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The Strata Titles Act 1985 The Strata Titles (Amendment) Act 2013 The Strata Management Act 2013 An Update For Architects Ar Chee Soo Teng Pertubuhan Akitek Malaysia August 2013

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Page 1: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act 1985The Strata Titles (Amendment) Act

2013 The Strata Management Act 2013

An Update For Architects

Ar Chee Soo Teng Pertubuhan Akitek Malaysia

August 2013

Page 2: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Background to Strata Titles Act .

1) Prior to 1966, FMS Land Code 1926 had no provision for ownership of building, only the land it stood on

2) National Land Code 1966 – subsidiary title 3) Strata Titles Act 1985 – subdivision of building

into parcels 4) Strata Titles (Amendment) Act 1996 5) Strata Titles (Amendment) Act 2007 6) Strata Titles (Amendment) Act 2013

Page 3: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Background to Strata Titles Act Predecessors : FMS Land Code 1926

1) FMS Land Code 1926 had no provision for ownership of building, only the land it stood on

2) Devices used to “share” included : i) tenancy in common ii) home unit company system iii) granting of lease for flat

Page 4: The Strata Titles Act 1985 The Strata Titles (Amendment

2

The Strata Titles Act up to 2013

Page 5: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Predecessors Cont’d :- 3) Problems with FMS Land Code 1926 i) tenancy in common – actual ownership

unclear, no tangible collateral for borrowing, difficulty enforcing obligations/payment/etc, position of subsequent purchasers unclear

Page 6: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Predecessors Cont’d :- 3) Problems with FMS Land Code 1926 ii) home unit company system – minority

shareholders had no protection, Articles of Association (A&A) could be altered by majority to detriment of minority, unfair A&A vested unequal powers to Directors, no titles – only shares in company, therefore difficulty to use as security for borrowings

Page 7: The Strata Titles Act 1985 The Strata Titles (Amendment

Development of the Strata Titles Act 1985 up to 2007

Predecessors Cont’d :- 3) Problems with FMS Land Code 1926 iii) granting of lease for flat – under FMS land

Code 26, maximum period of lease was 30 years after which interests on land reverts to lessor. No true ownership, therefore Lending Institutions reluctant to accept lease as collateral.

Page 8: The Strata Titles Act 1985 The Strata Titles (Amendment

Development of the Strata Titles Act 1985 up to 2007

Subsidiary Titles 1) Subsidiary Titles under National Land

Code 1966 2) First time law was made to allow new

concept of sub dividing Buildings into Parcels

3) Ownership via Subsidiary Titles

Page 9: The Strata Titles Act 1985 The Strata Titles (Amendment

Development of the Strata Titles Act 1985 up to 2007

4) Problems with NLC 1966

i) No duty on original owner to apply for Subsidiary Titles – therefore ownership uncertain, multiple caveats encumbering master title and issuance of titles uncertain

ii) Restricted to buildings more than 5000sf plinth at ground level, excluding many small buildings

Page 10: The Strata Titles Act 1985 The Strata Titles (Amendment

Development of the Strata Titles Act 1985 up to 2007

4) Problems with NLC 1966

iii) No provision for phased development, titles only issued when all phases completed

iv) No provision for ownership for car parks, etc v) Getting titles issued was riddled with

bureaucratic delays subject to approval from 3 authorities – Planning, Land and Survey Depts

Page 11: The Strata Titles Act 1985 The Strata Titles (Amendment

22007 Amendments to the Strata Titles Act 1985

The Strata Titles Act up to 2013

Page 12: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

STRATA TITLES ACT 1985 (ACT 318) “An Act to facilitate the subdivision of building into parcels and the disposition of titles thereto and for purposes connected therewith”

Passed 1st JUNE 1985 and replaced the Subsidiary Titles Section of the National Land Code which was repealed when the Strata Titles Act came into force. Only applicable in West Malaysia.

Page 13: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

The Strata Titles Act 1985 .

Concept of STA was patterned along Australian NSW Conveyancing (Strata Titles) Act 1973 and Singapore Strata Titles Legislation and introduced in Peninsular Malaysia in 1985 to improve on :- Procedure and processing of applications Overcome inadequacies of Subsidiary Titles under NLC 1966

Page 14: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

The Strata Titles Act 1985 . New provisions to cater to requirements of

development industry :- Allowed for accessory parcels Allowance for Provisional blocks/Phased Development Allowance for Low Cost schemes

Page 15: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

The Strata Titles Act 1985 . However, STA 85 did not allow for subdivision of

into parcels if they are not in a multi storey building.

