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POST COVID-19 SOPS WEF 5TH JULY 2023

Jul 5, 2023
   
POST COVID-19 SOPS WEF 5TH JULY 2023

For attention of JMB & MC

Dear All Owners & Residents.
 
The latest SOPs announced by the Health Ministry as we move towards endemicity as follows :- 
 
1.Face Masks will no longer be mandatory on public transportation and at healthcare facilities. However use is highly encouraged.
 
2.Face masks are also highly encouraged for high risk individuals such as senior citizens those with low immunity and chronic diseases and expectant mothers in crowded areas.
 
3.Individuals found positive for Covid 19 are required to wear face masks at health facilities. 
 
4.Covid 19 isolation period shortened from seven to five days from the onset of first symptom. 


 
Regards 
 
From : The Property Manager 
M/s BHL Consultants P & F Sdn Bhd 

HOUSING TRIBUNAL MAY NOW AWARD ABOVE RM50,000 FOR SAME PROPERTY BUT FOR DIFFERENT ISSUES

May 29, 2023
The Federal Court decisively held that Section 16M of the HDA refers to “a claim”, and not to “all the claims” in respect of the monetary limit, and therefore, each split claim before the Tribunal should be assessed separately and distinctly from each other. 

Recently, the Federal Court, in the case of Remeggious Krishnan vs SKS Southern Sdn Bhd (previously known as MB Builders Sdn Bhd) Civil Appeal no. 02(f)-50-09/2021(J), confirmed that homebuyers can bring separate claims involving the same property in order to stay within the RM50,000 jurisdictional limit of the Tribunal for Homebuyers’ Claims or Tribunal Tuntutan Pembeli Rumah (TTPR), and that the RM50,000 limit is for each separate claim, not the total combined claims for the same property.

To understand this, we must first know exactly what the scope and jurisdiction of the TTPR is.

Jurisdiction of Housing Tribunal
The TTPR, also known as the “Homebuyer’s Tribunal” or “Housing Tribunal”, was established in 2002 vide an amendment to the Housing Development (Control and Licensing) Act 1966 (HDA). Its purpose is to provide an affordable and expedient route for homebuyers to bring claims against licensed developers for matters arising from sale and purchase agreements (SPA).

 

Claudia Silva

A claim can be brought by anyone who has purchased a house from a developer, even if the homebuyer happens to be a subsequent purchaser.

It is also important to note that a claim can only be brought to the Tribunal if the cause of action arises from the SPA itself and within the specific time frame laid down in Section 16N(2) of the HDA, which is within 12 months from either one of the following:-

  1. The date of issuance of the certificate of completion and compliance (CCC) for the housing accommodation or common facilities, whichever is later
  2. The expiry date of the defect liability period (DLP) as set out in the SPA
  3. The date of termination of the SPA (which has occurred before the issuance of the CCC)

This means even if there is no SPA entered into between the homebuyer and the developer at the time the cause of action accrues, the Tribunal still has the jurisdiction to hear the matter if there exists a previous dealing between the homebuyer and the developer in respect of the acquisition of the housing accommodation.

However, the Tribunal only has the jurisdiction to award a maximum RM50,000 monetary compensation with respect to the homebuyer’s claim.

The case of Remeggious Krishnan vs SKS Southern Sdn Bhd

In the Remeggious Krishnan case, the Federal Court decisively dealt with the issue.

In this case, the appellant entered into an SPA with the respondent, which is the developer of a residential project known as Sky Habitat. According to the SPA, the vacant possession of the unit is deemed delivered when “the water and electricity supply are ready for connection to the [unit]”.

However, the respondent has delivered vacant possession of the unit without electricity connection. The appellant then filed two separate claims with the Tribunal. One, for failure to provide adequate ceiling height and protruding beams and pillars, which amounted to RM40,000 – dubbed “the technical claim”. Two, for delay in the connection of electricity supply, which amounted to RM49,832.00 – dubbed “the non-technical claim”.

