When you buy a multi-storey property like an apartment or condominium, you’ll come across the phrase “Strata Title Act” in your property grant. But what is Strata? Let me explain its meaning below.
What is Strata Management/Strata Title?
Strata management/strata title is a method of dividing a building or land into:
- Parcels
- Common property
- Accessory parcels
These three elements are managed by the strata management system.
Why Does Strata Management Exist?
Because there are properties that share the same land lot. This can be seen in multi-storey properties such as flats, apartments, condominiums, shop houses, townhouses and others.
What is a Parcel?
A parcel is an individual unit for each property that shares the same land lot. For example, each apartment unit is counted as 1 parcel. The owner of each apartment unit is called a parcel owner.
What is Common Property?
Common property refers to property that doesn’t belong to any specific property/parcel owner. This property is for shared use. Examples include visitor parking, lifts, stairs, main pipe tanks, and security guard posts.
What is an Accessory Parcel?
An accessory parcel is another parcel owned and used specifically by a parcel owner when they buy 1 property unit/parcel there.
For example, you buy an apartment/parcel along with 2 dedicated parking spaces. These 2 dedicated parking spaces are accessory parcels that you own. They can only be used by you.
What is the Importance of Strata Management to Parcel Owners?
- As legal proof of property ownership for parcel owners.
- To facilitate the sale and purchase of strata properties.
What are the Rights of Parcel Owners?
- Parcel owners can conduct any transaction on their strata property, whether selling or renting out their property.
- Vote in the Annual General Meeting (AGM) or any meeting conducted by the Joint Management Body.
- Have rights to common property based on the allocated share units.
- Rights to utility support (water and electricity) or related services such as drainage management, waste collection, and sewerage management.
- Parcel owners also have the right to examine records and accounts by the Joint Management Body to prevent any misconduct.
What are the Responsibilities of Parcel Owners?
- Pay contributions or maintenance charges to the Joint Management Body.
- Comply with laws set by the Joint Management Body or any directives issued by public/local authorities.
- Attend the Annual General Meeting and any meetings conducted by the Joint Management Body.
What are the Prohibitions for Parcel Owners?
- Using the parcel or property for illegal purposes.
- Disposing of garbage or any waste in common property areas or inappropriate areas.
- Using any fuel that can cause smoke or foul odors.
- Keeping animals that can cause disturbance to other parcel owners.
Who is Responsible for Managing Strata Property?
- Strata property is managed by the Joint Management Body.
What are the Powers of the Joint Management Body over Strata Property?
- Determine the contribution/maintenance charge to be made by property/parcel owners to the Joint Management Body fund.
- Comply with notices or any directives from authorities if the Joint Management Body wants to take any action on common property.
- Take action on property or parcels if the property/parcel owner fails to comply with directives from the Joint Management Body.
What are the Responsibilities of the Joint Management Body?
- Manage and maintain common property to benefit property/parcel owners.
- Protect the property with insurance coverage from any incidents such as fire and other risks.
- Pay insurance premiums and other specified matters.
- Provide mailboxes for property/parcel owners.
