Property Stories

I Nearly Bought A Condo With A Ceiling Leak & Depleting Sinking Fund Issue: Why MCST Problems Need To Be More Transparent

  • October 17, 2022
  • 8 min read
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Ryan J

A seasoned content strategist with over 17 years in the real estate and financial journalism sectors, Ryan has built a reputation for transforming complex industry jargon into accessible knowledge. With a track record of writing and editing for leading financial platforms and publications, Ryan’s expertise has been recognised across various media outlets. His role as a former content editor for 99.co and a co-host for CNA 938’s Open House programme underscores his commitment to providing valuable insights into the property market.

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Swn4
Swn4
1 year ago

What also surprises me is that monthly mcst fees (maintenance & sinking funds) are not std info in property listings

Stacked Homes
Admin
1 year ago
Reply to  Swn4

We agree, we think this should change. Some agents do indicate the MCST fees, but most listings do not have them.

Aaron
Aaron
1 year ago

Good article and timely

Stacked Homes
Admin
1 year ago
Reply to  Aaron

Thank you!

San
San
1 year ago

This article is published very timely. Especially with the escalating prices of property and the resistance of old school owners who tend to be part of MC, it gets harder for potential buyers to get full disclosure of any information from the property agent. Maybe STACKED can start a forum and be the voice of potential buyers or even sellers when it comes to MCST disputes and how to handle them. Perhaps getting speakers from the respective authorities would help to clarify many questions that I am sure many owners and buyers would like answered.

contrarian
contrarian
1 year ago

May I suggest that you spend time studying the BMSMA and BMSMR and write another article correcting the misinformation in this one?
The law and regulation already makes the items you mention transparent, including to prospective buyers.
S47 specifically allows a prospective buyer to require an MCST to produce the info stated there, including the minutes of the AGM and the statement of accounts, by paying the fee. S38 specifies how the MCST can use the management fund or not.
You might also consider interviewing some experts, lawyers, managing agents or council members to improve your knowledge on MCSTs and councils.

Passer-by
Passer-by
1 year ago
Reply to  contrarian

This is very interesting. Yes an article on how s47 works might be very useful. If the fee isn’t large, then I don’t see why it isn’t a standard practice for all prospective buyers to purchase such information. If anyone has experience using s47, please share for our knowledge thank you, including how much the prescribed fee tends to be.

contrarian
contrarian
1 year ago
Reply to  Passer-by

The fee is stated in Regulation 11 of the BMSMR.

Stacked Homes
Admin
1 year ago
Reply to  contrarian

Hi contrarian, thanks for taking the time to provide insights into this matter here. We’ve spoken to BCA directly and have made the changes above. While it is true that the law makes it clear that such documents must be handed over for a fee when requested, buyers still face the uphill battle of obtaining it – either through MCST’s ignorance or laziness in providing such information. The problem on the ground is that it then falls on the buyer to take more action which can be frustrating especially in this market condition where sellers have the upper hand.

Nonetheless, we’ll be working on further pieces to create more awareness on this matter.

Joseph
Joseph
1 year ago

Since when did authorities like COB vet certified true copies of audited accounts of MCSTs every year? I hope your next article corrects some of these points made, especially with reference to the BMSMA. An accredited strata manager or lawyer should know better.

Stacked Homes
Admin
1 year ago
Reply to  Joseph

Hi Joseph, thanks for sharing your thoughts on this. We’ve spoken to BCA and have made the corrections above. We’ll continue to work with them in providing more information to our readers.

Frieda Lee
Frieda Lee
1 year ago

If the MCST council is made up of owners who are property agents (owning 2 or more units) who rent out their residential for income, director from contractor/renovation firms, or shop operators (from mixed strata estates) you are likely to be disadvantaged in many ways.

Frieda Lee
Frieda Lee
1 year ago

It is very important to have the monthly financial statements bought which I have been buying for the past 4 years. It is the only way to question why levies are to be collected for improper expenditures on maintaining the estate building. I am surprised to note that Condo only imposes 15 per cent per annum in late payment, ours stay at 24 per cent per annum since I came back to stay in this old, walk-up apartment in late 2002.

Stacked Homes
Admin
1 year ago
Reply to  Frieda Lee

Thanks for sharing your experience Frieda!

Jennifer
Jennifer
1 year ago

I am very interested on topics of MCST which are very seldom discussed.
Most of us are not well taught on the financials of buildings maintenance and sinking funds.
It would be very helpful ongoing topics!
Love it. Thank you stackedhomes!

Stacked Homes
Admin
1 year ago
Reply to  Jennifer

Welcome! We hope to shed more light on this topic as we speak to more people about it!

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