Apartment owners living in high-rise buildings may face difficulties such as unsatisfactory living conditions, issues with developers, and more. Where, then, are such grievances addressed?
Enter the Strata Management Tribunal (“the Tribunal”).
A tribunal is, in simple terms, a court or forum created by law to decide disputes. In this instance, the Tribunal has the power and jurisdiction to hear and determine claims relating to strata properties, as set out in Part 1 of the Fourth Schedule to the Strata Management Act. These disputes mainly concern the functions, duties, or powers under the Strata Management Act, claims for recovery of maintenance charges or contributions to the sinking fund, and claims to vary the rate of interest fixed for late payment of maintenance charges.
By law, the total amount claimed cannot exceed RM250,000.00. Those entitled to file a claim at the Tribunal are developers, purchasers, proprietors, joint management bodies, management corporations, subsidiary management corporations, managing agents, and any other interested person, with leave of the Tribunal.
Here is a simple and practical guide on how to resolve tribunal issues through the Strata Management Tribunal (SMT), and it does not require hiring a lawyer.
Before we go into how to file a case with the Tribunal, let me introduce the two strata laws that govern strata properties in Malaysia:
The Strata Management Act 2013 (SMA) was enforced on 1 June 2015. Under this Act, there are two regulations:
The SMA applies only to Peninsular Malaysia. In Sarawak, it is governed by the Sarawak Strata Titles Ordinance 1974, and in Sabah, it is governed by the Sabah Land (Subsidiary Title) Enactment 1972.
Based on the SMA and its regulations, strata properties that do not come with strata titles at the time of vacant possession are managed in three stages:
Stage 1 – Management by the developer
The developer initially manages the common property after vacant possession is given to the strata owners.
Stage 2 – Management by a Joint Management Body (JMB)
Strata owners and the developer jointly manage the common property through a JMB established after the first annual general meeting (AGM) of the JMB.
Stage 3 – Management by a Management Corporation (MC)
Once the strata title has been issued, the JMB transfers management of the common property to an MC after the first AGM of the MC.
After 1 June 2015, the enforcement of the Strata Management Tribunal Regulations 2015 (SMT), or Tribunal Pengurusan Strata (TPS), by the Housing and Local Government Ministry (Kementerian Perumahan dan Kerajaan Tempatan) (KPKT) provided an efficient and cost-effective solution for resolving disputes between strata owners, JMBs, MCs, developers, and other stakeholders.
No lawyer is needed for SMT cases, because Section 110 of the Strata Management Act 2013 (SMA) states that no party shall be represented by a lawyer unless there are complex legal issues that require legal representation. The maximum claim limit in SMT cases is RM250,000. Not bad at all, right?
The following are the steps for filing a case with the Strata Management Tribunal (SMT):
The claimant (Penuntut) must download and complete four copies of Form 1 / Borang 1 (Statement of Claim) clearly, precisely, and accurately, with sufficient facts and supporting evidence attached, together with a filing fee of RM100 for residential claims and RM200 for commercial or industrial claims, and submit them to KPKT. The four copies of Form 1 will be signed and sealed by the Secretary of the Tribunal on the same day.
Addresses for SMT filing are:
Central Zone
No. 51, Persiaran Perdana, 62100 Presint 4, Putrajaya
North Zone
Aras 7, Zon B, Wisma Persekutuan, Seberang Perai Utara, 13200 Jalan Bertam, Kepala Batas, Pulau Pinang
South Zone
Tingkat 20, Menara Ansar, No. 65, Jalan Trus, 80000 Johor Bahru, Johor
East Zone
Tingkat 5–6, Bangunan Darul Takaful (Maidam), Jalan Sultan Ismail, 20200 Kuala Terengganu, Terengganu
The claimant must serve one copy of Form 1 / Borang 1 (Statement of Claim), together with Form 2 (Statement of Defence and Counterclaim) and Form 4 (Notice of Hearing), stating the date, time, and venue of the hearing, to the respondent (Penentang) within 14 days of the filing date.
The respondent (Penentang) may file a defence using Form 2 (Statement of Defence and Counterclaim) within 14 days after receiving Form 1 from the claimant at KPKT. The filing fee is the same as that paid by the claimant.
If the claimant disagrees with the respondent’s Form 2 (Statement of Defence and Counterclaim), the claimant may file Form 3 (Defence to Counterclaim) to respond to the respondent’s statement, with a filing fee of RM50 for residential claims and RM100 for commercial or industrial claims at KPKT.
On the hearing date, both parties must appear before the President of the Tribunal at Level 4 of KPKT Putrajaya for the Central Zone. Both parties will present oral arguments and supporting documentary evidence relevant to the case.
Once the hearing is over, the Tribunal will make an award based on the evidence presented. Awards and settlements are recorded in writing in Form 6 (Award by Consent). Failure to comply with the award decided by the Tribunal is a criminal offence and may result in a fine of up to RM250,000, imprisonment of up to 3 years, or both, according to Section 123 of the SMA 2013.
The Strata Management Tribunal (SMT), since 2015, has successfully provided a cost-effective and practical solution for resolving disputes between strata owners, JMBs, MCs, developers, and other stakeholders. For additional information, please refer to:
https://www.kpkt.gov.my/index.php/pages/view/423
Content By: Ryan Lee