proposed amendments to strata titles act … akta hakmilik... · the proposed amendments to strata...

PROPOSED AMENDMENTS TO STRATA TITLES ACT 1985

RUNDINGAN AWAM KEPADA AGENSI KERAJAAN

DAN BADAN BUKAN KERAJAAN BAGI CADANGAN PINDAAN KTN, AHS 1985 DAN APT 1960

TEMPAT: Dewan Kampo,

Pusat Belia Antarabangsa Cheras, Kuala Lumpur

TARIKH: 16 April 2015 (Khamis)

The proposed amendments to Strata Titles Act 1985, among others are:

Amendment of section 4

1. Section 4 of the principal Act is amended—

(a) by inserting after the definition of “Registrar” the following definition:

“rent” means in relation to section 5 of the National Land Code,

includes any annual sum payable in respect of any parcel or provisional

block to the State Authority pursuant to Section 23A this Act by way of rent

and any fee due to the State Authority in respect of arrears of rent by

virtue of rules under section 81.

Amendment of section 17A

2. The principal Act is amended —

(a) in the paragraph 17A(2)(a), by inserting after the words “the special plan”

the words “prepared by a licensed land surveyor”;

(b) in paragraph 17A(2)(c), by substituting for the word “prescribed” the word

“determined”; and

RUNDINGAN AWAM CADANGAN PINDAAN KANUN TANAH NEGARA, AKTA HAKMILIK STRATA 1985 DAN AKTA PENGAMBILAN TANAH 1960

April 16, 2015

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(c) in paragraph 17A(3)(c), by substituting for the words “and any approved

amendments thereto.” the words “as approved by comprehensive

resolution.

New Section 17B

3. The principal Act is amended by inserting after Section 17A the following section:

Ownership of common property and custody of issue document of title

17B. (1) The management corporation shall, on coming into existence,

become the proprietor of the common property and be the custodian of the

issue document of title of the lot.

(2) The management corporation shall have in relation to the common

property the powers conferred by the National Land Code on a proprietor in

relation to his land:

Provided that—

(i) except where it is specifically provided otherwise in this Act, those

powers may be exercised only on the authority of a unanimous

resolution; and

(ii) the corporation shall not have power to transfer any portion of the

common property which forms part of the building or of the land on

which the building stands, charge or lien.


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(3) Where an instrument is executed by the management corporation in the

exercise of its powers under subsection (2), it shall be accompanied by a

certificate under the seal of the management corporation stating that—

(a) the resolution directing the transaction to which the instrument

relates was duly passed; and

(b) the transaction conforms to the terms of the resolution.

(4) The relevant document given under subsection (3) shall, in favour of the

Registrar or a party to the transaction other than the management corporation,

be conclusive evidence of the facts certified.

Deletion of section 19A

4. The principal Act is amended by deleting section 19A.

New PART IVA

5. The principal Act is amended by inserting after Part IV the following part:

PART IVA

COLLECTION OF RENT AND INCIDENTALS

Rent Of Parcels Or Provisional Block

23A. (1) The Minister may, with the approval of the National Land Council,

by notification in the Gazette, appoint a date for the coming into operation

of rent of parcel or provisional block in any State.


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(2) Upon the coming into operation the implementation of rent of parcel

in any State —

(a) the provisions of the Seventh Schedule shall apply;

(b) the provisions of this Act shall be read with modifications,

amendments, additions, deletions, substitutions or adaptations

as provided in the Seventh Schedule—

(i) in so far as they relate to the procedure for the

implementation of rent of parcel or provisional block and

for the purposes connected therewith;

(ii) in so far as they relate to the forms of document of strata

title, the procedure for the preparation and registration of

any document of strata title, any dealing and any entry or

endorsement of any note, memorial or memorandum or

any correction or cancellation thereof on any document

of strata title; and

(c) the rent of the lot ceased to be operative on the date in the

memorial endorsed on the register document of title to the lot.

