Section 9
Developer to establish maintenance fund
of Buildings and Common Property (Maintenance and Management) Act
(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 permit is issued by the Commissioner of Building Control 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:
to maintain the common property of the development in a state of good repair;
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;
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;
to maintain, repair and renew sewers, pipes, wires, cables and ducts used or capable of being used in connection with the enjoyment of 2 or more flats in, or the common property of, the development;
to pay any premiums for the insurance of the development against damage by fire and other risks;
to pay rent and rates (if any);
to pay any fee incurred for the auditing of the maintenance fund;
to pay 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 —
planning permission has been granted for the intended strata subdivision after the completion of any building or part thereof;
more than 4 units of flats have been constructed; and
the flats in the development have been sold to more than 2 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
if, by any deed or instrument, he has conveyed, assigned or otherwise disposed of the flat.
(4)
Subsection (3)(a) and (b) shall not apply to an agreement in writing or any deed or instrument to grant or assign a leasehold term not exceeding 21 years without the option of renewal or purchase.
(5)
The Minister may, by notification in the Gazette, exempt any person from this section.