Condo Maintenance Fee Disputes in Malaysia Case Study – Different Charges (July 2025)
When you buy a property in Malaysia that is part of a condominium, office tower, or mixed development (i.e stratified property), you automatically become part of a strata management system. This means you have to pay maintenance fees to keep the building and common areas running smoothly.
But what happens when the Management Corporation (MC) imposes higher or different charges, especially on car parks? Can they legally do that?
A recent Court of Appeal case — Perbadanan Pengurusan PD1 v SCP Assets Sdn Bhd [2025] CLJU 1646* — provides some important answers to the current legal position.
Background of the Dispute
The case involved the PD1 Complex in Petaling Jaya, a mixed commercial development with:
- 7 blocks of shop and office lots
- An office tower (Bangunan Yin)
- Basement and surface car parks
The car parks were owned by SCP Assets Sdn Bhd.
In 2017, the Management Corporation (MC) of PD1 was officially formed. At its annual general meeting (AGM), the MC passed a resolution called Private Motion No. 1. This motion imposed different maintenance fee rates for different types of parcels — including much higher rates for car park parcels compared to offices and shops.
SCP Assets objected and filed a lawsuit in the Shah Alam High Court, claiming the motion was illegal and unfair.
What the High Court Decided
The High Court sided with SCP Assets, declaring:
- Private Motion No. 1 was unlawful and void
- The MC must cancel all invoices based on the new rates
- The MC’s counterclaim for unpaid fees was dismissed
The judge explained that the allocation of share units (which determines how much each parcel pays for maintenance) had already been approved by the Director of Lands and Mines Selangor.
If the MC thought the allocation was unfair, it should have challenged it through judicial review (a public law process in the courts) — not by passing a private resolution at the AGM.
The Court of Appeal’s Ruling
The MC appealed, where the Court of Appeal upheld the High Court’s decision.
Key Reasons:
- Maintenance fees are based on share units
- Under the Strata Management Act 2013 (SMA), all parcel owners contribute according to their share units.
- Different rates are only allowed in limited cases
- Section 60(3)(b) SMA allows MCs to impose different rates only if parcels are used for “significantly different purposes.”
- Even then, the decision must be just and reasonable.
- Collateral challenge not allowed
- The allocation of share units had already been made by the Lands Office.
- The MC cannot attack that decision indirectly through a private suit. It must use the correct channel — judicial review.
- Private Motion No. 1 was unlawful
- Since the motion was based on disputing the share unit allocation, it was premature and invalid.
- The MC had no authority to enforce it.
Why This Case Is Important (for Property Owners)
This case is a clear reminder for stratified properties, condominium owners, car park parcel owners, and management corporations in Malaysia:
- Share units are the foundation of maintenance fees
- Your fees are tied to your allocated share units.
- Unless challenged in court via judicial review, those share units are final.
- MCs must act fairly
- While the law allows MCs to set different rates for parcels with very different uses (e.g., residential vs. commercial), they cannot use this power to “fix” perceived unfair allocations.
- Proper legal process is crucial
- If there is a dispute about share unit allocation, the correct way is through judicial review against the Land Office, not through AGM resolutions or civil suits.
- Parcel owners have rights
- If you feel that your MC is imposing unreasonable or discriminatory charges, you can challenge them in court.
Common Questions About Maintenance Fee Disputes
❓ Can an MC charge car park owners higher rates?
Yes, but only if the car parks are used for a significantly different purpose and the decision is just and reasonable. It cannot be used as a backdoor way to override official share unit allocations.
❓ What if the share units are unfair?
You must file a judicial review within the timeframe allowed by law. The MC cannot unilaterally change it.
❓ What should I do if I receive a sudden increase in charges?
- Check if the increase was approved at an AGM.
- Check whether it follows the Strata Management Act 2013.
- Seek legal advice if the increase seems unfair or discriminatory.
Conclusion / Summary of Legal Position
👉 Management corporations must act within the reasonable confines of the law, and parcel owners are not powerless against unfair charges.
If you are facing a similar dispute with your condominium MC or JMB, it is crucial to get proper legal advice early.
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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!