Sunday, 1 March 2015

Amend the outdated housing enactment

by : Junz Wong

STRATA TITTLES....No specification of time period for developer to apply for subdivision, to get strata titles out successfully

Outdated housing development (control & licensing) enactment 1978

ADUN LIKAS Junz Wong today at press conference said that his team has been receiving too many complaints regarding management corporations from various apartments and condominiums such as Taman Ganang, Rainfield Court, Angkasa apartment etc.

Upon studying these cases and the related laws, Junz found out that these matters are not governed under Subsidiary land title enactment because the strata titles are not issued yet thus it's governed under housing development enactment 1978.

The problem is that the housing development enactment 1978 is outdated.

Existing laws seem to align with developers more. Purchasers are at the disadvantage end only can seek house controllers for help in event of unjust issues.

Junz will move a motion in coming Dewan sitting to debate on this outdated housing development enactment 1978 and urge speaker to allow the debate to address this urgent matter.

This is especially so in view of many condominium / apartment applications and approvals in near future!

Outdated housing enactment lacks :

1) No specification of time period for developer to apply for subdivision, to get strata titles out successfully. Merely applying for subdivision is not good enough. There must be a law to ensure and enforce when developers fail to do so.

2) No specification of penalty if failed to get strata titles out within given reasonable time period

3) No specification of penalty when failed to submit audited account for management expenses

4) law allows developer to disconnect utilities when house owners fail to pay management fee.

There must be 2 sets of laws to govern this part :

1) failing to pay due initial agreed mgmt fee as per S & P agreement - yes can disconnect utilities.

2) failing / unwilling by majority residents to pay for additional variation of mgmt service fee besides the original initial agreed mgmt fee - cannot disconnect utilities.


- must apply for subdivision, get out strata / subsidiary titles within 7 (5+2) years failing which will suspend / terminate developer licenses (+2 year failure)

- developer need to pay penalty for failing to submit annual audited account within certain determined time (penalty formula to be determined by the Ministry)

- must fulfill the law of fair and justifiable proportion before increase mgmt fees with conditions as followed :
(Likewise any variation to the service fee shall be certified by a registered valuer or licensed surveyor or any other body approved by the housing controller)

As in now, owners have been bullied by some developers as developers would force the owners to pay the increased mgmt fee without justified audited account, failing which developers will CUT the water supply. N the law permits and encourages such actions.

*** For developer or appointed management corporation to propose for any INCREMENT by any amount at any time must comply ALL the below requirements :-

1) audited account must be submitted to every house owners to justify the fair charges are used for actual management expenses

2) registered land valuer / surveyor certification for recommended management fee increment must be sent to every owners

3) letter of approval from housing controller to agree for the agreed increment figure must be sent to every owners

4) Make transparent and public the contracted management consultation fee engaged by developer before any increment proposal.

Junz hope the Ministry can table the supplementary bill to amend outdated housing control enactment 1978 - after studying in depth and debating the motion.

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