Tag Archive: strata title act


Notice is hereby given that 5th Annual General Meeting of Danau Murni Management Corporation will be held at the Multipurpose Hall, Block A, Danau Murni Condominium, Jalan 109F Taman Danau Desa, Off Jalan Klang Lama, 58100 Kuala Lumpur on Saturday, 15th October 2016 @ 10:00 am.Notice-of-5th-AGM-2016

notice-5th-agm-2016

minutes-4th-agm-2015

audited-report-2015-danau-murni-condo

 

Advertisements

Only 74 out of 7,325 high-rise residential properties in Peninsular Malaysia earned the top five-star ranking in an evaluation of their property management standards. And more than half are below par, earning only one and two stars.

Future generations will likely live in stratified buildings, so people should try to set a proper precedent for them. Mohammad Ridzwan Abidin

IT is one thing to be a developed state by 2020. But it is another thing entirely to have a developed state of mind – and Malaysians have a long way to go to achieve that.

Take, for instance, condominium and apartment-living.

Some of these properties may come with top notch facilities but when it comes to managing their upkeep, there is much to be desired.

Or so says the latest findings on the quality of managing stratified properties from a survey by the Urban Wellbeing, Housing and Local Government Ministry.

Every year, the ministry conducts its Strata Scheme Management Quality Evaluation, or “Star Rating”, which ranks the standards of joint management bodies (JMBs) or management corporations (MCs) of apartments and condominiums.

These bodies are ranked based on how they do in seven areas (see graphic below for details); five stars is the highest rank.

getimage-100

But, as it turns out, more than half – or 69% – of condominiums and apartments nationwide ranked “below par”, scoring only one and two stars in 2015. In 2014, a slightly smaller percentage, 65%, were ranked below par.

Only 1% – or 74 – out of 7,325 strata development schemes surveyed earned five stars in the 2015 ratings, made available to Sunday Star.

If such a trend continues, future residents will inherit poor standards of living amidst modern facilities.

Currently, almost six million Malaysians out of 20 million city folk are living in stratified buildings like apartments and condominiums.

“But this number is expected to rise in future as the country progresses and becomes more urbanised,” says Mohammad Ridzwan Abidin, Urban Wellbeing, Housing and Local Government Ministry urban service division under-secretary.

He says one of the major problems that condo dwellers continue to face is the refusal of other residents to pay maintenance fees. Other problems are building defects and matters involving enforcement.

“For now, about 70% of residents are at a level where they are merely aware of what needs to be done in managing their property. They are not yet at a level to appreciate the benefits of cooperating with each other and creating a better living culture,” he says.

Mohamad Ridzwan says there is a need to change the mindset of people to foster more civic-minded communities in high-rise buildings.

“Future generations will likely live in stratified buildings, so people should try to set a proper precedent for them,” he says.

He points out that there are also more people moving out of landed properties and into high-rise buildings.

“This group of people will have to learn to adapt to the culture of living in stratified buildings as it is different from living in houses.

“They will need to be more inclusive of and cooperative with their neighbours,” he says, adding that they would also have to learn to be more considerate when it comes to using shared facilities.

Stressing that it all boils down to the mindset of residents, Mohamad Ridzwan highlights the case of Rumah Pangsa Orkid, a low-cost flats property in Ulu Tiram, Johor, which made it into the Malaysia Book Of Records in 2014 for obtaining the ISO 9001:2008 standard for exemplary management.

“Until today, they remain the only low cost flat development to have achieved this,” he says, adding that there are yet to be any high-end condominiums accorded the same standard.

Mohamad Ridzwan says the ministry will continue to actively educate dwellers on proper management of their properties.

“We will embark on more education programmes to promote better practices through advertisements in the mass media,” he says.

On the Strata Management Tribunals to hear disputes, Mohamad Ridzwan says four such tribunals have been successfully set up to cover different zones in Peninsular Malaysia.

“Since their formation the tribunals have heard about 200 cases per month,” he says.

In March, Sunday Star reported that residents who do not pay maintenance fees and other charges were set to face the music, with the Government forming a team to strengthen the enforcement of the Strata Management Act.

The Act also enables residents to take their disputes to a Strata Management Tribunal to settle matters.

Building Managers Association of Malaysia committee member Richard Chan agrees that the “biggest and most critical” problem is the collection of fees, saying that it is rare that JMBs or MCs are able to collect payment from 80% of residents.

“It is more common for the collection rate to be at 40% or 50%,” he says.

Chan laments that petty excuses are often given by residents to defend their refusal to pay up.

“Some refuse because they don’t use the facilities.

“When people ask why they don’t want to pay, they simply say they don’t swim or play tennis,” he shares.

