TORT OF NEGLIGENCE – STRATA MANAGEMENT – HOLDING DEVELOPERS ACCOUNTABLE FOR DEFECTS – A WIN FOR CONDO OWNERS!
The decision in Badan Pengurusan Bersama Subang Parkhomes v Zen Estates Sdn Bhd (Fadhlullah & Associates Consulting Engineers Sdn Bhd) [2025] 7 MLJ 780 emphasizes developers’ clear duty of care toward condominium residents, reinforcing their responsibility to properly rectify defects. It highlights the essential role developers play in ensuring quality and compliance, protecting residents from bearing unnecessary financial burdens arising from poorly completed projects.
STRATA MANAGEMENT – MANAGEMENT FEE SHOWDOWN – RESIDENTIAL VS. COMMERCIAL – WHO’S PAYING FOR THE EXTRAS?
In a landmark decision in Aikbee Timbers Sdn Bhd & Anor v Yii Sing Chiu & Anor and another appeal [2024] 1 MLJ 94 , the Court of Appeal clarified the rules on maintenance charges and sinking fund contributions in mixed strata developments. Developers and management corporations can impose different rates based on the distinct purposes of residential and commercial parcels. The judgment emphasizes fairness, ensuring residential owners bear the costs of exclusive facilities like pools and gyms, while commercial owners aren’t subsidizing amenities they don’t use. This ruling highlights the importance of transparency in budgeting and equitable cost-sharing in mixed-use properties.
STRATA MANAGEMENT – COMMON PROPERTY CONUNDRUM: CENTRALIZED AC COSTS AND THE STRATA MANAGEMENT DEBATE
In a recent legal dispute, the classification of centralized air conditioning facilities (CACF) as common property has come under scrutiny. The Plaintiff, a parcel owner in Tower A of Menara UOA Bangsar, challenged the Management Body’s use of maintenance funds for the upkeep of CACF, which primarily benefits parcels in Tower B. The court is likely to dismiss the Plaintiff’s claim, reinforcing the principle that as long as CACF serves two or more occupiers, it is deemed common property, thus falling under the Management Body’s purview without requiring reimbursement from individual parcel owners.
ZH 
EN 
MY