Page 17 - Surveyor 54.3 and 4

Mixed Use Development in Malaysia – Issues for Management

Vol.54 No.3 & 4 2019

3.1. Issues of Mixed Use “Developer must know the whole area “Apply to court is the only way to
Strata Development of development in order for them to appeal for a more equitable share unit.”
start assigning the share units to
One of the issues in the mixed use each and every parcel and provisional - Interviewee 1
strata development is the differences blocks… not many developers would
of components in a mixed use strata have the forecast and the projections “There will be many people to be
development. Each component in of what is going to happen in the considered when making a decision in
a mixed use strata development future.” a strata development.”
has its own specific uses which - Interviewee 2
another component may not be in - Interviewee 2
use of that particular service. Hence, Another issue would be regarding
the apportionment of charges in “The appointed Licensed Land Surveyor the formation of the Limited
accordance to the share units of are not equipped to work out the Common Property and Subsidiary
every parcel prove to be not equitable formulation of share units.” Management Corporation. In
because of the differences of usage - Interviewee 1 the current situation, the Limited
of the different components in a Common Property can only be
mixed use strata development. For However, in the case of existing formed after the formation of the
instance, an apartment which has mixed use strata development or Management Corporation. The
the same numbers of share units as even upcoming mixed use strata root to this part of the provision is
the retail does not necessarily be developments, parcel owners can to actually allow the Management
using similar services. still choose to work out on a new Corporation which is comprised of
formulation of share units which the parcel owners to decide on the
“In a mixed use development of retail they think is equitable, and change boundary of the Limited Common
and residences, retail is equipped with the share unit formulation as fixed Property and subsequently forming
centralised air conditioning, whereas by the developer before handing in the Subsidiary Management
apartments are not equipped with vacant possession. As stated by an Corporation. However, strata experts
centralised air conditioning…” interviewee: have expressed the unreasonable
fact to this provision whereby
- Interviewee 1 “If the development is already in Limited Common Property should be
existence, you can work out according
“There are different responsibilities formed even before the formation of
to be carried out in a mixed use to the weightage factor.” Management Corporation.
development… in a hotel and residential - Interviewee 3
mixed use development, the hotel “Limited Common Property should be
requires a certain type of services “The authority is okay if you use the 4th formed way before the formation of
24 hours, but the residences do not schedule to work out on share units, Management Corporation.”
require that much of services…” but if you think it is not equitable, you - Interviewee 1
can come out with your own proposed
- Interviewee 3 share unit formulation.” “Developer is to decide the creation of
Limited Common Property at the early
Furthermore, the formulation of - Interviewee 1 stages of the development.”
share units is carried out by parties
who are less familiar to a mixed use Nonetheless, coming out with a - Interviewee 2
strata development. The developers new share unit will not be a simple
are less cared about crystallizing task. It involves many steps. All The formation of Limited Common
the whole development and putting parcel owners have to come into Property only after the formation
every single component into details, an agreement to apportion all the of Management Corporation can
hence they are just trying to get expenditure in accordance with the lead to several issues. This is one
things done quickly by appointing adjusted surveyed area. There are of the loopholes to the provision.
a Licensed Land Surveyor without no provisions in the Strata Titles Act The formation of Limited Common
appointing another General Practice 1985 to revise the share units at the Property after the formation of
Surveyor or property manager to get moment. Therefore, the only way Management Corporation is not only
the right and precise formulation of parcel owners can do to change and a matter of costing to re-consult a
share units. revise the share units is to apply to Licensed Land Surveyor, but it also
the court and get a court order. leads to issues of re-designing the

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