Strata Management Act 2013 Explained: JMB, MC, COB and Your Rights
The Strata Management Act 2013 (Act 757) decides who runs your condo from the day you get the keys: the developer first, then a Joint Management Body (JMB) within 12 months, then a Management Corporation (MC) once strata titles are issued and enough units have been transferred. The Commissioner of Buildings (COB) enforces the law and the Strata Management Tribunal settles disputes. This guide walks through that timeline, who holds which powers, and what you can and must do as an owner.
Short answer
The Strata Management Act 2013 (Act 757) decides who runs your building and when. The developer manages from vacant possession and must convene the first AGM, forming the Joint Management Body, not later than 12 months after VP. The Management Corporation takes over once strata titles are issued. The Commissioner of Buildings at your local council enforces the Act, and the Strata Management Tribunal hears claims up to RM250,000.
Key numbers at a glance
| The law | Strata Management Act 2013 (Act 757), in force 1 June 2015 |
|---|---|
| Where it applies | Peninsular Malaysia and Labuan only, not Sabah or Sarawak |
| JMB's first AGM | Not later than 12 months after vacant possession |
| MC comes into existence | Strata titles issued; initial period ends at 25% of share units |
| JMB dissolved | Three months after the MC's first AGM |
| Voting at the AGM | No vote if in arrears on the 7th day before the meeting |
| Strata Management Tribunal | Up to RM250,000; Form 1 costs RM100 residential, RM200 commercial |
| Amendments | None passed as at September 2026 (KPKT still reviewing) |
Key points in 30 seconds
- Act 757 applies only to Peninsular Malaysia and Labuan; Sabah and Sarawak have their own strata laws.
- The developer’s management period runs from vacant possession (VP) until one month after the JMB is formed, and the JMB’s first AGM must be held no later than 12 months after VP.
- The MC comes into existence when strata titles are issued; its first AGM is due within one month after the ‘initial period’ ends (25% of share units transferred), and the JMB dissolves three months after that AGM.
- The COB sits in each local council (MBJB, MBIP and others in Johor) and can audit accounts, call meetings and issue attachment warrants.
- The Strata Management Tribunal hears claims up to RM250,000; a residential Form 1 costs RM100 and lawyers are generally not allowed.
- KPKT said in June and August 2026 that it is reviewing Act 757, but no amendment has been passed as at September 2026.
What is the Strata Management Act 2013 and what does it cover?
The Strata Management Act 2013 (Akta Pengurusan Strata 2013, Act 757) is the main law on how strata developments are maintained and managed. It came into force in Peninsular Malaysia on 1 June 2015, replacing the Building and Common Property (Maintenance and Management) Act 2007 (Act 663). It works together with the Strata Management (Maintenance and Management) Regulations 2015, which contain the forms, meeting procedures, the inter-floor leakage process and, in the Third Schedule, the standard by-laws.
Section 1 of the Act says it applies only to Peninsular Malaysia and the Federal Territory of Labuan. A condo in Johor Bahru, Kuala Lumpur or Penang is covered; strata property in Sabah and Sarawak is governed by state law and is outside this guide.
Strata is not just high-rise. Any development where units sit on individual strata titles and share common property (harta bersama) is caught: gated-and-guarded landed strata schemes, SOHOs, serviced apartments and shop-office blocks included. For the difference between title types, see land titles in Malaysia; for building types, see types of property in Malaysia.
| Law | What it governs | Why it matters to you |
|---|---|---|
| Strata Management Act 2013 (Act 757) | Management after VP: duties of developer, JMB and MC; charges, sinking fund, tribunal | Your monthly fees, your vote and your complaint routes |
| Strata Management (Maintenance and Management) Regulations 2015 | Procedures, forms, leakage process, Third Schedule by-laws | Day-to-day disputes: leaks, pets, access cards |
| Strata Titles Act 1985 (Act 318) | Issue of strata titles, share units, formation of the MC | When your title arrives and when the MC is born |
From keys to MC: the four stages of strata management
Most buyers only meet the terms JMB and MC after they collect their keys. The hand-over follows a statutory timeline, and knowing where your building sits on it tells you who to chase.
- Stage 1: developer's management periodStarts on the date vacant possession of a parcel is first delivered and ends one month after the JMB is established. The developer maintains the building, collects the charges and sinking fund contributions, and must keep them in dedicated accounts. The Act says the money is held in trust for the purchasers. The developer pays the charges and sinking fund on units it has not sold.
