Top 5 Interesting FAQ about Handover to JMB in Strata Management

The Developer still needs to open 2 separate accounts, a maintenance account and sinking fund account although the fees will be paid by the developer.

The developer is unable to call for the 1st AGM of JMB as the accounts cannot be audited. The developer has to obtained approval from COB to delay the 1st AGM of JMB until the accounts are properly separated and audited.

The establishment of maintenance account and sinking fund account is well spelled out in Section 10 and Section 11 of Strata Management Act 2013 (SMA).

The timeframe for preparation of documents for registration at COB is within 30 days from the date of 1st AGM.

Section 20 of SMA stated that joint management body shall inform and register with the commissioner the name of the joint management body within thirty days from the date of the first annual general meeting.

For example, the preparation of documents for submission to COB to register the JMB would take approximately 2 weeks. If submission of documents to register the JMB to COB is complete (many COB provide document submission checklist), it will take 2-4 weeks for COB to issue the JMB registration certificate.

A typical COB document checklist for registration of JMB which include:
Notice of first AGM and agenda of the meeting. Minutes of first annual general meeting. Attendance of parcel owners. Voting slip for election of committee members. Voting slip for motion of the meeting. List of elected committee members (designation & contact number). Copy of complete sale and purchase agreement (1 parcel owner only).
Copy of sale and purchase agreement of each committee member with details of: Name, I/C No., Unit No., Copy of I/C (each committee members).
Statement of Account of Maintenance Charges of each committee member up to the date of general meeting. Letter of appointment of proxy. Copy of title and layout plan. Title No. Lot No.
Register of strata unit owners (as in Form 9, Strata Management (Maintenance and Management) Regulations 2015).
Letter of confirmation of JMB’s official name and address.

Here is an example of MBPJ COB document checklist for 1st AGM.

If submission to COB is complete, it will take not more than 1 month for COB to issue the JMB registration certificate. The JMB can open the Bank account with the JMB registration certificate. Thereafter the Developer can transfer all monies to the JMB Bank account. [Section 92, Strata Management Act 2013].

After the 1st AGM, the JMB should approach the Bank to make necessary arrangement including to sign all necessary documents for the opening of bank account. Once the JMB registration certificate is issued by COB and presented to the Bank, the account can be opened within a day.