Impact of Procedures on Strata Property Submissionsrehdainstitute.com/wp-content/uploads/2016/06/Impact-of-Procedures... · Impact of Procedures on Strata Property Submissions

Impact of Procedures on Strata Property Submissions

Presented by Dr. Ernest Y Y Cheong

Strata Management Seminar – The Good, The Bad and The Ugly Thursday, 14th January 2016, Wisma REHDA, Petaling Jaya, Selangor

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ERNEST CHEONG PTL CHARTERED SURVEYORSProperty Development in Malaysia

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ERNEST CHEONG PTL CHARTERED SURVEYORS

Pre – Strata Management Act 2013 (Act 757)

Regulated primarily by:

• The Housing Development (Control and Licensing) Act 1966 (Act 118) & Regulations

• Local Government Act 1976 (Act 171)

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Pre – Strata Management Act 2013 (Act 757)

Regulated primarily by:

•Uniform Building By-Laws 1984 (GN 5178/85)

• Town and Country Planning Act 1976 (Act 172)

• Strata Titles Act 1985 (Act 318)

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The Primary Players in the Housing Development Industry in Malaysia include:

• Property Owners

• Property Developers

• State Authority for Land Use Conversion Approval

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• Federal and Local Authority Town Planning Departments

• Local Authority Architectural and Building Plan Departments

• Bankers

• Land Surveyors

• Property Valuers

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• Town Planners

• Architects

• Quantity Surveyors

• Structural Engineers

• Civil Engineers

• Real Estate Agents

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Stages in Property Development

There are 13 major stages involved in the Housing Development process and they are:-

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Stage Action Industry Players

1 Land Acquisition Property Owner/ Developer

2 Application for Term Loan Property Owner/

DeveloperProperty ValuerBanker


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Stage Action Industry Players

3 Application for DeveloperConversion Architect

State Authority for Land Use Conversion Approval

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Stages in Property DevelopmentStage Action Industry Players

4 Application for DeveloperDevelopment Architect Order Town Planner

Federal and/or LocalAuthority TownPlanningDepartments forPlanning Approvaland Development Order

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5 Application for DeveloperSub-Division Town Planner

Land Surveyor

Federal and/or LocalAuthority TownPlanningDepartments forSub-DivisionApproval and StateAuthority forissuance of Sub-Divided Titles

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6 Application for ArchitectBuilding Plans Structural Engineers Approval

Local Authority Architectural and Building Plan Departments for Building Plans Approval

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7 Application for DeveloperBridging Loan Property Valuer

Banker

8. Commencement Developerof Sale Sales Agent

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9 Commencement Architect of Construction Quantity Surveyors

Structural EngineersCivil Engineers Contractor

10 Application for DeveloperEnd Finance PurchasersFacilities Banker

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11 Construction Architectincluding issuance Quantity Surveyorof progress payment Contractor certificates

12 Payment of progress Architectpayments Bank

Developer

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13 Application for ArchitectCertificate of Fitness for Occupation

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Post – Strata Management Act 2013 (Act 757)

Before Commencement of Strata Management Act 2013

Part IVSTRATA MANAGEMENT BEFORE

EXISTENCE OF MANAGEMENT CORPORATION

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7. Application of Part IV

(1) Subject to Part V, this Part shall apply to a development area where before or after the commencement of this Act-

(a) vacant possession of a parcel in the building or land intended for subdivision into parcels has been delivered by thedeveloper to a purchaser; and

(b) at the time of delivery of vacant possession of the parcel, the management corporation has not come into existence.

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7. Application of Part IV

(2) In this Part, “developer’s management period”means the period commencing from the date of delivery of vacant possession of a parcel to a purchaser by the developer until one month afterthe establishment of the joint management body or such other time as may be extended by the Commissioner.

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8. Allocated share units

(1) Where the sale of a parcel by a developer was madebefore the commencement of this Act and no share units have been assigned to each parcel by the developer’s licensed land surveyors, the share units for each parcel shall be assigned by any person or body who has a duty or is responsible under this Part to maintain and manage any building or land intended

for subdivision into parcels and the common property in accordance with the formula set out in the First Schedule, and such assignment shall be deemed to be the allocated share units of each parcel when the assignment is filed with the Commissioner.

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8. Allocated share units

(2) The allocated share units assigned to each parcel buy the developer’s licensed land surveyors or the share units for each parcel assigned pursuant to subsection (1) shall be deemed to be the allocated share units assigned to each parcel for the purpose of this Part until such time as the share units of each parcel havebeen approved by the Director pursuant to section 18 of the Strata Titles Act 1985.

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Post – Strata Management Act 2013 (Act 757)

After Commencement of Strata Management Act 2013

Part IIIDEALINGS IN BUILDING OR LAND

INTENDED FOR SUBDIVISION INTO PARCELS

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5. Application of Part III

(1) This Part shall apply to any sale of a parcel by a developer on or after the commencement of this Act.

(2) For the purpose of this Part, a developer shall be deemed to have sold a parcel or proposed parcel in a development area if by an agreementin writing or by any deed or instrument, conditional or otherwise, the developer has agreed to sell, convey, transfer, assign or otherwise dispose of its interest in the parcel or proposed parcel to another person for valuable consideration or otherwise.