The Tribunal allowed the non-technical claim and awarded a sum of RM16,452.05 and costs of RM400 in favour of the appellant. The respondent applied for a judicial review against this award. The High Court upheld the award, but the Court of Appeal overruled the High Court’s decision and quashed the award.

The appellants’ appeal to the Federal Court concerned mainly the jurisdiction of the Tribunal in respect of Sections 16Q and 16M of the HDA, and specifically concerning the jurisdiction of the Tribunal to split claims as well as issues pertaining to the delivery of vacant possession.

Apex court rules split claims allowed

Section 16Q of the HDA provides that the Tribunal does not have the jurisdiction to hear claims that are split, nor, if there is more than one claim brought, for the same matter against the same party.

Furthermore, Section 16M(1) of the HDA provides that RM50,000 is the limit for a claim brought within the jurisdiction of the Tribunal. For anything more, the Tribunal does not have the jurisdiction to hear it.

Datuk Chang Kim Loong

The issue brought to the Federal Court in the Remeggious Krishnan case was whether a claimant could bring to the Tribunal more than one claim in respect of the same property where the total amount of those claims exceed RM50,000.

While the Court of Appeal held that the phrase “same matter” in Section 16Q meant that all the claims filed must refer to the same matter, that is, the “same property”, the Federal Court did not share the same view. They held that “if it was the Parliament’s intention for “the same matter” to be interpreted as “the same property” as suggested by the Court of Appeal, the drafters of the legislation would have used the term “property” or “housing accommodation”, so the “same matter” could only mean the same issue or type of claim.

Furthermore, the Federal Court decisively held that Section 16M of the HDA refers to “a claim”, and not to “all the claims” in respect of the monetary limit, and therefore, each split claim before the Tribunal should be assessed separately and distinctly from each other, and if each claim is different and distinct from the other, those claims fall within the jurisdiction of the Tribunal.  

The Federal Court also very clearly spelt out that this might encourage some ambitious homebuyers to split their claims in order to circumvent the monetary limit in Section 16M of the HDA. For example, a claim of liquidated ascertained damages in the total sum of RM80,000 may be split by the purchaser into two claims of RM40,000 each. In such cases, the Federal Court held that the Tribunal may exercise its discretion to disallow such claims to be split on the basis that it contravenes Section 16Q as it is the “same matter” against the same party.

HDA – a social legislation

The HDA is designed to protect homebuyers, and is in fact, a social legislation. This fact was reiterated in the Remeggious Krishnan case by the Federal Court. The Federal Court even emphasised that with this fact in mind, any term or provision in the statute must be interpreted in a way which ensures maximum protection for the homebuyers against the developer.

This fact is also upheld in many cases that have reached all the way up to the Federal Court. For example, in Ang Ming Lee & Ors vs Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Anor and Other Appeals [2020] 1 MLJ 281 and PJD Regency Sdn Bhd vs Tribunal Tuntutan Pembeli Rumah & Anor and Other Appeals [2021] 2 MLJ 60, both held that the protection of homebuyers must be the “paramount consideration” in matters concerning developers and purchasers, and that the HDA “exists for the protection of the interests of purchasers and for matters connected therewith”.

What this means for homebuyers

This essentially means that homebuyers can bring more than one claim to the Tribunal in respect of the same property arising from the SPA. However, each claim must be distinct and different from the other, and each claim must be within the RM50,000 monetary limit.

This article is intended to offer an insight of the case authorities and is not intended to be nor should it be relied upon as a substitute for legal or any professional advice.

This article is jointly written by Claudia Silva, LL.B (Hons) Essex, Bar of England & Wales (Inner Temple), LL.M., Cardiff and Datuk Chang Kim Loong, Hon Secretary-General of the National House Buyers Association (HBA).

