CP_M&M ACT_EDITED

7/31/2019 CP_M&M ACT_EDITED

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Learning Outcomes

At the end of the discussion students should

acquire these abilities:

a) xx

14/05/2012 Jamaludin Yaakob3

CP (M & M) ACT 2007


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Governing Laws

Common Property (Management &

Maintenance) Act 2007

Housing Development (Control and

License) Act 1966

Strata Title Act 1985


CP (M & M) ACT 2007


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After 2007 Act


CP (M & M) ACT 2007

Section 4 The JMB that comprises of the

developer and the purchasers

are responsible to provide forthe proper maintenance and

management of buildings and

common property, and formatters incidental thereto.


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JOINT MANAGEMENT BODY

Section 6(1):-

The agenda for the first meeting of the Bodyshall include the following matters:

a) the election of the office bearers of theCommittee;

b) to confirm the taking over by the Body ofinsurances effected by the developer;

c) to determine the amount to be paid by thepurchasers to the Building Maintenance Fundfor the maintenance and management of thecommon property of the building;


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The quorum at the first meeting of the Body shall beone-quarter of the purchasers who has paidmaintenance charges in respect of their parcels to theBuilding Maintenance Account (members entitledto vote) of the developer [Section 6(2)]

If within half hour after the time appointed for themeeting, a quorum is not present, the memberentitled to vote who are present shall constitute aquorum [Section 6(3)]

Joint purchasers shall not be entitled to vote exceptby way of a jointly appointed proxy [Section 6(5)]

In the event of an equality of votes, the chairmanshall have a casting vote [Section 6(6)]


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Section 8(1) of the Building andCommon Property (Management &Maintenance) Act 2007.

Duties of the Body:

a) To properly maintain the common

property and keep it in a state of goodand serviceable repair;

b) To determine and impose charges thatare necessary for the repair and propermaintenance of the common property;

c) To insure and keep insured thebuilding to the replacement value ofthe building against fire and suchother risks as may be determined by

the Body;


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Section 8(1)

d) To apply insurance moneys received by

the Body in respect of damage to the

building for the rebuilding and

reinstatement of that building;e) To comply with any notices or orders

given or made by the local authority or

any competent public authority requiring

the abatement of any nuisance on thecommon property, or ordering repairs or

other work to be done in respect of the

common property or other improvements

to the property;


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Section 8(1)

f) To prepare and maintain a register of allpurchasers of the building;

g) To ensure that the Building Maintenance fund

is audited and to provide audited financialstatements for the information to thepurchasers;

h) To enforce house rules for the propermaintenance and management of the buildings;and

i) To do such other things as may be expedient ornecessary for the proper maintenance andmanagement of the building.


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DISSOLUTION OF JOINT

MANAGEMENT BODY

The Body shall be

dissolved 3 months

from the date of the

first meeting of the

management

corporation for the

building[Section

15(1)]


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JOINT MANAGEMENT

COMMITTEE Section 11(2):-

The committee shall consist of;

the developer not less than 5 and not more than 12 purchasers

who shall be elected at the annual general

meeting of the Body and shall hold office for a

period not exceeding 3 years or until thedissolution of the Body in accordance with

Section 15, whichever earlier.


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JOINT MANAGEMENT


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JOINT MANAGEMENT

COMMITTEE

FIRST SCHEDULE

[subsection 11(4)] Times and places of meetings.

- The Committee is to hold as many meetings as arenecessary for the efficient performance of its functions.

- The meetings are to be held at such places and times as

the chairman may decide.

- BUT, the chairman shall not allow more than 2 monthsto lapse between meetings.

- The chairman shall call for a meeting if requested to do

so in writing by the Commissioner/ by at least 2

members of the Committee.

JOINT MANAGEMENT


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JOINT MANAGEMENT

COMMITTEE

FIRST SCHEDULE

[subsection 11(4)]

Continuation of office.- A person shall continue to be a member of the

Committee until that person:

a) resigns;

b) dies;

c) becomes a bankrupt;

d) is no longer a purchaser.

JOINT MANAGEMENT


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JOINT MANAGEMENT

COMMITTEE

FIRST SCHEDULE

[subsection 11(4)]

Quorum

- The chairman and at least half of

the members of the Committee

shall form a quorum at anymeeting of the Committee.


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JOINT MANAGEMENT

COMMITTEE

FIRST SCHEDULE

[subsection 11(4)]

Resolution of the Committee.

