Wednesday, January 16, 2008

Joint Management Body (JMB)

ON April 12 2007, the Building & Common Property (Maintenance & Management) Act 2007 (“the Act”) came into force in all States within Peninsular Malaysia. The main purpose of the Act is to provide for the proper maintenance and management of buildings and the common property, AFTER delivery of vacant possession by the developer to the purchasers and BEFORE the Management Corporation (“MC”) comes into existence “the applicable period”).


Establishment of a Joint Management Body


Section 4 of BCP Act 663 read:
(1) Where a Building or Land intended for subdivision into parcels has been completed:-
(a) before the commencement of this Act and vacant possession of the parcels has been delivered by the developer to purchasers but the management corporation has not come into existence, a Joint Management Body shall be established consisting of the developer and the purchasers upon the convening of the first meeting not later than twelve months from the commencement of this Act; and
(b) on or after the commencement of this Act, a joint Management Body shall be established consisting of the developer and the purchasers upon the convening of the first meeting not later than twelve months from the date of delivery of vacant possession of the parcels to the purchasers.


Duties and Powers of Joint Management Body

Section 8 of BCP Act 663 read:
(1) The duties of the Body include the following:
(a) to properly maintain the common property and keep it in a state of good and serviceable repair;
(b) to determine and impose charges that are necessary for the repair and proper maintenance of the common property;
(c) to insure and keep insured the building to the replacement value of the building against fire and such other risks as may be determined by the Body;
(d) to apply insurance moneys received by the Body in respect of damage to the building for the rebuilding and reinstatement of that building;
(e) to comply with any nitices or orders given or made by the local authority or any competent public authority requiring the abatement of any nuisance on the common property,or ordering repairs or other work to be done in respect of the common property or other improvements to the property;
(f) to prepare and maintain a register of all purchasers of the building;
(g) to ensure that the Building Maintenance Fund is audited and to provide audited financial statements for the information to the purchasers;
(h) to enforce house rules for the proper maintenance and management of the building;and
(i) to do such other things as may be expedient or necessary for the proper maintenance and management of the building.

(2) The powers of the Body shall include the following:
(a) to collect from purchasers maintenance and management charges in proportion to the allocated share units of their respective parcels;
(b) to authorize expenditure for the carrying out of the maintenance and management of the common property;
(c) to recover from any purchasers any sum expended by the Body in respect of that parcel in complying with any such notices or orders as are referred to under paragraph (1)(e);
(d) to purchase,hire or otherwise acquire movable or immovable property for use by the purchasers in connection with their enjoyment of the common property;
(e) to arrange and secure the services of any person or agent to undertake the maintenance and management of the common property of the building;
(f) to make house rules for the proper maintenance and management of the building; and
(g) to do all things reasonably necessary for the performance of its duties under this Act.

(3) The Body shall be deemed:-
(a) for the purpose of effecting any insurance under paragraph (1)(c), to have an insurable interest in the building equal to its replacement value or any value as determined by the Body; and
(b) for the purpose of effecting any insurance under paragraph (1)(d), to have an insurable interest in the subject matter of the insurance.

(4) Where the Body incurs any expenditure or performs any repair,work or act that it is required or authorized by or under this part to do or consequent upon the service on the Body of any notice or order by any local authority or under any other written law, and the expenditure or the repairs, work or act were or was rendered necessary by reason of any willful or negligent act or omission on the part of, or breach of any provision of its by-laws by,any purchasers or his tenant,lessee,licensee or invitee,the amount of that expenditure expended by the Body in performing the repairs, work or act shall be recoverable by the Body from that purchaser.

(5) The generality of this section shall not be prejudiced by any other provision in this part conferring a power or imposing a duty on the Body.

Please refer to Act663 at http://Groups.Yahoo.com/Group/SriPelangi

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