Strata Management (Maintenance and Management) Regulations 2015

By: Admin

P.U. (A) 107 of 2015; Federal Subsidiary Legislation
26 May 2015 (Date of Publication in Gazette: 01 June 2015; Effective Date: 02 June 2015) | Source: Attorney General’s Chambers E-Federal Gazette

Strata Management (Maintenance and Management) Regulations 2015

STRATA MANAGEMENT (MAINTENANCE AND MANAGEMENT) REGULATIONS 2015 ARRANGEMENT OF REGULATIONS

PART I

PRELIMINARY

Regulation

1. Citation and commencement

2. Interpretation

3. Prescribed fees

4. Forms

5. By-laws

PART II

DEALINGS IN BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS

6. Schedule of parcels

7. Amended schedule of parcels

8. Schedules to be signed, etc., by Commissioner

PART III

ASSIGNMENT OF SHARE UNITS WHERE NO SHARE UNITS HAVE BEEN ASSIGNED

9. Allocated share units

10. Allocated share units to be signed, etc., by Commissioner

PART IV

MANAGEMENT BY DEVELOPER BEFORE EXISTENCE OF MANAGEMENT CORPORATION AND BEFORE ESTABLISHMENT OF JOINT MANAGEMENT BODY

11. Handing over by developer to joint management body

PART V

MANAGEMENT BY JOINT MANAGEMENT BODY BEFORE ESTABLISHMENT OF MANAGEMENT CORPORATION

12. First annual general meeting of joint management body

13. Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by joint management body

14. Certificate of establishment of the joint management body

15. Handing over by joint management body to management corporation

PART VI

MISCELLANEOUS PROVISIONS APPLICABLE BEFORE ESTABLISHMENT OF MANAGEMENT CORPORATION

16. Moneys collected by developer prior to establishment of joint management body

17. By-laws for developer’s management period and for joint management body

18. Register or parcel owners

19. Certificate of amount payable by parcel owner or prospective purchaser

20. Notice to demand payment of sum due by purchaser or parcel owner

21. Services of any person or agent to maintain and manage common property

PART VII

MANAGEMENT BY DEVELOPER BEFORE FIRST ANNUAL GENERAL MEETING OF MANAGEMENT CORPORATION

22. Handing over by developer to management corporation

PART VIII

MANAGEMENT AFTER FIRST ANNUAL GENERAL MEETING OF MANAGEMENT CORPORATION

23. First annual general meeting of management corporation

24. Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by management corporation

PART IX

SUBSIDIARY MANAGEMENT CORPORATION AND LIMITED COMMON PROPERTY

25. First annual general meeting of subsidiary management corporation

26. Notice of first annual general meeting of subsidiary management corporation

27. Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by subsidiary management corporation

PART X

MISCELLANEOUS PROVISIONS APPLICABLE TO MANAGEMENT CORPORATION AND SUBSIDIARY MANAGEMENT CORPORATION

28. By-laws for management corporation and subsidiary management corporation

29. Strata roll

30. Certificate of amount payable by proprietor or prospective purchaser

31. Notice to demand payment of sum due by proprietor

32. Services of any person or agent to maintain and manage common property

PART XI

PROVISIONS FOR JOINT MANAGEMENT BODY, MANAGEMENT CORPORATION AND SUBSIDIARY MANAGEMENT CORPORATION

33. Constitution of joint management committee, management committee and subsidiary management committee

34. Annual general meeting

PART XII

RECOVERY OF SUMS BY ATTACHMENT OF MOVABLE PROPERTY

35. Application for attachment of movable property

36. Inventory after attachment

37. Appointment of auctioneer, reserve price and bids

38. Notice of auction

39. Procedure at the auction

40. Record and statement of sale

41. Costs of attachment and sale

42. Attachment to cease if sums due are paid

PART XIII

MANAGING AGENT APPOINTED BY COMMISSIONER

43. Management agreement

44. Bond

45. Charges and contribution to the sinking fund during management by managing agent

PART XIV

DEPOSIT BY DEVELOPER TO RECTIFY DEFECTS ON COMMON PROPERTY

46. Notice by developer of intention to deliver vacant possession

47. Amount of deposit to rectify defects

48. Mode of payment of deposit

49. Bank guarantee

50. Common Property Defects Account

51. Notice to developer to rectify defects

52. Appointment of registered architect, registered engineer, registered quantity surveyor or registered building surveyor by Commissioner

53. Recovery of expenses by Commissioner

54. Refund of unexpended deposit or further sums

PART XV

INTER-FLOOR LEAKAGE

55. Meaning of inter floor leakage

56. Notice of that parcel affected by inter-floor leakage

57. Inspection of affected parcel

58. Matters to be considered in determining cause of leakage

59. Certificate of inspection

60. Inter-floor leakage caused by defective workmanship, etc. within the defect liability period

61. Inter-floor leakage caused by or attributable to a parcel

62. Inter-floor leakage caused by or attributable to common property or limited common property

63. Access

64. Reference to Commissioner

PART XVI

DAMAGE TO PARTY WALL

65. Meaning of party wall

66. Meaning of damage to a party wall

67. Provisions relating to inter-floor leakage shall apply

PART XVII

ENFORCEMENT

68. Order requiring attendance of any person

69. Order to provide translation

PART XVIII

OFFENCES

70. Aiding and abetting

PART XIX

MISCELLANEOUS

71. Revocation

72. Savings

FIRST SCHEDULE

SECOND SCHEDULE

THIRD SCHEDULE

STRATA MANAGEMENT ACT 2013

STRATA MANAGEMENT (MAINTENANCE AND MANAGEMENT) REGULATIONS 2015

IN exercise of the powers conferred by section 150 of the Strata Management Act 2013 [Act 757], the Minister after consultations with the National Council for Local Government makes the following regulations:

PART I

PRELIMINARY

Citation and commencement

1. (1) These regulations may be cited as the Strata Management (Maintenance and Management) Regulations 2015.

(2) These Regulations come into operation on 2 June 2015.

