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The Management Corporation Strata Title (MCST) is the entity that manages strata-titled property like a condominium (commonly abbreviated as “condo”). This entity is also referred to as the Management Corporation (MC), and it is primarily responsible for managing the common areas of the property, which are detailed below. 

Upon registration of the strata title application, the MC is automatically created, and is made up of all Subsidiary Proprietors (SPs) or owners of units in the condo. 

A Management Council represents the MC and is made up of a representative group of elected members of the SPs or their appointed nominees. The council’s job is to take responsibility for the condo’s day-to-day management with new members being elected every year at the Annual General Meeting.  

The MC is set up as a corporation, which means that it can file lawsuits and/or be sued on any of the following matters:

• Any contracts that the MC enters into;
• Issues involving common areas, including areas of the building or land that more than one SP has access to and enjoys. For example, the parking area or the central air conditioning system;
• Any damages or losses the MC suffers resulting from contracts or other issues; or
• Issues involving the condo’s land in which the SPs have joint liability. 

Table of Contents

Condominium Management Duties of the MC

Maintenance Duties of an SP

Which Laws Govern the Management of Condominium?

When By-Laws are Breached

When MCs and SPs Have a Dispute

How Are Disputes Resolved Between SPs and the MC?

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Condominium Management Duties of the MC

The most important responsibilities of an MC are as follows: 

• Administer, control and manage the common areas for the enjoyment of all SPs;
• Ensure that the common areas are continually maintained;
• Make sure the property is fully insured as required by law; and
• Fulfil the requirements of any special resolutions that are passed in order to improve the common areas. For example, remove, replace, or install a facility or amenity located in a common area of the property. 

Maintenance Duties of an SP

SPs are responsible for carrying out certain duties related to the condo, as follows: 

1. Contribute financially to maintenance

Most importantly, SPs are responsible for making financial contributions to keep the common areas of the development maintained. The money may go to the following: 

• Management Fund: pays for the condo’s daily expenses; and
• Sinking Fund: saved for future expenditures and capital improvements that include the repair and/or refurbishing of common areas when needed. 

How much each SP contributes is up to the MC. If an SP is more than 30 days late paying his/her contribution, the MC can have a written demand served on the SP to ensure payment of the unpaid contribution plus interest as an unpaid debt.

If after 14 days of being served the written demand, the SP still hasn’t paid, the SP would additionally be liable for an offence that comes with a fine of up to S$10,000. At that point the MC may file a claim with the Small Claims Tribunal or the court to recover the SP’s unpaid contribution. 

Otherwise, the MC could register the amount of the unpaid contribution as a charge against the SP’s unit. This gives the MC the right to sell unit after the following: 

• The MC passes a special resolution;
• Certain approved newspapers publish a notice of intended sale; 
• Six weeks have passed from the publication date and a payment still has not been made for the unpaid contribution; and
• No legal action has been taken in court to prevent the MC from putting the unit up for sale. 

2. Maintain the external features of their unit

SPs are also supposed to keep the exterior of their units maintained by making sure that the features don’t become loose or collapse. These features are as follows: 

• Air-conditioning unit;
• Windows, screens;
• Shutters or grilles;
• Brackets, claddings, cornices, curtain walls, siding, plaster, tiles; 
• Rainwater drainage-pipes, gutters;
• Sunshades, and
• Other permanently installed features on the exterior and roof of the building.

If SPs fail to maintain their exterior features without justification, they may be charged with a $10,000 fine and/or face imprisonment for up to a year. 

3. Obey maintenance notices from public authorities

SPs must also obey any notices served on them by public authorities with regard to maintaining their unit. 

If the notice is not complied with, the MC may have that work done and charge the SP with the costs associated with that work. 

4. Other responsibilities

SPs also have other responsibilities as follows: 

• To not make any alterations to their unit that would impact the shelter, sewage, support, utilities supply, or water of other units;
• To not to cause a hazard or be a nuisance to the occupants of any other units; 
• To not keep the other unit occupants or owners from peacefully enjoying the common property and/or their own unit; and
• Should there be an inter-floor leak, the presumption is that the leak came from the upper unit unless shown to be otherwise. The owner of the upper unit has a responsibility to repair the leak. 

