When does your condo stop being run by the developer and start being run by owners? Here is how the handover to the JMB works — and what to do if the developer drags its feet.
General guidance for 2026 — not legal advice. Strata management is governed by the Strata Management Act 2013; consult your COB or a lawyer for your situation. Renovating a strata unit? Ask us →
Every stratified development starts under developer management, then transitions to owner control. Many owners do not realise they have a legal right to take over within a set timeframe — and that the developer cannot manage indefinitely.
From the delivery of vacant possession, the developer manages and maintains the building and common property, and opens a maintenance account into which owners pay charges. This is meant to be temporary. See the Strata Management Act overview →.
During this phase, the developer sets the maintenance charge rate, controls contractor appointments, and is responsible for ensuring the common property is kept in good condition. Owners pay charges but have limited say in management decisions — a key reason the Act mandates a swift transition to owner control.
The developer must convene the first JMB annual general meeting within twelve (12) months of delivering vacant possession of the first parcel. At that meeting:
See how meetings and elections work in our strata AGM guide →.
A proper handover is more than just unlocking the management office. The developer must transfer the following to the JMB:
| Aspect | Developer management phase | After JMB formed |
|---|---|---|
| Who decides | Developer unilaterally | Elected committee of owners |
| Owner input | Minimal | Owners vote at AGM/EGM |
| Charge-setting | Developer sets the rate | Budget-led, approved at meeting |
| Contractor appointments | Developer chooses | Committee process + quotes |
| Accountability | Developer to owners (limited) | Committee accountable at every AGM |
| Accounts | Developer maintains | JMB maintains, audited annually |
A developer that fails to convene the first AGM on time, or to hand over properly, is in breach of the Act and commits an offence. Owners can press the Commissioner of Buildings (COB) to step in — the COB can direct the developer, and in some cases convene the meeting or appoint a managing agent.
In practice, delay is common. Owners who are nearing the 12-month mark should:
The COB is the local-authority regulator for strata management. If the developer stalls the handover or mismanages the maintenance account, lodge a complaint — see strata management complaints →.
The JMB takes over management: collecting charges →, maintaining common property, enforcing by-laws →, and deciding whether to self-manage or appoint a managing agent →.
In the first few months, the committee should verify the handover documents, confirm the maintenance and sinking-fund balances, and check that all statutory certificates are current. Any common-property defects from the developer should also be claimed within the defect liability period — see common-property defect claims →.
| Mistake | Impact | What to do instead |
|---|---|---|
| Accepting handover without checking accounts | Missing funds, unexplained expenditure | Demand audited statements before signing |
| Not claiming common-property defects | Developer liability lapses | Inspect and claim in writing within the DLP |
| No full asset inventory | Equipment disputes, missing items | Insist on a signed inventory list at handover |
| Not getting keys and access codes | Unable to manage common areas | Checklist every access device and code |
The JMB is interim. Once strata titles → are issued, the Management Corporation (MC) → automatically comes into being and the JMB hands over to it. The same handover discipline applies: the JMB must pass accounts, records, and assets to the MC intact.
After completing the handover, the JMB committee should hold an early committee meeting to assign responsibilities, open or verify the scheme’s bank accounts, and prioritise any urgent maintenance or defect matters. Getting the records in order in the first month makes everything thereafter easier — and protects the committee against accusations from owners about the state of the building at handover.
This guide cites Malaysian legislation and official bodies. Always confirm current rates and rules with the official source:
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