Singapore legislation

Section 49

of Building Maintenance and Strata Management Act 2004

Section 49

Restrictions on management corporation’s powers during initial period

(1)

Despite any other provision of this Act, a management corporation constituted in respect of any strata title plan must not, during its initial period —

(a)

amend, add to or revoke the by-laws in a manner that confers a right or imposes an obligation on one or more, but not all, subsidiary proprietors or in respect of one or more, but not all, lots in that strata title plan;

(b)

alter any common property forming part of the parcel comprised in that strata title plan or erect any structure on the common property;

(c)

grant an easement or a restrictive covenant burdening the parcel;

(d)

execute a transfer of any part of the common property under section 34 or confer on any person the exclusive right to use and enjoy the common property;

(e)

make any contract which confers upon any person the right to use, occupy, control or manage any part of the common property for a period extending beyond the expiry of the initial period;

(f)

borrow moneys or give securities; or

(g)

appoint a managing agent to hold office as such for a period extending beyond the expiry of the initial period,unless the doing of that thing is authorised under section 50 or 51.

(2)

Any contract made by a management corporation constituted in respect of a strata title plan during its initial period, being a contract for the supply of services relating to the maintenance of any part of a parcel comprised in the strata title plan, is deemed to contain a provision therein that the contract may be terminated immediately by written notice given by the management corporation to the other party thereto without payment of any damage, fee or other compensation.

(3)

Without affecting any other remedy available against the owner developer of a development comprised in a strata title plan, if a management corporation constituted in respect of that strata title plan contravenes subsection (1) —

(a)

the owner developer shall be liable for any loss suffered by the management corporation or any subsidiary proprietor as a result of the contravention; or

(b)

the management corporation or any subsidiary proprietor may recover from the owner developer, as damages for breach of statutory duty, any loss suffered by the management corporation or subsidiary proprietor,unless —

(c)

the contravention occurred without the knowledge of the owner developer;

(d)

the owner developer was not in a position to influence the conduct of the management corporation in relation to the contravention; and

(e)

the owner developer, being in such a position, used all due diligence to prevent the contravention.