Buildings and Common Property (Maintenance and Management) (Amendment) Bill

Bill No. 17/1982

Read the first time on 27th July 1982.
An Act to amend the Buildings and Common Property (Maintenance and Management) Act, 1973 (No. 23 of 1973).
Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows: —
Short title and commencement
1.  This Act may be cited as the Buildings and Common Property (Maintenance and Management) (Amendment) Act, 1982, and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.
Amendment of section 2
2.  Section 2 of the Buildings and Common Property (Maintenance and Management) Act, 1973 (referred to in this Act as the principal Act) is amended —
(a)by deleting the definition of “common property” and substituting the following definitions: —
“ “common property”  —
(a)in relation to any building comprised in any strata title plan, shall have the meaning assigned to it in the Land Titles (Strata) Act (Cap. 277);
(b)in relation to any land where planning permission has been granted for its development and intended strata division after the completion of any building or part thereof on the land, means any part of the building not comprised in any flat and the fixtures and fittings (including lifts), refuse chutes, refuse bin compounds, drains, sewers, pipes, wires, cables and ducts, the exterior of all common parts of the building, playing fields, driveways, car parks, open spaces, landscaped areas, walls and fences and all other facilities and installations used or capable of being used or enjoyed in common by all the occupiers of the building; and
(c)in relation to any other land where one or more buildings are erected thereon, includes fixtures and fittings (including lifts), refuse chutes, refuse bin compounds, drains, sewers, pipes, wires, cables and ducts, the exterior of all common parts of the building, playing fields, driveways, car parks, open spaces, landscaped areas, walls and fences and all other facilities and installations used or capable of being used or enjoyed in common by all the occupiers of the building;
“developer” means any person who has obtained the approval of the competent authority to develop any land pursuant to section 9 of the Planning Act (Cap. 279) and includes his executors, administrators and successors in title or assigns;
“development” means any land on which any building is constructed or is in the course of construction;
“flat” means a horizontal stratum of any building or part thereof, whether such stratum is on one or more levels or is partially or wholly below the surface of the ground, which is used or intended to be used as a complete and separate unit for the purpose of habitation or business or for any other purpose;
“maintenance fund” means the maintenance fund for a development established by a developer pursuant to section 7A;”;
(b)by deleting the words “section 21” in the definition of “owner” and substituting the words “section 31”; and
(c)by inserting, immediately after the definition of “owner”, the following definition: —
“ “stratum” means any part of land consisting of a space of any shape below, on or above the surface of the land, or partly below and partly above the surface of the land, the dimensions of which are delineated.”.
Repeal of section 6B
3.  Section 6B of the principal Act is repealed.
New sections 7A to 7K
4.  The principal Act is amended by inserting, immediately after section 7, the following sections: —
“Developer to establish maintenance fund
7A.—(1)  Subject to this section, the developer of a development to which this section applies shall, with effect from the date when a temporary occupation licence is issued by the competent authority in respect of any flat in the development or such other subsequent date when this section applies to the development, establish a maintenance fund for the development which shall be used solely and exclusively for all or any of the following purposes: —
(a)to maintain the common property of the development in a state of good repair;
(b)to pay for the expenses incurred in providing cleaning services for the common property and security services and amenities for the occupiers of the flats in the development;
(c)to maintain, repair and renew fixtures and fittings (including lifts) in the development not being fixtures and fittings installed in a flat sold or intended for sale to a purchaser;
(d)to maintain, repair and renew sewers, pipes, wires, cables and ducts used or capable of being used in connection with the enjoyment of two or more flats in, or the common property of, the development;
(e)to pay any premiums for the insurance of the development against damage by fire and other risks;
(f)to pay rent and rates (if any);
(g)to pay any fee incurred for the auditing of the maintenance fund;
(h)all charges reasonably incurred for the administration of the maintenance fund and the common property of the development.
(2)  This section shall apply to a development where —
(a)planning permission has been granted for the intended strata subdivision after the completion of any building or part thereof;
(b)more than four units of flats have been constructed; and
(c)the flats in the development have been sold to more than two purchasers.