Interpretation

2. In these Regulations-

“Act” means the Strata Management Act 2013 [Act 757];

“Common Property Defects Account” means the separate trust account which shall be opened and maintained by the Commissioner under subregulation 50(1);

“Bond” means the bond in Form 12 to be lodged with the joint management body under subregulation 21(2) or with the management corporation or the subsidiary management corporation under subregulation 32(2), as the case may be, or the bond in Form 23 to be lodged with the Commissioner under subregulation 44(1);

“Form A” means the warrant of attachment in Form A in the Third Schedule to the Act;

“Form B” means the notice and inventory in Form B in the Third Schedule to the Act;

“Strata roll” means the roll to be prepared and maintained under subsection 72(1) of the Act;

“Director” has the meaning assigned to it in section 4 of the Strata Titles Act 1985;

“Director of Survey” has the meaning assigned to it in section 4 of the Strata Titles Act 1985.

Prescribed fees

3. The fees payable under these Regulations shall be as prescribed in the First Schedule.

Forms

4. The forms referred to in these Regulations are those contained in the Second Schedule.

By-laws

5. The by-laws referred to in these Regulations are those contained in the Third Schedule.

PART II

DEALINGS IN BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS

Schedule of parcels

6. (1) Before a developer of any building or land intended for subdivision into parcels sells any parcel or proposed parcel in a development area, the developer shall file with the Commissioner a schedule of parcels as required under subsections 6(1) and 6(3) of the Act together with six copies of Form 1 and payment of the prescribed fee.

(2) In the case where the sale of a parcel in any building or land intended for subdivision in a development area or such sale took place before the commencement of the Act, the developer shall include in the schedule of parcels and in Form 1, the building or buildings or land or lands in which a parcel or parcels thereof have been sold.

(3) If the plans or legend filed with the Commissioner together with Form 1 are altered for the reason that the building plans approved by the local authority are altered or revised-

(a) due to a requirement of the local authority; or

(b) with the agreement of all purchasers of the parcel in the development area and such alterations or revisions have been approved by the local authority;

the developer shall, within thirty days from the date of alteration or revision of the building plans, or within such extended time as the Commissioner may grant, file with the Commissioner a revised schedule of parcels together with six copies of Form 1A and payment of the prescribed fee.

(4) The provisions of subsection 6(3) of the Act shall apply mutatis mutandis to the revised schedule of parcels filed under subregulation (3).

(5) Any developer who fails to comply with subregulation (2), (3) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Amended schedule of parcels

7. (1) In the case of any phased development, before the developer sells any parcels in any provisional block, the developer shall file with the Commissioner an amended schedule of parcels as required under subsections 6(2) and 6(3) of the Act, together with six copies of Form 2 and payment of the prescribed fee.

(2) If the plans or legend filed with the Commissioner together with Form 2 are altered or revised for the reason that the building plans approved by the local authority are altered or revised –

(a) due to a requirement of the local authority; or

(b) with the agreement of all purchasers of parcels of all affected provisional block in the development area and such alterations or revisions have been approved by the local authority;

and provided that there is no change in the proposed quantum of provisional share units for the affected provisional block, the developer shall within thirty days from the date of alteration or revision of the building plans, or within such extended time as the Commissioner may grant, file with the Commissioner a revised amended schedule of parcels together with six copies of Form 2A and payment of the prescribed fee.

(3) The provisions of subsection 6(3) of the Act shall apply mutatis mutandis to the revised amended schedule of parcels filed under subregulation (2).

(4) Any developer who fails to comply with subregulation (2) or (3) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Schedules to be signed, etc., by Commissioner

8. After the schedule of parcels, revised schedule of parcels, amended schedule of parcels or revised amended schedule of parcels, as the case may be, has been filed with
the Commissioner together with the payment of the prescribed fee, the Commissioner shall –

(a) sign all six copies of Form 1, Form 1A, Form 2 or Form 2A, as the case may be, and all six copies of the schedule of parcels, revised schedule of parcels, amended schedule of parcels or revised amended schedule of parcels, as the case may be, and return three copies to the developer;

(b) submit one copy of Form 1, Form 1A, Form 2 or Form 2A, as the case may be, and one copy of the schedule of parcels, revised schedule of parcels, amended schedule of parcels or revised amended schedule of parcels, as the case may be, to the Director;

(c) submit one copy of Form 1, Form 1A, Form 2 or Form 2A, as the case may be, and one copy of the schedule of parcels, revised schedule of parcels, amended schedule of parcels or revised amended schedule of parcels, as the case may be, to the Director of Survey; and

(d) keep one copy of Form 1, Form 1A, Form 2 or Form 2A, as the case may be, and one copy of the schedule of parcels, revised schedule of parcels, amended schedule of parcels or revised amended schedule of parcels, as the case may be, in the office.

PART III

ASSIGNMENT OF SHARE UNITS WHERE NO SHARE UNITS HAVE BEEN ASSIGNED

Allocated share units

9. (1) Where the sale of a parcel by a developer was made before the
commencement of the Act and no share units have been assigned to each parcel by the developer’s licensed land surveyors, any person or body who has a duty or is responsible under Part IV of the Act to maintain or manage any building or land intended for subdivision into parcels and the common property, shall within ninety days from the date of commencement of the Act or within such extended time as the Commissioner may grant, assign the share units for each parcel in accordance with the formula set out in the First Schedule to the Act in Form 3.

(2) Four copies of Form 3 shall be filed with the Commissioner together with payment of the prescribed fee.

(3) If the person or body mentioned in subregulation (1) fails to assign the share units for each parcel or if any purchaser is not satisfied with the assignment of share units to his parcel, the Commissioner shall appoint any other person or body to assign the share units for each parcel in accordance with the formula set out in the First Schedule to the Act.

