In Malaysia, the strata management is governed by Strata Titles (Amendment) Act 2013 ("STA 2013") and the Strata Management Act 2013 ("SMA 2013").
The Strata scheme offers more control to the property owners over the space that they occupy, while the structure of strata titles designates the Management Corporation as the owner of the land.
The strata title is typically important for the owner as a proof of ownership for the purpose of dealings such as charge, lease and small estate distribution.
Management Corporation is a corporate body which may prosecute and be prosecuted. It exists under the Strata Titles Act 1985 and does not need to be registered with the Registrar of Companies or the Registrar of Societies. It has a perpetual succession right. Management fund is managed by the Management Corporation. It includes management fee / service charges of the common property, fire insurance premiums, special accounts and others. Common property/area refers to any part of the lots which is not comprised in any parcel. For example, visitor parking, elevators, stairs, main tanks and guard house.
The Management Corporation is mainly responsible for matters involving legal obligations of the Local Council. For the owners, the Management Corporation generally takes responsibility for maintenance of the common area, insurance and/or informal mediator between residents.
Owners who pay management fund under the strata title is not exempted from paying the Assessment Rates (Cukai Pintu or Cukai Taksiran).