(3)  For the purposes of this section, a developer is deemed to have sold a flat —
(a)if, by an agreement in writing, he has agreed to convey, transfer, assign or otherwise dispose of his estate or interest in the flat to another person for valuable consideration or otherwise; or
(b)if, by any deed or instrument, he has conveyed, assigned or otherwise disposed of the flat,
except that paragraphs (a) and (b) shall not apply to an agreement in writing or any deed or instrument to grant or assign a leashold term not exceeding twenty-one years without the option of renewal or purchase.
(4)  Where temporary occupation licences have been issued for any flats in a development at any time prior to the commencement of the Buildings and Common Property (Maintenance and Management) (Amendment) Act, 1982, the developer shall establish a maintenance fund for that development with effect from such date as the Minister may, by notification in the Gazette, appoint.
(5)  The Minister may, by notification in the Gazette, exempt any person from this section.
Duties of the developer
7B.—(1)  A developer shall pay into the maintenance fund —
(a)all charges received by him from the purchasers of the flats in the development for the maintenance of the common property of the development;
(b)in respect of those flats in the development which have not been sold and have temporary occupation licences issued by the competent authority, a sum equivalent to the maintenance charges payable by the purchasers of the flats to the developer had the flats been sold; and
(c)all income derived from the common property of the development.
(2)  A developer shall hold all monies in the maintenance fund on trust for the owners and purchasers of all the flats in the development.
(3)  The monies in the maintenance fund shall be deposited with any bank licensed under the Banking Act (Cap. 182) or the Post Office Savings Bank of Singapore and may be invested in such investments or securities as are for the time being authorised for the investment of trust funds.
(4)  Where a management corporation for the development has been constituted in accordance with section 28 of the Land Titles (Strata) Act (Cap. 277), the surplus monies in the maintenance fund after payment of all the expenditure which may be properly charged to the maintenance fund shall be transferred to the management corporation.
(5)  The developer shall —
(a)cause proper books of accounts to be kept in respect of all sums of money received for and all payments out of the maintenance fund, specifying the matters in relation to which the receipts and expenditure take place;
(b)appoint an auditor to audit the maintenance fund annually;
(c)file with the Commissioner a certified true copy of the audited accounts within twenty-eight days of the accounts being audited;
(d)permit the Commissioner or any person authorised by him to act on his behalf at all reasonable times full and free access to accounting and other records of the maintenance fund and permit the Commissioner or such person to make copies or make extracts from any such accounting or other records; and
(e)furnish a certified true copy of the accounts to the Commissioner at such intervals as may be required by the Commissioner.
(6)  A developer who contravenes this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten thousand dollars and to a further fine not exceeding one hundred dollars for every day during which the offence is continued after conviction.
Register of purchasers
7C.—(1)  A developer shall maintain a register in such form as the Commissioner may require containing the following particulars in respect of all the flats in his development: —
(a)the proposed share value to be assigned to each flat shown in the schedule of strata units filed with the Commissioner under section 7 of the Land Titles (Strata) Act (Cap. 277);
(b)the floor area of the flat;
(c)the name and address of the purchaser of the flat and if the purchaser is not a resident of Singapore, an address in Singapore to which notices may be served on the purchaser; and
(d)the name and address of the solicitors acting for the purchaser of the flat in the sale and purchase of the flat.
(2)  A developer shall, within fourteen days of a request being made by the Commissioner, forward to the Commissioner a true copy of the register referred to in subsection (1).
(3)  The Commissioner or any of his officers may require a developer to produce for his inspection the register maintained by him under subsection (1).
(4)  Any person who fails to comply with subsection (1) or (2) or fails to produce the register maintained under subsection (1) for the inspection of the Commissioner or any of his officers shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one thousand dollars and to a further fine not exceeding one hundred dollars for every day during which the offence is continued after conviction.
