by the Body;f) the nature of the repairs and estimated expenditure, ifany, where the Body has incurred any expenditure oris about to perform any repairs, work or act in respectof which a liability is likely to be incurred by thepurchaser of the parcel under any provision of thisAct; andg) the amount paid and to be paid by the developer forunsold parcel.PURCHASERS RIGHTS 37. Section 16(1) - Developer to open and maintainBuilding Maintenance Account. The Building Maintenance Account shall beopened in the name of the development area witha bank or financial institution licensed underBanking and Financial Institutions Act 1989 orregulated by the Central Bank under any otherwritten law.BUILDING MAINTENANCEACCOUNT 38. One Building Maintenance Account shall beopened for each development area [Section 16(2)] The Account shall be maintained by developeruntil the establishment of the Body for the building[Section 16(3)] developer shall not open and maintain a BuildingMaintenance Account together with any otherbuilding outside the development area.[S.16(4)] The Commissioner may resolve the dispute arisein respect of the Account as he deem fit and just[Section 16(5)] developer shall not open and maintain a BuildingMaintenance Account together with any otherbuilding outside the development area.[S.16(4)] 39. Section 17 - Duties of developer as to BuildingMaintenance Account. Section 17(1) - A developer shall deposit into theBuilding Maintenance Account-a) all charges received by him from the purchasers in thedevelopment area for the maintenance andmanagement of the common property of thedevelopment area; andb) all charges for the maintenance and management of thecommon property to be paid by the developer inrespect of those parcels in the development area whichhas not been sold, being a sum equivalent to themaintenance charges payable by the purchasers to thedeveloper had the parcels been sold.BUILDING MAINTENANCE ACCOUNT 40. Section 17(2) - The developershall-a) cause proper accounts of theBuilding Maintenance Account to bekept in respect of all sums of moneyrec...</p>