Chan adds that many unit owners live elsewhere or are based overseas and so are reluctant to pay.

“Some are not satisfied with services like garbage collection and defy orders to settle the fees,” he says.

He urges future condo owners to refrain from buying properties that come with all sorts of facilities if they are unwilling to pay up.

“Sometimes, it isn’t about whether they can afford the fees or service charges. It is about their attitude and mentality.

“Some don’t pay simply because their neighbours are not paying and are getting away with it,” Chan says, adding that such attitudes have resulted in some apartments owing up to RM200,000 in water and electricity bills.

The lack of money in the sinking fund also hinders JMBs and MCs from paying for major works like repairing lifts.

“It becomes a vicious cycle. Because people are not satisfied with the upkeep of the place, they do not pay the fees.

“But when they do not pay, there isn’t enough funds for upkeep,” he says.

Also, developers must do their part by informing all potential property buyers of the exact amount of all service charges, says Chan.

“Developers will try to promote their projects for more sales but they should also inform buyers of the fees they are expected to pay.

“Owners should also consider that, after a year, the fees may go up as warranty periods for equipment expire,” he says.

Federation of Malaysian Consumers Associations secretary-general Datuk Paul Selvaraj says many complaints against MCs have been made to the federation.

“High-end condominiums are generally better managed. We received a lot of complaints from people in medium cost apartments,” he says.

He says that consumers and the building management should both be more responsible.

“Consumers need to settle payments that they have agreed to. But they should also be receiving good service in return, like efficient rubbish collection,” he says.

Selvaraj highlights that the only way forward is for management bodies and residents to have a good working relationship.

“People should understand that managing their building is a collective responsibility.

“More dialogues should be held on how to improve the community to ensure good quality of life wherever we live,” he adds.

Room for improvement

THERE are mixed views, but apartment and condominium residents generally agree that there is room for improvement in managing their shared living spaces.

Long standing issues continue to plague condo dwellers, such as poor cleanliness, wrongful use of facilities, low collection of maintenance fees and security problems.

Some believe in boils down to a lack of cooperation among residents while others have taken the developers and the management bodies to task.

A condominium resident in Petaling Jaya, who wishes to be known only as Aaron, says the joint management body (JMB) in his building finds it tough to make changes because of the attitude of his neighbours.

He laments that some residents do not dispose of rubbish properly despite signs being put up to advise them.

“Even if the bin is not full, some just toss their trash on the floor.

“This is the typical ugly Malaysian mindset – since they have already paid to keep the place clean, why should they bother so much?” says the 32-year-old engineer.

Aaron also notes that lifts are sometimes vandalised with graffiti.

“The JMB is trying hard to get things right but it’s the people living here who need to cooperate to ensure it works,” he says, adding that many of the units have been bought up by property investors, and such units are left vacant since the owners do not live in them.

Because of this, they do not pay maintenance fees, causing Aaron’s building to be poorly maintained.

“Some rent out their properties to tenants, who do not care and are not bothered about paying for the shared facilities like the swimming pool,” Aaron says.

While his JMB blocks the access cards of residents who refused to pay up to encourage more payment, the move isn’t effective enough.

Julian Ding, who used to live in an apartment in Ara Damansara, Petaling Jaya, says some residents who smoke can be inconsiderate by throwing their cigarette butts out of the window, which eventually end up on balconies and in common areas.

He also recalls that some residents do not use shared amenities properly – he’s seen people dragging chairs into the swimming pool and leaving them there.

“There were also some security problems. Once, an unknown man had followed a female resident into the compound,” says the 31-yearold father of a baby girl.

Ding now lives in a condominium in Bangsar, Kuala Lumpur, and says his current neighbours are better, with only a fraction not up-to-date with maintenance fees.

“Facilities are fixed if complaints are made and the area is generally clean. But I suppose this is because it is a low density condominium with only 70 units,” he says.

Teacher R. Nithia, a resident in Penang, says the management corporation (MC) in her apartment is problematic because the new post bearers are continuously bickering with the former MC members.

“While they are feuding, the residents are caught in between,” the 40-year-old complains.

She says there are security issues that need to be addressed, such as cars being scratched and vandalised despite the apartment having guards on duty.

“Our access cards to the car park have also been duplicated by non-residents.

“But while we have tried to raise this to the MC, they seem to be more concerned in undoing what the former MC members have done, like changing contractors and the security company,” Nithia says.

Meanwhile, there are some who feel the project developer, who is usually part of the JMB, should do more, especially if there are complaints about the building.

An IT manager who wants to be known only as Johan says the developer of his condominium in Subang Jaya, Selangor, had initially led the JMB but was slow to act on complaints about the workmanship of the building.