Commissioner may appoint a managing agent for a development
7D.—(1)  If the Commissioner is satisfied that, after due inquiry by him or a person appointed by him, the management and maintenance of a development is not carried out satisfactorily by the developer, the Commissioner may, by order published in the Gazette, appoint one or more persons (hereinafter in this Act referred to as a managing agent) to manage and maintain the development.
(2)  A managing agent appointed by the Commissioner under subsection (1) to manage and maintain a development shall be entitled to be paid such remuneration or fees as may be determined by the Commissioner and such remuneration or fee shall be charged to the maintenance fund of the development.
(3)  The Commissioner shall not exercise his powers under this section unless he has given not less than fourteen days’ notice in writing to the developer specifying his intention to appoint a managing agent for his development and to consider the representations, if any, made by the developer within fourteen days of the date of service of the notice.
(4)  Any person aggrieved by an order made by the Commissioner under this section may appeal to the Minister within three months of the date of the publication in the Gazette of the order and the decision of the Minister shall be final and shall not be subject to review in any court.
(5)  An order made by the Commissioner under subsection (1) shall have effect notwithstanding that an appeal has been made to the Minister.
(6)  The Commissioner may at any time revoke any appointment made under subsection (1) and appoint another person as managing agent for a development.
Powers and duties of managing agent
7E.—(1)  Where a managing agent has been appointed by the Commissioner under section 7D, the managing agent shall have control over the monies in the maintenance fund of the development and take into his custody and under his control all the investments or securities which have been made or purchased with the monies in the maintenance fund.
(2)  No monies shall be paid out of the maintenance fund without the authority of the managing agent after his appointment.
(3)  Subject to the general control and direction of the Commissioner, the managing agent appointed under section 7D shall have all the powers and duties of a developer as regards the management and maintenance of the development.
(4)  Without prejudice to the generality of subsection (3), a managing agent appointed by the Commissioner shall have the power —
(a)to manage the maintenance fund of a development;
(b)to issue any written demand in the name of the developer to the purchasers of flats in the development for the payment of maintenance charges due from them;
(c)to receive all charges payable to the developer by purchasers of flats in the development for the maintenance of the common property of the development and to give a valid discharge therefor;
(d)to receive all charges payable by the developer to the maintenance fund in respect of those flats which have not been sold for the maintenance of the development and for which temporary occupation licences have been issued by the competent authority;
(e)to institute proceedings in the name of the developer to recover maintenance charges payable by the purchasers of the flats in the development; and
(f)to bring any action in his own name to recover monies due to the maintenance fund from the developer or any other person.
(5)  It shall be the duty of a managing agent to pay all monies received by him in his capacity as managing agent for a development into the maintenance fund of the development.
(6)  As soon as practicable after his appointment, but in any case not later than two months after his appointment, a managing agent shall prepare and submit to the Commissioner a statement showing as at the date of his appointment —
(a)the monies standing to the credit of the maintenance fund;
(b)the investments and securities which have been made or purchased with the monies in the maintenance fund;
(c)the amounts due and owing by the purchasers of the flats in the development as charges payable for the maintenance of the common property of the development;
(d)any income derived from the common property of the development which are due to be paid to the maintenance fund; and
(e)any expenditure incurred for the maintenance for the development which is authorised by section 7A to be paid out of the maintenance fund and which remains unpaid.
(7)  A managing agent who contravenes subsection (5) or (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five thousand dollars.
Developer not to be relieved of his obligations to carry out repairs, etc.
7F.  The appointment of a managing agent to manage the maintenance fund of a development shall not relieve the developer of his obligation —
(a)towards the purchasers of the flats in his development to carry out repairs to the common property of the development to make good any defect, shrinkage or other faults in the common property of the development;
(b)to carry out repairs and varied and additional works to ensure that the development is constructed in accordance with the specifications and plans approved by the competent authority; and
(c)to carry out repairs and varied and additional works to comply with the requirements of any local or Government authority prior to the issue of the certificate of fitness for the development.
