Representative action for defects in common property of strata developments

Abstract

The relevant strata legislation in Singapore - the Land Titles (Strata) Act which is based on the Australian model, allocates responsibility for the maintenance and management of common property to the Management Corporation (MC). This is a legal entity collectively constituted by the unit owners, known as the "subsidiary proprietors" (SPs). In the strata title system, which marries individual title to individual units of property and shared title to common property, the presence of defects in common property gives rise to complex legal issues. The recent Singapore Court of Appeal decision of MC Strata Title Plan No 2297 v Seasons Park Limited in 2005 made pronouncements on a wide range of issues related to the above. In particular, it considered the right of the MC to represent the original and subsequent purchasers of units in the development (in a representative/class action), the significance of SPs' share values when courts award compensation, vicarious liability and the developer's use of the "independent contractor" defence in relation to the developer's liability for defects in common property. The Court drew on cases and legislation from other common law jurisdictions and these include: D & F Estates Ltd v Church Commissioners for England, Mount Albert Borough Council v Johnson and the UK Occupiers Liability Act. This paper discusses the implications of the Singapore decision, as well as the corresponding legal position in other common law jurisdictions. © 2006 RICS, The Bartlett School, UCL and the contributors First published.