“There were many issues, including tiles popping up after only three years,” says the 32-year-old.

He says residents were also promised that their units would be equipped with broadband Internet but the developer has failed to provide such a service.

The JMB, led by the developer, also overpaid for certain services like security when they paid the salaries for eight guards but only six were actually doing the job.

“Last month, the residents took over the management as an MC, and we hope things will improve,” he says, adding that the residents plan to bring up their issues with the developer with the Strata Management Tribunal.

Source: The Star 25 September 2016

The new Act will replace the Building and Joint Property (Management and Maintenance) 2007 (Act 663).

You can download a copy at:

Strata Management Act – AGC Link

or at NZX Commercial Document Centre:

Strata Management Act – NZX Link

This Act 757 shall be read and construed with the Strata Title Act 1985 (Act 318) and the subsidiary legislation made under that Act in so far as they are not inconsistent with the provisions of this Act or the regulations made under this Act.

28 July 2012 | The Star Malaysia  | Chang Kim Loong

THE concept of a management body should be fairly clear to a management corporations’ council members or even many long-time strata property owners. For non-involved owners and residents – especially first-time owners – this form of common-interest ‘governance’ can be perplexing and, at times, bewildering, what with the many parties (developers, managing agent, management council, other buyers, etc) involved as well as with the legal duties of each party.

Those who have never lived in an owners’ corporation (condo, apartments, townhouses, gated communities) often do not understand the necessity of service charges, sinking fund, rules and volunteering to sit in the management council. For them, the “management” may be perceived as little more than a nebulous entity that expects prompt payment on monthly invoices. This lack of understanding can lead to miscommunication and misunderstanding with the general perception that condo living is “hard”.

Required by law

Call it by whatever name, Joint Management Body (JMB), Management Corporation (MC), Residents Association, they are all basically a community association of property owners looking out for their best interest. In the first two, it is a requirement by law for strata titled property under the Strata Titles Act, 1985 and the new Building and Common Property (Management and Maintenance) Act, 2007 (BCP), whereas Residents’ Association are voluntary organisations registered as a society.

The new BCP Act now allows the formation of a joint management body from the start and owners do not have to wait till the first annual general meeting called by the developer to have a say in how their investment is managed and maintained.

Very often, only a small percentage of owners in condominiums or other types of strata titled development take interest in how their properties are managed. This leaves the handful of volunteers burned out after years of volunteering their services. There are also some who are interested but do not have the knowledge or skill to sit in the decision making council.

Challenging duties

In the BCP, the joint management committee representing the purchasers should comprise a minimum of five purchasers and a maximum of 12. Whereas, in the Strata Titles Act, the management council should consist of a minimum of three parcel owners and a maximum of 14.

Although these are voluntary positions, they have to be taken seriously because they involve people and their investments. Most owners’ corporations are headed by a leader who might also be the chairman at meetings. Strong leadership is an essential component of every successful owners’ corporation. Very often, those who speak the loudest at meetings are elected but that may not be sufficient for the long term.

A good leader can make a difference for an owners’ corporation spirit. By considering the strength and qualities it takes to succeed, selecting your leader can in a very real way, lead to a more productive and happy community. Here are some tips on how to choose the leader of your home community.

“A manager does things the right way and a leader does the right thing.”

A leader is someone who not only recognises the “right thing”, but who can also motivate others to help him get the right thing done. Strong leaders should have skills, knowledge and experience plus the abilities to motivate and command.

How to distinguish leadership quality

How do you recognise who has this special combination of insight and inspiration?

There are personal characteristics that point to strong leadership style. Look for people who display these particular abilities:

  • Ability to take criticism – No one in a position of power will escape criticism. Leaders have the ability to discern when criticism is valid and when it is not.
  • An open mind – A leader must be able to approach a problem creatively. Perspective is an invaluable leadership tool. A council/committee that is afraid of change will stagnate.
  • Communicate well – Explains, persuades and praises. Some volunteers are not particularly articulate, yet are valuable and productive. Leaders should be able to express ideas clearly and persuasively.
  • Decisiveness – Taking a stand involves making mistakes. A good leader takes a stand and if an error is made, acknowledges it and makes a course correction.
  • Enthusiasm – Enthusiasm is contagious. With it, council members are motivated to keep volunteering. Without it, voluntary work becomes a burden.
  • Leads by example and promotes teamwork – Arrives on time, never shirks responsibilities and demonstrates good work habits. Instills cooperation among volunteers, making it easy for them to pitch in together. Pitches in alongside others and not just issue orders for others to follow up.
  • Listens to others – Source for and uses other’s ideas and gives credit when credit’s due.
  • Problem solving skill – Uses knowledge and experience to help get the job done.
  • Sensitivity – A genuinely caring leader inspires confidence in others. Confidence leads to results. Leaders delegate, give and seek constructive feedback. A leader knows how and when to give praise. Praise is the simplest and often the most valued form of reward. A leader knows how to criticize constructively: pointing out what is wrong without attacking personalities. A good leader seeks opinions and ideas from others.
  • Sound judgment – Has the ability to identify and prioritise issues. A good leader then weighs alternatives carefully before making decisions.
  • Takes responsibility – Never blames others for problems.
  • Vision – A strong leader understands and promotes the community’s best interests. Leaders set goals, communicate what’s needed to achieve them and then move toward them.

