Parcels, Common Property & Accessory Parcels: What Strata Homeowners Should Know
Strata Management LawIn a strata development, many owners assume that once they purchase a unit, they only need to be concerned about that unit.
That assumption is not entirely correct. In a strata development, ownership of a unit is closely connected to the use of shared facilities, responsibility over the building, the obligation to pay maintenance charges and compliance with by-laws.
For this reason, it is important for parcel owners to understand three basic concepts in strata development: parcels, common property and accessory parcels. These three concepts may appear simple, but many disputes in strata management arise because owners, occupants or management bodies do not clearly understand the difference between them.
1. What Is a Parcel?
In simple terms, a parcel is an individual unit owned by an owner in a strata development. Examples include:
condominium units;
apartment units;
flat units;
serviced residence units;
shop units;
office units; or
commercial units in a strata scheme.
In simple language, a parcel is the “individually owned unit”.
If a person purchases Unit A-10-1 in a condominium, that unit is his or her parcel. The owner has rights over that parcel, subject to the law, conditions of title, by-laws and applicable rules.
However, having rights over a parcel does not mean that the owner may do anything without limits.
For example, an owner may be entitled to occupy, rent out or sell the unit. However, the owner must still comply with the by-laws, building rules, conditions of use, and must not use the parcel in a manner that affects the safety, comfort or rights of other owners.
2. Rights of an Owner Over a Parcel
Generally, a parcel owner has the right to use and enjoy his or her parcel.
This includes the right to occupy the unit, rent out the unit, sell the unit or allow another person to use the unit, subject to the law and relevant documents. However, in a strata development, individual rights must be balanced against the collective interest of the community.
For example, an owner should not carry out renovation works that affect the building structure, interfere with the main piping system, alter the external appearance of the building without approval, cause leakage to another unit, or use the unit in a way that creates nuisance to other occupants.
In other words, a parcel is individually owned, but it remains part of a strata community governed by common rules.
3. What Is Common Property?
Common property refers to the parts of the building or areas in a strata development which are used or enjoyed collectively by parcel owners or occupants. Examples of common property include:
lifts;
staircases;
corridors;
lobbies;
rooftops;
main pipes;
main electrical systems;
swimming pools;
gymnasiums;
gardens;
guardhouses;
fences;
internal roads;
waiting areas;
multipurpose halls; and
other shared facilities.
Common property is not the private property of any one owner. It exists for the common use and benefit of all owners or occupants, subject to the by-laws and rules imposed.
For example, an owner cannot treat the corridor in front of his or her unit as a private storage area. Similarly, an owner cannot use the lobby, garden or shared facilities as if they belong exclusively to that owner.
4. Why Is Common Property Important?
Common property is important because it affects the comfort, safety and overall value of a strata development.
If the lifts are not maintained, all occupants are affected. If the security system is weak, the entire community is exposed to risk. If the swimming pool, garden, corridors or lobby are not properly maintained, the value of the property may be affected. If the rooftop, main pipes or main electrical systems are damaged, the repair costs may be substantial and may affect the interests of many owners.
For this reason, common property must be properly maintained. The cost of maintaining common property is usually funded through maintenance charges paid by parcel owners.
In simple terms, maintenance charges are not merely monthly payments. They are the main financial source used to ensure that the building remains functional, safe and comfortable for everyone.
5. Who Is Responsible for Maintaining Common Property?
The responsibility to maintain and manage common property depends on the stage of management of the development.
At the early stage, the developer usually plays a role in managing the building before the management body takes over.
Thereafter, the Joint Management Body, often referred to as the JMB, usually takes over management before the Management Corporation is established. Once strata titles have been issued and the Management Corporation, often referred to as the MC, is established, the MC will then take over the responsibility of managing and maintaining the common property.
In practice, the JMB or MC may appoint a property manager, contractors, security companies, cleaning companies, lift contractors and other service providers to assist with the daily management of the building.
However, the main management authority remains with the lawful management body, subject to the law and valid meeting decisions.
6. What Is an Accessory Parcel?
An accessory parcel is a parcel that is connected to a main parcel. The most common example is a car parking bay allocated together with a particular unit.
For example, the owner of Unit A-10-1 may have one or two car parking bays which form the accessory parcels to that unit.
An accessory parcel usually does not stand independently like a main parcel. It is connected to the main parcel and is used together with that parcel.
Apart from car parking bays, other examples that may exist in some developments include storage areas or certain spaces allocated as accessories to a particular unit, depending on the strata plan and relevant documents.
7. Are All Car Parking Bays Accessory Parcels?
Not necessarily.
In a strata development, the status of car parking bays may differ depending on the development documents, strata plan, sale and purchase agreement, title documents and other relevant records.
Some car parking bays may be accessory parcels to specific units. Some car parking bays may form part of the common property. There may also be car parking bays which are subject to special arrangements, licences for use or specific provisions in the relevant documents.
Therefore, an owner should not assume that all car parking bays are privately owned or are accessory parcels merely because they are used together with a unit.
The actual status should be verified by referring to the relevant documents.
8. Why Should Owners Understand the Difference?
Owners should understand the difference between parcels, common property and accessory parcels because each carries different rights and responsibilities.
A parcel is an individually owned unit.
Common property refers to areas or facilities used collectively.
An accessory parcel is connected to the main parcel, such as a particular car parking bay.
If owners do not understand these differences, various disputes may arise. For example:
an owner uses the corridor as a private storage area;
an owner carries out renovation works that affect common property;
an owner assumes that a particular car parking bay is permanently owned without checking the documents;
an occupant uses shared facilities without complying with the rules;
the management body takes action without first identifying the actual status of a particular area; or
a dispute arises over who should bear the cost of repairs.
In strata management, many problems can be avoided if all parties clearly understand what belongs to an individual owner, what is for common use, and what is connected to the main parcel.
9. Relationship Between Common Property and Maintenance Charges
Maintenance charges are closely connected to common property.
This is because common property must be maintained, repaired, cleaned and managed on a continuous basis. All of this requires funding.
Common expenses that are usually funded through maintenance charges include:
payments to security companies;
payments to cleaning companies;
lift maintenance;
swimming pool maintenance;
landscape maintenance;
electricity bills for common areas;
water bills for common areas;
building insurance;
repair works; and
daily management costs.
If many owners fail to pay maintenance charges, the management of the building will be affected. Eventually, it is not only the management body that suffers. All owners and occupants will feel the consequences.
For this reason, payment of maintenance charges is an important part of an owner’s responsibility in a strata development.
10. Conclusion
In a strata development, owners do not only own their respective units. They also share the use of, and responsibility for, the common property.
In summary, a parcel is an individual unit owned by an owner. Common property refers to areas and facilities used collectively by owners and occupants. An accessory parcel is a parcel connected to the main parcel, such as a particular car parking bay.
Understanding these differences is important so that owners, occupants, management bodies and property managers can carry out their respective roles more effectively.
Many strata disputes begin from misunderstandings about usage rights, common areas, car parking bays, renovation works and responsibility for maintenance costs.
Therefore, before a decision is made or a dispute is raised, the status of the relevant area or facility should first be identified based on the documents, plans, by-laws and applicable laws.
Prepared by:
Khairul Shahrizan bin Hamizi
Advocate and Solicitor
High Court of Malaya
Brief Note
This article is prepared for general information only and should not be treated as specific legal advice. Each strata issue must be considered based on its own facts, documents, development status, strata plans, by-laws, minutes of meetings and the applicable laws.