Management of a strata scheme development is always technically daunting, especially for new developers, building managers, managing agents and new strata owners in Joint Management Bodies (JMB) and Management Corporations (MC). The Strata Management Act 2013 (SMA), Strata Management (Maintenance & Management) Regulations 2015 and Strata Titles Act 1985 (STA) regulate the management and maintenance of strata scheme developments. With the help of the diagram above, this article aims to simplify the legal provisions pertaining to the management timeline and hand over of management between the developer, JMB and MC.
Developer's Management Period
- During the developer's management period, the developer shall be responsible to maintain and manage the strata scheme development and common property [Section 9 of the SMA].
- The developer's management period starts from the date of delivery of vacant possession [Section 7(2) of the SMA].
- It is the developer's duty to convene the JMB's 1st annual general meeting (AGM) not later than 12 months from the date of delivery of vacant possession [Sections 17(1) and 18(1) of the SMA].
- The JMB is established upon the convening of the JMB's 1st AGM [Section 17 of the SMA].
- The developer's management period ends one month after the JMB's establishment [Section 7(2) of the SMA].
- The developer's management period may be extended by the Commissioner of Buildings (COB) [Section 7(2) of the SMA].
- Summary: The developer's management period lasts for 13 months (subject to any extension by COB).
Developer's Hand Over to JMB
- Before the expiry of the developer's management period (or
within one month after the JMB's 1st AGM), the developer shall:
- Transfer to the JMB all balances of moneys in the maintenance and sinking fund accounts (after payment of all expenditure properly charged to the accounts);
- Hand over to the JMB the following:
- The administration office;
- Audited accounts of the maintenance and sinking fund accounts;
- All assets;
- All invoices, receipts and payment vouchers in respect of the maintenance and sinking fund accounts.
- All records relating to and necessary for the maintenance and
management of the strata scheme development and common property,
including:
- Approved plans;
- Documents that indicate the actual location of any pipe, wire, cable, chute, duct or other facility for the passage or provision of systems or services;
- All contracts entered into by the developer in respect of the maintenance and management;
- A copy of the schedule of parcels or proposed strata plan;
- Names and addresses of contractors, subcontractors and persons who supplied labour or materials during the construction of the strata scheme development;
- Warranties, manuals, schematics drawings, operating instructions, service guides, manufacturer's documentation and other similar information in respect of the constructions, installation, operation, maintenance, repair and servicing of common property;
- Register of all parcel owners; and
- Original of all insurance policies.
JMB's Management Period
- The JMB comprises the developer and all parcel owners [Section 17(4) of the SMA].
- The JMB is a body corporate having perpetual succession and a common seal [Section 17(2) of the SMA].
- The JMB may sue and be sued in its name [Section 17(3) of the SMA].
- It is the JMB's duty to inform and register its official name with the COB within 30 days from the 1st AGM [Section 20 of the SMA].
- The JMB shall elect a joint management committee (JMC) which shall perform the JMB's duties and business on its behalf [Section 22(1) of the SMA].
- The JMC shall include the developer [Section 22(2) of the SMA].
MC's Establishment and Initial Period
- When individual strata titles are issued by the Land Office, the Land Office will open a book of the strata register on the same date [Section 17(3) of the STA].
- Upon the opening of the strata register, the MC shall come into existence on that same date [Section 17(3) of the STA].
- The initial period starts from the date of the MC's establishment [Section 46 of the STA].
- The initial period ends when there are parcel proprietors the sum of whose share units is at least 25% of the aggregate share units.
- The initial period is normally when the developer carries out the perfection of transfer of strata titles with each parcel purchaser. The initial period ends when the developer has transferred enough strata titles to the parcel purchasers making up at least 25% of the total share units in the strata scheme development.
- Within 1 month after the expiration of the initial period, the developer has the duty to convene the MC's 1st AGM [Section 57 of the SMA].
- During this initial period, the JMB continues to manage and maintain the strata scheme
MC's Management Period
- The MC consists of all parcel proprietors [Section 17(3) of the STA]
- The MC is a body corporate having perpetual succession and a common seal [Section 17(4) of the STA].
- The MC may sue and be sued in its name [Section 17(4) of the STA].
- The MC shall elect a management committee which shall perform the MC's duties and business on its behalf [Section 56(1) of the SMA].
JMB's Hand Over to MC
- Within one month from the MC's 1st AGM, the JMB shall :
- Transfer to the MC all balances of moneys in the maintenance and sinking fund accounts (after payment of all expenditure properly charged to the accounts);
- Hand Over to the MC:
- Any additional by-laws;
- Audited accounts of the maintenance and sinking fund accounts;
- All assets and liabilities;
- All documents received from the developer;
- All records relating to and necessary of the maintenance and management.
JMB's Dissolution
- The JMB shall dissolve three months from the date of the MC's 1st AGM.
Developer's Preliminary Management Period
The SMA also provides for the situation where individual strata titles are issued, the strata register is opened and the MC comes into existence before the convening of the JMB's 1st AGM. The SMA defines this situation as the developer's preliminary management period [Section 46(2) of the SMA].
During the developer's preliminary management period, the developer will hand over the management of the strata scheme development directly to the MC as summarised in the diagram below:
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
