BACKGROUND OF THE NEW DEVELOPMENT
Prior to the coming into force of the Strata Titles (Amendment) Act 2013 ("STA 2013") and the Strata Management Act 2013 ("SMA 2013"), the Strata Titles Act 1985 ("STA 1985") and the Building and Common Property (Maintenance and Management) Act 2007 ("BCPA 2007") were the laws governing strata management. STA 1985 has been amended a few times over the years since its enactment as a result of criticisms and complaints voiced against its inadequacy and obsolete application. BCPA 2007 was enacted to provide for the proper maintenance and management of buildings and the common property after delivery of vacant possession by the developer to the purchasers and before the management corporation comes into existence.
However STA 1985 and BCPA 2007 have several blind spots and consequently have led to different interpretations and ambiguity in the laws which have resulted in the occurrence of different strata management practices and malpractices.
With effect from 1 June 2015, the long awaited STA 2013 and SMA 2013 came into operation in all the states in Peninsular Malaysia and the Federal Territories (save for the state of Penang where SMA 2013 came into effect on 12 June 2015). As a result of which, BCPA 2007 has been repealed and replaced with SMA 2013. All the provisions relating to management of subdivided buildings and parcels under STA 1985 have been taken out and placed solely under the governance of SMA 2013. The implementation of SMA 2013 is supplemented by the Strata Management (Maintenance & Management) Regulations 2015 and the Strata Management (Strata Management Tribunal) Regulations 2015.
THE IMPACT OF THE STA 2013 AND THE SMA 2013
(1) Expedition of the application for subdivision of a building or land and the issuance of strata titles
Previously under section 8(2) of the STA 1985, application to subdivide a building can be made only after the building is completed i.e. within 6 months from the date of certificate of completion and compliance ("CCC") or within 6 months from the date of the sale (in the event the sale of the building or land parcels is made after the issuance of the CCC).
This section 8(2) was amended by the STA 2013 to provide for application to subdivide a building at super structure stage (i.e. the stage upon the completion of building works. Administratively, it may mean completion of building works up to completion of walls that are necessary for measurement of parcels...