New act will allow state to seize condo if quit rent not paid

Amendment to Strata Title Act takes effect next year, requiring quit rent to be paid directly to local government body, instead of building management.

GEORGE TOWN: Haven’t paid the quit rent on your apartment/condominium unit yet? Be warned.

Your unit may be seized by the state authorities under a new law which will come into effect Jan 1 next year.

Tanjung MP Ng Wei Aik said under the Strata Titles (Amendment) Act 2016, property owners who fail to pay their parcel rent (new wording for quit rent for high-rise units under the act), risk having their units seized by the state authorities.

The act comes into effect in four states – Penang, Kuala Lumpur, Selangor, and Malacca.

Ng said currently, quit rent for high-rise units were paid to joint-management bodies and management corporations in high rises.

He said when the new act comes into effect, all quit rent will be paid directly to their respective Land and Mines offices.

He said the rate of parcel rent would be determined by the unit’s size in square metres, including the parking lots.

“This would affect thousands of people, especially in Penang, which has the highest number of high-rises next to Selangor,” Ng said in a press conference yesterday.

However, Ng said there was also some good news.

“Under the act unit owners can sell, transfer or carry out any other transaction on their units, even if there are outstanding maintenance, insurance or any other payments.

“Presently, no transaction can be done by individual unit owners unless all outstanding payments are settled with the JMB,” added Ng. -FMT