Introduction — why this matters to owners, JMB/MCs and developers
Property disputes are among the most frequent and stressful legal problems in urban Malaysia — particularly in Kuala Lumpur and Selangor, where strata living and mixed development projects are dense. Whether you are a residential owner dealing with water leaks, a JMB/MC pursuing unpaid maintenance, or a developer facing a buyer claim, knowing the common dispute types and how the law treats them will help you act decisively and protect your rights. This guide explains the typical disputes, practical steps to solve them, and real Malaysian case law that shapes outcomes.
1. Strata & condominium disputes — the most common category
What it covers: unpaid maintenance, illegal alterations, AGM/EGM disputes, misuse of common property (short-term rentals), parking, water penetration and by-law enforcement.
Why it’s special: Strata disputes often involve management corporations (JMB/MC) and are governed by the Strata Management Act 2013 and related regulations. The Strata Management Tribunal exists to provide a faster, cost-effective forum for many strata disputes.
Common real-case takeaways:
- The Federal Court has confirmed that management corporations can adopt by-laws or house rules to prohibit certain uses (for example, short-term rentals) where appropriate — see Innab Salil & Ors v Verve Suites Mont Kiara Management Corporation (a Court of Appeal decision recognising an MC’s power to regulate residential uses). This is often decisive in disputes over short-term rentals or business use of residential units.
- Courts and tribunals will look closely at the SMA, SMR and the development’s by-laws when deciding rights and obligations.
Practical steps for owners:
- Check your JMB/MC’s by-laws and the Strata Management Act.
- Report the issue in writing to the MC/JMB and keep copies.
- For urgent relief (e.g., illegal renovation endangering others), consider injunctive relief via the courts.
- For fee disputes and by-law enforcement, apply to the Strata Management Tribunal first — it is designed for quicker resolution. |
Practical steps for JMB/MCs:
- Follow the SMA’s procedures for AGMs/EGMs, document resolutions carefully, and keep transparent accounts (to avoid challenges).
- When seeking to enforce by-laws, obtain legal advice on drafting compliant notices and consider mediation or tribunal applications before litigation.
2. Landlord–Tenant disputes
Common issues: unpaid rent, holding over (tenant refusing to vacate after tenancy ends), deposit disputes, unlawful eviction, and damage beyond wear and tear.
Legal approach:
- Check the tenancy agreement terms (notice periods, forfeiture clauses).
- For commercial tenancies, consider the remedy of distraint or specific contractual remedies.
- For residential tenancies, remedies include court eviction (possession orders) and claims for damages.
Evidence & tactics:
- Keep records: tenancy agreements, payment proof, inspection reports, repair invoices, and witness statements.
- Use formal demand letters and, if necessary, initiate possession proceedings at the Sessions/High Court (depending on claim size).
3. Sale & Purchase Agreement (SPA) disputes — developers & purchasers
Typical disputes: late handover / vacant possession, defects after completion, withheld refunds or forfeiture of booking deposits, misleading descriptions.
Key points:
- The Housing Development (Control and Licensing) Act 1966 (HDA) governs developer obligations for housing projects; consumer protection concepts apply to developers’ representations.
- Buyers often rely on SPA contract terms and statutory protections for delay and defects claims.
Case example & practical note:
- If delivery is late or defects appear, step 1 is written notification to the developer with a reasonable cure period. If unresolved, pursue remedies under the SPA — damages, specific performance (rare), or termination with refund plus damages. Consider escalation to the courts or arbitration depending on the SPA dispute resolution clause.
4. Caveats & encumbrance disputes — why a caveat can freeze a sale
Common problem: a third party lodges a private caveat claiming an interest; the caveat prevents financier disbursement and delays sales.
Legal background:
- Under the National Land Code, wrongful caveats can be removed and the caveator may face liability for losses caused by a wrongful lodgement. Case law has repeatedly confirmed courts will order removal and may award damages for wrongful caveats.
Real-case highlight:
- Courts have in past decisions ordered removal of wrongful caveats and awarded compensation where lodgement was unjustified — such authorities guide how aggressively affected owners should litigate to remove caveats. Scribd
Quick remedy steps:
- Request voluntary withdrawal from caveator (formal letter).
- If refusal, apply to the High Court for an order to remove the caveat and claim damages under Section 329 NLC if wrongful.
- Preserve finance timelines — time is money; act quickly to avoid lost sales or increased costs.
5. Land ownership & title disputes
Common flavours: disputed transfer, fraud, co-owner disagreements, adverse possession claims, and boundary disputes.
How to approach:
- Title searches at the land office, review registered instruments, and gather historical documents (agreements, receipts, etc.).
- For boundary disputes, surveyor reports and historical documents are critical — courts favor clear, documentary evidence.
6. Neighbour disputes — nuisance, encroachment, and trees
Typical issues: drainage disputes, noise and nuisance, tree roots/overhangs, fences and boundary encroachments.
Legal remedies:
- Start with a polite written complaint and negotiation.
