As a condominium owner, you may have wondered before: When can you expect the Management Corporation Strata Title (MCST) to cover damages brought on by defective common property? It’s a commonly asked question, but it’s more complicated than it seems at first. Let’s break the issue down in more straightforward terms:
For many Singaporean’s, MCST is an acronym seen on the monthly bank statements when you pay your conservancy charges. Objectively, the MCST is a group of condominium unit owners, usually consisting of no more than 40 members, who are responsible for managing and maintaining the common areas such as the parking lot, lifts, roofs and plumbing systems. The MCST relies on two primary forms of funding to maintain the common property. Firstly, the sinking fund, which pays for replacements and repairs that are not anticipated to happen frequently, such as fixing significant damage. Secondly is the management fund, which is used to cover regular operating expenses such as cleaning, security, and rubbish collection.
Liability of the MCST
Members of MCST have a statutory duty to keep the common property in a reasonable state of upkeep. This obligation used to be regarded as a strict liability, which meant that the MCST would be held automatically liable for any harm. The MCST is now simply required to maintain the property in a manner that is reasonable under the circumstances, nevertheless, as the courts have recently moved away from this strict approach and instead adopted the approach of a reasonable duty to maintain standard. An example of this would be; a common area carpark – say that strong winds or rains cause a tree to fall on a car in the carpark. Can you sue the MCST for the damage? As it is arguably not reasonable for the MCST to predict the future, namely, they didn’t know the weather would be unruly and they didn’t know the roots of the tree were compromised. It is likely unreasonable and therefore the answer is likely, no.
The MCST’s duty has been interpreted differently by the law over time. As mentioned above, Courts now evaluate whether the MCST acted reasonably rather than imposing strict liability for maintenance faults. The MCST is unlikely to be held accountable if they take appropriate action to resolve a problem but are unable to anticipate or stop damage.
For example, a condo owner recently sued the MCST for neglecting roof maintenance, alleging damage to both his unit and a unit below. The court dismissed the damages suit after finding that the MCST’s actions in addressing the leaks in multiple instances were fair.
In accordance with the reasonable duty standard, any negligence by the MCST may open the doors to actions against them. This negligence can arise when the MCST fails to act reasonably, for example they may be held liable for negligence if a roof leak is reported time and time again but is not fixed.
Strata Title Board (‘STB’)
Which court you engage with will determine the type of legal action you can take against the MCST. The STB is a tribunal constituted under the Building Maintenance and Strata Management Act (“BMSMA”) to mediate and hear applications between subsidiary proprietors and management corporations. The STB has the authority to require the MCST to address a breach of statutory duty under the BMSMA, but it is not permitted to grant financial damages (civil court action would need to be taken for these types of damages). The STB usually consults with a jointly selected expert to identify the necessary repairs and has the authority to direct the MCST to “make good” the problem, such as repairing a leaky roof. The MCST can then be instructed by the STB to follow the expert’s advice.
Although it is reasonable to anticipate that the MCST will take care of and restore common property, the required standard of care has shifted from strict liability to general reasonableness. For unanticipated circumstances or harms that were not reasonably preventable, courts will not find the MCST liable. Nonetheless, if you think the MCST has been careless or has not fulfilled its obligations, you may be able to take legal action. The appropriate path for your case will depend on the specifics of the disagreement.
Whether you need to resolve issues with your MCST or take legal action, we can assist you decide the best course of action. We also help condo owners navigate the complexities of MCST-related conflicts. To find out your choices if you’re having problems with defective common property, contact us.