Penang Watch

NST Online » Local News
2008/04/16
Tussle over right to manage high-rise units
By : Jennifer Gomez

KUALA LUMPUR: It's open "war" over who has the right to manage stratified or highrise properties.
Just one day after the VAEA Joint Action Group placed a public notice in the New Straits Times claiming that right, the Board of Valuers, Appraisers and Estate Agents called a press conference to rebut the claim.

In the public notice, it was stated that "certain parties were misleading Joint Management Bodies (JMB) and Management Corporations (MC) to believe that only property managers duly registered with the Board of Valuers can be appointed as managing agents to maintain and manage stratified properties", adding that this "was not true".

The board hit back, saying that anyone appointed by a JMB or MC to manage properties must be registered with it.

The JMB, which is provided for under the Building and Common Property (Maintenance and Management) Act 2007, is the formation of a joint body to manage a building, made up of unit owners and the developer.
The MC takes over once the strata titles are issued.

Board of Valuers member Eric Ooi said there was nothing to stop a JMB from employing any person or firm to carry out in-house management and maintenance but they must be registered with the board.

Ooi admitted the JMB and MC were not subject to the Valuers, Appraisers and Estate Agents (VAEA) Act.

It was misleading to suggest that any individual or company could undertake property management for a fee, without being regulated by the Act.

Board of Valuers president Datuk Abdullah Thalith said property management must be viewed as a profession and not purely from a business perspective.

"The VAEA Act provides the regulatory control over the managing agent that is carrying out the property management practice for a fee.

"It controls professional conduct and, more importantly, fiduciary obligations of the managing agents because public funds are involved," he added.

The public notice was jointly put out by among others, the Real Estate and Housing Developers' Association, International Real Estate Federation, Institution of Architects Malaysia, Associated Chinese Chamber of Commerce and Industry Malaysia's Construction and Property Committee, Institution of Engineers Malaysia, Association of Consulting Engineers Malaysia and Malaysian Association for Shopping and Highrise Complex Management.