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6. Schedule of parcels to be filed with the Commissioner before sale of any parcel.

(1) A developer of any building or land intended for subdivision into parcels in a development area shall not sell any parcel or proposed parcel unless-

(a) a schedule of parcels showing the proposed share units of each parcel proposed parcel and the total share units of all the parcels has been filed with the Commissioner under this Part; and

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(1) A developer of any building or land intended for subdivision into parcels in a development area shall not sell any parcel or proposed parcel unless-

(b) in the case of any phased development, the schedule of parcels filed with theCommissioner shows the proposed quantum of provisional share units for each provisional block.

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(2) In the case of any phased development, the developer shall also not sell any parcel or proposed parcel in any provisional block unlessthe developer has filed with the Commissioner an amended schedule of parcels showing the proposed allocation of the provisional share unites among the new parcels in the provisionalblock.

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(3) A schedule of parcels filed under subsection (1) or an amended schedule of parcels filed under subsection (2) shall-

(a) comprise a location plan, storey plan and delineation plan as specified in section 8A of the Strata Titles Act 1985;

(b) show a legend of all parcels, all common properties and all accessory parcels, and in the case of accessory parcels, specify in the legend the parcels they are made appurtenant to;

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(c) contain a certificate by the developer’s licensed land surveyor that the buildings or land parcels shown in the schedule of parcels or amended schedule of parcels or amended schedule of parcels, as the case may be, are capable of being subdivided under the provisions of the Strata Titles Act 1985;

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(d) contain a certificate by the developer’s architect or engineer that the buildings or land parcels to be constructed in accordance with the approved plans and specifications and any amendments to the plans and specifications under the Street, Drainage and Building Act 19741 and any by-laws made under that Act, prepared by the developer’s architect or engineer, are capable of being subdivided under the provisions of the Strata Titles Act 1985;

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(e) contain such other details as may be specified by the Commissioner.

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(4) The proposed share units of each parcel or proposed parcel as shown in the schedule of parcels filed with the Commissioner under subsection (1) and the proposed allocation of the provisional share units among the parcels in a provisional block as shown in the amended schedule of parcels filed with the Commissioner under subsection (2) shall be deemed to be the allocated share units assigned to each parcel for the purpose of Part IV of this Act, until such time as the share units of each parcel have been approved by the Director pursuant to section 18 of the Strata Titles Act 1985.

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(5) A copy of the schedule of parcels or an amended schedule of parcels, as the case may be, filed with the Commissioner under this Partshall be-

(a) exhibited at all times in a conspicuous position in any office and branch office of the developer and at such place where sale of a parcel is conducted; and

(b) submitted to the Director in any applicationfor subdivision of building or land under the provisions of the Strata Titles Act 1985.

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(6) Any developer who fails to comply with subsection (1), (2) or (5) commits an offence and shall, on conviction, be liable to a fine not exceeding five hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.

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(7) Any person who-

(a) knowingly makes or produces or causes to be made or produced any false or fraudulent certification that purports to comply with the requirement of paragraph(3)(c) or (d); or

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(7) Any person who-

(b) negligently makes or produces or causes to be made or produced any false certification that purports to comply with the requirement of paragraph (3)(c) or (d),

Commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding three years or to a fine not exceeding two hundred and fifty thousand ringgit or to both.

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Impact of Procedures on Strata Property Submissions

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Impact of Procedures on Strata Property Submissions pursuant to Part III of the

Strata Management Act 2013

1.00 A developer of any building or land intended for subdivision into parcels in a development area shall not sell any parcel or proposed parcel unless he complies with Section 6 (1) (a) and (b) in the Strata Management Act 2013

2.00 In the case of any phased development, the developer shall also not sell any parcel or proposed parcel in any provisional block unless the developer has filed with the Commissioner an amended schedule of parcels showing the proposed allocation of the provisional share unites among the new parcels in the provisional block.

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Conclusion on Impact of Procedures on Strata Property Submissions pursuant to Part III of the

Strata Management Act 2013

1.00 A developer has to be very certain what he wants to develop and build on his land and accordingly has to organize his Team of Consultants to submitthe FINAL LAY-OUT PLANS to the Commissioner per Section 6 (1) (a) and (b) in the Strata Management Act 2013

2.00 Once the FINAL LAY-OUT PLANS have been submitted to the Commissioner per Section 6 (1) (a) and (b) and approved and the Approved Units sold to Purchasers, the Developer will not be able to amend the Approved Plans.

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Thank You

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ERNEST CHEONG PTL CHARTERED SURVEYORSThank you

Presentation by

Dr. Ernest Y Y CheongErnest Cheong PTL Chartered Surveyors

No. 37-2, Jalan Desa, Taman Desa

58100 Kuala Lumpur, Malaysia

Tel: +6 03 7980 4512

Fax: +6 03 7980 4519

Email: [email protected]

Website: www.ecptl.com

©

ECPTL 2005

mailto:[email protected]

http://www.ecptl.com/

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