Does not allow for sub division of land into Parcels within a Strata Titled Development

Page 16: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Strata Titles Act 1985 Amendment in 1996 Advent of landed strata title properties anticipated but inadequately addressed by the amendment to S 6 (1) in 1996 Only allowed strata titles to buildings two storey or more, still no landed parcel

Proliferation of Gated Communities and its associated requirements created a need to further amend the Act to accommodate them

Page 17: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Status of Gated Communities prior to 2007 amendments . No common property GACOS Maintained (for private usage) with agreement of Local Statutory Authority Individual Titles issued for subdivided land only DMC’s signed by Purchasers are not transferable with resale, not registrable interest Matter of public right of access/roads deemed surrendered to State Authority Right to collect maintenance charges/fees?

Page 18: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Pre 2007 Amendment Section 6 (1) Buildings capable of being subdivided “Any building or buildings having two or more storeys on alienated land held as one lot under final title (whether Registry or Land Office title) shall be capable of being subdivided into parcels; and any building or buildings having only one storey on the same land shall also be capable of being subdivided into parcels to be held under strata titles or into accessory parcels.” Narrowly interpreted by Authorities

Page 19: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Pre-2007 amendment section 6

MULTI STOREY BUILDING WITH STRATA TITLES TO INDIVIDUAL PARCELS

SINGLE STOREY BUNGALOWS WITH STRATA TITLES

COMMON PROPERTY

Page 20: The Strata Titles Act 1985 The Strata Titles (Amendment

Pre 2007 amendment Sect 6

SUB-DIVIDED MULTI STOREY APARTMENT BLOCK MULTI STOREY

BUNGALOWS ON LAND PARCLES REQUIRES 2 STRATA TITLED PARCELS WITH DIRECT ACCESS FROM COMMON PROPERTY

COMMON PROPERTY

The Strata Titles Act up to 2013

Page 21: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

THANK YOU

Ar Chee Soo Teng FPAM MIFireE MMIArb

29 May 2011

Page 22: The Strata Titles Act 1985 The Strata Titles (Amendment

THANK YOU

Ar Chee Soo Teng FPAM MIFireE MMIArb

29 May 2011

Page 23: The Strata Titles Act 1985 The Strata Titles (Amendment

THANK YOU

Ar Chee Soo Teng FPAM MIFireE MMIArb

29 May 2011

Page 24: The Strata Titles Act 1985 The Strata Titles (Amendment

THANK YOU

Ar Chee Soo Teng FPAM MIFireE MMIArb

29 May 2011

Page 25: The Strata Titles Act 1985 The Strata Titles (Amendment

Development of the Strata Titles Act 1985 up to 2007

THANK YOU

Ar Chee Soo Teng FPAM MIFireE MMIArb

29 May 2011

Page 26: The Strata Titles Act 1985 The Strata Titles (Amendment

THANK YOU

Ar Chee Soo Teng FPAM MIFireE MMIArb

29 May 2011

Page 27: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Strata Titles Act Amendment 2007 Addressed the need for landed strata title properties anticipated but inadequately addressed by the amendment to S 6 (1) in 1996 Strata Titles Act Amendment 2013 together with Strata Management Act 2013 Addresses issues associated with issuance of strata titles, phased strata developments and management/ownership of strata title properties

Page 28: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Strata Titles Act Amendment 2013 with Strata Management Act 2013 - Main Impact (1) Extended to cover Labuan (Sect 2); (2) Introduction of Electronic Land Administration System of Strata Titles (Sect 4A); (3) Compulsory for Original Proprietor to commence application for Sub-Division of Building or Land at the completion of superstructure stage in a 2 stage process (Sect 8A) if he has agreed to sell or have sold any parcels;

Page 29: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Strata Titles Act Amendment 2013 with Strata Management Act 2013 - Main Impact (4) Phased developments – provisional block title comprising land parcels now allowed (Sect 9a); (5) Designation of Limited Common Property and creation of one or more subsidiary management corporations to represent and manage different interests of parcel proprietors (Sect 17A); (6) Execution of transfer documents of ownership by Purchaser within 30 days from date of issue by Land Administrator or any extended period by the director (sect 19a) – an offence if not executed.

