Do property managers need to be registered valuers and appraisers in order to manage stratified properties?

This RM64 million question will be answered by the Ipoh High Court next Thursday when it decides whether to rule in favour of Superboom Projects Permai Lake View Mgt Sdn Bhd (SPPLV), a special-purpose vehicle to undertake administrative tasks of the 576-unit Permai Lake View Apartments; or the few property owners who are refusing to pay the monthly RM50 maintenance fee.

The property owners, with the full backing of the government’s Board of Valuers, Appraisers and Estate Agents (BVAEA), contend that under the Valuers, Appraisers and Estate Agents Act 1981, only registered valuers and appraisers are allowed to manage properties in exchange for a fee.

However, the plaintiffs argue that under the Strata Titles Act, 1985, and the Building and Common Property (Maintenance and Management) Act 2007, a project’s Joint Management Committee (JMC) can appoint anyone it deems fit to undertake administration, maintenance and management matters.

Located at Ulu Kinta in Ipoh, the Permai Lake View Apartment is a low-cost development undertaken by Superboom Project Sdn Bhd (SPSB), the holding company of SPPLV. Completed in 2006 and priced at RM55,000 a unit, the project has been fully sold.

When the JMC consisting of 10 residents was formed at the end of last year, the administration of SPPLV was transferred to it.

Although a low-cost development, it is fenced-up and the management has created a gated-and-guarded atmosphere with security guards to man the entrance and workers to centralise garbage collection.

Units holders have to make a one-time payment of RM400 to a sinking fund in addition to RM50 a month for maintenance which the majority of the owners have complied. However, the defendants objected to the terms and conditions of the management service.

The case is being closely monitored by industry players, the outcome of which will impact the real estate industry.