Monday, July 04, 2011

Roger Tan: Resolving tenancy disputes

In the interest of millions of stratified property owners, a Board needs to be set up and quickly brought into operation.

MILLIONS of Malaysians live and undertake commercial activities in strata sub-divided buildings these days. These stratified buildings can vary from low-cost apartments to high-end condominiums and from shopping complexes to commercial office towers.

But whenever there is a cluster of people living and undertaking business together as a community in one sub-divided building, and sharing the same resources and facilities, there are bound to be multifarious problems.

The most common problems involve stratified residential buildings, particularly in respect of the operations of management bodies and payment and collection of maintenance charges...

As regards the operations of the MC and JMB, the residents’ interest in participating in its affairs can range from one of insouciance to one of over-zealousness.

There are some cases, particularly involving lost-cost apartments, where not even a single parcel owner is interested in offering himself to be elected to the Council of MC or Joint Management Committee (JMC) of JMB. As a result, some buildings are without a Council or JMC.

Yet at the same time, there are also cases where various factions among the residents vociferously vie for control of the MC or JMB. Some altercations even end up in court.

... A same person should not be a proxy of more than one proprietor. This is to prevent a person who has a conflict of interest such as an estate agent to indirectly control the outcome of the Council elections.

For example, it is not difficult for a popular estate agent who handles almost all the tenancies and sub-sales of the units in the same condominium to mobilise and get the majority of the proprietors to appoint him as their sole proxy. The proprietors, mainly the illiterate ones and foreigners, who may also be his clients, will most likely appoint him for reasons of convenience.

But this will be detrimental to the interest of the minority if the estate agent’s position becomes so entrenched that the Council is unable to interfere with his dealings which will affect the value of the condominium units since he controls the rental rates and sale prices. It is axiomatic that if any Council member should incur his wrath, he can be easily voted out by this single powerful proxy. This will result in a Council becoming subservient to a proxy who may not even be a proprietor himself.

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