Managing agent to lodge bond
7G.  A person shall not act as managing agent for a development unless he has lodged with the Commissioner a bond in the form approved by the Commissioner and for the prescribed amount given by a bank, finance company or insurer and which binds the bank, finance company or insurer to make good any loss caused by the managing agent as a result of his failure duly to account to the purchasers of a development for moneys received or held by him.
Developer to pay deposit
7H.—(1)  The developer of a building comprising more than four flats, which is a building intended for strata subdivision after its completion, shall deposit in cash with the Commissioner such sum as may be prescribed by the Minister.
(2)  The Commissioner may accept in lieu of cash an undertaking from a bank or finance company to pay the full amount or part thereof.
(3)  The deposit referred to in subsection (1) shall be paid to the Commissioner prior to the issue of the temporary occupation licence by the competent authority for any flat in the development.
(4)  The Commissioner may use the deposit for the purpose of carrying out any work which, in his opinion, is necessary to rectify any defects in the common property of the development.
(5)  Where the Commissioner has used the deposit or part thereof for the purpose of carrying out any work referred to in subsection (4), the Commissioner may direct the developer to deposit within twenty-one days such further sums as the Commissioner may determine in order to ensure that the developer maintains a deposit with the Commissioner of such an amount as may be prescribed by the Minister.
(6)  The deposit or the balance thereof shall be refunded to the developer on the expiry of three years from the date of the last certificate of fitness issued by the competent authority for any flat in the development.
(7)  Any developer who fails to comply with a direction issued by the Commissioner under subsection (5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding ten thousand dollars and to a further fine not exceeding one hundred dollars for every day during which the offence is continued after conviction.
(8)  The Minister may exempt any statutory body or any other person from this section.
(9)  This section shall apply to any building erected before, on or after the commencement of the Buildings and Common Property (Maintenance and Management) (Amendment) Act, 1982.
Deposit paid under existing rules
7I.—(1)  Where a developer has paid a deposit to the Commissioner pursuant to rule 6(2) of the Buildings and Common Property (Maintenance and Management) Rules, 1974 (G.N. No. S 25/74) at any time prior to the commencement of the Buildings and Common Property (Maintenance and Management) (Amendment) Act, 1982, the deposit shall be deemed to have been paid under section 7H save that subsection (6) of that section shall not apply to the deposit.
(2)  The deposit referred to in subsection (1) shall —
(a)in the case of a development to which the Land Titles (Strata) Act (Cap. 277) applies, be transferred to the management fund of the management corporation constituted under section 28 of the Land Titles (Strata) Act, in respect of that development within one year of the date of the first general meeting of the management corporation; and
(b)in the case of any development to which the Land Titles (Strata) Act does not apply, be refunded to the developer on the expiry of three years from the date of the last certificate of fitness issued by the competent authority for any flat in the development.
Purchaser who fails to pay maintenance fees
7J.—(1)  Where fees for the maintenance of the common property of a development are payable by the purchaser of a flat in a development to a developer under the terms of a contract for the sale and purchase of the flat, the purchaser of the flat shall be guilty of an offence if without any reasonable excuse he fails or refuses to pay the maintenance fees within twenty-eight days of the date of receipt of a written demand from the developer and shall be liable on conviction to a fine not exceeding five thousand dollars and to a further fine not exceeding fifty dollars for every day during which the maintenance fees remain unpaid after conviction.
(2)  For the purposes of this section, a written demand sent by a developer to a purchaser shall be deemed to have been received by the purchaser of a flat (whether it is actually delivered or not) if it is sent by registered post to the purchaser at his last known address.
(3)  Where a managing agent has been appointed by the Commissioner under section 7D to manage and maintain a development, a notice sent by the managing agent shall be deemed to have been sent by the developer.
Liability of directors, etc.
7K.  Where an offence under this Act or the rules made thereunder is committed by a corporation or other body corporate and the offence is proved to have been committed with the consent or connivance of, or to have been facilitated by any neglect on the part of, any director, chairman, manager, secretary or other officer of the corporation or other body corporate, he, as well as the body corporate, shall be guilty of the offence and shall be liable to be punished accordingly.”.
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