Strata Management Agreement (Malaysia)
STRATA MANAGEMENT AGREEMENT
Strata Management Act 2013 (Act 757) | Strata Management (Maintenance and Management) Regulations 2015
THIS STRATA MANAGEMENT AGREEMENT is made on [Commencement Date]
BETWEEN:
(1) [MC/JMB Name] of [MC/JMB Address] (COB File Ref: [COB File Reference]) (hereinafter referred to as the "Client"); AND
(2) [Manager Name] (SSM No. [Manager SSM No.], BOVAEA No. [Manager BOVAEA No.]) of [Manager Address] (hereinafter referred to as the "Managing Agent").
1. THE DEVELOPMENT
1.1 The Managing Agent is appointed to manage and maintain the stratified development known as [Development Name], situated at [Development Address], comprising [Total Parcels] parcels (the "Development").
1.2 The Development is a [Development Type] stratified development subject to the Strata Management Act 2013 (Act 757) and the Strata Titles Act 1985 (Act 318).
2. APPOINTMENT AND DURATION
2.1 The Client hereby appoints the Managing Agent, and the Managing Agent hereby accepts appointment, to manage, maintain, and administer the common property of the Development in accordance with the Strata Management Act 2013 (Act 757) and this Agreement.
2.2 This Agreement shall commence on [Commencement Date] and expire on [Expiry Date], unless earlier terminated in accordance with Clause 8 herein.
3. SCOPE OF SERVICES
3.1 The Managing Agent shall provide the following management and maintenance services for the Development:
(a) Maintenance and repair of common property, including building fabric, M&E systems, lifts, fire suppression systems, and landscaping.
(b) Management of building security, car park, and access control systems.
(c) Billing, collection, and remittance of maintenance charges and sinking fund contributions in accordance with Section 61 of the Strata Management Act 2013.
(d) Enforcement of by-laws under the Third Schedule to the Strata Management Act 2013 and house rules as adopted by the Client.
(e) Preparation and submission of annual audited accounts to the Client and the Commissioner of Buildings (COB) under Section 66 of the Strata Management Act 2013.
(f) Administration of insurance of the Development's common property as required under Section 72 of the Strata Management Act 2013.
4. MANAGEMENT FEE AND MAINTENANCE CHARGES
4.1 The Client shall pay the Managing Agent a monthly management fee of [Management Fee], payable on the first day of each calendar month.
4.2 The maintenance charge rate for the Development is [Maintenance Charge Rate] per parcel, and the sinking fund contribution is [Sinking Fund Rate], both payable by parcel owners in accordance with their share unit allocation under the Strata Titles Act 1985.
4.3 Maintenance charges and sinking fund contributions collected by the Managing Agent shall be deposited into the Maintenance Account and Sinking Fund Account respectively, both held in the name of the Client at a bank licensed by Bank Negara Malaysia.
5. MANAGING AGENT'S OBLIGATIONS
5.1 The Managing Agent shall at all times maintain its registration with BOVAEA under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242).
5.2 The Managing Agent shall maintain accurate books and accounts in respect of all monies received and expended in connection with the management of the Development and shall make such books and accounts available for inspection by the Client at any time.
5.3 The Managing Agent shall prepare and submit to the Client monthly management reports covering maintenance activities, financial performance, and any incidents or disputes affecting the Development.
6. TERMINATION
6.1 Either party may terminate this Agreement by giving not less than [Notice Period] days' prior written notice to the other party.
6.2 The Client may terminate this Agreement immediately without notice where the Managing Agent commits a material breach of this Agreement, is deregistered by BOVAEA, or becomes insolvent.
6.3 Upon termination, the Managing Agent shall deliver to the Client all documents, keys, access cards, financial records, and accounts relating to the Development within 14 days.
7. GOVERNING LAW
7.1 This Agreement is governed by the laws of Malaysia, including the Strata Management Act 2013 (Act 757), the Strata Titles Act 1985 (Act 318), and the Contracts Act 1950 (Act 136).
7.2 Disputes arising from this Agreement shall be referred to the Strata Management Tribunal established under Section 107 of the Strata Management Act 2013, or to the courts of Malaysia as appropriate.
Client (MC / JMB Representative)
________________
Signature
Managing Agent
________________
Signature
What Is a Strata Management Agreement (Malaysia)?
A Strata Management Agreement in Malaysia is a formal contract between a Management Corporation (MC) or Joint Management Body (JMB) and a licensed property management company appointed to manage and maintain a stratified development — such as a condominium, apartment block, serviced residence, or commercial office tower — under the Strata Management Act 2013 (Act 757).