(3) The Minister may, with the approval of the National Land Council,

by order published in the Gazette of the Federation, make any

amendment to the Seventh Schedule that he may consider necessary,

desirable or expedient.


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Forfeiture and Vesting

23B. (1) Upon the coming into force of the rent of parcel or provisional

block pursuant to section 23A of this Act, the Eighth Schedule which

facilitates the procedures for the forfeiture, reversion and vesting for non-

payment of sum demanded and other matters connected therewith, shall

apply and the Act shall be read subject to the provisions of the Schedule;

and

(2) The Minister may, with the approval of the National Land Council,

by order published in the Gazette of the Federation, make any

amendment to the Eighth Schedule that he may consider necessary,

desirable or expedient.

New PART VIIIA

6. The principal Act is amended by inserting after Part VIII the following part:

PART VIIIA

ACQUISITION OF SUBDIVIDED BUILDING OR LAND

Modification of strata register in consequence of formal possession of any

subdivided building or land

57A. (1) Upon taking of formal possession of the whole or part of subdivided

building or land, the provisions of the Ninth Schedule shall apply in so far as

they relates to the procedures for the modification of the relevant strata register,

affairs of the management corporation and other purposes connected therewith

(2) Other provisions of this Act which relate to the forms of document of strata

title, the procedure for the preparation and registration of any document of


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strata title, shall be read with modifications, amendments, additions, deletions,

substitutions or adaptations as provided in the Ninth Schedule;

(3) The Minister may, with the approval of the National Land Council, by order

published in the Gazette of the Federation, make any amendment to the Ninth

Schedule that he may consider necessary, desirable or expedient.

Amendment of section 81

7. The principal Act is amended in subsection (1)—

(a) by inserting after paragraph (a) the following paragraph:

(aa) the collection, remission, rebate, payment by installments or

deferment of payment of rent.; and

(b) by substituting for the paragraph (c) the following paragraph:

(c) the types, circumstances or any other factor relating to a

building, to be classified as special building.

New section 81A

8. The principal Act is amended by inserting after section 81 the following section:

Power of the State Authority to exempt

81A. The State Authority may grant any exemption or to impose any

condition as it deems fit in approving the application for strata title pursuant

to paragraph 81(1)(c).


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New Seventh Schedule

9. The principal Act is amended by inserting after the Sixth Schedule the following

Schedule:

SEVENTH SCHEDULE

[Section 23A]

RENT OF PARCEL OR PROVISIONAL BLOCK

1. Intrepretation

In this Schedule, unless the context otherwise requires—

“existing documents of strata titles” means any documents of strata

title registered and issued before the commencement of rent of parcel or

provisional block by notification in the Gazette”

“existing issue document of title of the lot” means any existing issue

document of the lot issued before the commencement of rent of parcel or

provisional block by notification in the Gazette”

“existing issue document of strata titles” existing issue document of

strata titles issued before the commencement of rent of parcel or provisional

block by notification in the Gazette”

“the Code” means the National Land Code [Act 56 of 1965]”


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2. Rent to be a debt due to State Authority

The rent payable in respect of each parcel or provisional block shall be a

debt due to the State Authority, and accordingly, without prejudice to the

provisions of this Act relating to forfeiture of the parcel or provisional block for

non-payment thereof, may be recoverable by action brought as so mentioned in

section 16 of the Code.

3. Determination and computation of rents

(1) Upon coming into operation of the rent of parcel or provisional

block—

(a) the Land Administrator shall determine the amount of rent;

and

(b) the Registrar shall thereafter—

(i) make a memorial on the register and issue documents

of title to the lot, the date that the rent of the lot

ceased to be operative and rent of parcel or

provisional block comes into operation; and

(ii) endorse on the documents of strata title with the

amount of rent;

(2) The rent reserved in respect of parcel or provisional block shall

become payable from the beginning of the calendar year.

(3) In respect of existing documents of strata titles, the rent of parcel or

provisional block become payable from the beginning of the calendar year.