HBA can be contacted at: Email: info@hba.org.my 
Website: www.hba.org.my Tel: +6012 334 5676

Source: 
Housing Tribunal may now award above RM50,000 for same property but for different issues | EdgeProp.my

PENANG ISLAND CITY COUNCIL PASSES GUIDELINES ON SHORT-TERM STAYS

May 29, 2023

Penang Island City Council, together with the Seberang Prai City Council, are believed to be the first local authorities in the country to come up with a set of comprehensive guidelines to regulate short-term stays such as through the Airbnb and homestay schemes. 



GEORGE TOWN –
 The Penang Island City Council (MBPP) has passed its guidelines on regulating commercial short-term stays on the island by selecting respective joint management bodies (JMB) as the main party to enforce such tasks.
 

MBPP, together with the Seberang Prai City Council, are believed to be the first local authorities in the country to come up with a set of comprehensive guidelines to regulate short-term stays such as through the Airbnb and homestay schemes.

Penang City Mayor and MBPP president Datuk A. Rajendran said the guidelines will be uploaded into the MBPP formal site after the adjournment of the full council meeting.

“The guidelines would be made available soon,” Rajendran told a press conference.

He added that under the local government legislation, JMBs are empowered to enact local bylaws to help them oversee the guidelines.

He said that the guidelines are expected to ease concerns among strata and landed property owners over safety and security by strictly regulating short-term stays.

Essentially, those wanting to lease out their units need approval from the JMBs, and if their applications are rejected, they have no choice but to accept the respective JMB's decisions.

Earlier, he said that even though strata title owners have units which are in commercial buildings, they still require approval from the respective JMB before they can lease their places for short term accommodation.

MBPP has empowered the JMC to regulate Airbnb activities in their respective buildings of either residential or commercial nature.

Earlier an official from the Commissioner of Buildings explained that the regulations would cover 1,387 designated residential and commercial strata buildings.

Owners or operators of landed properties, will need special permits from the MBPP while those with strata titles, need to show the JMBs their registration with the Registrar of Companies.

The Commissioner of Building office will also act as a mediator if the JMBs have disputes with the owners and tenants in their buildings over short-term stays.

“We have also informed all JMBs of their rights and how to liaise with the tenants and the  unit owners in their respective buildings or high-rise housing schemes.”

In an immediate reaction, the Penang chapter of the Malaysian Association of Hotels (MAH) Tony Goh praised MBPP for coming out with the guidelines but said more needs to be done to ensure that the short-term stay industry is well-regulated.

From a hoteliers’ standpoint, Goh said that the enforcement aspects for such premises need to be fine tuned.

“Who is doing the enforcement? Is it strictly left to the respective JMBs to do it, or would the council be assisting them on this matter?” he asked.

Goh said the guidelines need to be fine-tuned further.

He added that MAH is also appalled by certain developers’ here allegedly selling new units by cajoling prospecting buyers to lease their new units out for Airbnb.

Source: Penang Island City Council passes guidelines on short-term stays | Malaysia | The Vibes

BLACKLISTED PROPERTY DEVELOPERS IN MALAYSIA

May 29, 2023
BLACKLISTED PROPERTY DEVELOPERS IN MALAYSIA
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Let’s state the obvious, shall we? Property investment involves a lot of money and for some of us, it’s a once-in-a-lifetime opportunity. This is why it is important to not get overly excited when you are promised the moon and the stars by a property developer. Be prudent as the property you have your eye on might be one from a problematic and blacklisted developer.

If you’re in the midst of surveying for your dream house and want to avoid being cheated by an unscrupulous developer, read on. Already bought a property from a blacklisted developer? We also have a solution for you.

Which property developers in Malaysia should you avoid?

Before committing to buying a house, check if the developer has faced any problems in their projects or is currently in hot water with the authorities. The Housing and Local Government (KPKT), which is under the National Housing Department (JPN) regularly compiles a list of blacklisted property developers in Malaysia and has released an updated list of blacklisted property developers recently.

