Who Is Legally Responsible for Paying Maintenance Fees in Malaysia? A Guide for JMBs, MCs, and Homebuyers

BY MESSRS LUI BHULLAR

Who Is Legally Responsible for Paying Maintenance Fees in Malaysia? A Guide for JMBs, MCs, and Homebuyers

Introduction

One of the most common sources of confusion and conflict in strata developments is the question: Who is legally responsible for paying maintenance fees? Whether the unit is occupied, vacant, or still unsold, maintenance costs must be covered to ensure the property’s upkeep.

This article offers legal clarity on the obligations of developers, buyers, and Joint Management Bodies (JMBs) or Management Corporations (MCs), especially during transitional periods. If you're unsure of your legal position, engaging a strata management lawyer Malaysia can be crucial to avoid missteps.

📌 Maintenance Fees: A Shared Responsibility with Legal Boundaries

Under the Strata Management Act 2013 (SMA), the responsibility to pay maintenance fees is clearly outlined to prevent disputes. Maintenance fees are mandatory and are used to cover the upkeep of common property, including security, lighting, lifts, landscaping, and other shared amenities.

🏢 Who Pays Maintenance Fees for Unsold or Vacant Units?

A key legal obligation lies with the developer, particularly before the formation of the JMB. The law mandates that:

• The developer must pay maintenance charges for all unsold units.

• Vacant units still under developer ownership are not exempt.

• The cost must be borne by the developer until the unit is sold, regardless of occupancy.

Failure to comply with these responsibilities can lead to legal action initiated by the JMB or MC. A strata property dispute lawyer can assist JMBs in recovering outstanding charges from developers through court proceedings or the Tribunal for Strata Management Malaysia.

🧾 Responsibility Between Vacant Possession & JMB Formation

The developer management period—after handing over vacant possession but before the establishment of the JMB—is a legally grey area for many. However, the law is clear:

• The developer must manage the property and collect maintenance fees from all parcel owners, including itself.

• It must open separate maintenance and sinking fund accounts and maintain them transparently.

• The developer is legally liable for the proper maintenance of the building during this period.

Any failure to fulfil these duties may constitute a breach of statutory obligations, and JMBs can pursue redress with the help of a strata title lawyer Malaysia.

🧑‍⚖️ After JMB or MC Formation: Who Holds the Mantle?

Once the JMB or MC is formed:

• All parcel owners, including those who own unsold or vacant units (typically the developer), must pay their maintenance fees.

• The JMB/MC assumes responsibility for managing and maintaining the common property.

• The developer must transfer all maintenance accounts and supporting documents to the JMB/MC in accordance with the SMA.

If developers delay or fail to make this handover, JMBs can seek support from a strata management law firm in Malaysia for resolution.

⚖️ What If Maintenance Fees Are Not Paid?

If the buyer or developer fails to pay maintenance fees:

• The JMB/MC can impose interest on the outstanding amount.

• Legal action can be initiated through a MC dispute resolution lawyer.

• The property may be barred from using common facilities.

• A letter of demand or Tribunal application may be filed to recover arrears.

📝 Legal Advice for JMB and MC

If your JMB or MC is struggling to collect maintenance fees from developers, vacant unit owners, or absentee buyers, it is wise to consult a strata management lawyer in Malaysia. Legal advice can help ensure compliance with statutory obligations, assist in drafting demand letters, and initiate tribunal or court action where needed.

Conclusion: Know Your Rights, Enforce Your Responsibilities

Understanding who is legally responsible for maintenance fees at every stage—before and after JMB/MC formation—is vital to avoiding financial strain and legal conflict. Whether you're a developer, buyer, or part of a management body, you have obligations under the law. With the help of a qualified strata management lawyer in Malaysia or strata management legal advice in Malaysia, you can take action to protect your property and your rights.

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

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

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