How should service charges (maintenance fee) be calculated for a strata building? Does it include your car park?
Take for example, your condominium unit is RM1000 square feet (92.9 sqm) build-up area. You have 2 car parks each at 135 sqf (12.5 sqm) (270 sqf or 25.1 sqm), a small foyer in front of your main entrance of 30 sqf (2.8 sqm) and a small storage room on the ground floor for another 40 sqf (3.7 sqm). The rate of charge is RM0.20 per sqf (about RM2.15 per sqm). Are you supposed to pay for:
RM0.20 x 1000 = RM200 per month?
RM0.20 x 1340 = RM268 per month?
The definition of “Service Charge” in the Deed of Mutual Covenant (by one of the developers) is as below:
“Means a share of all expenses incurred by the Vendor, including but not limited to administrative expenses for maintaining, repairing and managing the Common Property and all other expenses incurred in discharge of all obligations of the Vendor and the provision of any services, which are from time to time assessed by the Vendor to be payable by the purchasers of each parcel of the said Buildings.”
Then, what is the definition of “parcel”?
“means the individual residential parcel and the accessory/appurtenant parcel(s) particularised in Section 2 of the Schedule A annexed hereto which the Vendor has sold to the Purchaser(s) in pursuant to the Sale Agreement.”
Sections of of Schedule A will specify the exact square foot/meter area and the corresponding fee payable (in exact amount Ringgit Malaysia) by annual or monthly interval. Therefore, there is no confusion as of how much is the service charge or its calculation. This is written in Deed of Mutual Covenant, and upon issuance of Strata Titles, the MC is formed – can MC decides to include the Car Parks, foyers, etc?
Tomorrow, we will discuss about the law behind it.