Page 30: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 4 Strata Titles “Board” deleted “Land parcel” – means a unit delineated within the lot in which is comprised a building of not more than 4 storey which is held under a strata title; which may have shared basement, comprises accessory parcels and common property; The word ‘Completed’ has been taken out, layered land parcel anticipated, ie land parcel sitting on common property, accessory parcel eg garden, within delineated land parcel

Page 31: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 4

“strata plan” has been expanded (a) – in relation to a subdivided building, means a location plan and a storey plan, and includes a plan of division or amalgamation of any parcels shown in a certified strata plan; and (b) in relation to a subdivided land, means a location plan and a delineation plan, and includes a plan of division or amalgamation of any parcels shown in a certified plan, and in the case of land parcel with shared basement, includes a storey plan;

Page 32: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 4

“subsidiary management corporation” in relation to limited common property means the subsidiary management corporation created under section 17A;

“super structure stage” means the stage upon the completion of the building works as duly certified in accordance with the relevant by-laws made under the Street Drainage and building Act 1974 (Act 133);

Page 33: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 New Section 4B – “ Coming into operation of the Electronic Land Administration System of Strata Titles in any Land Registry 4B (1) The electronic Land administration System of strata Titles shall come into operation in any Land Registry upon notification in the Gazette pursuant to subsection 5D(1) of the NLC 4B(2)(b) – Land Registry includes – (i) in the case of titles held on Registry Titles, the office of the Registrar of titles for the state; (ii) in the case of titles held on Land Office Titles, the office of the Land Administrator for the District; and (iii) in times of disaster specified by the state Authority; the Disaster Recovery Centre.

Page 34: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

1

2

3

4

1

2

3

4

GROUND LEVEL

Section 4 – storey definition

Page 35: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2007 Recap, not amended in 2013 Section 6 - Building or land capable of being subdivided into parcels 6(1) - “Any building having two or more storeys on alienated land held as one lot under final title (whether Registry or Land Office title) shall be capable of being subdivided into parcels; and any land on the same lot shall also be capable of being subdivided into parcels each of which is to be held under a strata title or accessory parcel

Page 36: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Section 6 - Building or land capable of being subdivided into parcels 6(1A) - “Any alienated land having two or more buildings held as one lot under final title (whether Registry or Land Office title) shall be capable of being subdivided into land parcels each of which is to be held under a strata title or as an accessory parcel

Page 37: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Sect 6(1) illustration

MULTI STOREY BUILDING WITH STRATA PARCELS TO APARTMENTS

LAND PARCEL WITH BUILDING NOT MORE THAN 4 STOREYS

COMMON PROPERTY

Page 38: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Sect 6(1) illustration

PARCELS (STRATA)

LAND PARCELS (WITH BUILDING)

COMMON PROPERTY

CLUBHOUSE (COMMON PROPERTY)

SP1

SP2

SP3

SP4

LP1LP2

LP3LP4

LP5LP6

LP7

LP8LP9

LP10LP11

LP12LP13

LP14

LP15LP16

LP17LP18

LP19LP20

LP21

LP22LP23

LP24

LP25LP26

LP27LP28

Page 39: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Sect 6 (1A) illustration

LAND PARCELS (WITH BUILDING)

COMMON PROPERTY

CLUBHOUSE (COMMON PROPERTY)

Page 40: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Section 6(1) Sub-Division

Page 41: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Illustration of variations

BUNGALOW LOTS

MULTI STOREY BUILDING

CLUBHOUSE

TERRACE LOTS

SEMI-D LOTS

ZERO LOT BUNGALOWS

Page 42: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 7 – “The original proprietor of any alienated land on which there is any building or land which is capable of being subdivided under section 6 may, subject to the provisions of this Act, apply for the subdivision thereof to the Director.” Proprietor not obliged to submit for subdivision and issuance of strata titles if no parcel or part of building or land parcel is sold. Previously, 7(3) says an application may be made even if no CCC has been issued for the building.

