This article first appeared in City & Country, The Edge Malaysia Weekly on June 9, 2025 - June 15, 2025

Living in a strata community is more than just sharing spaces — it involves common responsibilities, legal obligations and mutual understanding. A well-managed and harmonious strata community enhances quality of life and provides a support system in times of need. To achieve this, understanding the legal framework that governs strata living in Malaysia is essential.  In this issue, the third article in the series,we look at the strata living from a legal perspective.

According to Chur Associates founder and managing partner Chris Tan, three key laws shape the governance of strata properties in Malaysia.

Strata Titles Act 1985 (Act 318): Regulates the subdivision of land and buildings, enabling the issuance of individual strata titles. It also facilitates the creation of a Management Corporation (MC) to oversee common property.

Strata Management Act 2013 (Act 757): Ensures the proper maintenance and ongoing management of strata developments, detailing the roles of the developer, joint management body (JMB) and MC.

Housing Development (Control and Licensing) Act 1966 (Act 118): Focuses on protecting homebuyers during the development phase by regulating housing developers and ensuring compliance with sale and purchase agreements.

By-laws are vital for regulating daily life in a strata community. These are outlined in the Third Schedule of the Strata Management (Maintenance and Management) Regulations 2015 (SMR), which includes 30 by-laws grouped into eight categories. These by-laws range from renovation rules and amenities usage to noise control and waste disposal.

“In the event of breach by a resident of the by-laws, under Section 32(7) and 70(7) of SMA 2013, the developer, JMB or MC, as well as any proprietor, may seek enforcement or damages through the Strata Management Tribunal or a court.

“Meanwhile, under the Third Schedule of the SMR, the JMB or MC may rectify neglected parcels after two notices (each with at least 14 days for compliance) and recover costs from the proprietor. For example, in the event of a water leakage in a parcel (unit) affecting another, the JMB or MC can recover the costs of carrying out the rectification works from the owner of the parcel.  The MC may also impose fines of up to RM200, restrict access to common property and hold proprietors liable for any damages resulting from non-compliance,” explains Tan.

Additionally, JMBs or MCs can create new by-laws for the proper maintenance and management as empowered by the Strata Management Act 2013 (SMA).

One of the most common challenges faced by those in strata developments includes the non-payment of maintenance fees and sinking funds, says Tan. “When residents fail to pay these mandatory fees, it leads to a shortfall in funds necessary for the upkeep and repair of common areas and facilities. This neglect can deteriorate the property’s condition, affecting all residents’ quality of life,” he explains.

He adds that there are instances of management that lack the proper expertise or experience, and it can result in poor decision-making, inadequate maintenance and unresolved disputes among residents.

“JMBs or MCs can also face challenges in enforcing their duties or by-laws, as this can stem from limited legal authority or reluctance to act against non-compliant residents, leading to issues like unauthorised renovations or misuse of common facilities. Additionally, residents may also cause enforcement to be difficult, either in the form of being missing-in-action or even resorting to violence, for example,” says Tan.

“Many residents are not fully informed about their rights and responsibilities within a strata scheme. This lack of awareness can cause misunderstandings, non-compliance with regulations and conflicts among residents, hindering harmonious community living,” he says, highlighting the lack of public awareness and education.

Older strata properties often face significant challenges due to outdated legal frameworks and unique ownership structures. Citing the case of Sea Park Apartments in Petaling Jaya, there is a notable issue of the separation of ownership between residential units and common areas.

“While residents own their units, the common areas — including the parking bays — are owned by a different entity. This unusual arrangement has led to prolonged legal disputes, restricted access to essential facilities and difficulties in property maintenance,” says Tan.

Hence, he suggests that there should be greater public awareness and education to inform residents about their rights and responsibilities under strata laws. “In addition, there should be continuous training and certification programmes for JMB and MC members to ensure competent management. This will lead to more effective decision-making and property upkeep.”