Which Laws Govern the Management of Condominium?

Compulsory By-laws

SPs must comply with the compulsory by-laws that make up the regulations set forth by the Minister for National Development. These by-laws impact the following: 

• Damage to or the altering of common property
• Damage to landscapes, including trees, lawn, bushes, and other plants
• Blocking or obstructing common property
• Vehicle parking
• Noise levels
• Behaviour of owners, residents, and guests
• Children using common property as a playground
• Laundry drying 
• Disposing of unwanted items and/or trash on common property
• Window cleaning
• Keeping of pets
• Disposing of garbage
• Flammable liquids storage
• Fire prevention 
• Prevention of other hazards
• Control of how facilities are being used
• Proper lot usage
• Proper lot maintenance
• Changes to uses of lot
• Provisions related to services and amenities

These by-laws are for the purpose of regulating the behaviour of SPs, occupants and/or their visitors. In this manner, other SPs are allowed to enjoy the common area facilities, along with the quiet peacefulness and safety of their own unit. 

Additional By-Laws

MCs have the power to mandate additional by-laws having to do with the following categories: 

• Safety and security
• Vehicle parking
• Owning of pets
• Details of any restricted-use common property
• Behaviour
• Flooring and carpeting
• Disposal of garbage
• Guidelines for architecture and landscaping for all SPs
• Other issues that are suitable for the type of strata scheme involved. 

Additional by-laws take a back seat to compulsory by-laws. Therefore, any additional by-laws cannot conflict with compulsory by-laws. If they do, they may be repealed. 

The MC has sweeping powers to make additional by-laws. In fact, the MC may mandate additional by-laws that are even more strict than compulsory by-laws, just so they don’t conflict with them. 

The MC must pass a special resolution for every additional by-law, which requires a minimum of 21 days’ notice before it can be passed. It also needs to be supported by SPs owning at least 75% of the value of the condominium.  

Additional by-laws that the MC passes can only go into effect after a certified true copy of them, under the MC’s seal, is lodged within 45 days with the Commissioner of Buildings once the resolution has been passed.

When By-Laws are Breached

When one or more by-laws are breached, an SP of a unit or the MC may apply for an order of relief from the court from the unit owner causing the breach. 

The court may end up granting the following: 

• Order the unit owner to rectify the breach; 
• Order the unit owner to stop breaching the by-law(s); or
• Order for damages to be recovered for any injuries or losses to someone or property resulting from the breach. 

An MC’s Powers Regarding Breaches of By-Laws

In general, MCs do not have the power to levy fines or demand forfeiture of deposits paid for reserving facilities. For example, if a unit owner pays a deposit to reserve a function room, but in using the facility he/she breaches the noise by-law by being too loud, the MC has no right to confiscate the unit owner’s deposit.  

On the other hand, MCs are allowed to recover admin fees if costs are incurred resulting from the breach of by-laws. If the unit owner in the above example threw a party in the function room and ended up damaging the furniture, the MC is allowed to recover from him/her the costs associated with repairing or replacing the common furniture. 

Also, MCs are allowed to charge residents wheel clamp release fees when they breach vehicle parking by-law(s) and a clamp gets attached to the vehicle’s wheel. This is to recover the cost of releasing the wheel clamps. 

However, MCs are not allowed to keep unit owners from reserving and enjoying the condo’s facilities even if he/she has continually breached the by-laws. The only way around this is for the MC to apply for and get a court to issue an order for this, as discussed above.

It is important that MCs be impartial when it comes to enforcing by-laws. They must enforce the by-laws equally across all residents. For example, the MC is not allowed to ask just one SP to remove their personal items from a common area, while letting other SPs keep their belongings in common areas. All SPs must be asked to remove their personal items from all common areas. 

When MCs and SPs Have a Dispute

Because MCs and SPs have so many duties individually and collectively, disputes are bound to arise between them. The most common disputes that arise between MCs and SPs are as follows: 

• Leaks between floors;
• Neglecting duties required under the by-laws;
• Vehicle parking problems;
• Validity of the MC’s resolutions;
• Validity of specific by-laws; 
• Unit owners objecting to alterations made in the common area(s); and
• When the MC asks a unit owner to take care of particular renovations. 

