SHOULD RESIDENTIAL STRATA TITLED PROPERTIES EMPLOY IN-HOUSE MANAGEMENT TEAMS OR ENGAGE PROFESSIONAL MANAGING AGENTS

Abstract

Singapore faces a serious problem of land shortage therefore the number of strata titled residential properties is constantly on the rise. There are currently about 2000 strata titled residential properties in Singapore. And as of 2003, professional managing agents manage approximately 40% and this figure currently stands at 60% (BCA, 2005). The concept and initial legislation relating to strata titled developments in Singapore is the Land Titles (Strata) Act Cap. 158, which is based on the Conveyance (Strata titles) Act 1961 of New South Wales, Australia. This legislation allows for inter alias, the individual ownership of strata units and shared ownership of common property in a development. Management Corporations bear the legal responsibility for the maintenance and management of strata titled properties in Singapore. Therefore it is imperative that they are able to manage and maintain the properties under their charge efficiently. In spite of the potentially grave consequences should the management fail to execute its duties efficiently there is sadly no legal requirement in Singapore that professional managing agents be engaged for the purpose, or indeed, even that managing agents be licensed. As a result, there are two systems available to Management Corporations for the management of residential strata titled properties in Singapore — The employment of an in-house management team or the engagement of a professional Managing Agent. This dissertation seeks to attempt to determine a superior system between the two options available to Management Corporations and in so doing provide them with a conclusive study to make a better choice regarding the most suitable system of property management for their residential strata titled properties.