- A resolution is taken to have been passedat a meeting of the Committee if:

a) all members of the Committee have beeninformed of the proposed resolution in writing,

or reasonable efforts have been made to informall members of the Committee of the proposedresolution; and


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JOINT MANAGEMENT


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JOINT MANAGEMENT

COMMITTEE

FIRST SCHEDULE

[subsection 11(4)]

Validity of acts and proceedings.

- No act done or proceeding taken under this Act shallbe questioned on the ground of:

a. any vacancy in themembership of, or any defect inthe constitution of, the Committee;

b. contravention by any member of the Committee; or

c. any omission, defect or irregularity not affecting themerits of the case.


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JOINT MANAGEMENT

COMMITTEE

FIRST SCHEDULE

[subsection 11(4)]

Members to devote time to business ofCommittee.

- The members of the Committee shalldevote such time to the business of theCommittee as is necessary to discharge theirduties effectively.


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RIGHT OF PURCHASER


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RIGHT OF PURCHASER

d) the amount, if any, then recoverable by the Body in

respect of the parcel;e) the sum standing to the credit of the BMF and the

sum in the account that has been committed or

reserved for expenses already incurred by the Body;

f) the nature of the repairs and estimated expenditure, ifany, where the Body has incurred any expenditure or

is about to perform any repairs, work or act in respect

of which a liability is likely to be incurred by the

purchaser of the parcel under any provision of thisAct; and

g) the amount paid and to be paid by the developer for

unsold parcel.


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BUILDING MAINTENANCE

ACCOUNT

Section 16(1)

Developer to open and maintain Building

Maintenance Account.

The Building Maintenance Account shall

be opened in the name of the development

area with a bank or financial institution

licensed under Banking and Financial

Institutions Act 1989 or regulated by the

Central Bank under any other written law.



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ACCOUNT

One Building Maintenance

Account shall be opened for

each development area[Section 16(2)]

The Account shall be

maintained by developer until

the establishment of the Bodyfor the building [Section

16(3)]


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ACCOUNT

Section 17

Duties of developer as to Building Maintenance

Account.

Section 17(1)

A developer shall deposit into the Building

Maintenance Account-

a) all charges received by him from the purchasers in thedevelopment area for the maintenance and

management of the common property of the

development area; and


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ACCOUNT Section 17(2)

The developer shall-

a) cause proper accounts of the Building

Maintenance Account to be kept inrespect of all sums of money receivedfrom and all payments made out ofthe Account;

b) appoint a professional auditor to

audit the Account annually or in thecase of where money to betransferred under subsection 19(3), 1month before the date of actualtransfer;


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ACCOUNT

Section 19

Moneys not to form

part of the property

of the developer.


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ACCOUNT Section 19(1)

All money in the Building Maintenance

Account shall not be deemed to for part of theproperty of the developer in the event-

a) the developer enters into any composition or

arrangement with his creditors or has a receiving

order or an adjudication order made against him; orb) The developer, being a company, goes into

voluntary or compulsory liquidation.


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FUND

Section 22(1)

It must be transferred not later than 1 month

from the date of the establishment of the

Body, and such moneys shall constitute a

fund to be known as the Building

Maintenance Fund which shall bemaintained by the Body.


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FUND

Section 22(2)

c)all other moneys and property which

may in any manner become payableto or vested in the Body in respect ofany matter incidental to its functionsand powers; and

d) all other moneys lawfully receiverby the Body, including interest,donation and trust.



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FUND

Section 22(3)

The Building Maintenance Fund shall be

used solely for the purposes of-a) ensuring the common property of the

building is in a state of good repair and

maintaining the common property;


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FUND Section 22(3)

b) paying for the expenses incurred in

providing cleaning services for the commonproperty, security services and amenities forthe occupiers of the building;

c) paying any premiums for the insurance ofthe building against damage by fire andother risks;


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FUND

Section 22(3)

g) carrying out inspection, maintenance andrepair of the main water tank;

h) paying rent and rates, if any;

i) paying any fee incurred for the auditing ofthe Building Maintenance Fund;

j) paying all charges reasonably incurred forthe administration of the BuildingMaintenance Fund as may be determined bythe Commissioner;



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FUND

Section 22(3)

k) paying the remuneration or fees of the

managing agent appointed under section 25;

l) paying any expenditure lawfully incurred by the

Body;

m) paying for the allowances and other expenses

of the members of the Body and member of theCommittee according to such rates as may be

approved by the Commissioner;


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FUND Section 22(3)

p) paying any expenses for carrying

into effect the provisions of this Act;and

q) doing generally all things

necessary for the maintenance and

managementof the commonproperty.