Page 43: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 8 – Circumstances in which it is compulsory to apply for subdivision of a building or land 8(2)(a) -parcels are sold, and completion of superstructure is certified AFTER commencement of 2013 Act, the proprietor is obliged to apply for subdivision of building or land within 3 months 8(2)(b) –sale commenced BEFORE and building is completed AFTER commencement of Act, 3 mths from CCC

Page 44: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 8 – cont’d 8(2)(c) -building is completed BEFORE commencement of Act and parcels are sold AFTER, 3 months after CCC or first SPA, whichever is later 8(2)(d) –when sale commenced and building is completed BEFORE commencement of Act, 3 months from date of commencement of Act 8(2)(e) – when building completed BEFORE Act (with CCC) and sales takes place AFTER commencement of Act, 3 months from first sale.

Page 45: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 – NEW Section 8(A) New Section 8A – Application for certificate of proposed strata plan

8(A)(1) – for the purposes of application for subdivision, the original Proprietor shall apply for a certificate of proposed strata plan with the following :-

(a) Fees for survey

(b) original copy of Approved Building Plans

Page 46: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 – NEW Section 8(A) New Section 8A – Application for certificate of proposed strata plan 8(A)(1) –

(c) (i) if no Apprvd Bldg Plans available, Building Plans certified by Architect or Surveyor as having been drawn according to actual features of building and

(ii) certification by authorised officer of appropriate Local Planning Authority that Planning Permission wasa given but plans are no longer available and that the building satisfies planning requirements

Page 47: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 – NEW Section 8(A) 8(A)(1)

(d) proposed strata plan comprising location, storey and delineation plans containing details as required and certified by Land Surveyor as follows:-

(i) that he has compared the plans against the Approved Bldg Plans (ii) in case of storey plans, boundaries follow features of permanent construction in building (iii) that building/s are situated wholly within boundaries except for eaves, awnings and balconies not forming part of parcel, which, if projecting over road reserve, possess permits under sect 75A of NLC

Page 48: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 – NEW Section 8(A) 8(A)(1)

(iv) that each proposed parcel has – (a) adequate means of access not passing through another parcel; (b) an adequate means of internal communication not passing through common property; (v) that it has been certified by a Land surveyor that the position of each provisional block as delineated on the location plan is wholly within the boundaries of the lot

Page 49: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 – NEW Section 8(A) New Section 8A(1) – Application for certificate of proposed strata plan (cont’d)

(e) in case of land parcels for erection or buildings for which

planning permission was required, a certification by P Architect or P Engineer that the building was constructed in accordance with the plans and specs by reference to which that permission was given; and the plans and specs of the buildings state the date on which such permission was given and reference number, if any;

(f) a certified copy of the final title of the lot;

Page 50: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 – NEW Section 8(A) New Section 8A(1) – Application for certificate of proposed strata plan (cont’d)

(g) a certifed copy of the document that certifies the super

structure stage under 8(2)(a) – bldg and SPA AFTER Act (h) a certified copy of CCC or CFO, except for case under

8(2)(a); and (i) a certified copy of the schedule of parcel or amended

schedule of parcels filed under the SMAct 2013 except cases 8(2) b or d

Page 51: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 – NEW Section 8(A)

Section 8A(2) – For purposes of sub-division under sub section 6(1A), the proposed strata plan shall comprise a location plan and a delineation plan, and in case of subdivision of land with shared basement, includes a storey plan showing the approved accessory parcels and common property.

Section 8A(3) – Every Location Plan shall have – (a) lot number, title number and area specified (b) delineation of all boundaries, boundary marks and position of all

buildings, delineation of land parcels showing position of the buildings (c) in case of subdivision of Building and into land parcels with shared

basement, to include vertical section showing floor and ceiling of each storey and height of each storey; and (d) such other details determined by the Director of Survey

Page 52: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 – NEW Section 8(A)

Section 8A(4) – Storey Plan specs – lot and title number, building and storey reference, delineation of each parcel with defined boundaries, parcel number as described in proposed strata plan, floor area, parts not to be included into parcel but are common area, details required by Director of Survey

Page 53: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 – NEW Section 8(A) Section 8A(5) – Delineation Plan specs- lot and title number of the land, and the land parcel to which the plan relates, delineation of each land parcel with reference to lot boundary (bearings), indicate the number of each land parcel as described in the strata plan, area of each land parcel, distinguish each part not to be included into the land parcel but are to become common property, details as required by Director of Survey;