- Stage 2: Joint Management Body (JMB, Badan Pengurusan Bersama)The developer must convene the first AGM not later than 12 months from the date of delivery of vacant possession, and the JMB is established when that meeting is convened. The JMB is made up of the developer and the purchasers; the AGM fixes the size of the joint management committee and elects it. Before its management period ends, the developer hands over account balances, audited accounts, contracts, insurance policies and building records.
- Stage 3: strata titles issued, Management Corporation (MC, Perbadanan Pengurusan) formedWhen the land office opens the strata register and issues individual strata titles, the MC comes into existence under the Strata Titles Act, with every owner as a member. The ‘initial period’ runs from then until the developer has transferred parcels making up 25% of the aggregate share units.
- Stage 4: MC's first AGM and JMB dissolutionThe developer must convene the MC’s first AGM within one month after the initial period ends, and a management committee is elected. The JMB hands its funds and records to the MC within one month of that AGM and is dissolved three months after it.
| Event | Deadline | Who is responsible |
|---|---|---|
| Charges and sinking fund start | From the date of VP | Developer |
| First AGM and JMB formed | Not later than 12 months after VP | Developer |
| Developer’s management period ends | One month after the JMB is formed | Developer to JMB |
| MC’s first AGM | Within one month after the initial period ends | Developer |
| JMB hands over to MC | Within one month of the MC’s first AGM | JMB to MC |
| JMB dissolved | Three months after the MC’s first AGM | — |
If 12 months pass after vacant possession with no AGM, the developer is still holding your charges and sinking fund and nobody has audited them. And if you are in arrears on the seventh day before a meeting, you cannot vote on the budget that sets your own fee. Fixing it later means a COB complaint or a tribunal claim, and months of waiting.
Ask Louis directly
Send me your VP letter date and your latest service-charge bill and I will tell you which stage your building should be at, and who you should be chasing.
Tell me the building and I will find out which body is actually in charge, developer, JMB or MC, get you the current management contact, and point you to the COB unit at the right local council.
JMB vs MC: what is the difference and what do they do?
Day to day, a JMB and an MC do the same job: maintain the common property, collect charges, insure the building, enforce by-laws and hire the managing agent. The real difference is status. The JMB is transitional and includes the developer; the MC is the statutory body under the strata titles, owns the common property on the register, and the developer is left with only the votes of its unsold units.
| JMB (joint management body) | MC (management corporation) | |
|---|---|---|
| When it exists | After VP, before strata titles are issued | After strata titles are issued (permanent) |
| Members | Developer and purchasers | All strata title owners (developer only for unsold units) |
| How charges are set | In proportion to each parcel’s allocated share units | In proportion to share units |
| Sinking fund | 10% of charges; a general meeting can set more, never less | At least 10% as well |
| Can it sue? | Yes, to recover arrears, in court or at the tribunal | Yes, including against the developer for common property defects |
Two accounts, two purposes
The Act keeps the money apart. The maintenance account pays for day-to-day upkeep, cleaning, security, insurance premiums, minor painting, electrical inspections and the managing agent. The sinking fund account is only for repainting common property, buying movable property for it, renewing or replacing fixtures and fittings, upgrading and refurbishment, and other capital spending. For how charges are calculated and what happens if you don’t pay, read maintenance fees and sinking fund.
The managing agent is not the JMB or MC
The “management office” in many buildings is a property management company hired by the JMB or MC. It carries out decisions; the committee and the general meeting make them. If you are unhappy with the office, write to the committee or table a motion at the AGM.
How AGMs work: owners' voting rights and meeting rules
The schedules to the Act set detailed meeting rules. These are the ones owners run into most often:
- One AGM a year, with no more than 15 months between two AGMs.
- At least 14 days’ notice to all owners, with the agenda, motions, previous minutes and audited accounts.
- No vote if you’re in arrears: an owner who still owes charges or sinking fund on the seventh day before the meeting cannot vote. The list of eligible voters must be displayed at least 48 hours before the meeting.
- Proxies: you may appoint a proxy; the form must reach the management office at least 48 hours before the meeting.
- Show of hands vs poll: on a show of hands each parcel has one vote; on a poll, votes are counted by share units.