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(4) In respect of documents of strata titles registered after the

commencement of the rent of parcel or provisional block, the rent become

payable from the beginning of the calendar year next following.

(5) The rent payable in respect of any calendar year shall fall due in full

on the first day of that year and, if not sooner paid, shall be treated for the

purpose of this Act as becoming in arrears on the first day of June in that year.

(6) The rent of parcel or provisional block—

(a) shall be computed on the basis of a rate per square metre for

each parcel, or parcel and accessory parcel, or provisional

block; and

(b) may include the arrears of rent of the lot (if any) in proportion

to the share units and provisional share units (if any); and

where the rent computed in respect of any parcel or provisional block is or

includes a fraction of a ringgit, it shall be rounded up to one ringgit or, as the case

may be, to the nearest ringgit above the amount so computed.

(7) The provisions of this section shall have effect subject to any

remission or rebate of rent granted or allowed pursuant to rules under paragraph

81(1)(aa) of the Act and to any authorization so granted for the payment by

installments, or deferment of payment, of any rent.

4. Where rent payable

The rent payable in respect of parcel or provisional block shall be paid by

or on behalf of the proprietor thereof at the office of the Land Administrator, any


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other place which the Land Administrator may deem fit or at such other place as

may be prescribed or through any person or body as approved by the State

Authority.

5. Notice of demand

(1) Where any rent payable in respect of any parcel or provisional

block is in arrear, the Land Administrator may cause to be served on the

proprietor thereof a notice of demand in Form A7.

6. Right of chargees, lessees, etc., to pay sum demanded

(1) The sum demanded by any notice under paragraph 5 may be paid

to the Land Administrator within the time specified in the notice by any of the

following persons or bodies in addition to the proprietor, that is to say—

(a) any person or body having a registered interest affecting the

parcel or provisional block (including a charge of any lease

or sub-lease thereof);

(b) any person or body having a lien over the parcel or

provisional block, or over any lease or sub-lease thereof;

(c) any person or body in occupation of any part thereof under

any tenancy exempt from registration which has become

protected by an endorsement on the register document of

title to the parcel or provisional block under section 317 of

the Code; and


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(d) any person or body having a claim protected by caveat

affecting the parcel or provisional block or any interest

therein;

and accordingly, as soon as may be after the notice is served on the proprietor,

the Land Administrator shall cause to be served on every such person or body a

copy thereof, to which there shall be appended the additional notice set out in the

supplement to Form A7.

(2) Any sum paid by a chargee pursuant to subparagraph (1) shall be

added to, and deemed for all the purposes of this Act to form part of, the first

payment thereafter falling due to him under the charge.

(3) Any sum so paid by any other person or body—

(a) shall be recoverable from the proprietor by civil action; and

(b) may, if paid by a lessee, sub-lessee or tenant, be recovered

alternatively by deduction from any rent then or thereafter

payable to him under the lease, sub-lease or tenancy.

(4) Any lessee, sub-lessee or tenant who incurs any additional liability,

or suffers any deduction, under this section may recover the amount thereof

either by civil action against the proprietor or by deduction from any rent then or

thereafter payable by him under his lease, sub-lease or tenancy.

7. Effect of payment of sum demanded

If the whole of the sum demanded by any notice under paragraph 5 is

tendered to the Land Administrator within the time specified therein, the notice

shall thereupon cease to have effect.


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8. Forfeiture for non-payment of sum demanded

The Land Administrator shall not during the period specified in any notice

under paragraph 5 accept the tender by or on behalf of any person or body of a

lesser amount than the sum thereby demanded; and if by the end of that period

the whole of that sum has not been tendered to him, he shall thereupon by order

declare the parcel or provisional block reverts to the State Authority, shall vest

and be registered in the name of any statutory authority as may be nominated by

the State Authority to hold the same on behalf, and for the benefit, of the State

Authority, and the provisions of Eight Schedule shall have effect with respect

thereto accordingly.

9. Power of State Authority to revise rents periodically

(1) Any revision under this paragraph shall extend to all parcel or

provisional block within the State except parcel or provisional block of any

description which the State Authority may think fit to exempt therefrom.