Section 8A(6) – Every Strata Plan shall have – (a) legend of (i) all parcels (ii) all common property (iii) all accessory parcels, and the parcels they are made appurtenant to (iv) details required by Director Of Survey

Page 54: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 – NEW Section 8(A)

Section 8A(7) – Accessory Parcel specs Storey Plan specs – if bounded by walls, floor s and ceilings and where it does not consist of a building, by reference to approved building plans

Section 8A(8) – Director of Survey shall check plans, carry out survey of land or building and shall issue a certificate of proposed strata plan if the plans are in order, issue copy to Land Administrator and notify him of fees to be collected for preparation of plans

Page 55: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 9(1)– Application for subdivision of building and land under Sect 6(1) or of land under Sect 6(1A) using Form 1 accompanied by :-

(a) prescribed fees (b) fees notified by Director of Survey (c) certificate of proposed strata plan (d) classification certificate for low cost building (e) written consent of every person who is entitled to the

benefit of a lease ot the whole or part thereof, other than a part included within one of the parcels created upon subdivision

Page 56: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 9(1)– Application for subdivision of building and land under Sect 6(1) or of land under Sect 6(1A) using Form 1 accompanied by :-

(f) proposed name of management corporation and address for service of documents

(g) issue document of title of the lot (h) certified copy of CCC or CFO except in 8(2)(a) (i) certified copy of schedule of parcels or amended

schedule of parcels except for case under para 8(20(b) and

Page 57: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013

Section 9(2)– No Application under Section 9(1) shall be made unless :-

(a) land is held under final title; (b) the use of land is not contrary to the land category and

conditions; and (c) the land is not subject to any charge or lien

Page 58: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013

New Section 9(A)– Application for sub-division in the case of phased developments Application, except for low cost, shall include an application for the issue of provisional strata title for a provisional block in respect of a building or land, subject to subsection 6(1) or 6(1A), proposed to be, or in the course of being erected on the lot in question.

Page 59: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 New Section 9(B)– Replaces old 10(b) Application for sub-division in the case of low-cost buildings

9B(1) the State Authority (SA) may, on application.., classify it to be low-cost building.

(2) the SA may prescribe the classification of any type of building to be a low-cost building

(3) upon classification, the SA shall issue a certificate to the proprietor

(4) proprietor shall apply for sub-division under subsection 9(1)

(5) No building erected in a provisional block shall be classified a low-cost building

Page 60: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 10 Conditions for Approval Section 10(1)– The Director shall not approve sub-division unless (a) Director of Survey has issued Certificate of proposed strata plan (b) subdivision will not contravene any condition or restriction in interest (c) subdivision will not contravene any written law (d) no item of land revenue is outstanding (e) consent in writing from every person who is entitled to the benefit of a lease, other than parcel owners

Page 61: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 10(1)– The Director shall not approve sub-division unless (cont’d) (f) where land on which building/s stand is held for a term of years, there remains a period no less than twenty one years (g) that the land on which the building/s stand is not subject to charge or lien (h) assigned share units are equitable (i) land is held under final title

Page 62: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 10 Conditions for Approval Section 10(2)– Replaces old 10(a) Application involving provisional block/s, the Director shall not approve sub-division unless (a) it has been certified by a Land surveyor that the position of each provisional block as delineated on the location plan is wholly within the lot boundaries (b) quantum of provisional share units assigned to each provisional block by the proprietor are equitable

Page 63: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 10 (2)– Application involving provisional block/s, the Director shall not approve sub-division unless (c) the proprietor has – (i) given the date by when he undertakes that the construction of the

building or each building to which the provisional block or blocks relate will be completed;

– (ii) paid to the Director in respect of each provisional block a deposit of such reasonable amount as the Director may require; and

– (iii) furnished a written statement to agree that the amount be forfeited by the government in the event that CCC has not been issued for the provisional block by that date or such later dates the Director may allow

Page 64: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2007 Section 13(3) – boundary (word “common” deleted) For the purposes of the preparation of any such certified plan, the * boundary of any parcel of a building with any other parcel, or with any part of the building which is not included in any of the parcels, shall, except in so far as it may have been otherwise provided in the relevant storey plan, be taken to be the centre of the floor, wall or ceiling, as the case may be, or in the case of land parcels, the boundary shall be defined by its demarcation on the land.

