Good move on strata titles: Rehda

Posted on 12 August 2012 - 09:11pm
Last updated on 12 August 2012 - 10:08pm

Hemananthani Sivanandam
newsdesk@thesundaily.com

PUTRAJAYA (Aug 12, 2012): The Real Estate and Housing Developers Association Malaysia (Rehda) has supported the government's move to amend the Strata Titles Act 1985 so as to enable simultaneous issuance of strata titles and vacant possession to buyers.

The Strata Titles Act is to be called Strata Management Act (SMA) upon amendment.

Rehda president Datuk Seri Michael K.C. Yam said that whilst the act has provided clarity and tightened some grey areas in relation to the management and maintenance of strata properties, the ability to issue strata titles simultaneously with vacant possession (VP) does present some challenges.

"Essentially, to be able to issue the strata titles simultaneously with VP, the registered surveyor would need to access the site well before practical completion.

"We understand that within three months of the completion of the superstructure, the surveyor must complete the survey, the survey drawings and make the requisite submission to the Land Office," Yam told theSun in an email recently.

He said there are professionals who have expressed concerns on not only the readiness of the site, but also on the health and safety hazards as the physical survey would need to be carried out while construction work is still ongoing.

Yam however said the industry is prepared to give it a try "although not without apprehension".

He also stressed that the physical issuance of strata titles is not within the control of the developers and the professionals, thus posing a worry for the industry. "Given the backlog of titles to be issued and staff shortage at the Land and Survey Department and the Land offices, what if there is a delay in the issuance of strata titles?" he asked.

"If strata titles are not issued, VP cannot be effected and a delay in this may affect the timely delivery of the parcels to the owners. Developers may need to pay Liquidated and Ascertained Damages (LAD) to buyers through no fault of their own," Yam said.

He said although there is a provision for the controller to exercise the power of waiver, developers may end up in breach of their delivery deadline and be subject to LAD if this waiver requires a bureaucratic application process or is not executed expeditiously.

"The SMA as we understand must be read in conjunction with Schedules G and H of the Housing Development Act, which will also be amended to provide legislative back-up, together with the other related Acts which provide for jail term for non-timely strata title application by developers.

"We think a jail term is excessive for a possible oversight and the punishment does not befit the crime although the positive outcome is that one is assured that strata title application would be made," he added

Yam said Rehda is supportive of any government initiative to improve the delivery system and make the housing delivery system more efficient.

He said Rehda, together with other stakeholders and professional institutions, had been engaged by the Housing and Local Government Ministry and the Federal Department of Land and Mines under the Natural Resources and Environment Ministry in labs and workshops to deliberate on the proposed act.

Last Thursday, the National Land Council meeting chaired by Deputy Prime Minister Tan Sri Muhyiddin Yassin agreed to improve the delivery system by amending the Strata Titles Act.

He said the amendment bill to facilitate this will be tabled in the next Dewan Rakyat session. The proposed amendments will, among others, serve to protect the rights of flat and apartment buyers.