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MAINTENANCE CHARGES

The purchaser shall pay the charges for the

maintenance and management of the

common property [Section 23(1)] The apportionment of the charges to be paid

by the purchaser shall be determined by the

Body in proportion to the allocated shareunits [Section 23(2)]


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MAINTENANCE CHARGES

Any written notice served on the purchaser

requesting for the payment of the charges

shall be supported by a statement of thecharges issued by the developer or Body

[Section 23(3)]

The purchaser shall, within 14 days ofreceiving a notice , pay the charges

requested for [Section 23(4)]


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MAINTENANCE CHARGES

If the charges remain unpaid by the

purchaser at the expiration of the period of

14 days, the purchaser shall pay interest atthe rate to be determined by the Body but

such interest shall not exceed 10% per

annum [Section 23(5)]


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MAINTENANCE CHARGES

Schedule H of the Housing Development(Control and Licensing) Regulations.

Regulation 19(1)The Purchaser shall be liable for and shall pay

the service charges for the maintenance andmanagement of the common property and for

the services provided by the Vendor prior to theestablishment of a management corporationunder the Strata Titles Act 1985.

MAINTENANCE CHARGES


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MAINTENANCE CHARGES

Regulation 19(2)

From the date the Purchaser takes vacant possession ofthe said Parcel, the Purchaser shall pay a fair and

justifiable proportion of the costs and expenses for themaintenance and management of the common property

and for the services provided. Such amount payableshall be determined according to the provisional shareunits assigned to the said Parcel by the Vendorslicensed land surveyors

The amount determined shall be the amount sufficient

for the actual maintenance and management of thecommon property. The Purchaser shall pay one (1)months deposit and three (3) months advance inrespect of the service charges and any paymentthereafter shall be payable monthly in advance.


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MAINTENANCE CHARGES


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MAINTENANCE CHARGES

Settle your maintenance charges or risk having your assetssealed.

Owners and tenants of units in high-rise buildings such as

condominiums, office buildings and shopping centres were

given this warning yesterday by the secretary-general of

the Ministry of Housing and Local Government, Datuk

Ahmad Fuad Ismail.

The assets would be sealed if the Commissioner of

Buildings (COB) appointed by the state governments gave

the permission after receiving an application from the

developer of a building, he said.

Sources: 15/04/2007 Sunday Times


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SINKING FUND


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SINKING FUND

Section 2

sinking fund means a

special fund opened and

maintained under section 24.

SINKING FUND


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SINKING FUND

Section 24

Joint management Body to open and maintain

sinking fund.

The Body shall open and maintain a sinking fund intowhich shall be paid such portion of the contribution

to the BMF as may, from time to time, be determined

by the Body for the purposes of meeting its actual or

expected liabilities in respect of the following:

a) the painting or repainting of any part of the common

property;

SINKING FUND


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SINKING FUND

Section 24b) the acquisition of any movable property for use in

relation to the common property;

c) the renewal or replacement of any fixture or fitting

comprised in any common property; or

d) any other expenditure as the Committee deems

necessary.


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SINKING FUND

Schedule H of the Housing Development(Control and Licensing) Regulations.

Regulation 20(1)

The Vendor shall, upon the date the Purchaser takesvacant possession of the said Parcel, open andmaintain separate sinking fund for the purposes ofmeeting the actual or expected liabilities in respect of

the following matters-a) The painting and repainting of any part of thecommon property;


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SINKING FUND


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SINKING FUND

Schedule H of the Housing Development (Control

and Licensing) Regulations.

Regulation 20(2) The Purchaser shall, upon the date he takes vacant

possession of the said Parcel contribute to the sinking

fund an amount equivalent to ten per centum (10%) of

the service charges.

The contribution shall be payable monthly in advance.

All funds accumulated in the sinking fund shall be held

by the Vendor in trust for the Purchaser.

N li i f h i


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Non- application of other written

laws, contracts and deeds Section 44

On the coming into operation of this Act, in a

local authority area or part of a local authority areaor in any other area, the provisions of any written

law, contracts and deeds relating to the

maintenance and management of buildings and

common property in as far as they are contrary tothe provisions of this Act shall cease to have effect

within the local authority area or that other area.


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CONCLUSION

The BCP Act is aimed at plugging loopholes andgrey areas not covered by the Strata Titles Act1985 and the Housing Development (Control and

Licensing) Act 1966. Under the BCP Act, the roles of the developersand purchasers are more clearly defined and threenew bodies are introduced to implement properbuilding maintenance and management, namely

the Commissioner of Buildings (COB), JointManagement Body (JMB) and Joint ManagementCommittee (JMC).

CP_M&M ACT_EDITED

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