Strata Management Act 2013
Explained

General guidance for 2026 — not legal advice. Strata management is governed by the Strata Management Act 2013; for disputes consult your COB or a lawyer. Renovating a strata unit? Ask us →

Malaysia has a huge stratified-property population — condos, apartments, serviced residences and gated communities. The Strata Management Act 2013 (SMA), in force since 1 June 2015, is the master law for how these shared properties are managed, funded and governed. (Sabah and Sarawak have their own separate laws.)

What the Act covers

• Who manages the building at each stage, and their powers and duties.
• Mandatory maintenance charges and sinking fund, based on share units.
• By-laws (house rules) and how additional ones are made.
• General meetings (AGM/EGM), the management committee and voting.
• The Commissioner of Buildings (COB) oversight role.
• The Strata Management Tribunal for resolving disputes.
• Insurance obligations for the building.
• Transition of management from developer to JMB and from JMB to MC.

The three management phases

Every strata development passes through three phases. Understanding which phase your building is in tells you who to pay charges to, who to seek approval from, and who to hold accountable.

See the full comparison in our JMB vs MC guide →.

Comparing the phases: powers and duties

Maintenance charges & sinking fund

Every owner must pay a maintenance (service) charge for day-to-day running of common areas, plus a sinking fund for major future works — both apportioned by share units. The sinking fund is typically contributed at around 10% of the maintenance charge. Failure to pay triggers late interest and can lead to Tribunal proceedings. Details in our maintenance fee & sinking fund guide →.

By-laws (house rules)

The SMA prescribes standard by-laws (in the Third Schedule of the Strata Management Regulations 2015) covering renovation, noise, common property, pets, parking and more. The management can also make additional by-laws by special resolution at a general meeting, filed with the COB. These bind all owners and tenants — see how they shape renovations in our strata by-laws guide →.

The Commissioner of Buildings (COB)

Each local authority appoints a COB who oversees strata management within its area. The COB’s roles under the Act include:

• Receiving by-laws filed by JMBs and MCs.
• Investigating complaints from owners about management failures.
• Authorising certain enforcement actions, including seizure of movable property for arrears.
• Stepping in when a management body fails to perform its duties.

The COB is a key check on both developers and management bodies. For major disputes, the next step is the Tribunal.

Disputes & the Strata Management Tribunal

The Act created the Strata Management Tribunal to resolve disputes — charge recovery, repairs, by-law breaches — cheaply and without lawyers, for claims up to RM250,000. Awards are binding and enforceable like court orders. See our Tribunal guide →.

Enforcement & penalties

The SMA has real teeth. Key enforcement provisions include:

• Owners in arrears lose their right to vote and stand for the committee.
• Management can recover arrears with late interest via the Tribunal or court.
• Developers who fail to convene the JMB AGM in time commit an offence.
• Management bodies that fail in their insurance or maintenance duties can be sanctioned.
• The COB can take over management if a body fails its statutory duties.

Practical checklist for owners

Whether you are a new buyer or a long-term owner, the SMA affects your daily property life. Use this checklist:

• Find out which phase your building is in — developer, JMB, or MC. Call the management office.
• Check your strata title status — has it been issued? Has it been transferred to you? See strata title guide →.
• Know your share units — they determine your charge and voting weight. Check your title or schedule of parcels. See share units guide →.
• Attend the AGM every year — approve the budget, vote on the committee, raise issues. Your vote matters, especially on a poll weighted by share units.
• Pay charges on time — to preserve voting rights and avoid interest and Tribunal proceedings. Set up an auto-payment or standing instruction.
• Get renovation approval in writing — from the current management body before any works begin. Keep the approval letter on file.
• Know your by-laws — ask the management for a copy of the prescribed and any additional by-laws that apply to your building.

What it means for you

• You must pay your charges and sinking fund — arrears have real consequences including lost voting rights and Tribunal proceedings.
• You can vote at meetings and stand for the committee — votes are by show of hands or, on a poll, weighted by share units.
• Renovations need management approval and must follow the prescribed and additional by-laws of your scheme.
• You have a clear route (COB first, then Tribunal) if management fails in its duties — you do not have to suffer in silence.
• Your rights and obligations as an owner exist from the moment you take vacant possession, regardless of whether strata titles have been issued.

Renovating a strata unit? We handle the management paperwork and by-law compliance — see condo renovation cost →.