STRATA MANAGEMENT: Unpaid maintenance fees and contribution to sinking fund during developer’s management period shall vest in joint management body
Understanding Strata Management: What Happens to Unpaid Fees When the JMB Takes Over? Managing a strata property involves a critical transition period. This happens when the property developer hands over management duties to the Joint Management Body (JMB). A common question arises during this handover: What happens to the maintenance fees and sinking fund contributions that owners failed to pay to the developer? Under Malaysian law, the JMB inherits the full right to collect these outstanding debts. The Law: Section 16(2) of the Strata Management Act 2013 Section 16(2) of the Strata Management Act (SMA) 2013 explicitly protects the financial health of the newly formed JMB. The law states that as soon as the developer’s management period expires, all rights, powers, and remedies regarding unpaid charges transfer automatically to the JMB. Key Takeaways for Strata Owners and Management Automatic Transfer: The JMB legally owns the rights to all outstanding maintenance fees and sinking fu...