These developers are divided into four offence categories as per below:

1. Property developers without licenses

A property developer is bound by the Housing Developers Act (Control and Licensing) 1966 Act, which requires them to apply for a license and permit before commencing a project development and selling it to the public. Failing to do so is an offence under the Act. Usually, the developer will display the license and permit number on their pamphlet, brochure or at their sales gallery.

According to the latest list provided by KPKT, there are three types of developers who fall within the no license category:

i) developers with completed projects and the certificate of completion and compliance (CCC) has been issued
ii) developers with completed projects but no certificate of completion and compliance (CCC)
iii) problematic developers

Here is an excerpt from the list of 59 property developers, which has been updated as of 30 September 2022:

  • SPS Setia Sdn BhdSPS Setia Sdn Bhd
  • Lestari Puchong Sdn Bhd
  • CT Bakti Timor Sdn Bhd
  • Expand Factor Sdn Bhd
  • Penta Heights Sdn Bhd
  • Binalif Property & Development Sdn Bhd (Hyrax Property & Development S/B)
  • Juwasa Hikmat Sdn bhd
  • JK-NBA Ventures Sdn Bhd
  • Kembun Maju Development Sdn Bhd

➡️ Here is a full list of property developers without licenses in Malaysia.

2. Property developers with abandoned projects

There are many reasons for a project to be abandoned. It could be because of inexperienced developers, poor marketing and sales strategies, financial problems, challenging economic conditions, disputes between shareholders, mismanagement of the company and business affairs, or even lack of enforcement and monitoring by the authorities.

As of 30 September 2022, the government had registered 242 abandoned private housing projects in Peninsular Malaysia, with the highest number from Selangor. Most of these developers have gone bankrupt or the property development company has been liquidated.

Some of the developers with abandoned projects include:

  • BSC Development Sdn. Bhd.
  • Asian Lion Enterprise Sdn Bhd
  • Sri Hartamas Corporation Sdn Bhd
  • Evergreen Acres Sdn Bhd
  • Bukit Tandak Development Sdn. Bhd
  • Maymont Development Sdn Bhd
  • Villa Genting Properties Sdn Bhd

➡️ Here is the full list of developers with abandoned projects in Malaysia.

KPKT has also shared on its website the list of abandoned property projects that are in the midst of being recovered or might be recovered by either the government or a white knight developer:

3. Property developers that did not honour the Tribunal for Homebuyer Claims (TTPR) Award

For those who are unaware, the Tribunal for Homebuyer Claims provides homebuyers with an easier, cheaper and faster means of dispute resolution for home-related issues with housing developers such as property defects claims and late delivery of vacant possession. The TTPR is under the purview of the Ministry of Housing and Local Government (KPKT) and any final decision of the Tribunal is called an Award, where the developer is then supposed to act on or compensate the aggrieved homebuyer(s) accordingly.

© baranq | 123rf

As of 23 September 2022, 299 property developers have failed to adhere to the TTPR, including:

  • Abra Development Sdn Bhd
  • Ban Soon Aik Development Sdn Bhd
  • Diamond Crest Sdn Bhd
  • Hartaplus Realty Sdn Bhd
  • Lestari Puchong Sdn Bhd
  • Sky Venture Management Sdn Bhd
  • Wangsa Idaman Sdn Bhd

➡️ Check the full list of developers who did not honour the Tribunal for Homebuyer Claims (TTPR) Award.

SEE WHAT OTHERS ARE READING:
Rising number of “sick” or delayed housing developments in Malaysia: Why is this happening?
Buying a new house in Malaysia: A 12-step guide

4. Property developers who failed to settle compound payments

Developers who break the law will be charged with an additional fee, known as compounds. Just to break it down for you, property developers will be compounded between RM5,000 to RM50,000 based on the offences made. These are divided into three main clusters as below:

i. Compounding of the offence of the licensed housing developer under sections 7 and 18 (c) of Act 118 under the Housing Developers Act

ii. Compounding of Advertising and Sales Permits in compliance with regulation 5 (Housing Development (Control and Licensing) Regulations 1989

iii. Compounding of the management and maintenance offences of the Housing Development Account (HDA) under the Housing Development Regulations (1A), 5 (6), 6 Housing Development Account) 1991.

