5 Strata Management Tribunal Facts That You Need To Know
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The Strata Management Tribunal (SMT) is an important part of Malaysia’s regulatory system for strata units.
It provides solutions to aggrieved property owners and management who want to seek legal recourse without having to go to court.
Keep on reading to find out what exactly it is and what you need to know!
What is the Strata Management Tribunal?
The Strata Management Tribunal (SMT) is a body established under the Strata Management Act 2013 (“Act’) to settle disputes in relation to strata management issue.
Their aim is to deliver workable and accessible solutions for parties in conflict.
A common example would be: a case where the owner of an apartment unit disagrees on maintenance fees with the Joint Management Body (JMB).
The SMT is designed to resolve disagreements at minimal cost for the parties involved. Hence, no professional legal representation is allowed.
A Tribunal will be led by a Chairman and Deputy Chairman, and comprised of no less than 20 members of the legal profession, each with more than 7 years’ experience.
Who can make a claim at the Strata Management Tribunal?
- Developer
- Purchaser
- Proprietor
- Joint Management Body (JMB)
- Management Corporation (MC)
- Subsidiary Management Company (SMC)
- Managing agent
- Relevant parties (Special permission granted by Tribunal)
What matters can the tribunal hear?
The SMT will hear claims covering financial costs up to RM250,000 in the following cases, as defined in the Strata Management Act 2013:
- disputes over a failure to perform a function, duty or power imposed by SMA 2013;
- disputes over costs or repairs of a defect;
- claims for the recovery of charges, contribution to the sinking fund or any debt;
- claims for an order to convene a general meeting, invalidate proceedings of a meeting, nullify a resolution on matters decided in a general meeting;
- claims to compel the supply of information or documents;
- claims for an order to give consent to effect alterations to common property or limited common property;
- claims for an order to affirm, vary or revoke a decision of the Commissioner of Buildings.
One thing that the SMT does not cover are issues relating to disputes of ownership. But if it is down to maintenance, costs, or common upkeep, the SMT is the place to turn to.
What awards and penalties can the SMT impose?
The SMT is obliged to make its award within 150 days of the first day of the hearing.
Each award must be accompanied by the applicable grounds for the tribunal’s judgment. So, what awards can they hand out?
- Order a party to pay or refund sums of money, damage, or compensation
- Order a party to pay interest of no more than 8% per annum on a monetary award
- Dismiss a frivolous or vexatious claim
- Make any further order it considers just and expedient
- Impose additional ancillary orders or relief as is necessary to effect any other order made by the SMT
- Vary or set aside a contract or additional by-laws, excepting those set down as of June 1 2015 which prevail over any additional and inconsistent by-laws or in-house rules
What happens if you ignore an order of the Tribunal?
By virtue of Section 123 of the SMA 2013, whoever does not comply with an award made by the Tribunal commits an offense and may be penalized as follows:
First offence
Fine: < RM250,000.00; or Imprisonment:
< 3 years; or both
Continuing offence
Further fine: < RM5,000 every day
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