August 9, 2012

Strata Titles Board, the law exist but the office isn't?


Another chapter from the sequel of my second book. Still in its rough draft. Comments are welcomed or questions even

The Strata Titles Board, as the name suggested, is an office established to deal with disputes under the Strata Titles Act 1985. The Strata Titles Board can only settle disputes in strata development which is already has been issued with individual strata titles and has a functioning Management Corporation. The Strata Titles Board can hear and makes decision on any disputes which is brought to it by the owner of a strata property or the management corporation of a strata development or any person or body having interest in the strata property, which is usually the financier for the strata property or strata development. The disputes which the Strata Titles Board can hear are listed in the Strata Titles Act. Every state in Semenanjung Malaysia has its own Strata Titles Board and consists of less than twenty members with a President and more than one Deputy President. The appointed of members in the Strata Titles Board is made by the Minister of Housing and Local Governments with the recommendation of the relevant State Authority. The member of the Strata Titles Board is appointed for two years and is eligible for reappointment. The appointment can be declined, resigned from and revoked. Although the provisions in Part IXA of Strata Titles Act 1985 has been in existence since the amendment of the Strata Titles Act in 2007, no state in Semenanjung Malaysia has set up its own the Strata Titles Board yet although the need for it has increased.

What is the importance of the Strata Titles Board in the whole scheme of things when it comes to strata development? The Strata Titles Board is a good place to settle problems arising from anything that an owner, Management Corporation and any person or body which has interest in a strata property in any strata development. There are so many provisions in the Strata Titles Act in order to allow it to work faster and better than any dispute resolution process. The Strata Title Board can even hear issues which are not provided for under Part IXA of the Strata Titles Act 1985, and any matter brought in front of the Strata Titles Board even survive the death of any member of the Strata Titles Board. The member of the Strata Titles Board who resigns or retires during a hearing must finish hearing any dispute that was brought before the Strata Titles Board when he was a member. Members of Strata Titles Board are protected when doing anything done in good faith during hearings and can be paid allowances. The Strata Titles Board is given six months to settle any dispute brought before it except if otherwise decided the matter is complex. The proceedings of the Strata Titles Board are open to public and all its members are considered as public servants when serving the Strata Titles Board.

Matters that can be settled by Strata Titles Board which are listed in the Strata Titles Act 1985 are spelt out from Section 67H until Section 67O of the Strata Titles Act 1985. A Strata Titles Board can revoke any amendment of additional by-laws which are made by the Management Corporation. This is if it is found that the owners feels that the additional by-law which is added, revoked or amended interferes with the enjoyment of strata properties or common property within the strata development. The Strata Titles Board can order the Management Corporation to pay compensation to the owners adversely affected by the additional by-law. Additional by-law which is found to be made outside the power of the Management Corporation can be found invalid by the Strata Titles Board. If the Management Corporation in collecting the service charges under Section 45 of the Strata Titles Act 1985 - Management Fund, charged an unreasonable interest rate, the Board may order the no interest rate is paid or order a different interest rate to be paid. The Strata Titles Board can make an order regarding any disputes on costs of repairs for any rectification or repair of defect of any strata property or common property either on the Management Corporation or the owners, depending on which party is liable to it. The Strata Titles Board can ask the Management Corporation which has refused unreasonably to consent to any proposal by owner to alter the common property within the strata development.

The Strata Titles Board is also allowed to hear applications with regards to general meetings of the Management Corporation. The Strata Titles Board is empowered to invalidate or refuse to invalidate any resolution or election in any meeting of the Management Corporation which is done without complying with the provisions of the Strata Titles Act 1985. If a meeting of the Management Corporation is called and resolutions are made while an owner is improperly denied to vote or was not given proper notice of the agenda of the meeting, if an application is made, the Strata Titles Board can nullify the resolution. When making decisions about insurance, the Strata Titles Board can ask the Management Corporation to vary the amount the buildings in the strata development is insured if it is found that the amount of contribution under Section 43(1) of the Strata Titles Act 1985 is not reasonable. The Strata Titles Board can order the Management Corporation to make or pursue an insurance claim if there is any damage to the buildings in the strata development, if the Management Corporation unreasonably to do so. The Strata Titles Board can order the Managing Corporation or the managing agent or any member of its council to supply any information or document unreasonably withheld to any owner. 

In discharging its duties, the Strata Titles Board acts very much like a tribunal or court. It has certain powers which allow it to issue order as to cost. The Strata Titles Board can order the cost to be paid either the applicant or the Management Corporation or any person whom an order has been made against. The Strata Titles Board even has the power for costs to be paid by any party who has made a frivolous application. Another power endowed on the Strata Titles Board is to order any party relevant to the strata development to do or refrain from doing a specified act in relation to the unit or common property within the strata development. A lawyer can appear on behalf of the interested party either the applicant or the Management Corporation in front of the Strata Titles Board. A member of the council can appear on behalf of the Management Corporation. The Strata Titles Board also has the power to summoned witnesses to give evidence and produce documents. Penalty can be imposed on the party who does not follow the order by the Strata Titles Board. Any order by the Strata Titles Board can be appealed to the High Court on point of law. With the powers and provisions in the Strata Titles Act, it can be seen that the Strata Titles Board has a very wide power and can settle a lot of the disputes in relation to strata properties which are already issued with individual strata titles. It is high time that the government seriously consider the setting up of Strata Titles Board in all the states in Semenanjung Malaysia in order to have a place for owners and management of strata properties to have a platform to settle their disputes.
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