As of 23 September 2022, there were 465 property developers who are guilty of not settling their compound payments – this is a slight decrease from the 412 developers who failed to settle their TPPR as of 20 October 2020.

Some of the guilty developers are:

  • Ajumas Engineering Sdn Bhd
  • Crystal Amber Sdn Bhd
  • Fajar Melati Sdn Bhd
  • Nilai Idaman Sdn Bhd
  • Macvilla Sdn Bhd
  • SOE Brothers Sdn Bhd
  • Top Impression Sdn Bhd

➡️ Here is the list of property developers who failed to settle compound payments.

I’ve bought a property from a blacklisted developer. What should I do?

To answer this question, we called KPKT and the feedback wasn’t as helpful as we’d hoped. The representative said that they weren’t able to do anything, so we would need to talk to a lawyer and file a civil suit.

We couldn’t just stop there! So we engaged a real estate lawyer, Khairul Anuar Sharudin of Khairul, Suhaila & Hazlina, to get a more thorough answer. Apparently, there is another way to approach this matter – You can cancel your sales and purchase agreement (SPA)!

Cancel your sales and purchase agreement (SPA) if you accidentally bought from a blacklisted developer!
© wutwhanfoto | Getty Images

1. For licensed developers:

Based on the amended Housing Development Act (Control and Licensing) 1996 Act 118, homebuyers can revoke their SPA if the housing project that they bought shows no progress within six months since they signed the contract. To make this happen, you need to acquire approvals from the Ministry and request written consent from the banks.

Another thing you should know is that the financier should not unreasonably withhold permission to terminate the agreement. Once the process is settled, the licensed housing developer should refund your money within 30 days (interest-free).

2. For unlicensed developers:

According to the former Housing and Local Government Deputy Minister, Halimah Mohamed Sadique in a media report, you can bring your complaints to the Housing Claims Tribunal, including problems you face with the unlicensed developers, under the same Act.

Filter out blacklisted developers before you make a property purchase

While there are many factors to consider when deciding when or where to purchase a house, the safest way is to start with an easy background check. As you can see, there are hundreds of blacklisted property developers. It doesn’t matter if you encounter them at the mall or a property expo – double-check their credibility with KPKT and look up their CTOS profile. As cliche as it may sound – prevention is better than cure.

Source : (Updated) Blacklisted property developers in Malaysia - iproperty.com.my

SALAM NUZUL AL-QURAN

Apr 6, 2023
To : All JMBs/MCs
 
NOTICE OF PUBLIC HOLIDAY SALAM NUZUL AL-QURAN 
 
We wish to inform that the Management Office will be closed on Saturday ( 17 Ramadan 144H08th April 2023) in observance of Nuzul Al-Quran.
 
The Management wishes all Muslims Salam Nuzul Al-Quran!
 


From : The Management & BHL Property Consultants
 

DURIAN ORCHARDS FOR SALES

Mar 8, 2023


- Air Itam Land near Kek Lok Si temple 
- (800m from 1MDB land) 
  +90,000 fs (+2 acres)
- Stream flowing thru 
- Planting 40 selected durian trees. 
- Price :RM 3.0mil


Interested buyer, kindly contact Mr. BH Lim @ 019- 412 9898. 
https://www.wasap.my/60194129898/Durianorchards
 

Properties for Sale

May 13, 2022
1) Single-Storey Detached  House in Jalan Perak
  • Land Area : 8,081 sq ft.
  • Built up : appx  3,907 sq ft.
  • Asking Price : RM2.6Mil (Nego)
 
 
2) Vistaria  Condominium
  • Floor Area : 1,080 sq ft.  
  • Description: 3 Rooms, 2 Bathrooms Fully Furnished
  • Asking Price: RM480K (Nego)
  

Interested, kindly contact Mr. BH Lim @ 019- 412 9898.