(4) The person or body appointed under subregulation (3) shall, within ninety days from the date of his appointment or within such extended time as the Commissioner may grant, file with the Commissioner the assignment of share units for each parcel in Form 3 together with payment of the prescribed fee, and-

(a) in the case where the person or body who has the duty or is so responsible had failed to assign the share units for each parcel, the person or body who has the duty or is so responsible shall pay all expenses incurred for that purpose by the person or body appointed under subregulation (3); or

(b) in the case where a purchaser was not satisfied with the assignment of share units to his parcel and the difference in the share units so assigned does not exceed ten per cent, the purchaser shall pay all expenses incurred for that purpose by the person or body appointed under subregulation (3), and if the difference in the share units so assigned exceeds ten per cent, the person or body who has the duty or is so responsible shall pay all expenses incurred for that purpose by the person or body appointed under subregulation (3).

(5) In determining the share units to be assigned to each parcel, the person or body who has the duty or is responsible under subregulation (1) or the person or body appointed under subregulation (3) may –

(a) rely on information contained in the sale and purchase agreement between the developer and the purchaser of each parcel;

(b) rely on information contained in the approved building plans relating to the building or buildings in the development area; or

(c) appoint a licensed land surveyor to carry out a survey of each parcel in the development area, and the person or body who has the duty or is so responsible shall pay all expenses incurred for that purpose.

(6) A licensed land surveyor appointed under paragraph (5)(c) or any person authorised by him shall be given access to each parcel as shall be necessary for him to carry out the survey of the parcel.

(7) Any person or body who fails to comply with subregulation (1), (2) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(8) Any person who refuses the licensed land surveyor appointed under paragraph (5)(c) or any person authorised by him access to any parcel for the purpose of carrying out the survey of a parcel, or obstructs, hinders or delay the licensed land surveyor or any person authorised by him in effecting such entry for such purpose, commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Allocated share units to be signed, etc., by Commissioner

10. Upon receipt of Form 3 and payment of the prescribed fee, the Commissioner shall-

(a) sign all four copies of Form 3 and return or submit one copy to the person or body who has the duty or is so responsible;

(b) submit one copy of Form 3 to the Director;

(c) submit one copy of Form 3 to the Director of Survey; and

(d) keep one copy of Form 3.

PART IV

MANAGEMENT BY DEVELOPER BEFORE EXISTENCE OF MANAGEMENT CORPORATION AND BEFORE ESTABLISHMENT OF JOINT MANAGEMENT BODY

Handing over by developer to joint management body

11. The handing over by the developer to the joint management body under subsection 15(1) of the Act shall be with Form 4.

PART V

MANAGEMENT BY JOINT MANAGEMENT BODY BEFORE ESTABLISHMENT OF MANAGEMENT CORPORATION

First annual general meeting of joint management body

12. (1) The written notice of the first annual general meeting of the joint management body to be given by the developer to all purchasers and a copy of such written notice to be displayed at a conspicuous part of the development area under subsection 18(3) of the Act shall be in Form 5.

(2) If any purchaser, not less than seven days before the time for holding the first annual general meeting, gives a notice in writing to the developer requiring the inclusion of a motion in the agenda of the first annual general meeting, the developer shall give notice of the motion to all purchasers and a copy of the notice of the motion shall be displayed on the notice board of the development area at a conspicuous part of the development area.

Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by joint management body

13. Within twenty-eight days after each general meeting of the joint management body at which the Charges are confirmed or varied, the joint management body shall issue a notice in Form 5A to all purchasers to inform the purchasers of the amount of Charges, contribution to the sinking fund and the rate of interest in respect of any late payment imposed by the joint management body in that annual general meeting and a copy of Form 5A shall be displayed on the notice board of the joint management body at a conspicuous part of the development area.

Certificate of establishment of the joint management body

14. Upon an application by the joint management body, the Commissioner may issue a certificate under subsection 20(2) of the Act in Form 6.

Handing over by joint management body to management corporation

15. The handing over by the joint management body to the management corporation under subsection 27(2) of the Act shall be with Form 7.

PART VI

MISCELLANEOUS PROVISIONS APPLICABLE BEFORE ESTABLISHMENT OF MANAGEMENT CORPORATION

Moneys collected by developer prior to establishment of joint management body

16. Any developer of a development area which has been completed before the commencement of the Act, but for which a management corporation has not been established shall, not later than six months following the establishment of the joint management body, submit an audited accounts as required under subsection 29(1) of the Act to the Commissioner in Form 8.

By-laws for developer’s management period and for joint management body

17. The by-laws having effect in relation to every building or land intended for subdivision into parcels and common property and which shall bind the developer and the purchasers during the developer’s management period and the joint management body and all parcel owners constituting the joint management body are as set out in the Third Schedule.

Register of parcel owners

18. The register of parcel owners to be prepared and maintained by the developer during the developer’s management period or by the joint management body under subsection 30(1) of the Act, as the case may be, shall be in Form 9.

Certificate of amount payable by parcel owner or prospective purchaser

19. (1) Upon application by or on behalf of any person specified in section 31 of the Act, and on receipt of the prescribed fee, the developer or the joint management body, as the case may be, shall within twenty-one days, issue a certificate containing the information prescribed under section 31 of the Act in Form 10.

(2) Any developer or joint management body who fails to comply with subregulation (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Notice to demand payment of sum due by purchaser or parcel owner

20. Any written notice demanding payment of any sum due by a purchaser or parcel owner which is required to be served under subsection 34(1) of the Act shall be in Form 11.

Services of any person or agent to maintain and manage common property

21. (1) If a joint management body shall employ or arrange and secure the services of any person or agent to undertake the maintenance and management of the common property of the building or lands intended for subdivision into parcels under paragraph 21(2)(f) of the Act, the joint management body shall enter into a management agreement with such person or agent.

(2) If the person or agent is not a registered property manager, he shall not act to undertake such maintenance and management of the common property unless he has lodged with the joint management body a bond in Form 12 to be given by a bank, finance company or insurer.

(3) The amount of the bond shall be a sum that is equivalent to the remuneration or management fees for a period of twelve months or a sum of fifty thousand ringgit, whichever is higher.

