People live in high-rise properties for various reasons – lifestyle, market trend, nearby transportation access, common facilities provided – to name a few. For whatever reason, there is one thing in common – residents must pay maintenance charges and sinking fund, often lumped together for convenience and called ‘maintenance fees’. But what if they don’t, as is often the case?
Pursuant to the Strata Management Act 2013 (“SMA”), the Joint Management Body/ Corporation (“Management”) are responsible for the management and maintenance of each high-rise property and common properties. To this end, they are empowered to collect maintenance fees[1][2] which each resident owners must pay to the Management.[3][4]
If resident owners refuse to pay or have outstanding payments of the maintenance fees, the Management is empowered to take measures against the non-paying residents.[5][6] For starters, the Management will issue a statutory demand for outstanding payments[7][8], failing which the Management can resort to several actions like filing a court suit, filing a claim at the Strata Management Tribunal or even attach moveable properties like your possessions in the house or your car.[9][10]
However, the most common action resorted to by the Management is to restrict or to not provide services to the non-paying residents. This is known as a self-help action. This may include deactivating access cards which restricts accessibility but not the whole access. The access card would not work to lift the boom gate, but the non-paying residents can lift the gate up themselves. In the case of Au Kean Hoe v Persatuan Penduduk D’villa Equestrian [2015] 4 MLJ 204, the Federal Court held that it was legal for such restrictions to be put in place by the management in a gated community.
Non-paying residents could also be denied from accessing common properties like the gym, so they would need to run to the Management Office to plead them to exercise their discretion to allow access. Or, the access card cannot be detected in the lift, preventing the non-paying residents from reaching their floor. Well, they could use the stairs if they think it’s more convenient than paying the maintenance fees.
Be that as it may, it is illegal for the Management to cut your electricity or water supply or prevent total access to your home or its accessory i.e. parking. Such supply and access are legal rights of each resident owners obtained from having legal ownership of their own unit[11].
It’s important to remember that the maintenance fees are a collective contribution by all residents for the Management to maintain the residence in good shape and tip top quality and everyone would reap the benefits. On the flip side, if the Management is irresponsible or embezzling residents’ funds, they can also be made accountable. That is a story for another day.
[1] Section 21(1)(a), (b) and (c) of the SMA
[2] Section 59(1)(a), (b) and (c) of the SMA
[3] Section 25(1) of the SMA
[4] Section 68(1) of the SMA
[5] Section 25(6) of the SMA
[6] Section 78(1) of the SMA
[7] Section 34(1) of the SMA
[8] Section 78(1) of the SMA
[9] Section 34(2) of the SMA
[10] Section 78(2) of the SMA
[11] John Denis De Silva v Crescent Court Management Corporation [2006] 2 CLJ 605
About the Author
Afiq Iskandar is a Legal Associate of XK Law. He graduated from MARA University of Technology, Malaysia. Afiq has multiple interests in life beyond reading law viz. sports, film, music and poetry. He believes that art, in whatever form they may be, is a necessity of life.