MCO 3.0 For the Public General Health Protocols From 23/5/21 to 7/6/21

May 27, 2021
* Premise owners or licensees must ensure customers enter and exit a premise in a controlled manner – maintaining physical distancing of a minimum of 1-meter.
 
* Premise owners or licensees are required to provide QR code for MySejahtera check-ins or a book for manual customer attendance record.
 
* Hand sanitisers must be provided at the entrance and must be used before entering the premises.
 
* The use of the MySejahtera app is mandatory except in places with no wide internet access. The use of a manual attendance log is ONLY ALLOWED in areas with no internet access or any other reason such as; elderly people without phones, or people who don’t have smartphones, etc
 
* Store owners must make sure people check in their attendance with the MySejahtera app or manually sign if there is no internet coverage.
 
* It is MANDATORY for customers/visitors to check-in on the MySejahtera app or manually to enter premises.
 
* Shopping malls, supermarkets or department store customers only need to undergo body temperature checks ONCE at the entrance of the business complex – not at every store.
 
* Those with a body temperature above 37.5°C are not allowed to enter the premises.
 
* Storeowners inside or outside a complex must ensure that only ‘low-risk’ and ‘Casual Contact Low Risk’ individuals are allowed to enter premises. Risk status can be checked on a person’s MySejahtera app.
 
* It is encouraged that parents/guardians avoid taking children below the age of 12 to public and open places – except for emergencies, medical treatment or for education purposes.
 
* Store owners must limit the number of customers/visitors on premises – taking into account the minimum 1-meter physical distancing rule.
 
* Each store/premise must PUT ON DISPLAY the number of customers/visitors allowed into the premises at a single time and it’s encouraged for store owners to provide ‘queue’ numbers’ or tickets to better manage customers
 
* Check-in QR codes must be made available at all levels of the store.
 
* Workers, suppliers and customers are required to wear face masks properly according to Health Ministry (KKM) guidelines while on-premises.
 
* Building owners must ensure proper ventilation and ventilation systems at the premises.
 
* It’s MANDATORY for EVERYONE to wear face masks, ESPECIALLY in public and crowded areas, except for the following activities/places;
 
* Hotel rooms or personally paid accommodation or with household/family members.
 
* Solitary workspace.
* Outdoor sports and recreational activities.
 
* Personally owned vehicle and with members of the same household.
 
* Indoor/outdoor public areas and places without the presence of other individuals.
 
* While eating and drinking in public without any other individuals (other than in restaurants or food premises).
 
Stay Home & Stay Safe and Stay Healthy 
 
From: The Management & BHL Property Consultants 
 
Dated : 24/5/2021

Is your strata property being managed by the right JMB or MC?

Mar 12, 2021
Is your strata property being managed by the right JMB or MC?
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Quality management and maintenance of a strata building or development lie in the hands of the people elected to represent strata owners. Here are the check and balances to keep in mind when voting during your Annual General Meeting.

As a strata owner, you effectively own a part of the property be it a condominium or a landed home in a gated and guarded development, hence, you would have a say in its matters. Strata owners are encouraged to attend their Annual General Meeting (AGM) as they should play an active role in appointing the board of members and the representatives for condo/home owners.

Similar to a company, the strata property’s success depends on how reliable and competent its board of members are. If your property is a new one and has not received a strata title, a Joint Management Body (JMB) will be set up to run things, starting from the time of delivery of vacant possession. Upon issuance of a Strata Title, the interim JMB will be replaced by a Management Committee (MC).

A common issue in many strata developments is the abuse of power leading to building deterioration in and dismal property services. Property owners should keep in mind that not every management elective is genuinely passionate to volunteer one’s’ time to serve for the well-being of his community; one could have a personal agenda to take advantage of his position to help himself with jobs, status, information and gains to enrich himself or herself.
Now, let’s take a look at the information that will help strata owners keep their JMB or MC in check:

Who is eligible to be voted on the JMB or MC?

