Types of Claims That Can Be Filed at the Strata Management Tribunal

In the previous article, we discussed generally what the Strata Management Tribunal is.

The Strata Management Tribunal is not a forum for every type of dispute that arises in a strata development. It may only hear and decide claims that fall within its jurisdiction.

The jurisdiction of the Tribunal is based on the Strata Management Act 2013, including the types of claims set out in the Fourth Schedule to the Act.

This means that before a claim is filed, the party intending to claim should consider whether the claim truly falls within the types of claims that may be brought before the Tribunal.

This article provides a simple explanation of the types of claims that may commonly be considered at the Strata Management Tribunal and why checking jurisdiction is important before commencing action.

1. Why Is the Type of Claim Important?

The type of claim is important because the Tribunal does not have unlimited general jurisdiction.

Although a dispute may arise in a strata development, it does not automatically mean that the dispute can be brought before the Tribunal. The dispute must fall within a category of claim allowed by law.

If a claim is filed in the wrong forum, the case may face objection, delay or dismissal on jurisdictional grounds.

Therefore, before filing a claim, the claimant should identify:

a. the actual issue in dispute;

b. the parties involved;

c. the remedy sought;

d. the amount claimed, if it is a monetary claim;

e. whether the claim falls within the Fourth Schedule; and

f. whether the Tribunal is the appropriate forum.

Choosing the correct forum is an important first step in any strata dispute.

2. Claims for Maintenance Charges

One of the most common claims brought before the Tribunal is a claim for maintenance charges.

Maintenance charges are payments imposed on owners for the management and maintenance of the building, common property and related services.

If an owner fails to pay maintenance charges, the Joint Management Body or Management Corporation may consider filing a claim to recover the outstanding amount, subject to the Tribunal's jurisdiction and sufficient supporting documents.

In such a claim, important documents usually include statements of account, invoices, demand notices, payment records, minutes of meetings and decisions relating to the rate of charges.

A claim for maintenance charges is usually easier to prove where the account records are clear and consistent.

3. Claims for Sinking Fund Contributions

Apart from maintenance charges, claims may also involve sinking fund contributions.

The sinking fund is used for major or long-term expenditure, such as major repairs, system replacement, repainting works, lift replacement or capital works.

If an owner fails to pay sinking fund contributions, those arrears may also become the subject of a claim.

As with claims for maintenance charges, the management body must show the basis of the rate imposed, the outstanding amount, supporting documents and notices given to the owner.

The owner should also check the statement of account and payment receipts if the amount claimed is disputed.

4. Claims Relating to Common Property

The Tribunal is also commonly associated with disputes relating to common property.

Common property refers to parts of a strata development used or enjoyed collectively by owners and occupants. Examples include lifts, corridors, lobbies, staircases, roofs, main pipes, security systems, swimming pools, gymnasiums, gardens, internal roads and other shared facilities.

Disputes may arise when a party uses common property improperly, prevents others from using it, damages common property or makes changes without approval.

In such cases, the claimant must explain what common property is involved, what conduct is disputed, what effect the conduct has and what order is sought from the Tribunal.

Documents such as photographs, complaint records, letters, minutes of meetings, by-laws and communication records may be important.

5. Claims Relating to By-Laws

By-laws play an important role in strata living.

By-laws regulate matters such as the use of common property, renovation works, cleanliness, security, parking, pets, noise, use of facilities and conduct of occupants.

Disputes may arise when an owner or occupant is alleged to have breached the by-laws, or when an owner disputes an action taken by the management body that is said to be based on the by-laws.

In such a claim, the claimant should identify the relevant by-law, the conduct said to be in breach, the notice given and the remedy sought.

The management body should also be careful to ensure that enforcement of by-laws is carried out consistently, reasonably and according to procedure.

6. Claims Relating to Decisions of the Management Body

Some disputes arise from actions or decisions of the Joint Management Body, Management Corporation or committee.

For example, an owner may dispute a decision relating to the use of facilities, implementation of rules, approval of certain works, imposition of charges or other administrative action.

At the same time, the management body may need to defend actions taken based on the law, by-laws, meeting decisions or building management needs.

In such disputes, documents are very important. Relevant documents may include minutes of meetings, resolutions, notices, correspondence, by-laws, decision records and communication records.

The Tribunal will consider the claim based on the facts, documents and applicable jurisdiction.

7. Claims Relating to Meetings and Meeting Decisions

Annual general meetings, extraordinary general meetings and committee meetings often become sources of dispute in strata management.

