Unpaid Strata Fees? A Legal FAQ for Joint Management Bodies

Introduction

All strata property unit owners are required to contribute to maintenance charges, which consist of service charges and the sinking fund. However, a common issue that frequently arises is the failure of some unit owners to make these payments. In such cases, it becomes the responsibility of the Management Body to take action and recover the outstanding amounts. This obligation is outlined in the Strata Management Act 2013 and the Strata Management (Maintenance and Management) Regulations 2015 ("Regulations").

Are you facing this issue now? If so, this FAQ is designed to assist you.

In This Article

• How should I handle parcel owners who fail to pay maintenance fees?

• What happens after 14 days of issuing a Notice of Demand (NOD)?

• What is a Writ of Summons?

• What documents are required for the process?

• What if the parcel owner does not reside in the property?

• How long does it take to serve a summons?

• What actions can be taken if the parcel owner still refuses to pay after a judgment?

• How does resolving the issue through a tribunal differ from going to court?

Question

How should I handle parcel owners who fail to pay maintenance fees?

Answer

The Management Committee must issue Form 20, as stipulated under Regulation 31 of the Strata Management (Maintenance and Management) Regulations 2015, to any parcel owners who have defaulted on their maintenance fee payments.

If payment is not made within 14 days, you should consult your solicitor and provide the necessary documents, including the latest Statement of Account, which must include the owner’s name and last known address. Your solicitor will then proceed with drafting and issuing the Notice of Demand (NOD).

Question

What happens after 14 days of issuing a Notice of Demand (NOD)?

Answer

Your solicitor will grant the parcel owner a 14-day period to settle the outstanding amount. If payment is not made within this timeframe, the Management Committee has the right to proceed with legal action in court.

Question

What is a Writ of Summons?

Answer

A Writ of Summons is a legal proceeding in court that allows the aggrieved party to assert their rights against the defaulting party (Defendant). Legal action can be initiated through either a Writ of Summons or an Originating Summons; however, in this case, it is typically commenced via a Writ of Summons. The writ is issued by the Plaintiff (the suing party) and served on the Defendant, requiring them to enter an appearance in court if they wish to contest the claim.

Question:

What documents are required for the process?

Answer

1.     Most recent Statement of Account

2.     Identification Card Number of the parcel owner

3.     Last known address of the defaulting party

Question:

What if the parcel owner does not reside in the property?

Answer

The parcel owner’s residency status is irrelevant; legal proceedings can still be initiated using the Defendant’s last known address. Your solicitor will proceed with filing the necessary court documents and may serve them via substituted service, which includes methods such as newspaper advertisements.

(At present, JPN searches are unavailable for JMBs due to the absence of any binding documents or agreements.

Question:

How long does it take to serve a summons?

Answer:

It typically takes 2 to 4 weeks for the documents to be considered properly served on the Defendant. Once the sealed copy of the Writ of Summons is obtained, your solicitor will proceed with serving the documents via AR Registered Post. The legal papers will be deemed duly served once proof of service is returned.

Question:

What actions can be taken if the parcel owner still refuses to pay after a judgment

Answer:

Send a Notice of Reminder to the Defendant. If payment is not received within 14 days after the Judgment has been served, the parcel owner may initiate execution proceedings, including Judgment Debtor Summons, Writ of Seizure and Sale, Garnishee Proceedings, or Bankruptcy Proceedings.

Question:

How does resolving the issue through a tribunal differ from going to court?

Answer:

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