The Strata Management Act 2013 (Act 757), which came into force on 1 June 2015, governs the management and maintenance of all stratified buildings in Peninsular Malaysia and the Federal Territory of Labuan. The Act is administered by the Commissioner of Buildings (COB) appointed under Section 4 of the Act and establishes a mandatory framework for managing strata developments from the developer's initial management period through to the constitution of the Management Corporation (MC) under the Strata Titles Act 1985 (Act 318).
Prior to the constitution of the MC, the Joint Management Body (JMB) is responsible for managing the common property under Section 17 of the Strata Management Act 2013. After the MC is constituted — which occurs when the strata titles are issued and a general meeting is held under Section 47 of the Strata Titles Act 1985 — the MC assumes full responsibility for managing, maintaining, and insuring the common property under Section 59 of the Strata Management Act 2013.
The Strata Management (Maintenance and Management) Regulations 2015 (P.U. (A) 107/2015) prescribe the minimum standards for maintenance and management services, including the format and content of maintenance contracts. Property managers engaged to manage strata developments must be registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEA) under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242).
Disputes relating to strata management in Malaysia — including disputes between parcel owners and the MC over maintenance charges, building defects, or by-law enforcement — are referred to the Strata Management Tribunal (Tribunal Pengurusan Strata) established under Section 107 of the Strata Management Act 2013, which has jurisdiction for claims up to RM 250,000.
The legal framework governing the Strata Management Agreement (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Strata Management Agreement (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Strata Management Act 2013 (Act 757) sets the foundational requirements.
When Do You Need a Strata Management Agreement (Malaysia)?
A Strata Management Agreement is required in Malaysia whenever a Management Corporation (MC) or Joint Management Body (JMB) engages a third-party property management company to carry out day-to-day management of a strata development.
A Strata Management Agreement is needed when a newly formed JMB, constituted by the developer and purchasers within 12 months of the delivery of vacant possession under Section 17(4) of the Strata Management Act 2013, appoints a licensed property manager to handle building maintenance, security, landscaping, and administration of maintenance charges.
A Strata Management Agreement is required when the Management Corporation (MC) of an established stratified development wishes to engage or replace its property management company after the strata titles have been issued. The MC must pass a resolution at a general meeting to appoint the managing agent and enter into a formal written agreement.
A Strata Management Agreement is needed when a developer managing a large mixed-use development — combining residential, commercial, and retail parcels — appoints a professional facilities management firm for the initial management period before the JMB is formed, under Section 8 of the Strata Management Act 2013.
A Strata Management Agreement is required when the Commissioner of Buildings (COB) for the relevant local authority (such as DBKL for Kuala Lumpur, MBPJ for Petaling Jaya, or MPSJ for Subang Jaya) requires documentary evidence of the management structure and responsible managing agent as part of the COB's supervisory role under Section 4 of the Strata Management Act 2013.
A Strata Management Agreement is needed when a management company wishes to specify clearly the scope of its liability and the boundaries of its authority in relation to the enforcement of house rules, by-laws under the Third Schedule to the Strata Management Act 2013, and the management of the Maintenance Account and Sinking Fund Account under Section 61 of the Act.
What to Include in Your Strata Management Agreement (Malaysia)
A complete Strata Management Agreement for Malaysia must contain the following essential terms under the Strata Management Act 2013 and the Strata Management (Maintenance and Management) Regulations 2015.
Parties: Full legal name and registration details of the JMB or MC (including the strata development name and COB file reference), and the property management company's name, company registration number from the Companies Commission of Malaysia (SSM), and BOVAEA registration number.
Development details: Name and address of the stratified development, total number of parcels, parcel types (residential, commercial, car parks), and the name and registration number of the relevant local authority. For Kuala Lumpur developments, reference to Dewan Bandaraya Kuala Lumpur (DBKL) approval is required.
Scope of services: A detailed schedule of management services to be provided, including maintenance of common property, management of building systems (lifts, fire suppression, M&E), security services, landscaping, cleaning, pest control, and financial management. The services must comply with the minimum standards in the Strata Management (Maintenance and Management) Regulations 2015.
Maintenance charges and sinking fund: The monthly maintenance charge rate per share unit and the sinking fund contribution, both fixed by the MC or JMB in accordance with Section 61 of the Strata Management Act 2013. The managing agent's responsibility for billing, collection, and remittance of maintenance charges must be stated.
Management fee: The fee payable to the property management company, whether expressed as a fixed monthly fee, a percentage of maintenance charges collected, or a combination. Any reimbursable expenses and the basis of reimbursement.
Duration and termination: The term of the agreement, renewal provisions, and the grounds and notice period for termination by either party. Under the Strata Management Act 2013, the MC or JMB may terminate the managing agent's appointment by resolution at a general meeting.
