Significance of share units in strata development – part two

The fact that a strata owner does not actually use or enjoy these areas outside of his parcel is not relevant.An important concept in ownership of strata properties is that the common property is for the benefit of all strata owners, unless part of the common property is designated as limited common property for the exclusive benefit of the strata owners of two or more parcels under the provisions of the Strata Titles Act, 1985 (STA) and the Strata Management Act, 2013 (SMA).

IN THIS second part of the article, the Conveyancing Practice Committee member of the Bar Council analyses the recent Court of Appeal’s decision in Muhamad Nazri Mukamad v. JMB Menara Rajawali & Anor (JMB Menara Rajawali) which decided that a joint management body (JMB) cannot fix different rates of charges for different types of parcel units in a stratified building.

Charges are paid for maintenance of the common property

When strata owners pay charges, they are essentially for maintaining the common property in good condition. Common property means so much of the development area as is not comprised in any parcel and is used or capable of being used or enjoyed by occupiers of two or more parcels. In other words, strata owners do not pay charges to maintain their respective own parcels, but to maintain areas outside of all parcels.

The fact that a strata owner does not actually use or enjoy these areas outside of his parcel is not relevant.An important concept in ownership of strata properties is that the common property is for the benefit of all strata owners, unless part of the common property is designated as limited common property for the exclusive benefit of the strata owners of two or more parcels under the provisions of the Strata Titles Act, 1985 (STA) and the Strata Management Act, 2013 (SMA).