acidic.straw
04-12-12, 08:12
The Straits Times
www.straitstimes.comPublished on Dec 04, 2012
BCA on how sinking fund amounts are set
WE THANK Madam Loh Mee Keng for her feedback and suggestions ("Require private estates to work out accurate fees for sinking funds"; Nov 22).
The Building Maintenance and Strata Management Act is a legal framework that encourages self-governance among the various stakeholders of strata-titled properties, such as private condominiums.
This includes the management corporation, management council, unit owners who are also known as subsidiary proprietors, and the managing agent.
The management corporation, which represents all the subsidiary proprietors, has the flexibility to decide on the management and maintenance of the estate, including the level of contribution for sinking funds.
In deciding the level of contribution for the management and sinking funds, the management corporation should:
Review their budget and finances based on the projected expenses both in the short and long term;
Make reference to the warranty period, life cycle and maintenance cost to work out the estimated budget for the various facilities and amenities within their development; and
Seek the advice of a managing agent on such matters.
Before a contribution amount is adopted, the management corporation must table a proposal at a general
meeting and obtain a consensus from the majority of the subsidiary proprietors present.
Similarly, a subsidiary proprietor who has concerns about the way the estate is managed can table a motion at the extraordinary general meeting or annual general meeting.
In short, subsidiary proprietors have an avenue and are entitled to voice their concerns to the management corporation.
Moreover, potential buyers who wish to purchase a unit in a strata-titled development can check the finances of the management corporation by making a request for a copy of the development's financial report.
Lim Chong Yong
Director, Building Management Department
Building and Construction Authority
Copyright © 2012 Singapore Press Holdings. All rights reserved.
www.straitstimes.comPublished on Dec 04, 2012
BCA on how sinking fund amounts are set
WE THANK Madam Loh Mee Keng for her feedback and suggestions ("Require private estates to work out accurate fees for sinking funds"; Nov 22).
The Building Maintenance and Strata Management Act is a legal framework that encourages self-governance among the various stakeholders of strata-titled properties, such as private condominiums.
This includes the management corporation, management council, unit owners who are also known as subsidiary proprietors, and the managing agent.
The management corporation, which represents all the subsidiary proprietors, has the flexibility to decide on the management and maintenance of the estate, including the level of contribution for sinking funds.
In deciding the level of contribution for the management and sinking funds, the management corporation should:
Review their budget and finances based on the projected expenses both in the short and long term;
Make reference to the warranty period, life cycle and maintenance cost to work out the estimated budget for the various facilities and amenities within their development; and
Seek the advice of a managing agent on such matters.
Before a contribution amount is adopted, the management corporation must table a proposal at a general
meeting and obtain a consensus from the majority of the subsidiary proprietors present.
Similarly, a subsidiary proprietor who has concerns about the way the estate is managed can table a motion at the extraordinary general meeting or annual general meeting.
In short, subsidiary proprietors have an avenue and are entitled to voice their concerns to the management corporation.
Moreover, potential buyers who wish to purchase a unit in a strata-titled development can check the finances of the management corporation by making a request for a copy of the development's financial report.
Lim Chong Yong
Director, Building Management Department
Building and Construction Authority
Copyright © 2012 Singapore Press Holdings. All rights reserved.