- EGM: owners holding at least 25% of the aggregate share units can requisition one, and it must be held within six weeks.
| Resolution | Notice | Threshold | Typical use |
|---|---|---|---|
| Special resolution | At least 21 days | At least three-quarters of valid votes cast | Making additional by-laws |
| Unanimous resolution | At least 21 days | Every valid vote cast in favour | Major matters the Act specifies |
| Comprehensive resolution | At least 30 days | At least two-thirds of aggregate share units | Specified major matters for an MC |
Who is the Commissioner of Buildings (COB) and how can they help?
The Commissioner of Buildings (COB, Pesuruhjaya Bangunan) is appointed by the state and sits inside each local council to administer Act 757. Around Johor Bahru that means the COB unit at Majlis Bandaraya Johor Bahru (MBJB), Majlis Bandaraya Iskandar Puteri (MBIP), Majlis Bandaraya Pasir Gudang (MBPG) and so on; in Kuala Lumpur it is DBKL’s COB.
- Pushes developers to hold the first AGM and form the JMB on time
- Inspects the accounts and records of the developer, JMB or MC
- Appoints someone to convene a meeting or orders an EGM
- Issues warrants to attach a defaulter’s movable property on the management body’s application
- Receives leakage disputes and can appoint a professional to assess them
- Prosecutes offences under the Act
The COB enforces; it does not adjudicate. If you want money or a binding decision, go to the Strata Management Tribunal.
Strata Management Tribunal: how to claim up to RM250,000
The Strata Management Tribunal (Tribunal Pengurusan Strata) now sits within the Housing and Strata Management Tribunal (Tribunal Perumahan dan Pengurusan Strata, TPPS) under the Ministry of Housing and Local Government (KPKT). It hears disputes under the Act between owners, JMBs, MCs, developers and managing agents: arrears, meetings, by-law disputes, repairs to common property and similar.
| Item | Detail |
|---|---|
| Maximum claim | RM250,000 |
| Filing | Form 1 (statement of claim): RM100 residential, RM200 commercial or industrial |
| Defence | Respondent files Form 2 within 14 days of receiving Form 1 |
| Lawyers | Generally not allowed, unless the case raises complex law and a party would suffer severe financial hardship |
| Award | Without delay and, where practicable, within 60 days from the first day of the hearing |
| Enforcement | An award is deemed a civil court order; failing to comply is an offence, up to RM250,000 fine or 3 years’ jail or both |
| Southern office | Aras 20, Menara Ansar, Jalan Trus, Johor Bahru; tel 07-222 8069 |
Don’t confuse it with the Tribunal for Homebuyer Claims (TTPR), which handles buyer-versus-developer claims under the sale and purchase agreement, such as late-delivery damages, up to RM50,000. See the homebuyer claims tribunal.
Your rights and obligations as a strata owner: a checklist
- Pay charges and sinking fund on time. Under the Schedule H SPA the first four months are paid in advance, then monthly in advance.
- Follow the Third Schedule by-laws and any additional by-laws; a breach can be fined up to RM200. See strata by-laws.
- Ask to see the accounts, and question the audited accounts at the AGM.
- When selling, request a certificate of charges and arrears from the JMB or MC; the Act caps the fee at RM50.
- Report common property defects and leaks in writing and keep copies. See common property defects and water leakage.
- Get management approval before renovating. See renovation permits and management rules.
- If you let the unit, your tenant must follow the by-laws too, but fines are imposed on owners, occupants or invitees, and the bill usually lands with you.
Has the Strata Management Act been amended in 2024–2026?
As at September 2026, no amendment to Act 757 has been passed. KPKT told a strata conference in June 2026 that the Act “requires comprehensive amendments” and that it is gathering input (The Star, 13 June 2026). In August 2026 Housing Minister Nga Kor Ming said the government plans three new housing laws alongside amendments to Act 757, without giving a timeline; he put the number of strata units at about 3 million in more than 27,000 schemes (Malay Mail, 10 August 2026).
Shopping for a strata home? The quality of management is one of the value factors I look at first. See how to choose a property and our list of completed JB condos.
Related questions
Who owns the common property in a Malaysian condo?
Once strata titles are issued, the Management Corporation becomes the registered owner of the common property, and every parcel owner is a member of it. Before that, during the developer’s management period and the JMB stage, there is no MC yet; the developer collects the charges and sinking fund, which the Act says are held in trust for the purchasers and must sit in dedicated accounts.
