Now everyone (residential or commercial unit owners) pays the same for a mixed development.

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These days, maintenance fees per sq ft basis seem to be getting ever higher. From the slightly over 10 cents per sq ft when I first started to buy a property over 16 years ago to the typical 30 over cents of today or the over 50 cents for lower density units, these maintenance charges have become a huge factor in deciding whether to buy or not to buy. I viewed a 1,500 sq ft unit a few months ago and despite the lack of facilities, the maintenance fees alone was RM900 plus. 🙂

Perhaps it’s due to the fact that everything is more expensive today? Well, if you are an owner of residential units within a mixed development, this news is for you. Especially if you feel that the maintenance fees which you are paying seems higher than the retail units for example. Briefly, all unit owners within the SAME mixed development will be paying the maintenance fees based on a formula which is applicable to all owners.

Article in edgeprop.my here. Previously, a High Court decision stated that the JMB had authority under the Strata Management Act to enforce different rates of services or maintenance charges for different parcels in a mixed use development project. This is no longer the case.

On Oct 4 ruling by the Court of Appeal, it was held that the Joint Management Body (JMB) committees of high-rise buildings cannot now charge different rates on owners in mixed development projects. Strata Property Owners Association Selangor (SPOAS) legal advisor Datuk Joy Appukuttan said, “Mixed development projects usually comprised residential and office units, retail lots and carparks.”

“The JMB can only determine and fix one consistent rate of service or maintenance charges for all properties within the strata development.” He added, “This landmark ruling will likely benefit individual residential owners in a mixed development who are paying higher maintenance charges than owners of offices and retail outlets.” Please do read the Article in edgeprop.my here.

As for whether this will be the final of the final decision, there’s still the Federal Court which is the highest court in Malaysia and actually the final court of appeal. Its decision will bind all the courts below it including the Court of Appeal. Until that happens though, many owners who were paying much higher maintenance charges due to any discriminatory practise could now heave a sigh of relief. Will keep updating if any. Happy paying your maintenance fees in the meantime. If you did not… jail time may be awaiting. (read here)

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Next suggested article:  Complaints to the Strata Management Tribunal

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