Imagine that you have worked hard for many years and have saved up enough to purchase your dream home, only to be greeted by past debts left by the previous owner, due to the lack of awareness that it is the duty of the purchaser's lawyer to ensure all outstanding charges, debts incurred in the parcel unit by the owners such as sinking fund and maintenance fee are paid in full to the Joint Management Body (JMB), Management Corporation (MC) or Subsidiary MC, collectively known as Management Bodies before the transaction is completed.
Therefore, it is pertinent for homebuyers to consider Section 73 of the Strata Management Act (SMA) 2013. This provision, implemented on June 1, 2015, allows conveyancing lawyers to apply for a certificate on behalf of the new owner or potential buyer of the unit for a fee not exceeding RM50 to inquire about the number of charges and contribution to the sinking fund payable; time and manner of payment and any levied contributions owing by the sellers or any amounts outstanding pursuant to the SMA. If they have failed or neglected to do so, the buyer(s) and/or their lawyers cannot later allege that they are not aware of the indebtedness because of their own omission. This certificate provides conclusive evidence of the total debts due to a particular unit. This can be referred to in Form 19 of the Strata Management (Maintenance & Management) Regulations, 2015 (‘SMR’) – Regulations 19 as shown below.
Note: There is a corresponding Section 31 in the SMA that relates to the same issue titled: ‘Right of parcel owners or prospective purchaser’ for those developments still under developer management period or JMB status, where individual strata titles have not been issued. The pre-requisite form is under Form 10 of the SMR – Regulations 19.
Why is it advisable to pay for this certificate?
Purchasers should not be penny wise, pound foolish and turn a blind eye on this certificate, because even a month worth of arrears in maintenance fees cost more than the certificate itself. Not to mention that you are not able to fully utilize the common facilities such as swimming pool, gym since most condominiums nowadays require facility access card. The management will block the access to such facilities if the outstanding charges remain unpaid.
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Jasone Gan: +6017-601 8899
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