Developing A Model For Pre-Action Dispute Resolution For Strata Dispute Management In Malaysia

Abstract

The Malaysian government has finally announced for the implementation of Strata Management Act 2013 with the aims to cater disputes in the management of strata titled properties. Among the most important aspect of the Act is to introduce Strata Management Tribunal as a platform to resolve disputes among the strata owners and all stakeholders in relation to strata management and maintenance. This research addresses the period prior to the adjudication process by the Tribunal and proposes a model for early dispute resolution before the hearing. The author argues that early dispute resolution or early conflict engagement is necessary despite the establishment of Strata Management Tribunal to address non-technical issues, which involve restoration of social relationship. The author highlights the practice of other jurisdiction, for example, Victoria, Australia as well Hong Kong. The findings of the research show that Alternative Dispute Resolution (ADR) methods such as mediation or conciliation are suitable to be adopted within and outside Tribunal process. Keywords: stratified properties, Strata Management Tribunal, Strata Management Act, mediation, conciliation and Alternative Dispute Resolution (ADR)

Impact of Having an Early Briefing among Residents/Owners in Reducing Strata Disputes in Malaysia

“…Disputes will inevitably arise in strata living. In Malaysia, the major complaints about strata properties have been mainly reported on the management issues (Mohamad, 2015b). The administration and management issues are the most common types of disputes to arise in strata living.…”

“…Apart from the issues relating to financial matters, conflicts usually occur because the strata owners are unaware of the procedures and restrictions before performing renovation works for their units (Fortino, 2017). Based on a study done by Mohamad (2015b), it revealed that the disputes in strata living revolved around several issues such as security, pets, noise, and garbage as well as attitude. Hence, the strata disputes can be categorised into six types of strata disputes, which are financial issues, renovation issues, personal issues, security issues, maintenance issues, and management issues.…”

“…On the other hand, Tiun (2009) stated that there is a lack of proper financial planning practised in the Malaysian management system. Mohamad (2015b) summarised that the complaints related to financial matters are breach of trust and misuse of money. Thus, poor financial management may lead to the disputes among the unit owners and strata managers.…”

“…Parking issues are also a concern in resolving the personal disputes. Mohamad (2015b) discovered that there are common complaints about the residents not parking their vehicles at the designated car parking bays.…”

Standard of workmanship, crime rate and condition of lift systems influence collective action in low-cost housing

“…Firstly, complaints received by the Strata Tribunal Malaysia regarding the lack of collective action totalled 2,642 cases in 2016, increased to 4,964 three years later (Aziz, 2019) and increased again to 5,675 cases the following year (MIEA, 2020). Secondly, Hamzah and Abdullah (2018) collected data from the Housing Tribunal Malaysia, where some 79.8% of the cases received originated from housing managements who filed complaints against parcel holders for failing to discharge their duties of paying the prescribed monthly maintenance fees. From these two cases, the absence of collective action is the main factor for poor maintenance in these housing communities.…”