The JMC or MC should comprise a minimum of 3 persons and a maximum of 14 persons who are owners eligible to vote. There shall be a chairman, secretary and treasurer, all of whom shall be natural persons. Although these are voluntary positions, they have to be taken seriously because they involve people’s well-being and their investments. Most owners’ corporations are headed by a leader who might also be the chairman at meetings. Strong and principled leadership is an essential component of every successful JMC or MC. Very often, those who speak the loudest at meetings are elected but that may not be sufficient for the long term.


A member of the executive committee is required to have a high standard of integrity. The Strata Management Act 2013 (SMA 2013) provides a comprehensive list of conditions that must be followed to be eligible for election and to be a committee member.

First, to be eligible for election as a committee member, the parcel owner must be at least 21 years old and have fully paid his maintenance charges and sinking fund at least 7 days before the AGM. It is to be noted that a proxy is not eligible for election as a committee member.


Second, while a parcel owner is a committee member, he must observe the following conditions:-
(a) He is not a bankrupt;
(b) He is still a parcel owner;
(c) He is not convicted for an offence of fraud or dishonesty;
(d) His conduct must not bring discredit on the JMC/ MC;
(e) He must be of sound mind;
(f) If he is the chairman, he must not absent himself from 3 consecutive committee meetings without the leave of the committee;
(g) If he is not the chairman, he must not absent himself from 3 consecutive committee meetings without the leave of the chairman;
(h) He must not be in arrears of the maintenance charge and sinking fund (including interests) for 3 consecutive months;
(i) Representative is not removed by his body corporate owner;
(j) If he commits a serious breach of the by-laws, he must remedy the breach within 14 days of the notice from the committee;
(k) He is not convicted for an offence of moral turpitude.

The Wikipedia definition of ‘moral turpitude’, in the legal context is: As an act or behaviour that gravely violates the sentiment or accepted standard of the community. It has also been described as an ‘act of baseness, vileness or depravity in the private and social duties which a man owes to his fellowmen or to society in general, contrary to the accepted and customary rule of rights and duty between man and man. It simply means a criminal act that is contrary to community standards of justice, honesty or good morals.


Examples of abuse of power among JMB or MC members

Misusing strata owners’ personal information

‘There is this estate agent lady, who is in the JMC, and she seems to have the owners full information (names, addresses and contact numbers). She periodically contacts me and my neighbours whether we wish to sell our condominium units as she always claims that a certain investor wishes to offer a “high price”.

Profiting from the sale of personal information 

‘You have diligently paid your loan monthly installments to your bank for the last 10 years and the quantum of indebtedness has been significantly reduced. Then one day you receive a call from a financial planner, who is in the MC, and he asks “Do you wish to refinance your property for another loan? As a financial planner, I can arrange it with the banks. You could use the money to buy another property’.

Too good to be true property management services

‘I can do a better job to run the management and maintenance of our own apartment building. My team, although unlicensed, can also do property management by making the meagre deposit (refundable) as a bond to the JMB or MC. Trust me that I will not deplete your entire sinking fund and abuse my position’.

A self-serving / autocratic Chairman

‘During the AGM, this big-time contractor-cum-investor is very vocal in asking the “right questions” as many parcel owners are not familiar with the Strata Management Act 2013 legislation. Consequently, he is made the Chairman of the JMC. He always seems to have his own friendly suppliers, contractors, service providers, insurance brokers and even Airbnb operators for everything in the management and maintenance of the common property. In fact, he has a pecuniary interest in everything he does.’

How to identify self-serving JMB or MC candidates?

Newcomers frequently make good volunteers but sometimes are detracted by insisting on covering old topics. How much interest has the candidate (during the AGM election) shown in the community and its undertakings? Did he suddenly appear to be interested? Have there been regular meet-ups, participation in activities? If not, investigate the sudden interest.