Useful tips

Here are some tips to consider when electing the leaders of your owners’ corporation:

A leader should understand the functions of the owners’ corporation and be familiar with significant historical events of the community. Newcomers frequently make good volunteers. However, there are some situations which call for someone possessing a historical perspective. For example, if the corporation is in the midst of a sensitive litigation or a new management contract, a newcomer might detract by insisting on covering old ground again.

How much interest has the candidate shown in the community and its undertakings? Has there been regular meeting attendance and participation in activities? If not, investigate the sudden interest. Be particularly careful about “one issue” candidates who volunteers because they dislike a certain contractor or are opposed to a recent service charges increase.

A candidate should not have conflicting personal and professional commitments. For example, a high public profile candidate may have numerous commitments that mean infrequent participation.

If all the above sounds to you like a mini-government, it is in fact one. If you own a home with common property, you automatically become a member, like it or not. Over time, we have noticed that home owners can be categorised into three groups – those who make things happen, those who wait for things to happen and those who asked what happened. Which group do you belong to? Choose your leaders well and prosper or wait for the next election at the annual general meeting and run for council member post.

Chang Kim Loong is the honorary secretary-general of the National House Buyers Association or HBA in short. He is also a third term councillor of Subang Jaya Municipal Council. For more information, you are welcome to visit: http://www.hba.org.my

The first AGM was called on 3 March 2012 with only 11 registered strata title owners turned up. Due to not having enough quorum, this meeting was postponed to next week. Minutes can be accessed here:

Minutes of First AGM Management Corporation of Danau Murni Condominium (postponed)

Again, the AGM was held on 10 March 2012 with 7 registered strata title owners. This time the AGM was conducted with the available quorum. Following minutes can be accessed at this link:

Minutes of First AGM Management Corporation of Danau Murni Condominium

Both minutes were sent to The Federal Territories Director of Lands and Mines (PTGWPKL) and Commissioner of Building (COB), DBKL  for Certificate of Incorporation for Management Corporation of Danau Murni Condominium on 27 March 2012. We hope everything will be smooth and we can get the certificate the soonest.

Dear Owners of Danau Murni Condominium

The first AGM for Management Corporation of Danau Murni Condominium will be held on Saturday, 3 March 2012 at 9:30 am (letter from Faber Union Sdn Bhd dated 14 February 2012). Just as the management prepares, so must owners prepare for the AGM. Consider the following steps:

  • Watch out for AGM notices posted on the notice board and this website.
  • Read the meeting notice, agenda and any information sent with the meeting notice.
  • Prepare your comments and questions.
  • Get ready to discuss resolutions and vote on resolutions.
  • Make sure that you are current with your service charges and any other money owed to the management.
  • Arrive early for the meeting for registration and plan to stay for the entire meeting so that your vote counts for all resolutions.
  • Consider becoming a council member with a view of helping our community.
  • Elect conscientious and honourable council members. Get to know their experience and background.

The success of a Management Corporation can only come from active participation from its members. Whether one participates in the meetings or volunteers to be a MC member, owners should know that major decisions are made at these meetings and should strive to attend each and every meeting called.  By not attending, decisions can be passed by a small minority that can adversely affect the majority of residents until it is challenged at the next AGM or EGM.

Did You Know This? 

S.41 – Duty of original proprietor to convene first Annual General Meeting (excerpts from Strata Title Act 1985)

(4) The original proprietor shall give a written notice of the first annual general meeting to all parcel proprietors constituting the management corporation not less than fourteen days before the meeting.

(5) The agenda for the first annual general meeting shall include the following matters:

(a) to decide whether to confirm, vary or extend insurances effected by the management corporation;

(b) to decide whether to confirm or vary any amounts determined as contributions to the management fund;

(ba) to determine the portion of contribution to the management fund to be paid into the special account to be maintained under section 46;

(c) to determine the number of members of the council and to elect the council where there are more than three proprietors; and

(d) to decide whether to amend, add to or repeal the by-laws in force immediately before the holding of the meeting.

(e) to present the audited accounts of the management corporation