(2) Revisions of rent under this paragraph shall be made at such times

as the State Authority may, with the approval of the National Land Council,

determine, but—

(a) in the case of the first such revision by the commencement of

this Schedule—

(i) must to have effect not less than period of ten years

beginning from commencement of this Schedule; and

(ii) must to have effect together with revision of rent under

section 101 of the Code; and


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(b) in the case of any subsequent revision, not so as to have

effect before the expiry of a period of ten years beginning

with the most recent date as from which any rents in the

State were revised under this section together with revision

of rent under section 101 of the Code.

10. Termination of subdivision

In respect of the memorial made pursuant to subsection 57(2) of this Act,

the Registrar shall make a memorial on the register and issue documents of title

to the lot, the date that the rent of the lot comes into operation the next following

calendar year at the recent revision pursuant to section 101 of the Code, and the

management corporation shall be responsible to pay the said rent.

STRATA TITLE ACT 1985

Form A7

(Paragraph 5 of Seventh Schedule)

NOTICE OF DEMAND: ARREARS OF RENT To.................................................................................................................................................................................of.................................................................................................................................................................................. proprietor of the*parcel/provisional block described in the 3rd column of the Schedule below. Whereas the rent reserved on the said *parcel/provisional block and due in respect of the current year is unpaid and, with effect from the 1st day of June, in arrears. You are hereby required, within three months of the date of the service of this notice, to pay *at the Land Office of this district/at ................... all the sums now due as entered in the 4th-7th columns of the Schedule and totalled in the final column thereof. And take notice that, if *the total/any of the totals specified in the final column is not paid


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in full within the said period of three months, then I the undersigned, by virtue of the powers conferred by paragraph 8 of the Schedule, shall by order declare the *parcel/provisional block in question forfeit to the State Authority. Dated this .................

Land Administrator................

District ..................................

SCHEDULE OF *PARCEL/PROVISIONAL BLOCK AND ARREARS

Title No. (Title of the

lot) (1)

Lot No.

(2)

Description of Title (Strata Title) (3)

Current Year Rent (4)

Arrears from

previous years

(5)

Fees, etc., chargeable

as rent (6)

Arrears Fee/s

(7)

Total due

(8)

SUPPLEMENT

To.................................................................................................................................................................................of.................................................................................................................................................................................. *Chargee/Lessee/Sub-lessee/Tenant/Lien-holder/Caveator/Easement holder Should you have reason to believe that the proprietor of that the *parcel/provisional block scheduled above in which you possess or claim an interest will make default in payment of the sums now declared due thereon, you may avoid the forfeiture of such *parcel/provisional block by paying in full to the Land Administrator, within the time specified, the total specified in respect of that *parcel/provisional block. And take notice that (without prejudice to any right under that paragraph to sue the proprietor direct) the following special rights of recovery exist by virtue of the provisions of paragraph 5 of the Schedule-

(a) any sum paid by a chargee shall be added to the first payment thereafter due under the charge;

(b) any sum paid by a lessee, sub-lessee or tenant may be recovered by deducting

the amount of such sum from any rent then or thereafter due from him to the proprietor or other person under whom the land is held;


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(c) any lessee, sub-lessee or tenant who incurs any additional liability or suffers any

deduction under that section may recover the amount of such liability or deduction by making a corresponding deduction from the amount of the rent payable by him.

Dated this ............................... Land Administrator ..................

District .....................................

Note— A copy to be sent to Management Corporation

____________________________ *Delete as appropriate.”

New Eighth Schedule

10. The principal Act is amended by inserting after the Seventh Schedule the

following Schedule:

EIGHTH SCHEDULE

[Section 23B]

FORFEITURE AND VESTING

1. Interpretation

In this Schedule, unless the context otherwise requires —

“transferee” means statutory authority being nominated by the

State Authority to be registered as new proprietor by way of vesting;


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“former proprietor” means a person who, or a body which,

immediately before the reversion to the State Authority is the proprietor of

a parcel or a provisional block.