Reporting obligations: The frequency and format of financial reports, maintenance reports, and annual accounts that the managing agent must submit to the MC or JMB and to the Commissioner of Buildings as required under Section 66 of the Strata Management Act 2013.
Additional compliance elements for a Strata Management Agreement (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Strata Management Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/real-estate/property/strata-management-agreement-malaysia
"Strata Management Agreement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/real-estate/property/strata-management-agreement-malaysia.
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author = {{Forms Legal}},
title = {Strata Management Agreement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/real-estate/property/strata-management-agreement-malaysia}},
note = {Free legal document template. Based on Strata Management Act 2013 (Act 757)}
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Frequently Asked Questions
In Malaysian strata law, a Joint Management Body (JMB) and a Management Corporation (MC) are two distinct bodies that manage a stratified development at different stages. A JMB is an interim management body constituted under Section 17 of the Strata Management Act 2013 (Act 757), formed automatically when the developer delivers vacant possession to purchasers, before strata titles are issued. The JMB consists of the developer and purchasers who have received vacant possession, and manages the common property during the period between delivery of possession and issuance of strata titles. Once strata titles are issued and the first annual general meeting of parcel owners is held under Section 47 of the Strata Titles Act 1985 (Act 318), the Management Corporation (MC) is constituted and assumes full legal responsibility for managing and maintaining the common property. The MC is a body corporate under Section 39 of the Strata Titles Act 1985. Disputes involving both JMBs and MCs may be referred to the Strata Management Tribunal under Section 107 of the Strata Management Act 2013.
A Management Corporation (MC) in Malaysia may terminate a property management company by passing an ordinary resolution at a general meeting under the Strata Management Act 2013 (Act 757). The MC must comply with the notice and termination provisions in the written strata management agreement. If the agreement does not specify a notice period, reasonable notice under common law principles (typically 30 to 90 days) should be given. A property management company registered with BOVAEA (Board of Valuers, Appraisers, Estate Agents and Property Managers) under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242) may contest an early termination if it constitutes a breach of contract, and may claim damages including loss of management fees for the unexpired term. The Commissioner of Buildings (COB) should be notified of any change in managing agent to update the COB's records for the development.
Maintenance charges (caj penyelenggaraan) in a Malaysian strata development are the monthly contributions levied on parcel owners to fund the maintenance and management of the common property. Under Section 60 of the Strata Management Act 2013 (Act 757), every parcel owner is legally obliged to pay maintenance charges to the JMB or MC. The charge is calculated on the basis of share units — the proportional allocation to each parcel determined by the developer at the time of subdivision — under Section 6 of the Strata Titles Act 1985 (Act 318). Maintenance charges are payable on the first day of each month and are in arrears if unpaid after 14 days. A JMB or MC may charge a late payment interest of 10% per annum on unpaid charges under Section 61(3) of the Strata Management Act 2013. Unpaid maintenance charges may be recovered through the Strata Management Tribunal (for claims up to RM 250,000) or through civil court proceedings.
The Sinking Fund (Dana Kecairan) in a Malaysian strata development is a separate reserve fund collected alongside maintenance charges to cover major periodic expenditures — such as repainting the building exterior, replacing lifts, refurbishing car park structures, or replacing major mechanical and electrical systems — that are not covered by ordinary maintenance spending. Under Section 61 of the Strata Management Act 2013 (Act 757), every parcel owner is required to contribute to the Sinking Fund at a rate of not less than 10% of the maintenance charge payable. The Sinking Fund is maintained in a separate designated bank account from the Maintenance Account and cannot be used for routine maintenance expenses. The Strata Management (Maintenance and Management) Regulations 2015 (P.U. (A) 107/2015) prescribe the conditions under which the Sinking Fund may be drawn upon. The Commissioner of Buildings (COB) supervises Sinking Fund management and audited accounts must be submitted annually.
The Strata Management Tribunal (Tribunal Pengurusan Strata) is a specialist adjudication body established under Part VIII (Section 107 onwards) of the Strata Management Act 2013 (Act 757) to resolve disputes relating to strata developments without the need for civil court proceedings. The Tribunal has jurisdiction to hear claims up to RM 250,000 involving disputes between parcel owners and the JMB or MC, disputes about maintenance charges, defects in the common property, enforcement of by-laws under the Third Schedule to the Strata Management Act 2013, and disputes involving the managing agent. Tribunal proceedings are conducted by a legally qualified chairman and are faster and less expensive than High Court litigation. Decisions of the Tribunal are binding and may be enforced as court orders. A party dissatisfied with a Tribunal decision may appeal to the High Court under Section 139 of the Strata Management Act 2013 on a question of law.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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