Disputes may involve meeting notices, voting eligibility, decisions made, implementation of resolutions, rates of charges or the manner in which a meeting was conducted.

If a claim relating to a meeting is brought before the Tribunal, the claimant should prepare documents such as meeting notices, agendas, minutes of meetings, attendance lists, voting results and other supporting documents.

However, not every meeting issue is necessarily suitable for the Tribunal. It must be considered whether the remedy sought falls within the Tribunal's jurisdiction or is more suitable for another forum.

8. Claims Relating to Renovation Works

Renovation works also frequently give rise to disputes in strata developments.

Common issues include renovation works carried out without approval, works affecting common property, works causing leakage, noise, damage, disturbance to neighbours or breach of by-laws.

In such claims, factual evidence is very important.

The claimant should show the type of works carried out, the location of the works, the effect of the works, complaints made, notices given and the remedy sought.

Documents such as photographs, videos, contractor reports, property manager reports, occupants' complaints, correspondence and by-laws may assist.

9. Claims Relating to Access to Facilities

Disputes may also arise in relation to access to facilities or the use of shared facilities.

For example, an owner may dispute a restriction on the use of facilities. The management body may defend its action based on arrears, by-laws, security or meeting decisions.

Issues relating to access to facilities should be assessed carefully because they may involve owners' rights, the responsibility to pay charges, by-laws, security and procedures that must be followed.

In such claims, parties should prepare documents such as statements of account, notices, by-laws, minutes of meetings, access records, communication records and reasons for the action taken.

10. Monetary and Non-Monetary Claims

Claims before the Tribunal are not necessarily limited to monetary claims.

Some claims seek payment of a certain amount. Other claims may seek an order requiring a party to do something, stop doing something or comply with certain directions.

For example, monetary claims may involve maintenance charges or sinking fund contributions.

Non-monetary claims may involve directions to comply with by-laws, stop a disturbance, repair damage or restore a certain condition, subject to the Tribunal's jurisdiction and the remedies allowed.

Therefore, the party filing the claim must be clear about what is actually being requested from the Tribunal.

11. What May Not Be Suitable for the Tribunal?

Not every strata issue is suitable for or capable of being brought before the Tribunal.

For example, matters outside the Tribunal's jurisdiction, claims requiring remedies that the Tribunal cannot grant, disputes that are too complex or matters more appropriately decided by the court may not be suitable for the Tribunal.

Similarly, if the claim involves serious legal questions, title issues, certain injunctions, judicial review or parties outside the scope of the Tribunal, the court may need to be considered as the appropriate forum.

It is therefore important not to assume that every strata problem can be resolved at the Tribunal.

12. Why Must the Fourth Schedule Be Checked?

The Fourth Schedule to the Strata Management Act 2013 is important because it is a key reference for the types of claims that may be brought before the Tribunal.

Before a claim is filed, the claimant should check whether the claim falls within the Fourth Schedule.

This check is important to avoid filing the case in the wrong forum.

If the claim falls outside the Fourth Schedule or outside the Tribunal's jurisdiction, the claim may face objection or may need to be brought in another forum.

In other words, the Fourth Schedule helps determine the entry point to the Tribunal.

13. Why Is Early Advice Important?

Early advice is important because choosing the wrong forum may waste time, increase costs and weaken the claim strategy.

In a clear arrears case, the Tribunal may be a practical option.

In a more complex case, court action may be more suitable.

In some situations, administrative resolution, discussion, demand notices or instalment arrangements may be more effective before any claim is filed.

Each case should be assessed based on its facts, documents, amount claimed, remedy sought and parties involved.

14. Conclusion

The Strata Management Tribunal is an important forum for resolving strata disputes, but its jurisdiction is not unlimited.

The types of claims that may be filed at the Tribunal must be considered based on the Strata Management Act 2013, including the Fourth Schedule to the Act.

Claims commonly associated with the Tribunal include maintenance charges, sinking fund contributions, common property, by-laws, decisions of the management body, meetings, renovation works and access to facilities.

However, before a claim is filed, the claimant must ensure that the claim falls within the Tribunal's jurisdiction, is supported by sufficient documents and seeks a remedy that the Tribunal can grant.

In strata disputes, the correct forum is just as important as the correct claim.

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 claim before the Strata Management Tribunal must be assessed based on its own facts, documents, parties involved, amount claimed, remedy sought, the Fourth Schedule to the Strata Management Act 2013, the Strata Management (Strata Management Tribunal) Regulations 2015 and the applicable laws.