Analysis towards the current management of limited common property in Malaysia

Abstract

Strata properties in Malaysia were getting popular especially in the urban areas. As the population density in urban centres are expected to grow continuously, the number of residents for strata properties are expected to rise continuously which help to promote the mix-developments to be developed under a strata scheme. However, there are some issues regarding the unfair management for the common property in mixdevelopment where certain owners have to pay the maintenance fee for common properties which are not enjoyable by them. Therefore, this paper has the objective to examine the current practice of strata management towards limited common property. The enactment of Strata Management Act 2013 and enforcement in 2015 promoted the self-governance for strata scheme in Malaysia. For the current strata property, the scheme will be managed by all strata unit owners where Strata Title Act 1985 and Strata Management Act 2013 provide the framework in establishing the Management Corporation to administer and manage the strata scheme. MC is allowed to establish Subsidiary Management Corporation (Sub-MC) to manage limited common property and the designation of limited common property for different interest of parcel proprietors especially for mixdevelopment properties. Although the frameworks and procedures to establish the subsidiary management corporation were introduced under the Circular of JUPEM in 2017, however the number of establishment for Sub-MC is still low as there is only Sub-MC in Malaysia was proposed to be formed at 1 Mont’ Kiara mixed-use stratified development. Quantitative method and descriptive analysis were used in this research. Result shows that the management body has the knowledge in forming limited common property in their strata scheme. However, the low number in forming limited common property might due to problems in the procedure. Therefore, common pool resource theory was applied to describe the benefit in forming the limited common property.