Page 65: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 17 Effect of opening of book of strata register 17(1) Registrar shall make on the register and issue document of title a memorial to the effect that the book (of strata register) has been opened and that common property is vested in the MC and shall return the issue document of title to the MC 17(3) MC comes into existence by virtue of opening of book of strata register and Registrar shall issue a certificate certifying the establishment of the MC as a body corporate…

Page 66: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 New Section 17A – Limited Common Property and subsidiary management corporations allowed 17A(1) MC may designate limited common property and create one or more subsidiary MC’s only for he purpose of representing the different interests of parcel proprietors by way of comprehensive resolution conducted under the Strata Title Management Act 2013. Very useful and timely amendment in view of proliferation of mixed use buildings such as serviced apartments and office block above commercial complex – need to separate usage of different areas by different parcel proprietors

Page 67: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 New Section 17A – 17A(2) Limited common property designated… shall :- (a) describe, identify or define boundaries or area of the limited common property in the special plan; (b) specifies each parcel comprised in that special plan whose proprietors are entitled to the exclusive benefit of the limited common property; and (c) conform with other details as prescribed by the Director of Survey Designation of exclusive common areas for use by a particular group of owners tackles issue of overlapping claims and privacy and security

Page 68: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 New Section 17A – 17A(3) The MC shall apply to the Director for approval for the issue of certificate of subsidiary management corporation for the designated limited common property…. 17A(4) The Director shall refer to the Director of Survey who shall advise the Director 17A(5) if satisfied, the Director shall accept and issue a certificate certifying that the subsidiary management corporation is a body corporate constituted under this Act.. 17A(6) the subsidiary management corporation may sue or be sued A separate SMC for each portion of building under separate usage such as serviced apartments with recreational facilities, office block with access to separate car park and separate M&E systems. Allows for allocation of resources and collection of charges in accordance with nature of usage, grouping of proprietors with common interests under separate SMC

Page 69: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013 Section 18 – share units of parcels ( no change) ”equitable basis” to be used in the assignment of share units Reflects the share value of the parcel Used as basis to determine voting rights and share of maintenance fee and sinking fund Expressed in whole numbers, preferably in even numbers in case of future sub division of parcel Strata Management Act 2013 Section 8 First Schedule now prescribes formula for calculating the Share Units for each Parcel

Page 70: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013

New Section 19A – transfer of ownership of strata titles 19A(1) Original proprietor shall execute the transfer of strata title to the purchaser within 30 days from date of issue of strata title by the Land Administrator or any extended period approved by the Director upon opening of the strata register 19A(2) Purchaser shall execute complete documents of transfer of strata title within 30 days or any extended period approved by the Director from the date of notice of transfer being served to the purchaser by the proprietor or from date of purchase of the parcel, whichever is the later 19A(3) any proprietor or purchaser who fails to comply with (1) or (2) shall be guilty of an offence… not less than one thousand ringgit and not more than ten thousand ringgit per parcel

Page 71: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013

Part IV heading changed to “Provisional Block : Issuance of Strata Title” from “Provisional Block : Issue of strata titles upon Completion of Building”

Amended Section 20 – circumstances in which it is compulsory for a proprietor of provisional strata title to apply for strata title

20(1) The proprietor of provisional title shall, within the period specified in sub sections 2 and 3, apply for the sub division of the building or land capable of being issued with strata titles, if at any time he has sold or agreed to sell any parcel in such building or land to any person

Page 72: The Strata Titles Act 1985 The Strata Titles (Amendment

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Amendments 2013

20(2) The period within which proprietor shall apply for strata titles are as follows :- (a) if SPA date and certification of superstructure stage is AFTER commencement of Act – 3 months from certification of completion of superstructure (b) if bldg completed after the Act and SPA date is before the Act – 3 months from issuance of CCC or CFO (c) if bldg completed and SPA signed BEFORE commencement of Act – 3 months from date of commencement of Act (d) if bldg completed before Act and SPA signed after the Act – 3 months from SPA date

Page 73: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013

20(3) Where proprietor of provisional title has not sold any parcel and CCC has been issued, the proprietor shall :-

