Top 6 Popular Strata Management Tribunal Frequently Asked Questions

Developer, Purchaser, Proprietor, Joint Management Body (JMB), Management Corporation (MC), Subsidiary Management Committee (Sub-MC), Managing Agent and relevant parties who has special permission granted by the Tribunal.

However, it is also important to know the difference between a purchaser and a proprietor. This distinction between the two comes into play when the strata title for the property has not been issued yet. When an official strata title for the property is issued, a proprietor becomes the property owner . A purchaser merely owns an interest in a particular unit, as it is still being held under the master title. In this circumstance, the proprietor is the developer or landowner.

All disputes can be handled at minimum expenditure as no legal representation is allowed. This eliminates high legal costs. It also has cheaper filing fees compared to a court proceeding. However SMT has a pecuniary jurisdiction not exceeding RM250,000.00.

The SMT’s jurisdiction does not extend to any claims related to disputes of ownership. However, the cases that it can handle include:
Disputes over failure to perform a function, duty or power imposed by Strata Management Act 2013.
Disputes over costs or repairs of a defect.
Claims for the recovery of charges, contribution to the sinking fund or any debts.
Claims for an order to convene a general meeting, invalidate proceedings of a meeting or nullify a resolution on matters decided in a general meeting.
Claims to compel the supply of information or documents.
Claims for an order to give consent to effect alterations to common property or limited common property.
Claims for an order to affirm, vary or revoke a decision of the Commissioner of Buildings.

Every party will be entitled to attend and be heard at the hearing of a claim. All proceedings of the SMT will be open to the public.

Each award made by the SMT must be accompanied by the relevant grounds for the decision. Each award must be made within 60 days of the first day of the hearing.

Among the awards it can confer include:
Order a party to pay or refund sums of money, damage or compensation.
Order a party to pay interest of no more than 8% per annum on a monetary award.
Dismiss a frivolous or vexatious claim.
Impose additional ancillary orders or relief as is necessary to effect any other order made by the SMT.
Vary or set aside a contract or additional by laws, excepting those set down as of June 1, 2015, which prevail over any additional and inconsistent by laws or in house rules.
The tribunal also has the power to impose the following penalties. A fine up To RM250,000, imprisonment up to 3 years or simultaneous fine and imprisonment.

The tribunal can act on anyone who does not comply with its order, as stated under Section 123 of the SMA 2013.

The penalties include the following:
First offence. A fine not exceeding RM250,000; OR imprisonment not exceeding three years; OR both.
Continuing offence. A further fine not exceeding RM5,000 per day or part thereof during which the offence continues after conviction.

No party can be represented by a lawyer unless the matter in the opinion of the Tribunal involves complex issues of law and one party will suffer severe financial hardship if he is not represented by a lawyer. If one party is allowed to be represented by a lawyer, the other party would similarly be entitled also.

Any party to the proceedings of SMT may apply to the High Court challenging to have an award in the proceedings overturned if there is a severe irregularity that affects the awards. If there is shown to be serious irregularity affecting the award, the High Court may remit the award to the SMT for reconsideration or set the award aside.