# The Strata Titles Act and Living in a Strata Scheme

> Two laws govern condominium living in Malaysia: the Strata Titles Act 1985 gives you title to your parcel, while the Strata Management Act 2013 regulates the management body, maintenance charges and dispute resolution.

- Category: law
- Language: en
- Status: published
- Updated: 2026-08-07
- Canonical: https://negaraku.md/en/law/strata-titles-act

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Buying a condominium means you own your own "parcel" — but you share the lifts, pool, corridors and roof with hundreds of neighbours. Two laws determine who owns what, and who pays to maintain that shared space.

## What is the difference between the Strata Titles Act 1985 and the Strata Management Act 2013?

In short: one is about **ownership**, the other about **management**.

| Act | Focus | Key point |
|------|-------|---------------|
| Strata Titles Act 1985 (Act 318) | Title | Allows a building to be subdivided into individual parcels, each with its own strata title |
| Strata Management Act 2013 (Act 757) | Management | Establishes the management body, maintenance charges, sinking fund and tribunal |

Act 318 applies in Peninsular Malaysia, the Federal Territory of Putrajaya and Labuan; Sabah and Sarawak have their own strata laws. Act 757, in turn, governs the management of strata buildings in the same areas.

## Who manages your strata building?

Act 757 establishes three successive management periods:

- **Developer's period** — Begins from the delivery of vacant possession. The developer is responsible for maintaining the common property and must open a maintenance account held on trust for the buyers (Act 757).
- **JMB period** — The developer must convene the first annual general meeting to form the Joint Management Body (JMB) within 12 months of the delivery of vacant possession (Section 17, Act 757). The JMB brings the developer and buyers together in a single body.
- **MC period** — Once strata titles are issued and registered under Act 318, the Management Corporation is formed and takes over from the JMB.

## How are maintenance charges calculated?

You do not pay a flat amount. Maintenance charges are apportioned **according to share units** for each parcel (Act 757) — so a larger or commercial parcel pays a bigger share. For example, a two-bedroom flat with higher share units will pay more than a small studio in the same tower.

Alongside the monthly charge, every owner contributes to a **sinking fund** — a reserve fund for major capital works such as repainting, refurbishing the pool or upgrading the lifts. This contribution is set as an amount equivalent to **10% of the maintenance charge** (Section 12(4), Act 757).

## What if a dispute arises?

Outstanding charges and maintenance complaints are the most common causes of strata conflict. You do not necessarily have to go to court:

- The **Strata Management Tribunal** hears claims up to RM250,000 with a procedure that is faster and cheaper than the courts.
- The **Commissioner of Buildings (COB)** at each local authority enforces Act 757 — including investigating accounts and appointing a managing agent. For arrears in charges, the management body can apply for a warrant of attachment to seize the debtor's movable property.

## What's next

Before buying a strata parcel, request a copy of the JMB/MC financial statement and check whether the charge rate and sinking fund are adequate. Existing owners facing management problems can contact the local authority's COB, or file a claim with the Strata Management Tribunal. For the full provisions, refer to the official text of Act 318 and Act 757 on the portals of the Department of Director General of Lands and Mines (JKPTG) and the Ministry of Housing and Local Government (KPKT).

## Sources

- Strata Titles Act 1985 (Act 318) — https://www.lowpartners.com/strata-titles-act-1985/ (Low & Partners)
- Strata Management Act 2013 — Part 1 — https://www.lowpartners.com/strata-management-act-2013-part-1/ (Low & Partners)
- Strata Management Act 2013 — Part 2 — https://www.lowpartners.com/strata-management-act-2013-part-2/ (Low & Partners)
- Ultimate Guide to the Strata Management Act 2013 (Malaysia) — https://jykolaw.com/ultimate-guide-to-the-strata-management-act-2013-malaysia-everything-you-need-to-know/ (JY Ko Advocates & Solicitors)

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Source of truth: https://github.com/negaraku-md/NegaraKu.md
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