Powers of management body

THERE have been cases of residents, whether parcel owner, purchaser or proprietor, in condominiums and apartments whose water supply was disrupted by their management bodies after they failed to pay their maintenance charges and contribution to the sinking fund.

The Strata Management Act 2013 (Act 757) provides for the maintenance and management of buildings and common property, and for other related matters.

There is a dispute on whether a joint management body (JMB), or management corporation (MC) as the case may be, is allowed to disrupt the water supply of defaulting residents.

Due to the importance of having adequate funds to manage a stratified building, the law makes it mandatory for charges and contributions to be paid into the maintenance account and sinking fund respectively. There is sufficient evidence to prove that lack of funds leads to damning consequences especially on the maintenance of common property.

What happens when these monies are not paid?

The method for recovery of funds from defaulting parties must be in accordance with the law and procedure of the Strata Management Act, under which the JMB and MC are established.

Upon receiving a notice from the management body, the resident should, within 14 days, pay the charges. If he defaults, the management body may serve on the defaulter a written notice demanding payment of the sum within the period as may be specified in the notice.

These written notices demanding payment shall be in Form 11 or Form 20 of the Strata Management (Maintenance and Management) Regulations 2015, depending on the period of management.

However, if the sum still remains unpaid, the management body may file a summons or claim in a court or in the Strata Management Tribunal for the recovery of the said sum.

Non-compliance of Form 11 or Form 20 by a defaulter without reasonable excuse is an offence and can be liable upon conviction to a fine or imprisonment or both.

Without serving Form 11 or Form 20 on the defaulter, any action filed by the management body in court or the Tribunal is premature.

However, by reading the Third Schedule of the said regulations together with the relevant sections of the Act, there is another option after the expiry of the first notice.

The management body has a choice to display the list of defaulters on the notice board or deactivate any electromagnetic access device issued to the defaulter or prevent a defaulter from using the common facilities.

It may even enter into an instalment payment scheme in writing with the defaulter. These discretions are meant to encourage the defaulters to pay up.

Alternatively, if the sum remains unpaid after serving Form 11 and Form 20, a warrant of attachment of movable property may be obtained from the Commissioner of Buildings (COB) against the defaulter. The warrant authorises the attachment of any movable property belonging to the defaulting parcel owner which may be found in the building or elsewhere in the State in order to recover the unpaid sum.

But Act 757 does not confer management bodies with the power to disrupt the water supply of defaulters. In short, disruption of water supply is illegal and ultra vires Act 757.