(a) where CCC or CFO has been issued after commencement of Act, apply for issuance of proposed strata plan to Director of Survey within 3 months from date of CCC or CFO (b) where CCC issued before commencement of Act, apply for issuance of certificate of proposed strata plan to Director of survey within 3 months from commencement of Act

Page 74: The Strata Titles Act 1985 The Strata Titles (Amendment

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Amendments 2013

20(4) Where proprietor of provisional title has been issued certificate of proposed strata plan…. Shall apply for subdivision under section 20b(1) within 1 month from date of issuance of certificate of proposed strata plan 20(7) – defective application by reason of any material non compliance treated as not being in accordance with 20(1) – that is, treated as not having submitted an application, and therefore an offence 20(8) – proprietor of provisional title guilty an offence when an application is not made within the period specified or granted (extended under section 20 (5) and (6) 20(9) – fine, upon conviction, of not less than 10 thousand ringgit but not more than 100 thousand ringgit or to imprisonment for a term not exceeding 3 years or to both and if continued offence, further fine of not less than 100 thousand ringgit but not more than 1 thousand ringgit per day of continued offence.

Page 75: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Amendments 2013

“Provisional Block : Issuance of Strata Title”

New Sections 20A and 20B – application for certificate of proposed strata plan and subdivision of building respectively Mirrors new section 8 (A) and section 9 except that this is for provisional block strata title 2 stage process, application for certified proposed strata plan and then application for subdivision upon issuance of certified proposed strata plan

Page 76: The Strata Titles Act 1985 The Strata Titles (Amendment

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Strata Management Act 2013

Replaces the repealed Building and Common Property Act 2007 Part I – Preliminary Part II – Administration of Act Part III – Dealings in Building or Land intended for Sub Division into Parcels Part IV – Strata management before existence of Management Corporation

Page 77: The Strata Titles Act 1985 The Strata Titles (Amendment

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Strata Management Act 2013

Part V – Strata management after existence of management Corporation Part VI – Managing Agent Part VII – Deposit to rectify defects – upon VP, developer to deposit in cas or bank guarantee with Commissioner such sum for purpose of carrying out any rectification of defects in the common property after the completionof the common property Part VIII – Insurance – duty to insure, reinstatement value to be obtained every 5 years, subsidiary MC has obligation to insure exclusive designated common areas if these can be separated from other buildings

Page 78: The Strata Titles Act 1985 The Strata Titles (Amendment

The Strata Titles Act up to 2013

Strata Management Act 2013

Part IX – Disputes and Strata Management Tribunal – Replaces Strata Titles Board, to hear and determine claims not exceeding RM 250,000 much like Housebuyer’s Tribunal under HDAct, no legal representation unless Tribunal opines matter involves complex issues of law, hearings open to public, award within 60 days of first day of hearing, criminal penalty for failure to comply with award of tribunal Part X – Enforcement Part XI – Miscellaneous – section 142 – with respect to any alleged defect, unless proven to the contrary, any sign of moisture or dampness or water penetration to the ceiling of the parcel or area below shall be deemed conclusive that the defect is within the parcel or common area above

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The Strata Titles Act up to 2013

Word of advice Important to appreciate that the Strata Titles Act is to be read as being part of the National Land Code and operates in conjunction with several other legislations or Acts. Compliance with one Act such as the UBBL under Street Drainage and Building Act may not be sufficient to comply with Strata Titles Act - witness overhanging eaves, balconies and ledges, and SPA dates under Housing Development Act has bearing on date to apply for Strata Titles, delineation of parcels and accessory parcels in architectural design has to comply with STA guidelines for buildings and land capable of subdivision under the STA. Understanding the multifarious requirements will allow Architects to creatively interpret or take advantage of the requirements to design innovative development solutions.

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The Strata Titles Act up to 2013

STRATA TITLES

(Amendment)

ACT 2013

NATIONAL LAND CODE

FEDERAL CONSTITUTION

VALUERS, APPRAISERS AND ESTATE AGENTS

ACT 1981

HOUSING DEVELOPMENT (CONTROL & LICENSING)

ACT 1966

Strata Management Act 2013

STREET, DRAINAGE AND BUILDING

ACT 1974 And UBBL 1984

Town and Country Planning Act

TOWN AND COUNTRY PLANNING ACT

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The Strata Titles Act up to 2013

THANK YOU

Ar Chee Soo Teng FPAM MIFireE MMIArb

August 2013