If you’re looking to purchase a strata property, such as a condo or a home in a stratified gated-and-guarded project, we strongly urge you to read this article about the obligations of a joint management body (JMB) and what it’s allowed to do.
If you’re scratching your head on what a JMB is, it’s basically a legal entity comprising the builder of a strata development and the unit buyers. This body is responsible for maintaining and overseeing the land or buildings meant to be subdivided into units or parcels, as well as the common property before the strata titles are issued for a strata development.
Read more: Purchasing Strata Properties 101
We’ve listed the duties and obligations of a JMB so that if you happen to buy a strata property, you can determine if the entity is performing all of its duties, and you will also know if the body is overstepping its boundaries.
Duties of a Joint Management Body
According to Section 21(1) of the Strata Management Act of 2013, the JMB is mandated to perform the following duties:
I. To satisfactorily maintain and oversee the land or buildings meant to be subdivided into units or parcels, as well as the common property. Another related duty is to repair the common property if necessary as well as keep it in good order and functional so that it can be utilised by all proprietors or unit owners.
II. The JMB has the duty to set the maintenance fee to be paid by each unit owner. The gathered amount must be deposited into the maintenance account, which will fund the daily upkeep of the land or buildings as well as the common property. These expenditures are not explicitly listed in the Act, but they typically include cleaning services and security.
III. To set the contribution to the sinking fund by each unit owner. The gathered amount must be deposited into the sinking fund account to meet the actual or expected expenditures of the strata development as explicitly stated in the Act. These specifically include:
A. Purchase of any movable property to be used in the common property
B. Replace or renew any fitting or fixture that is part of the common property
C. Refurbish or upgrade the common property
D. Painting or repainting the common property
E. Fund other expenses considered needed by the JMB
IV. The JMB has the duty to buy and maintain insurance for the buildings from a licensed insurer based at least on the property’s reinstatement value. The JMB is allowed to insure against other risks if mandated by a special resolution, or it can subscribe to the insurance prescribed in the Act. The stipulated insurance is a damage policy, wherein in the event the buildings are damaged or destroyed by fire, lightning, explosion, overflowing or bursting pipes or water tanks, windstorm or any other occurrence specified in the policy, the insurer pledges to undertake the below:
A. Rebuild or replace the buildings with similar buildings if it’s destroyed
B. Repair or restore the damaged part of the buildings
C. Pay professionals like engineers and architects, whose services were needed in rebuilding or repairing the buildings
D. Pay debris hauling expenses
V. To obey any lawful order by a local authority or government agency to eliminate or reduce any nuisance on the common property, as well as carry out work, repairs, upgrades to the common property.
VI. The JMB has the duty to create and keep a record of all unit owners of the land or buildings meant to be subdivided into units or parcels.
VII. To make sure the accounts that must be maintained by the JMB under this Act are properly audited. The body is also obligated to furnish the audited financial statements to its members.
VIII. The joint management body is also required to ensure that the by-laws are strictly followed by all of its members.
IX. Lastly, the JMB has the duty to perform other things deemed expedient or necessary for the satisfactory maintenance and management of the land or buildings in the strata development, in addition to the common property.
Powers of a Joint Management Body
Under Section 21(2) of the Strata Management Act of 2013, the JMB is bestowed the following powers:
I. To collect the maintenance fee from each proprietor or unit owner based on their share or number of units owned in the strata development.
II. The JMB is authorised to collect the contribution to the sinking fund from each unit owner.
III. To give permission for expenditures needed for the proper maintenance and management of land or buildings meant to be subdivided into units or parcels, as well as the common property.
IV. The JMB can recover from any unit owners any amount spent by the JMB to obey any lawful order by a local authority or government agency to eliminate or reduce any nuisance on the common property, as well as carry out work, repairs, upgrades to the common property.
V. To buy or lease movable property to be utilised by unit owners in relation to their enjoyment of the strata development’s common property.
VI. The JMB can hire or engage the services of any individual or agent to carry out the maintenance and management of the strata development’s common property.
VII. To add by-laws for the satisfactory maintenance and management of the land or buildings meant to be subdivided into units or parcels, as well as the common property.
Via a special resolution, the body can make additional by-laws or make amendments that does not contravene government rules legislated under Section 150 of the Act for regulating the administration, management, control, use and enjoyment of land or buildings meant to be subdivided into units or parcels, as well as the common property. These cover by-laws concerning any or all of the following matters:
A. Security and safety measures
B. Details of any common property whose usage is restricted
C. Keeping of pets
D. Vehicle Parking
E. Floor coverings
F. Garbage disposal and control
G. Behaviour of unit owner, occupants or guests.
H. Landscaping and architectural rules to be followed by all unit owners
I. Imposition of fine not surpassing RM200 against any unit owner, occupant or guests who violated any of the by-laws
VIII. Finally, the JMB can perform all actions reasonably necessary to carry out its duties listed in the Act, including the enforcement of by-laws.
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(Written by G. Zizan, 22nd November 2019)