How Are Disputes Resolved Between SPs and the MC?

1. Try negotiating with the MC

As a first step, the SP should try negotiating with the MC to see if they can come to an agreeable resolution. This is the least expensive tactic since no professionals or outside parties need to be involved, making this relatively informal.

2. Try mediation

If negotiations fail to resolve the issue, mediation is the next logical step. The mediator would be a neutral independent third party. Typically, mediators are not the ones who ultimately decide the issue. Their role is to facilitate a discussion between the disputing parties, hoping they will come to a resolution. 

The two main mediation bodies that assign mediators are as follows: 

• Singapore Mediation Centre (SMC); and
• Community Mediation Centre (CMC).

The disputing parties would want to bring all the documents pertaining to the dispute, in order to have them for reference during the session. 

3. Apply to the Strata Titles Board (STB)

If all else fails, you may have no choice but to file an application with the STB. But not all disputes qualify for a referral to the STB. The STB does have the power to decide on certain issues, as follows: 

• Disputes involving the cost of repairs or to resolve a complaint regarding a defective lot, the common area, and/or a subdivided building 
• Assembling a meeting when the MC is in default 
• Invalidating a supposed by-law that the MC does not have the power to make 
• Changing the interest rate that the MC is using for late contribution payments
• Changing the amount of contributions and/or how they are paid 
• Giving permission to unit owners to change the common area 
• The appointment of a managing agent 

It may be in your best interest to consult with a lawyer on how strong your case is against the MC before filing your application with the STB. 

To start STB proceedings, your application would need to be filed, along with a $500 fee. You would also need to include all supporting documents as evidence.

Once you receive a letter from the STB that they’ve accepted your case, it will be up to you to serve your STB application, along with all supporting evidence on the MC. When that’s done, a date will be set for required mediation between both parties. 

Unlike previous attempts at mediation with the SMC or CMC, the parties to this mediation may ask the Board that the STB has assembled to decide on a resolution of the dispute on their behalf. 

If mediation succeeds, both the SP and MC must sign, acknowledging the terms of the agreement. The terms set forth are final, binding, and can be enforced on the parties. 

On the other hand, if mediation fails to resolve the issue the Board may schedule a date for arbitration. This process involves the STB assigning a panel with the power to decide on a resolution. It is a little less formal than a court proceeding. 

The STB’s arbitrated decision would be final, but you can still appeal the decision to the General Division of the Singapore High Court on arguments concerning legal issue, but that’s all. 

If the ruling from the STB is in your favour, but the MC doesn’t comply and resolve the situation as they are required to do, you may hire a lawyer to file a motion with the District Court to enforce the STB’s orders. Not complying with STB’s order is a serious offence, and the guilty party can be fined up to $10,000 and/or sent to prison for up to five years. 

If you want more details on the STB application process, please visit their website.

4. Take civil action

For matters that the STB has no power to decide, there is always civil litigation. This is when one party files a lawsuit against another party under Singapore’s civil court system.

You need to understand that if you are an MC wanting to sue an SP, the order you seek from the court cannot be disproportionate to the damage suffered. There was a case in October 2019 in which an MC asked the court to order that an SP remove a shoe rack that he/she had placed in a common hallway, which breached a by-law. Even though the court agreed that there was a breach of a by-law, it refused to issue the court order. 

One reason the court rejected the application was due to the fact that granting the court order would be too severe a response to the breached by-law. The court said that the shoe rack posed no inconvenience or risk to anyone walking down the hallway. 

If you want to litigate a dispute, we recommend that you engage a lawyer as this is a formal process that comes with a lot of requirements. Having the advice of an experienced lawyer throughout the process would be extremely helpful. 

If you need legal advice on whether the by-laws of your condo are valid or need legal representation to resolve a dispute with your MC, we can refer you to our partner lawyer experience in dispute between MCST and SP.

Disclaimer: The information provided in this article does not constitute legal advice. We recommend that you get the specific legal advice you need from an experienced attorney prior to taking any legal action. While we try our best to make sure that the information provided on our website is accurate, you take a risk by relying on it. 

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