(4) A copy of the management agreement under subregulation (1) and the bond under subregulation (2) shall be filed by the joint management body with the Commissioner together with payment of the prescribed fee within thirty days from the date of the management agreement or the bond, as the case may be.

(5) Any person who fails to comply with subregulation (1), (2), (3) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

PART VII

MANAGEMENT BY DEVELOPER BEFORE FIRST ANNUAL GENERAL MEETING OF MANAGEMENT CORPORATION

Handing over by developer to management corporation

22. The handing over by the developer to the management corporation under subsection 55(1) of the Act shall be with Form 13.

PART VIII

MANAGEMENT AFTER FIRST ANNUAL GENERAL MEETING OF MANAGEMENT CORPORATION

First annual general meeting of management corporation

23. (1) The notice of the first annual general meeting of the management corporation to be given by the developer to all proprietors and a copy of such written notice to be displayed at a conspicuous part of the development area under subsection 57(3) of the Act shall be in Form 14.

(2) If any proprietor, not less than seven days before the time for holding the first annual general meeting, gives a notice in writing to the developer requiring the inclusion of a motion in the agenda of the first annual general meeting, the developer shall give notice of the motion to all proprietors and a copy of the notice of the motion shall be displayed on the notice board of the management corporation at a conspicuous part of the development area.

Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by management corporation

24. Within twenty-eight days after each general meeting of the management corporation at which the Charges are confirmed or varied, the management corporation shall issue a notice in Form 15 to all proprietors, including the proprietors of any provisional block, to inform the proprietors of the amount of Charges, contribution to the sinking fund and the rate of interest in respect of any late payment imposed by the management corporation in that general meeting and a copy of Form 15 shall be displayed on the notice board of the management corporation at a conspicuous part of the development area.

PART IX

SUBSIDIARY MANAGEMENT CORPORATION AND LIMITED COMMON PROPERTY

First annual general meeting of subsidiary management corporation

25. (1) Within one month after the subsidiary management corporation has been established under the provisions of the Strata Titles Act 1985, all proprietors who constitute the subsidiary management corporation shall hold a first annual general meeting of the subsidiary management corporation which shall be convened by the management corporation.

(2) If the management corporation fails to convene the first annual general meeting of the subsidiary management corporation within the period specified in
subregulation (1), the Commissioner may, on the application of any one of the proprietors who constitute the subsidiary management corporation, appoint any person to convene that meeting and the management corporation shall pay all expenses incurred for that purpose.

(3) Any person or body who fails to comply with subregulation (1), commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Notice of first annual general meeting of subsidiary management corporation

26. (1) A notice of the first annual general meeting of the subsidiary management corporation shall be given by the management corporation to all proprietors who constitute the subsidiary management corporation in Form 16 and a copy of such written notice shall be displayed on the notice board of the management corporation at a conspicuous part of the development area.

(2) If any of the proprietors who constitutes the subsidiary management corporation, in not less than seven days before the time for holding the first annual general meeting, gives a notice in writing to the management corporation requiring the inclusion of a motion in the agenda of the first annual general meeting, the management committee shall give notice of the motion to all proprietors who constitute the subsidiary management corporation and a copy of the notice of the motion shall be displayed on the notice board of the management corporation at a conspicuous part of the development area.

Notice of resolution confirming Charges, contribution to the sinking fund and rate of interest determined by subsidiary management corporation

27. Within twenty-eight days after each general meeting of the subsidiary management corporation at which the Charges are confirmed or varied, the subsidiary management corporation shall issue Form 17 to all proprietors who constitute the subsidiary management corporation to inform the proprietors of the amount of Charges, contribution to the sinking fund and the rate of interest in respect of any late payment imposed by the subsidiary management corporation in that annual general meeting and a copy of Form 17 shall be displayed on the notice board of the subsidiary management corporation at a conspicuous part of the development area.

PART X

MISCELLANEOUS PROVISIONS APPLICABLE TO MANAGEMENT CORPORATION AND SUBSIDIARY MANAGEMENT CORPORATION

By-laws for management corporation and subsidiary management corporation

28. The by-laws having effect in relation to every subdivided building or land and common property and to bind the management corporation or the subsidiary management corporation, as the case may be, and to bind all the proprietors constituting the management corporation or the subsidiary management corporation, as the case may be, are as set out in the Third Schedule.

Strata roll

29. The strata roll prepared and maintained by the developer during the preliminary management period or by the management corporation under subsection 72(1) of the Act shall be in Form 18.

Certificate of amount payable by proprietor or prospective purchaser

30. (1) Upon application by or on behalf of any person specified in section 73 of the Act, and on receipt of the prescribed fee, the management corporation or the subsidiary management corporation shall within twenty-one days, issue a certificate containing the information prescribed under section 73 of the Act in Form 19.

(2) Any management corporation or subsidiary management corporation who fails to comply with subregulation (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Notice to demand payment of sum due by proprietor

31. Any written notice demanding payment of any sum due by a proprietor which is required to be served under subsection 78(1) of the Act shall be in Form 20.

Services of any person or agent to maintain and manage common property

32. (1) If a management corporation or subsidiary management corporation shall employ or arrange and secure the services of any person or agent to undertake the maintenance and management of the common property of the subdivided building or lands, under paragraph 59(2)(f) or subsection 64(1) of the Act, the management corporation or subsidiary management corporation shall enter into a management agreement with such person or agent.

(2) If the person or agent is not a registered property manager, he shall not act to undertake such maintenance and management of the common property unless he has lodged with the management corporation or subsidiary management corporation a bond in Form 12 to be given by a bank, finance company or insurer.

(3) The amount of the bond shall be a sum that is equivalent to the remuneration or management fees for a period of twelve months or a sum of fifty thousand ringgit, whichever is higher.

(4) A copy of the management agreement under subregulation (1) and the bond under subregulation (2) shall be filed by the management corporation or the subsidiary management corporation with the Commissioner together with payment of the prescribed fee within thirty days from the date of the management agreement or the bond, as the case may be.

(5) Any person or body who fails to comply with subregulation (1), (2), (3) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

PART XI

PROVISIONS FOR JOINT MANAGEMENT BODY, MANAGEMENT CORPORATION AND SUBSIDIARY MANAGEMENT CORPORATION

Constitution of joint management committee, management committee and subsidiary management committee

33. For the purposes of subparagraphs 2(7)(c) and 2(9)(c) of the Second Schedule to the Act, a member of the immediate family of a parcel owner or proprietor means his spouse, child, adopted child, step-child, sibling and parent.

Annual general meeting

34. (1) A joint management body, management corporation or subsidiary management corporation, as the case may be, shall hold its annual general meetings in accordance with subparagraph 10(2) of the Second Schedule to the Act.

(2) If any joint management body, management corporation or subsidiary management corporation fails to hold any annual general meeting, the joint management body, the management corporation or the subsidiary management corporation, as the case may be, commits an offence and shall on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

PART XII

RECOVERY OF SUMS BY ATTACHMENT OF MOVABLE PROPERTY

Application for attachment of movable property

35. (1) To apply for a warrant of attachment in Form A under subsections 35(1) or 79(1) of the Act, the developer, any member of the joint management committee, any member of the management committee, any member of the subsidiary management committee or any managing agent appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, as the case may be, shall submit a sworn application in Form 21.

(2) Four copies of Form 21 shall be submitted to the Commissioner together with payment of the prescribed fee.

(3) If the Commissioner decides to issue the warrant of attachment, the Commissioner shall deliver two signed copies of the warrant of attachment in Form A to the person or body who made the sworn application and the Commissioner shall state the name and particulars of the person who shall execute the warrant of attachment.

Inventory after attachment

36. (1) Immediately after the attachment, the person who executed the warrant of attachment shall prepare an inventory of the movable property attached and shall serve a notice in Form B on the person who, at the time of the attachment, was or appeared to be in possession of the property.

(2) If no such person was or appeared to bein such possession, then the notice in Form B shall be placed in a conspicuous part of such place where the attachment took place.

(3) All movable property attached shall be kept in the premises or where the attached movable property are found or elsewhere in the State unless the person who executed the warrant is of the opinion that such movable property attached should be kept at a different place for safe keeping or control.

Appointment of auctioneer, reserve price and bids

37. Where any movable property attached under subsection 35(1) or 79(1) of the Act is to be sold by auction under subsections 35(8) or 79(8) of the Act, the person or body conducting the auction-

(a) may appoint a licensed auctioneer to conduct the auction;

(b) shall fix a reserved price for the movable property so attached; and

(c) shall only accept any bid that it is not less than such reserved price.

Notice of auction

38. (1) The person or body conducting the auction shall give not less than seven days’ public notice before conducting any sale by auction, which states-

(a) the date time and place at which the sale is intended to be held;

(b) particulars of the movable property to be offered for sale; and

(c) the reserve price that has been fixed in respect of any movable property offered for sale.

(2) A notice shall be deemed to have been adequately given if-

(a) it is displayed on the door of the premises in which the movable property attached is found, if applicable;

(b) it is displayed in a conspicuous place in the building or in such other manner as may be approved in writing by the Commissioner; and

(c) deemed fit by the person or body conducting the auction, it has been published in a newspaper generally read in the place where the sale is to take place.

(3) With the approval in writing of the Commissioner, the period of notice provided for in subregulation (1) may be reduced.

(4) All sales by auction shall be held in places open to the general public.

Procedure of the auction

39. (1) The person or body conducting the auction shall obtain at the auction the highest possible price for the movable property for sale, and shall not dispose of any such movable property by private treaty except with the consent of the proprietor first.

(2) Where the reserve price of any movable property has been achieved or is exceeded then the highest bidder is entitled to be declared the purchaser. When any movable property is sold at the auction the person or body conducting the auction shall forthwith audibly declare the name of the actual purchaser. If any dispute arises as to who is entitled to be declared the purchaser of the movable property, it shall be auctioned again forthwith.

(3) On payment of the purchase money at the auction, the person or body conducting the auction shall give a receipt to the successful bidder and the successful bidder shall be deemed to be the absolute owner of the movable property purchased.

(4) Where movable property is put up for sale by public auction in lots, each lot shall be deemed to be the subject of a separate contract of sale.

(5) If at the auction no bid is received at all or a bid is received not at the reserve price or less than the reserve price, the movable property in question shall be withdrawn from sale, and the Commissioner may-

(a) direct that the movable property be put up for auction on a subsequent date, either at the same or at a new reserve price, and the provisions of regulations 35, 36, 37, 38, subregulations 39(1), 39(2), 39(3) and 39(4), and regulation 40 shall apply mutatis mutandis to the subsequent auction; or

(b) direct that the movable property be returned to the person who, at the time of attachment, was or appeared to be in possession of the movable property in question.

(6) If at the subsequent auction, no bid is received at all or a bid is received not at the reserve price or less than the reserve price, the Commissioner shall withdraw the movable property in question from the sale by auction and direct that it be returned to the person who, at the time of attachment, was or appeared to be in possession of the movable property in question.

(7) The Commissioner shall not be required to be present at any auction.

Record and statement of sale

40. (1) The person or body conducting the auction shall keep a record of all sums of money received by him at the auction.

(2) The person or body conducting the auction shall, within seven days after the sale, serve on the defaulting parcel owner or proprietor, by registered post, a record and statement in Form 22, which sets out-

(a) the proceeds of sale;

(b) the application of the proceeds of sale in satisfaction of the sum due, together with the costs of the attachment and sale, except where subsection 35(10) or 79(10) of the Act applies;

(c) whether there is a surplus or a shortfall in the proceeds of sale;

(d) a list of the movable property attached which have not been sold, if any;

(e) a notice that if there is a surplus, the defaulting parcel owner or proprietor is required to collect the surplus from the office stated in the notice within thirty days after the auction, and that if a claim is not so made, the surplus shall be paid to the developer or joint management body or management corporation or subsidiary management corporation, as advance payment towards Charges and contribution to the sinking fund;

(f) a notice that if there is movable property attached which have not been sold, such movable property have been left at the premises or the place where the attachment took place, or elsewhere in the State or if kept at a different place, that the defaulting parcel owner or proprietor is required to collect them from the different place stated in the notice within seven days after the auction, and if not so collected, the defaulting parcel owner or proprietor shall be liable to pay storage charges specified in the notice, and that such movable property shall then be dealt with in any manner as deemed fit by the person or body conducting the auction; and

(g) a notice that if there is a shortfall, it must be paid up immediately by the defaulting parcel owner or proprietor.

(3) For the purpose of returning or leaving the movable property that has not been sold under paragraph (2)(f), the person or body conducting the auction shall-

(a) have similar access as that granted for executing a warrant of attachment under the Act or under these Regulations; and

(b) not be liable for any loss, damage or lost items suffered by any relevant party.

Costs of attachment and sale

41. The costs of the attachment and sale payable by the defaulting parcel owner or proprietor to the person or body conducting the auction shall include-

(a) the prescribed fee paid to the Commissioner for filing Form 22;

(b) the expenses for the maintenance of livestock, if any;

(c) the cost of appointing an auctioneer, if any;

(d) the cost of advertisement of the auction, if any;

(e) where it is necessary to place a watchman to secure or have custody of the movable property attached, the costs incurred in hiring the watchman or watchmen;

(f) where it is necessary to keep possession of the movable property attached, the costs incurred in such custody which may include but not limited to costs of transportation, insurance, storage and security; and

(g) a sum of three hundred ringgit or a sum equivalent to three per cent of the amount due, whichever is higher, as an administrative charge for having to recover the sums by attachment.

Attachment to cease if sums due are paid

42. If the parcel owner or proprietor, or any tenant, subtenant or occupier, as the case may be, or any person on his behalf, pays the sums due by the parcel owner or proprietor together with the costs of the attachment and sale incurred up to date, the attachment of the property shall cease forthwith and any auction fixed shall be cancelled.

PART XIII

MANAGING AGENT APPOINTED BY COMMISSIONER

Management agreement

43. (1) At the time of appointment of a managing agent under subsection 86(1) or 91(3) of the Act, the Commissioner shall specify-

(a) the period of appointment;

(b) the remuneration or fees of the managing agent as agreed upon between the managing agent and the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, with the concurrence of the Commissioner, or the amount of remuneration or fees of the managing agent as determined by the Commissioner under subregulation (2); and

(c) the amount of bond required to be lodged by the managing agent with the Commissioner.

(2) If the remuneration or fees of the managing agent could not be agreed upon between the managing agent and the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, the Commissioner shall determine the remuneration or fees of the managing agent which shall be charged to the maintenance account.

(3) Within fourteen days from the date of appointment, the managing agent appointed by the Commissioner shall enter into a management agreement with the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, in Form 23, and the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, shall sign the management agreement within the fourteen days specified.

(4) If the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, does not sign the management agreement in Form 23, the Commissioner may appoint any purchaser, parcel owner or proprietor, as the case may be, to sign the management agreement on behalf of the developer, joint management body, management corporation or subsidiary management corporation, as the case may be.

(5) Any person or body who fails to comply with subregulation (3) or (4) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Bond

44. (1) Any person appointed by the Commissioner as the managing agent shall lodge with Commissioner a bond in Form 24 which shall be given by any bank, finance company or insurer before acting as a managing agent.

(2) The amount of the bond shall be determined by the Commissioner at the time of appointment of the managing agent.

(3) Any managing agent who fails to comply with subregulation (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

Charges and contribution to the sinking fund during management by managing agent

45. (1) If a managing agent has been appointed by the Commissioner under subsection 86(1) or 91(3) of the Act and the Charges or contribution to the sinking fund to be paid by a purchaser, parcel owner or proprietor in respect of his parcel has not been determined by the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, for any reason whatsoever, the amount of the Charges to be paid by a purchaser, parcel owner or proprietor under the Act shall be determined by the managing agent in proportion to the allocated share units or share units of each parcel and the amount of contribution to the sinking fund to be paid shall be a sum equivalent to ten per cent of the Charges.

(2) Any purchaser, parcel owner or proprietor who is not satisfied with the sums determined by the managing agent under subregulation (1) may apply to the Commissioner for a review and the Commissioner may-

(a) determine the sum to be paid as the Charges or contribution to the sinking fund; or

(b) instruct the managing agent to appoint, at the cost and expense of the developer, joint management body, management corporation or subsidiary management corporation, as the case may be, a registered property manager to recommend the sum payable as the Charges or contribution to the sinking fund and submit a copy of the registered property manager’s report to the Commissioner.

(3) Upon receiving the report under subparagraph (2)(b), the Commissioner shall determine the sum payable as he thinks just and reasonable, and any sum so determined by the Commissioner shall be deemed to be the sum payable as the Charges or contribution to the sinking fund.

PART XIV

DEPOSIT BY DEVELOPER TO RECTIFY DEFECTS ON COMMON PROPERTY

Notice by developer of intention to deliver vacant possession

46. (1) A developer shall, within twenty-one days prior to the delivery of vacant possession of a parcel to a purchaser, give a written notice to the Commissioner of his intention to deliver vacant possession in Form 25 together with the prescribed fee.

(2) Form 25 shall be accompanied with a certificate of the estimated costs of construction from the developer’s architect or engineer in charge of the development on the development area.

(3) For the purpose of subregulation (2), “estimated costs of construction” means the cost of constructing the development area for the purpose of residential, commercial or industrial use, or a combination of such uses, and includes financial costs, overhead costs and all other expenses necessary for the completion thereof but excludes land cost.

Amount of deposit to rectify defects

47. (1) Upon receipt of Form 25, the Commissioner shall determine the amount of deposit required to be deposited by the developer under subsection 92(1) of the Act, which shall not be less than zero point five per cent of the estimated costs of construction or fifty thousand ringgit, whichever is higher.

(2) The Commissioner shall notify the developer of the amount of deposit in Form 26.

Mode of payment of deposit

48. The amount of deposit stated in Form 26 shall be paid by the developer to the Commissioner, in cash or bank guarantee, upon the developer handing over vacant possession of a parcel in the development area to a purchaser.

Bank guarantee

49. For the purpose of subsections 92(1) and 92(4) of the Act, any bank guarantee shall-

(a) be valid for the whole of the defect liability period of the common property; and

(b) be irrevocable, unconditional and payable on demand.

Common Property Defects Account

50. (1) The Commissioner shall place all deposits or further sums paid in cash into a separate income bearing trust account known as the Common Property Defects Account which shall be opened and maintained by the Commissioner with a bank or financial institution separately from other accounts of the local authority.

(2) The Commissioner shall open and maintain one Common Property Defects Account in respect of each development area.

(3) The following persons shall be entitled to make a claim against the Common Property Defects Account during the defect liability period of the common property-

(a) a purchaser;

(b) a proprietor;

(c) a joint management body;

(d) a management corporation;

(e) a subsidiary management corporation;

(f) a managing agent appointed by the Commissioner under subsection 86(1) or 91(1) of the Act; and

(g) any other interested person, with the permission of the Commissioner.

(4) A claim against the Common Property Defects Account shall be made in Form 27 together with payment of the prescribed fee.

Notice to developer to rectify defects

51. (1) Upon receipt of Form 27, the Commissioner shall within fourteen days give a notice to the developer specifying-

(a) the defects of the common property which are required to be rectified;

(b) the time within which the rectification works shall commence;

(c) the time within which the rectification works shall be completed; and

(d) that the rectification works shall be carried out with due diligence to the satisfaction of the Commissioner.

(2) If the developer is unable to complete the rectification works within the time period specified in the notice, the developer shall at least seven days before the expiry of the time period apply to the Commissioner for an extension of time, who may in his discretion, grant or refuse any extension of time.

Appointment of registered architect, registered engineer, registered quantity surveyor or registered building surveyor by Commissioner

52. (1) If a notice given to the developer under subregulation 51(1) has not been complied with by the developer or has not been complied with to the satisfaction of the Commissioner, the Commissioner may appoint a registered architect, registered engineer, registered quantity surveyor or registered building surveyor, as the case may be, for any of the following-

(a) to quantify the works necessary to rectify the defects of the common property; and

(b) to carry out or cause to be carried out all or any of the rectification works.

(2) The Commissioner shall give the developer notice of the appointment of the registered architect, registered engineer, registered quantity surveyor or registered building surveyor within seven days of such appointment and upon receipt of such notice, the developer shall not be entitled to carry out or continue with any rectification works without the written consent of the Commissioner.

Recovery of expenses by Commissioner

53. The Commissioner may recover all expenses reasonably incurred by him in the exercise of his powers under this Part in relation to the Common Property Defects Account, and where the cost of the rectification works exceeds the deposit or further sums paid by the developer, the developer shall pay the shortfall within fourteen days after receiving a written notice from the Commissioner, failing which the developer shall pay interest at the rate of ten per cent per annum on a daily basis.

Refund of unexpended deposit or further sums

54. Any unexpended deposit or further sums deposited with the Commissioner together with any accrued income thereon, shall be refunded to the developer by the Commissioner on the expiry of the defect liability period of the common property, or in the case where a notice to the developer to rectify the defects has been issued by the Commissioner under subregulation 51(1), upon the completion of the rectification works to the satisfaction of the Commissioner, whichever is later.

PART XV

INTER-FLOOR LEAKAGE

Meaning of inter-floor leakage

55. (1) For the purpose of this Part, “inter-floor leakage” means any evidence of dampness, moisture or water penetration-

(a) on the ceiling that forms part of the interior of a parcel, common property or limited common property, as the case may be; or

(b) on any furnishing material, including plaster, panel or gypsum board attached, glued, laid or applied to the ceiling that forms part of the interior of a parcel, common property or limited common property, as the case may be.

(2) For the purpose of Part XV of these Regulations, a parcel includes an accessory parcel which is used or intended to be used in conjunction with a parcel.

Notice that a parcel is affected by inter-floor leakage

56. (1) A purchaser, parcel owner or proprietor, whose parcel is affected by an inter-floor leakage may give notice to –

(a) the developer, during the developer’s management period under Part IV of the Act or during the preliminary management period under Part V of the Act;

(b) the joint management body;

(c) the management corporation; or

(d) the subsidiary management corporation;

as the case may be.

(2) In a case where a managing agent has been appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, a copy of the notice given to the managing agent shall be deemed to be a notice given to the developer, the joint management body, the management corporation or the subsidiary management corporation, as the case may be, and a copy of the notice shall be extended to the Commissioner.

Inspection of affected parcel

57. Any developer, joint management body, management corporation or subsidiary management corporation, or any managing agent appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, as the case may be, shall as soon as practically possible, or within seven days from the date of receipt of the notice given under regulation 56, carry out an inspection of the affected parcel, any other parcel and the common property or limited common property, to determine-

(a) the cause of the inter-floor leakage; and

(b) the party responsible to rectify any defect that has caused the inter-floor leakage.

Matters to be considered in determining cause of leakage

58. In determining the cause and the party responsible to rectify any defect, the following matters shall be taken into consideration-

(a) the presumption under section 142 of the Act that the defect is within the parcel above the affected parcel, common property or limited common property;

(b) any defect in any water meter, water pipe, drainage pipe, sewerage pipe, gas meter, gas pipe and duct that serves more than one parcel is a defect of the common property or limited common property;

(c) any defect in any water meter, water pipe, drainage pipe, sewerage pipe, gas meter, gas pipe and duct that serves only one parcel is a defect of that parcel, even though the water meter, water pipe, drainage pipe, sewerage pipe, gas meter, gas pipe and duct may be situated on or embedded in common property or limited common property or void space above the ceiling or wall or floor, as the case may be; and

(d) any defect of any parcel, common property or limited common property during the defect liability period of the parcel or the common property or the limited common property, as the case may be, which is due to defective workmanship or materials or that the parcel, common property or limited common property was not constructed in accordance with the plans and description approved by the appropriate authority, shall be the responsibility of the developer.