Meanwhile, Knight Frank Property Management Sdn Bhd (KFPM) had encountered an interunit leakage issue in one of the properties it managed. The unit below reported persistent water damage such as ceiling stains, damp walls and peeling paint.

According to KFPM director Nageswaran Muniandy, the issue is further complicated by the occupant of the upper unit denying entry to maintenance personnel despite multiple requests.

“While the SMA, SMR and the building’s by-laws require unit owners to maintain their plumbing and prevent damage to neighbouring units, enforcing compliance without voluntary cooperation proved to be a challenge,” says Nageswaran.

“The management conducted an inspection and determined that access to the unit above was necessary to identify the source. However, the owner denied access. Despite multiple attempts to communicate, which included phone calls and emails, the owner refused entry and formally declined the request in writing. Efforts to mediate the issue by arranging a meeting between both owners were unsuccessful due to the upper unit owner’s lack of cooperation. Management also sought assistance from the Commissioner of Buildings (COB), who subsequently issued an instruction for access to the unit above. However, the owner continued to deny entry.”

He adds that the management then proceeded to issue Form 28 as per the provision of Regulation 59 of SMR, highlighting the cause of the leakages based on visual assessment and non-destructive test method carried out from the affected unit to establish the source of the leaking is from the above unit.

“The constant refusal of access and delay in rectifying the source of leakage by the unit above has further caused significant damage to the unit below. Having no other choice, management proceeded to file a case in the tribunal and the case is ongoing. The verdict is expected soon and from the assessment carried out the decision should be in favour of the management and the unit below.

“Many owners are unaware of their responsibilities such as ensuring the proper maintenance of internal plumbing, waterproofing and also,  understanding the consequences of negligence. Some refuse to cooperate because they assume these issues are the management’s responsibility.” For more information on the tribunal, refer to the Quick Guide.

According to Tan, a change in ownership for strata properties follows the same principles as individual titles, as strata ownership does not limit your rights. “Your rights remain absolute once the transfer process is completed.”

The seller (vendor) must sign Form 14A, also known as the Memorandum of Transfer (MoT), to legally transfer ownership to the buyer (purchaser).

Once the transfer is registered, the new owner holds full rights as written in the strata title. Refer to Table 2 for costs when purchasing a strata property.

In the case of inheritance, the administrator or executor of the estate must sign Form 14A to transfer ownership to the rightful beneficiary.

After registration, the beneficiary becomes the legal owner, with absolute rights over the property.

“Regardless of whether ownership changes through sale or inheritance, once the process is complete, the strata title fully protects the owner’s rights, just as an individual title would.

“Since a strata title is equivalent to an individual title, the legal requirements are largely the same when it comes to the transfer of ownership.

“If a strata tile has been issued, the transfer shall be registered with the land office using the relevant transfer form — Form 14A. If the strata tile has not been issued, the transfer is done via a Deed of Assignment (DoA), subject to the developer’s consent,” says Tan, adding that without a title, the transfer is registered in the developer’s records instead of the land office.

“Future transactions may be more complicated if the title is not yet issued.

“Next, the JMB or MC shall confirm that all outstanding maintenance fees, sinking funds and other charges are paid before issuing a Certificate of Clearance or Clearance Letter. This certificate is often used to advise the bank to release the loan sum, or in any case where the purchase is buying it in cash, then the Certificate of Clearance is required for the management to update the ownership of the unit in their record.

“Meanwhile, some strata titles are subject to a restriction-in-interest, requiring state consent before any dealings can take place as per the underlying master title. Additionally, there are also restrictions for certain types of developments, such as Malay Reserve land and low-cost property, depending on the category of the land,” he explains.

In the next instalment, we explore how prioritising urgent repairs, choosing the right vendors and thinking long-term can help maximise value while keeping budgets in check.

This series consists of six instalments, to be published weekly. The second instalment appeared in the June 2 issue, while the fourth will be published in the June 16 issue.

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