PETALING JAYA: A five-year legal dispute over different maintenance fees at a mixed development in Melaka may have ended but the case has also highlighted the challenges faced by smaller strata parcel owners.
For Mohan Sivasundram, the matter came to light during the property’s joint management body (JMB) annual general meeting (AGM) in April 2021 when a presentation revealed different maintenance charge rates for the various parcels.
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“I questioned why retail lot owners were being charged significantly higher maintenance fees than car park and hotel lot owners as I believe this did not comply with the Strata Management Act (Act 757),” he said.
“However, my concerns were brushed aside at the time.”
As a director of Brickworks Realty Sdn Bhd, which owns a retail parcel, Mohan subsequently lodged a formal objection with the JMB before referring the matter to the Strata Management Tribunal.
The tribunal ruled that the different rates imposed during the JMB period were null and void, allowing a single rate of maintenance fees.
However, the High Court overturned the tribunal’s decision before the Court of Appeal reinstated it.
On Sept 8, the Federal Court unanimously dismissed the said management corporation’s (MC) application for leave to appeal against the Court of Appeal’s decision.
A three-member bench comprising Federal Court judges Justices Ahmad Terrirudin Mohd Salleh, Che Mohd Ruzima Ghazali and Collin Lawrence Sequerah dismissed the application with costs of RM50,000 to Brickworks Realty Sdn Bhd.
Mohan, who is also the Selangor and Kuala Lumpur Strata Property Owners Association secretary-general, said the case demonstrated the difficulties and exorbitant costs small parcel owners could face when seeking to protect their rights.
“Many small parcel owners may not know their rights and could end up being taken advantage of by owners of larger parcels.
“This symbolises a big win for the strata community for the imposition of a single rate on maintenance charges,” he said, urging strata parcel owners to familiarise themselves with Act 757 and actively participate in JMB and MC meetings.
“Authorities must also create greater awareness on Act 757 and the rights of parcel owners,” he added.
Federation of Malaysian Consumers Associations secretary-general T. Saravanan said various complaints and enquiries concerning strata management have been received over the years.
“A recurring concern is that many ordinary strata owners do not fully understand how their maintenance charges are calculated.
“They may only discover that different categories of parcels are being charged differently much later or that certain decisions were approved at an AGM without them fully understanding the implications,” he said.
Saravanan said owners must be given clear information on how rates are calculated, applicable share units alongside the legal basis for the charges involved.
“Owners have the right to know exactly what they are paying for, how the amount was determined and whether the calculation complies with the law,” he said.
Saravanan added that strata owners facing issues on maintenance charges should ask for a proper written explanation from either the JMB or management body.
“Request the calculation mechanism used, the applicable rate per share unit, relevant AGM or extraordinary general meeting resolutions and the basis on which different rates are being imposed.
“Do not assume that a charge is automatically lawful simply because it was approved at an AGM,” he said.
He also said affected owners can consider bringing the dispute to the Strata Management Tribunal.
Owners, he said, can also reach out to the National Consumer Complaints Centre through its official channels for dispute-resolution assistance.