Certificate of inspection

59. Within five days from the date of completion of inspection of the affected parcel, any other parcel or the common property or limited common property or within such extended time as the Commissioner may grant, the developer, joint management body, management corporation or subsidiary management corporation or any managing agent appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, as the case may be, shall issue a certificate of inspection in Form 28 to state the cause of the inter-floor leakage and the party responsible to rectify it.

Inter-floor leakage caused by defective workmanship, etc. within the defect liability period

60. (1) Where the inter-floor leakage occurs within the defect liability period of the parcel and it is due to defective workmanship or materials or that the parcel was not constructed in accordance with the plans and description approved by the appropriate authority, the purchaser, parcel owner or proprietor may make a claim against the developer pursuant to the sale and purchase agreement made with the developer.

(2) Where the inter-floor leakage occurs within the defect liability period of the common property or of the limited common property, as the case may be, and it is due to defective workmanship or materials or that the common property or limited common property was not constructed in accordance with the plans and description approved by the appropriate authority, the purchaser, parcel owner or proprietor may make a claim against the Common Property Defects Account pursuant to subregulation 50(4).

Inter-floor leakage caused by or attributable to a parcel

61. (1) Where the inter-floor leakage is caused by or is attributable to a parcel or any part thereof, the purchaser, parcel owner or proprietor of that parcel shall, without prejudice to his right to seek indemnity from any other party, shall take all necessary steps and measures to rectify the inter-floor leakage within seven days of receipt of Form 28.

(2) If he fails to do all the necessary steps mentioned in subregulation 61(1), the developer, joint management body, management corporation or subsidiary management corporation or any managing agent appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, as the case may be, shall immediately take all the necessary steps and measures to rectify the inter-floor leakage and shall charge and recover all cost and expense from the party responsible to rectify the inter-floor leakage.

Inter-floor leakage caused by or attributable to common property or limited common property

62. Where the inter-floor leakage is caused by or is attributable to common property or limited common property and occurs after the defect liability period of the common property or limited common property, the developer, joint management body, management corporation, subsidiary management corporation or managing agent appointed by the Commissioner under subsection 86(1) or 91(3) of the Act, as the case may be, without prejudice to his right to seek indemnity from any other party, shall take all necessary steps to rectify the inter-floor leakage within seven days of the date of issue of Form 28.

Access

63. (1) The person or body carrying out the inspection of the affected parcel or any other parcel, common property or limited common property under regulation 57 or in carrying out the works to rectify the inter-floor leakage, shall have access to the affected parcel, any other parcel, common property or limited common property on seven days’ written notice.

(2) Any purchaser, parcel owner, proprietor or occupier of the affected parcel or any other parcel who fails to give access to the affected parcel or any other parcel to the person or body carrying out the inspection pursuant to subregulation (1) commits an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand or to imprisonment for a term not exceeding three years or to both.

(3) The requirement of notice in subregulation (1) shall not be applicable in any case of emergency, and forcible entry may be effected.

(4) In this regulation, “emergency” includes any matter or circumstance that materially increases the likelihood of flood or danger to life or property that would result from inter-floor leakage.

Reference to Commissioner

64. (1) Any person who is not satisfied with any decision made against him under any of the regulations in this Part may refer to the Commissioner and the Commissioner shall determine the cause of the inter-floor leakage and the party responsible to rectify it.

(2) The Commissioner may appoint a registered architect, registered engineer, registered quantity surveyor or a registered building surveyor to assist him in such determination and the cost of such appointment shall be borne by the party responsible to rectify the inter-floor leakage.

(3) All parties shall comply with any decision made by the Commissioner.

PART XVI

DAMAGE TO PARTY WALL

Meaning of party wall

65. For the purpose of this Part, “a party wall” shall mean a wall that is located between separate parcels or located between a parcel and the common property or the limited common property, as the case may be.

Meaning of damage to a party wall

66. For the purposes of this part, “damage to a party wall” shall mean any evidence of dampness, moisture, water penetration or other damage-

(a) on the wall that forms part of the interior of a parcel, common property or limited common property, as the case may be; or

(b) on any furnishing material, including plaster, panel or gypsum board attached, glued, laid or applied to the wall that forms part of the interior of a parcel, common property or limited common property, as the case may be.

Provisions relating to inter-floor leakage shall apply

67. In a case where a parcel is affected by damage to a party wall, the provisions of regulations 55, 56, 57, 58, 59, 60, 61, 62, 63 and 64 shall apply mutatis mutandis.

PART XVII

ENFORCEMENT

Order requiring attendance of any person

68. Any order in writing by the Commissioner or authorized officer to require the attendance of any person who appears to be acquainted with the facts and circumstances of the case, under subsection 131(1) of the Act, shall be in Form 29.

Order to provide translation

69. Any requisition orally or in writing by the Commissioner or the authorized officer to any person to furnish a translation in the national language of any book, register, document or other record under subsection 134(1) shall be in Form 30.

PART XVIII

OFFENCES

Aiding and abetting

70. Any person who knowingly and wilfully aids, abets, counsels, procures or commands the commission of any offence under any provision of these Regulations shall on conviction, be liable to a fine not exceeding fifty thousand ringgit or to a term of imprisonment not exceeding three years or to both.

PART XIX

MISCELLANEOUS

Revocation

71. Any regulations made under the Building and Common Property (Maintenance and Management) Act, 2007 are revoked.

Savings

72. Any Rules under the Strata Titles Act 1985 [Act 318] which provide for Maintenance and Management of buildings and was made by the Minister responsible for matters relating to land, and in force immediately before the commencement of this Regulations, shall continue to be in force as if this Regulations had not been made.