What is the difference between the Strata Management Tribunal and the homebuyer claims tribunal?
They handle different fights. The Strata Management Tribunal deals with disputes under Act 757 between owners, JMBs, MCs, developers and managing agents, such as arrears, meetings and common property repairs, with claims capped at RM250,000. The Tribunal for Homebuyer Claims handles buyer-versus-developer claims under the sale and purchase agreement, such as late delivery, up to RM50,000. See the homebuyer claims tribunal.
Can owners change the managing agent of a condo?
Yes, because the managing agent is a company hired by the JMB or MC, not the management body itself. The office carries out decisions; the committee and the general meeting make them. So the route is to write to the committee, and if that does not work, table a motion at the AGM or with enough owners requisition an EGM. The management office cannot remove itself and cannot refuse a properly passed resolution.
How many owners are needed to call an EGM in a condo?
Owners holding at least 25% of the aggregate share units can requisition an extraordinary general meeting, and it must be held within six weeks. That is the practical tool when the committee will not act between AGMs. Note that share units, not units, are what count: on a poll, votes are counted by share units, so larger parcels carry more weight than a simple head count suggests.
Frequently asked questions
Does the Strata Management Act 2013 apply in Sabah and Sarawak?
No. Section 1 of Act 757 limits it to Peninsular Malaysia and the Federal Territory of Labuan. Strata property in Sabah and Sarawak is governed by state legislation, so if you are buying there, ask a local lawyer which rules apply to the building.
When must a JMB be formed after vacant possession?
The developer must convene the first annual general meeting not later than 12 months from the date vacant possession is delivered, and the JMB is established when that meeting is convened. If the deadline passes without an AGM, complain to the Commissioner of Buildings at your local council, bringing your VP letter and service-charge bills.
What is the difference between a JMB and an MC in Malaysia?
A JMB is the interim body that manages the building before strata titles are issued, and it includes the developer. An MC comes into existence automatically when strata titles are issued, consists of all owners and becomes the registered owner of the common property. Their duties are largely the same: collecting charges, maintenance, insurance and by-law enforcement.
Can I vote at the AGM if I owe maintenance fees?
No. An owner who is still in arrears of charges or sinking fund on the seventh day before the meeting is not entitled to vote, and the eligible-voter list must be displayed at least 48 hours before the AGM. Pay up before that cut-off if you want your vote to count.
What does the Commissioner of Buildings (COB) do?
The COB is the enforcement officer for Act 757, based at your local council. It can inspect accounts, order or convene meetings, issue attachment warrants against defaulters, handle leakage referrals and prosecute offences. It does not award compensation; for that you file a claim at the Strata Management Tribunal.
How much does it cost to file at the Strata Management Tribunal?
Filing Form 1 costs RM100 for residential property and RM200 for commercial or industrial property. Claims are capped at RM250,000, lawyers are generally not allowed, and the tribunal aims to make its award within 60 days from the first day of the hearing where practicable.
Has the Strata Management Act 2013 been amended?
Not as at September 2026. KPKT has said it is reviewing Act 757 and gathering stakeholder input, and the Housing Minister said in August 2026 that amendments are planned, but no amending bill has been passed. The 2013 Act and 2015 Regulations remain in force.
Sources & verification
- Strata Management Act 2013 (Act 757), full text
- Mah Weng Kwai and Associates — Strata management hand-over timeline
- Mah Weng Kwai and Associates — Strata Management Tribunal
- KPKT — Tribunal Perumahan dan Pengurusan Strata (TPPS)
- iProperty — Strata Management Tribunal: how to make a claim
- EdgeProp — The ABCs of AGM, EGM and committee meetings
- PropertyGuru — What is the Commissioner of Buildings (COB)
- Low and Partners — Strata Management Act 2013, Part 1
- The Star (13 Jun 2026) — Ministry gathering input to amend SMA
- Malay Mail (10 Aug 2026) — Govt reviews Strata Management Act
Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.
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Louis Koh
11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文
I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.
Stuck on this step? Ask me directly
Send me your situation — new or subsale, budget, state, and where you are in the process — and I will tell you what to do next and what to watch for.
Tell me the building and I will find out which body is actually in charge, developer, JMB or MC, get you the current management contact, and point you to the COB unit at the right local council.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT