Tag Archives: Association of Management Corporations

Building laws need larger scope

I read with interest the report “‘Proxy wars’ in condos” (June 11).

As many Singaporeans now reside in strata title homes, including those hived off from public housing, it is timely that the Building and Construction Authority (BCA) is reviewing the Building Maintenance and Strata Management Act. This should include enlarging the scope of duties carried out by the Strata Titles Board.

For a start, it should hear cases between management councils and developers, besides hearing only cases between residents and councils.

This would free the courts for major cases that would develop the legal fraternity and Singapore as an arbitration hub, rather than be constrained by such domestic issues.

Before a development is allowed, architects are required to seek approval from the BCA. In turn, it requires the building plans to be submitted to the Fire Safety Bureau, the sewerage and drainage departments and other authorities for approval of aspects of building design of which the BCA is not the sole authority.

As the coordinating body for the final approval of building works, it could thus intervene to get sub-standard works rectified before a Temporary Occupation Permit is issued.

If ancillary works, such as swimming pools, tennis and squash courts, car park wash bays, gymnasiums and playgrounds could be sanctioned, then arbitration, if any, would be kept to a minimum.

Ancillary works that are often defective are found mostly in common areas that do not require the BCA’s approval. This is where home owners are at the short end of the stick.

Management councils now use the maintenance fund to obtain legal redress against developers that provide these sub-standard works.

This could be made unnecessary by requiring developers to obtain approval for ancillary works, too.

It is time-consuming, costly and not right to use maintenance funds to seek legal redress.

from Gilbert Tan Hee Khian

Source : Today – 2012 Jun 18


Agents and developers preying on elderly residents for control of their voting rights

At one condominium in Ang Mo Kio, the developer, which also owned units in the property, seized control of the management council and tried – albeit unsuccessfully – to push through a collective sale as well as a proposal to build a covered car park using the maintenance and sinking funds.

At another development in Simei, property agents infiltrated its management council and then transacted several units, with residents suspecting they did so by accessing their personal data or leasing information.

Such “proxy wars” have been waged for years at condos across the island: Home owners who are also property agents or developers allegedly coerce or harass other residents for proxies in a bid to seize majority voting power, get themselves elected into the management council and ultimately make decisions to their benefit.

Association of Management Corporations chief executive Francis Zhan told TODAY: “The whole idea is to get into the management office, copy down residents’ information and contacts, which will help (property agents) in their daily work of selling property. It’s a simple opportunity for those without many contacts.”

He added: “The agents target seniors who are … not so well-educated. They coerce them, harass them … to get them to sign the (proxy) forms.”

Mr Zhan noted there is also the risk of property agents sitting on management councils appointing either themselves or their affiliates as managing agents for the developments.

Last month, condo resident Tan Chuan Poh wrote in to this newspaper to voice his concern at such tactics. He described how a property agent who lived at his condo collected more than 50 proxy votes from owners who could not attend the AGM and voted in three property agent associates and a client, before making himself the chairman of the management council.

The Building and Construction Authority (BCA) is reviewing the Building Maintenance and Strata Management Act, including the use of proxies at annual general meetings, its spokesperson said in response to TODAY’s queries. The review is undergoing public consultation till the end of this month. It is expected to be completed by the end of the year.

Mr Zhan and property agents TODAY spoke to suggested that the authorities disallow the use of proxies for the election of council members.

Mr Tan also proposed banning property agents from holding key appointments on a management council. However, property agent Daniel Ong pointed out: “If it’s a lawyer, insurance agent or a salesman, do you stop them? It does not matter who the person is, we all do what is necessary to survive as long as it does not break the law.”

Ms J Lim is a property agent who also chairs the management council of her condo in the Novena area.

She makes it a point to stay out of matters involving sales of units at her condo. She also tells her husband, who is an engineer, not to get involved or to provide quotations for building inspections.

She noted that the impending introduction of the Personal Data Protection Act will address concerns about potential misuse of personal information.

Ms Lim told TODAY: “It is not all bad, as the experience I have comes in useful at times. The other members will ask me for my advice when it comes to doing things that may affect the valuation of the building … it is about how open you are.”

The BCA spokesperson reiterated that all condo management council members who have direct or indirect interests in any matters or contracts should declare the nature of this interest and abstain from any discussion or voting.

On the issue, Council for Estate Agencies (CEA) Deputy Director (licensing) Yeap Soon Teck warned that property agents “should not take advantage of their position and influence (in the management council) to benefit their estate agency work.”

Also, under CEA’s Code of Ethics and Professional Client Care, salespersons “must not use threatening or harassing tactics or apply unreasonable pressure on any person to get themselves elected (to the management council), and bring discredit or disrepute to the real estate agency industry.” The CEA will look into complaints and property agents who are found guilty of breaching the code could be fined, or have their licences revoked or suspended, Mr Yeap said.

Source : Today – 2012 Jun 11