Property Investment 101: You don’t pay, you open the boom gate yourself

Property Investment 101: You don’t pay, you open the boom gate yourself

Boom Gate and Security Guards for security

For some housing areas, some residents may prefer to increase the security and thus perhaps a boom gate may be built and security guards would be hired to manage it. Yes, boom gates are allowed if the city council approves it. Meanwhile, it’s not easy to get every resident within the housing area to pay for the boom gates operation yeah. Now, perhaps it could get slightly easier? A court has just decided that if one does not pay, no one will help to open the boom gate yeah.

Article in freemalaysiatoday.com A registered residents’ association within the Petaling Jaya City Council (MBPJ) can impose conditions on members who do not contribute towards security and maintenance, the Court of Appeal has ruled.

A three-member bench chaired by Justice Has Zanah Mehat said a condition set by the Parkville residents’ association requiring non-paying members to operate the boom gates themselves is reasonable.

Has Zanah, who sat with Justices Che Ruzima Ghazali and See Mee Chun, said it would be unreasonable for non-paying residents to enjoy the benefits of a security system without having to contribute towards it. Please do read the full Article in freemalaysiatoday.com

Pay or no pay is still a decision by the resident

By the way, the ruling above simply are saying that non-paying residents should not enjoy the same benefits are paying residents. It does not say that residents must pay for the boom gate or the hiring of security guards. In other words, pay or no pay is still a decision by the residents and not something compelled by the courts. This is different from a stratified development. By the way, stratified development is not just for high-rise yeah. Strata landed properties are governed by the Strata Management Act 2013 (SMA) and Strata Titles Act 1985 (STA)

What about stratified developments then? Is it different?

In a stratified development, maintenance fees are compulsory and there are many actions which could be taken legally against anyone who refuses to pay the maintenance fees on time. Section 12(5) of the Strata Management Act 2013 states this. As a unit purchaser, you will have to pay the management within 14 days of receiving a notice from them. If you fail to do so, you will be legally defined as a defaulter. This is as stated in the Strata Management (Maintenance and Management) Regulations 2015 (SMR 2015).

Under Regulation 6(2) of SMR 2015, the management is also allowed to charge you interest on the amount owed, starting from the end of the 14 days until the date you pay up, at 10% per annum or any rate that the management decides.

Blacklisting is NOT the only option yeah

These may happen if one does NOT pay the maintenance fees. You may be sued in the court or the Strata Management Tribunal if you fail to pay the outstanding charges within 14 days of being served with a written notice by the JMB. The management can also take the following actions. (Source of info: iproperty.com.my)

The management can take the following actions:

• They can forcibly enter your unit (within 14 days of receiving the written notice).
• They can also seize movable properties. The items will be auctioned off to settle the outstanding charges. Items that are usually seized from raids include electronic items like smartphones, televisions and other electrical appliances.
• The management body can display your name in a list of defaulters together with your unit number and amount owed.
• Your access card to your residential complex will be deactivated without prior notice. You will be charged a maximum of RM 50 to reactivate the card.
• You are required to sign in when entering the building if your card is deactivated. A security guard will have to follow a defaulter to the unit every time he enters the compound.
• Your access to common facilities will be suspended. That includes car park lots that have been assigned to you.
• Your name will be blacklisted in CTOS and CCRIS which may negatively affect any future bank loans. You might not want to mess with this.
• There could be fines and imprisonment as well. Strata owners who fail to keep up with their maintenance fees could be committing a criminal offence. They may be liable to a fine not exceeding RM 5,000 or imprisonment for a maximum of three years, or both. In case of a continuous offence, a further fine not exceeding RM 50 per day could be imposed.

Happy understanding and please do pay the relevant fees or proceed to stay at some place without the need to pay any fees at all.

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