“the Code” means the National Land Code [Act 56 of 1965]”

2. Reversion to State Authority and vesting take effect upon notification

in the Gazette

(1) As soon as may be after the making of an order under paragraph 7

of the Seventh Schedule with respect to any parcel or provisional block, the Land

Administrator shall publish in the Gazette a notification of forfeiture and vesting in

the transferee in Form A8 and upon such publication, the forfeiture shall take

effect as mentioned in paragraph 3.

(2) Copies of any notification published under subparagraph (1) shall

be published in accordance with the provisions of section 433 of the Code and

send a copy to the management corporation.

(3) As soon as may be after the notification is published, the Registrar

shall make a memorial to the effect that the title has been forfeited and vested in

the transferee on the register document of title and issue document of title (where

its production shall be demanded under section 15 of the Code).

3. Effects of forfeiture

(1) Upon the taking effect in relation to any parcel or provisional block

of any forfeiture under this Schedule —

(a) the parcel or provisional block shall revert and vest in the

transferee, freed and discharged from any interest subsisting


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or capable of arising immediately before the forfeiture took

effect;

(b) The Land Administrator, by notice in the Gazette in Form A8,

declare that the parcel or provisional block shall which

reverts to the State Authority shall vest and be registered in

the name of transferee to hold the same on behalf, and for

the benefit, of the State Authority;

(c) there shall also vest in the statutory authority without any

arrears relating to management fund, debt and any other

outstanding payment payable under Strata Management Act

2013. Any arrears shall be recoverable from the former

proprietor by civil action;

(d) there shall vest in the statutory authority without payment of

compensation, any parcel or provisional block then existing

on the land; and

(e) any item of land revenue then due to the State Authority in

respect of the parcel or provisional block shall be

extinguished.

4. Parcel/Provisional block not to be transferred during period for

appeal against forfeiture

Where any parcel or provisional block has reverted and vested to the transferee

by reason of the taking effect of any forfeiture under this Schedule, the transferee

shall not effect dealings permitted under Division IV of the Code at any time

before—


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(a) the expiry of the period of three months during which (under

section 418 of the Code) an appeal lies to the Court against the

order of the Land Administrator under paragraph 8 of Seventh

Schedule; or

(b) if such an appeal is lodged during that period, the determination of

the appeal and of any proceedings consequent thereon.

STRATA TITLE ACT 1985

Form A8

(Paragraph 2 of Eighth Schedule)

NOTICE OF REVERSION TO THE STATE

Whereas, pursuant to the provisions of paragraph 8 of the Seventh Schedule, the *parcel/provisional block scheduled below has by order been declared forfeit to the State Authority. Notice is hereby given that such forfeiture has this day taken effect and that, in consequence of its vesting in the name of ………………………………, the transferee nominated by the State Authority –

(a) any interest in the title heretofore subsisting or capable of arising is extinguished; and

(b) the issue document of title to the *parcel/provisional block is void and is

impoundable by the State.

Dated this........................

Land Administrator………..................... District.......................................


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SCHEDULE OF FORFEITED *PARCEL/PROVISIONAL BLOCK

Town/Village or Mukim

Title No. Lot No. Description of title

(Strata Title)

Share Unit

SUPPLEMENT

To.................................................................................................................................................................................of.................................................................................................................................................................................. *Chargee/Lessee/Sub-lessee/Tenant/Lien-holder/Caveator/Easement holder/Management Corporation. Take notice that, the *parcel/provisional block scheduled above has by order been declared forfeit to the State Authority and vested in the name of the transferee, any interest in the title heretofore subsisting or capable of arising is extinguished and the issue document of title to the *parcel/provisional block is null and void and is impoundable by the State. Dated this.........................

Land Administrator .......................... District .....................................

____________________________

*Delete as appropriate”.

Prepared by:

Strata Titles and Stratum Division

JKPTG

16 April 2015

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