90% of new strata property still under JMB due to delay in strata title issuance

(From left) Teo, Soam, Adzman and Tan at EdgeProp.my's Fireside Chat on Strata Management Act 2013 review: When. (Photo by Low Yen Yeing/EdgeProp)

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PETALING JAYA (Nov 14): It is estimated that 90% of new strata property in the country are still being managed by Joint Management Bodies (JMB) with only 10% having formed Management Corporations (MC) due to the delay in the issuance of strata titles.

Speaking at EdgeProp.my's "Fireside Chat on Strata Management Act 2013 review: When?", Real Estate and Housing Developers’ Association (Rehda) president Datuk Soam Heng Choon noted that feedback from the association’s members revealed that none of them were able to obtain strata titles upon receiving the Certificate of Completion and Compliance (CCC) for their projects.

“Strata titles are issued by the respective state’s PTG (Land and Mines Office). So, if the state government (is slow) and the e-Tanah (the electronic land administration system) doesn’t work in that state, nothing will come out,” he said.

He added that this is one of the reasons the JMB will still exist and remain relevant and hence the association has been working with the Ministry of Housing and Local Government on amendments to Part IV of the Strata Management Act 2013 which comprises provisions on strata management before the existence of the MC.

“This section (Part IV) is still very relevant and more subject matter experts should be engaged by the government to review the policy,” he said.

Soam was one of the panellist at the Fireside Chat held at Wisma Rehda this morning. Also on the panel were Building Management Association of Malaysia (BMAM) president Tan Sri Teo Chiang Kok, Malaysian Institute of Property and Facility Managers (MIPFM) president Adzman Shah Mohd Ariffin and Chur Associates founder and managing partner Chris Tan.

As an MC can only be formed after the issuance of strata titles — which can be delayed for years — this has created many issues in strata living and management, such as the fixing of maintenance fee rates for different components in a mixed development.

Hence, to address the issue arising from strata title issuance, the panellists urged the authorities to improve the efficiency of strata title issuance.