- If unresolved, options include civil claims for nuisance or trespass, injunctive relief, and damages. For nuisance, courts examine reasonableness and the extent of interference with enjoyment.
7. Easement & right-of-way disputes
Problems: blocked access roads, interference with drain or services, disagreement on scope of easement.
Solution path:
- Review the land titles for express easement grants. If none exist, investigate prescriptive easement arguments (but proof is strict).
- Remedies include declarations of right, injunctive relief to remove blockage, and damages for loss.
8. Construction & renovation disputes
Typical disputes: defective works, late completion, non-payment, and scope changes.
Legal framework:
- For large construction works, CIPAA 2012 offers a statutory adjudication route for interim relief on payment disputes. For smaller renovation contracts, contractual remedies and claims for defects are the usual path. Skrine – Advocates & Solicitors
Practical tip:
- Keep progress photographs, written instructions for change orders, and signed acceptance on completion. When defects appear, obtain expert inspection reports early.
9. Joint ownership & inheritance disputes
Common contexts: siblings disagreeing over family property sale, executors delaying transfer, or claims by beneficiaries.
How to resolve:
- Consider negotiation and mediation first.
- For partition or forced sale, apply to court for relief. If a title transfer was promised but not delivered, contractual remedies may apply.
Real Malaysian case examples you should know
(These cases guide how courts treat key property issues in Malaysia.)
- Kunci Semangat Sdn Bhd v Thomas Varkki [2022] (Court of Appeal) — clarified limits on claims by unregistered estate agents and emphasised pleading requirements where illegality is alleged. This case is often cited where one party claims an agreement is unenforceable due to licensing issues.
- Innab Salil & Ors v Verve Suites Mont Kiara Management Corporation [2020] (Federal Court) — held that management corporations may, through by-laws or house rules, legitimately prohibit residential units from being used for commercial or short-term rental purposes in appropriate circumstances. This is a leading authority in disputes about short-term rentals in strata buildings.
- ACN Infra Sdn Bhd v Perbadanan Pengurusan Kondominium Subang Indera [2020] (High Court) — affirmed that MCs have statutory duties to maintain common property; negligence or failure to maintain common property can attract MC liability or claims against developers/contractors for latent defects.
- Decisions on wrongful caveats (e.g., Luggage Distributors / other High Court & Court of Appeal authorities) — multiple decisions show courts will remove wrongful private caveats and may award compensation for losses caused by wrongful lodgement. These authorities make it clear that caveat abuse is not tolerated.
Note: case law is fact-specific — the outcome depends on pleadings, evidence and precise statutory provisions invoked. We can cite and match cases to your specific facts during a consultation.
Where to start — a practical 6-step checklist (for owners, MCs and developers)
- Gather documents — title, SPA, tenancy agreements, payment proofs, photos, email threads, MC minutes, AGM/EGM resolutions.
- Send a formal demand / notice — clear, timed, documented. This often resolves disputes before court.
- Alternative dispute resolution — mediation or tribunal first (Strata Management Tribunal for many strata issues). |
- Preserve urgent remedies — where rights are being extinguished (e.g., wrongful renovations or caveats), seek urgent injunctive relief.
- Engage specialists — surveyors for boundaries, engineers for defects, accountants for mismanagement allegations.
- Legal proceedings — choose the right forum (Tribunal, Sessions Court, High Court, or Court of Appeal) and consider costs vs benefit.
Evidence checklist — what lawyers will ask for
- IDs of parties, title plans, SPA/tenancy agreements, payment receipts, bank statements, correspondence, AGM minutes, photos/videos, expert reports, and witness statements.
Typical timelines & costs (ballpark)
- Strata Management Tribunal: often faster (target awards within months). |
- High Court: may take many months to 2+ years depending on interlocutory issues.
- Legal costs: vary by claim complexity — initial consultation, demand letter, tribunal filing, injunctive applications and full trial each add costs. We can provide a tailored cost estimate after reviewing documents.
FAQs
Q: When should I go to the Strata Management Tribunal vs the High Court?
A: For disputes within the Tribunal’s jurisdiction (commonly strata management, maintenance, by-law enforcement), start at the Tribunal. Complex strata dispute such as AGM or EGM, title disputes or urgent injunctions generally go to the High Court.
Q: Can a wrongful private caveat be removed quickly?
A: You can demand withdrawal; if refused, apply to the High Court to remove it. Courts have removed wrongful caveats and ordered compensation where warranted.
Q: What if my MC is not holding proper AGMs?
A: Irregular AGMs or improper resolutions are challengeable — keep records and seek declaratory relief or injunctions where necessary.
Call to Action — ready to resolve your property dispute?
If you’re in Kuala Lumpur or Selangor (or entire Peninsular Malaysia) and facing a strata, caveat, developer, tenancy or boundary dispute, JY Ko Advocates & Solicitors can help — from demand letters and tribunal applications to injunctive relief and full court representation.
Contact JY Ko Advocates & Solicitors to make an appointment for consultation now
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Disclaimer: The above proposition is subject to actual facts and circumstances and shall never be referred as the actual law without seeking legal advice. Consult us for more information!