Foreign owners helpless with no strata titles
IN the 1990s, many Malaysian developers launched highend condominium projects in the Klang Valley. Roadshows were held overseas to market these condominium units and because of the attractive foreign exchange rates favouring the foreigners back then, the properties were readily snapped up.
Today, these foreign buyers are seeing at least a twofold capital gains in their investments. They should be elated but they aren’t, and this is because they have no strata titles for the properties they own.
Something is amiss here. When these foreigners signed up to exe cute their Sales and Purchase Agreements, they were not aware of the impending Malaysian law governing the ownership of highrise properties based on the Strata Management Act.
By paying cash, they bypassed the stringent checks imposed by the banks’ legal department, which would otherwise proceed with due diligence to verify the status of the properties and perhaps insisting on the issuance of strata titles.
The Malaysian Investors’ Association (MIA) has received many letters from disappointed and frustrated owners who are in this unfortunate situation. We know for a fact that in the heart of Kuala Lumpur, strata titles for 44 units in a highrise with 136 units have not been issued. That is 32.4% or nearly onethird of the total units in that condominium. We have a list of the affected owners who are being denied the rights and privileges accorded by the Strata Management Act 2013.
They have no legal status to attend AGMs and are denied the opportunity to take part in the management of their property. Yet, they dutifully pay their maintenance fees, contribute to the sinking fund and faithfully discharge their duties and obligations. What can the management corporation do to help?
Now that the new government is here to redress the many ills perpetuated by the previous government, MIA hopes to see the relevant government agencies stepping in to help these investors who had put their faith in our country. Let us not disappoint them.
Let us show the world that Malaysia will not abandon the many investors who played their part in our GDP growth.
HO CHOY MENG President Malaysian Investors’ Association