Understanding JMB and MC Legal Duties & Recovery of Maintenance Charges in Malaysia: A Guide for Strata Managers

BY MESSRS LUI BHULLAR

Understanding JMB and MC Legal Duties & Recovery of Maintenance Charges in Malaysia: A Guide for Strata Managers

For Joint Management Bodies (JMB) and Management Corporations (MC), strata property management is more than just overseeing daily maintenance—it involves serious legal responsibilities, statutory compliance, and financial enforcement under the Strata Management Act 2013 (SMA 2013).

In this article, our strata management lawyers in Malaysia explain the full scope of legal duties imposed on JMBs and MCs, and how to recover unpaid maintenance charges lawfully and effectively.

🔹 What Are JMBs and MCs Responsible For?

🏢 Joint Management Body (JMB)

A JMB is formed after the delivery of vacant possession but before the strata titles are issued and before the MC is formed. It consists of the developer and parcel owners working together to manage the common property.

🏢 Management Corporation (MC)

Once strata titles are issued, the MC takes over from the JMB. It is a corporate body comprised exclusively of parcel owners and has broader responsibilities and autonomy under the SMA 2013.

🔎 Key Legal Duties under the Strata Management Act 2013 (SMA 2013)

The SMA 2013 mandates several legal duties for JMBs and MCs. Failure to perform them can result in fines, disputes, or personal liability for committee members.

📌 Statutory Obligations Include:

1. Maintaining and managing common property

2. Ensuring proper upkeep of facilities such as lifts, lighting, and security

3. Issuing service charge and sinking fund notices

4. Holding AGMs and EGMs as required

5. Preparing and presenting audited accounts

6. Implementing and enforcing by-laws

7. Ensuring adequate insurance coverage

8. Hiring and managing contractors (cleaning, security, repairs)

9. Handling complaints and resolving disputes with residents

10. Complying with local authority regulations and the Uniform Building By-Laws

🧑‍⚖️ A strata lawyer for JMB and MC can assist in preparing standard operating procedures (SOPs), by-laws, AGM documents, and tribunal submissions to ensure full legal compliance.

💸 Recovering Outstanding Maintenance Charges: Legal Recourse for JMB and MC

One of the most common legal problems faced by JMBs and MCs is delinquent owners who refuse to pay maintenance charges and sinking fund contributions.

Without adequate collections, your building can fall into disrepair, utilities may be disconnected, and vendors may stop servicing your property.

⚖️ Legal Options for Recovery

Under Section 78 of the SMA 2013, JMBs and MCs are entitled to recover outstanding dues via:

✅ Step 1: Notice of Demand (Form 11)

This is the first legal warning issued to a defaulter. It includes:

• Total amount owed

• Accrued interest (not exceeding 10% per annum)

• Timeline for payment (usually 14 days)

✅ Step 2: Filing a Tribunal Claim (Form 1)

The Strata Management Tribunal Malaysia allows JMBs and MCs to claim up to RM250,000 per case, including outstanding charges, penalties, and legal costs.

✅ Step 3: Filing a Civil Suit

For larger claims or repeat offenders, a civil suit can be initiated. A strata property dispute lawyer or strata law firm Malaysia can assist with:

• Drafting pleadings

• Legal representation

• Garnishment, seizure, or attachment of assets

✅ Step 4: Restricting Access to Common Facilities

As allowed under the SMA and supported by recent Tribunal rulings, JMBs/MCs can restrict access to non-essential common facilities (e.g., pool, gym) if charges are unpaid.

⚠️ Common Challenges Faced by JMB and MC

• Unresponsive or absentee owners

• Verbal disputes or threats during collections

• Ambiguity in AGM/EGM resolutions

• Improper or outdated by-laws

• Developer handover issues (e.g., latent defects, poor infrastructure)

🧑‍⚖️ Why Engage a Strata Lawyer?

A strata management lawyer Malaysia provides legal clarity and practical solutions, including:

• Drafting compliant Form 11 notices

• Advising on tribunal and civil recovery procedures

• Preparing AGM and EGM notices and minutes

• Interpreting legal obligations under SMA 2013

• Assisting with developer handover disputes

• Enforcing by-laws and dealing with owner defiance

📌 Need to remove a managing agent or disqualify a committee member? An experienced strata lawyer Malaysia can assist you with due process and proper documentation.

📝 Sample Scenario: Legal Recovery in Action

Problem:

A luxury condo in Kuala Lumpur faces over RM200,000 in unpaid charges from 25 unit owners. The MC has tried issuing reminders but failed to recover the sums.

Solution:

1. The MC engaged a strata lawyer in Malaysia to issue Form 11 legal demand letters.

2. Cases under RM50,000 were filed with the Strata Tribunal, resulting in orders for immediate payment and interest.

3. High-value claims exceeding RM50,000 were pursued in the civil courts, with garnishee orders issued on bank accounts.

4. Access to non-essential facilities was lawfully restricted under by-laws.

Outcome: RM150,000 recovered within 3 months. Legal costs were charged to the defaulting owners.

✅ Conclusion: Legal Governance is Key to Efficient Strata Management

If you’re a JMB or MC struggling with compliance or recovery, don’t wait for problems to escalate. A strata management lawyer can help you enforce your rights, recover dues, and stay compliant with the Strata Management Act 2013.

👉 Get a free consultation with our experienced team and take legal action with confidence.

📞 Contact Messrs Lui & Bhullar today for a Free consultation.

• 📧 Email: general@luibhullar.com

• 📞 WhatsApp: +60143000970 / +60143000960