Be particularly careful about the ‘one-issue’ candidates who volunteer because they want to ‘takeover’ property management. Be particularly cautious of those ‘unlicensed property companies/ property managers’ that have managed to infiltrate committee members in the JMC and MC, if they are not themselves in the committee. They may paint a glossy picture of what they can do through their ‘years of experience’ or their so-called “knowledge of the Strata Management Act 2013”. But do they have the professional qualifications, management and technical experience and passed the stringent test of professional competency?

Are they registered with the legislated Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) (www.lppeh.gov.my) which is the sole statutory regulatory Board governing property managers that issues licenses to those registered ones in Malaysia under Act 242? A candidate should not have conflicting personal and professional commitments. For example, the unethical estate agent and the overzealous financial planner, as in Scenario 1 & 2 above.  They may have a particular interest in ‘serving’ the JMC or MC to obtain private information and details of owners so that they may gain advantage and priority for their property listings purposes (sale, purchase, financing and rent).
This clearly contravenes the PDPA legislation and the aggrieved party may lodge an official complaint to Ministry of Communications & Multimedia, Malaysia (www.kkmm.gov.my) for an investigation.

Take note of person(s) having pecuniary interest 

“Pecuniary interest” is an interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain to the person or through another person with whom the person is associated. Therefore, it is best that any person or strata owner, who has a pecuniary interest or vested interest in the management and maintenance of his stratified building, should recuse himself from seeking election to the JMC or the MC.

In any decision-making process of a subject matter by the committee, a member of the committee who has a direct or indirect pecuniary interest or vested interest in the subject matter should declare his interest therein and immediately recuse himself from the decision making process of the committee on the subject matter.

Although this is not provided in the Strata Management Act 2013 or Strata Management Regulations, it is the fiduciary duty and responsibility of any committee member for good self-governance. There is, however, Section 87 in the SMA that prohibits the appointment of a managing agent (property management company) having professional or pecuniary interestSection 87 is reproduced below for a clearer understanding of the issue of having a vested interest in the issue of management and maintenance of the stratified buildings:
(1) A person shall not be appointed as a managing agent if he has a professional or pecuniary interest in any building or land intended for subdivision into parcels or any subdivided building or land.
(2) A person is regarded as having a professional or pecuniary interest in any building or land intended for subdivision into parcels or any subdivided building or land if –
– he has been responsible for the design or construction of the building;
– he or any of his nominees, officers or employees has any material interest in the building or land intended for subdivision into parcels or any part of the building or land;
(c) he is a partner or is in the employment of a person who has any material interest in the building or land intended for subdivision into parcels or any part of the building or land; or
(d) he or his family holds any interest in the building or land intended for subdivision into parcels or any part of the building or land whether directly or as a trustee or otherwise.

What to do if an elected JMB or MC member fails to perform his duty?

If the parcel owner fails to observe the above conditions, he is deemed to have vacated his office as a committee member. A committee member may resign from his office at any time by giving written notice to the committee. Consequently, the general body, JMB/ MC, may elect another owner, who is eligible to vote, at an extraordinary meeting (EGM) to replace the member and to hold the office for the remaining term; or to leave the position vacant until the election of the JMC or MC, as the case may be, at the next annual general meeting (AGM).


Penalty for abuse of power

The Personal Data Protection Act, 2010 (PDPA) which was implemented in Malaysia on 15 November 2013 is aimed at preventing abuse of personal data for commercial purposes. This Act would play a crucial role in safeguarding the interests of individuals and make it illegal for corporate entities and individuals to disclose, sell personal information or allow the use of data by third parties. The penalty for non-compliance is between RM100,000 to RM500,000 and/or between 1 to 3 years imprisonment on conviction.
At the end of the day, strata residents must be aware of their responsibilities and obligations as well as strive to take charge in order to protect the very investment that they live in.
 
 
Source : iProperty.com.my
              March 10, 2021



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