CAR PARK – RENT OUT TO THIRD PARTY, PROPERTY LAW – STRATA TITLE – COMMON PROPERTY

I am a committee member of Trump Tower Management Corporation (“MC”). We realized the developer has recently sold 15 units of condominium with 60 car parks to its related company. The related company was renting the carpark to third parties. Is this permissible?

No.

  • Car parks or accessory parcels must be used in conjunction with the units or main parcels. Carparks cannot be rented out to different individuals than the tenant of the units or parcels.
  • The Strata Titles Act 1985 (“STA 1985”) prohibits commercial usage of car parks to generate income for the related company or for car park rental business.
  • The sale and purchase of the accessory car parks parcels (“SPA”) is unlawful and void.

What can the MC do?

The MC can seek a declaration from the court pronouncing that the SPA is void. The MC can seek an order from the court to pronounce that the

accessory car parks parcels are common properties. These car parks will be reverted to the management of the MC. The court may also declare that the titles was obtained by the related company of the developer via insufficient or void instrument. Therefore, such car parks will no longer be accessory parcels in the strata title transferred to the related company of the developer.

Case in point: Ideal Advantage Sdn Bhd v Perbadanan Pengurusan Palm Spring @ Damansara & Another Appeal [2020] 4 MLJ 93 Putrajaya Court of Appeal nos W-02(NCVC)(W)-138-01 of 2018 and W-02(NCVC)(W)-151-01 of 2018

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Hebahan Terkini

INDUSTRIAL LAW – NAVIGATING THE LEGALITIES OF RETRENCHMENT

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The dismissal of X by Company ABC, citing economic downturns, presents a compelling case on the complexities of employment termination and retrenchment legality. X contested his redundancy, claiming his role in property management and services was unaffected by the property development market’s challenges. This case probes into the legitimacy of retrenchment under economic duress and the employer’s duty to act in good faith, as guided by Section 20(3) of the Industrial Relations Act 1967. The burden rests on Company ABC to prove the necessity and genuineness of X’s redundancy, with failure to do so possibly leading to a verdict of unjustified termination. This scenario underscores the critical importance of evidence and intention in retrenchment cases, as reflected in precedents like Akilan a/l Subramanian v. Prima Awam (M) Sdn Bhd.

Read More »

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28 Februari ,2024

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( MALAYSIA ) OFFICE

YEW HUOI, HOW & ASSOCIATES
PEGUAMBELA & PEGUAMCARA
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