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By Jason Lim, REN 84424 · IQI Realty · Checked on 14 November 2026
If you stop paying the maintenance charges and sinking fund on a condo or strata unit in Malaysia, the debt grows with late-payment interest of up to 10% a year. After a 14-day notice, management can deactivate your access card, suspend your use of facilities and list your unit on the notice board. It can then claim the money at the Strata Management Tribunal or in court, or ask the Commissioner of Buildings (COB) to seize and auction your belongings. Ignoring the notice is also a criminal offence. What management cannot do is lock you out of your own unit or cut your water or electricity.
Quick answer
- Due date: charges and sinking fund are due within 14 days of the bill or notice. Late sums carry interest of up to 10% a year (Strata Management Act 2013).
- By-law measures: 14 days after you receive a notice, management may deactivate your access card or tag, suspend facilities and your car park bay, and post your unit and the amount owed on the notice board.
- Limits: the Court of Appeal ruled on 26 October 2026 that owners cannot be barred from their own units. KPKT says management must give a safe, reasonable alternative way in.
- Legal recovery: a notice of demand giving at least 14 days, then a claim at the Strata Management Tribunal (up to RM250,000) or in court, or a COB warrant to seize movable property.
- Offence: ignoring the notice without reasonable excuse can mean a fine of up to RM5,000, up to 3 years’ jail, or both.
- Other effects: no vote at the AGM, no seat on the committee, and the arrears must be cleared when you sell.
This applies to condos, serviced residences and landed strata homes in Peninsular Malaysia, including Johor Bahru, under the Strata Management Act 2013 (Act 757). General information, not legal advice.
What happens, step by step
The legal sequence under the Act and the standard by-laws:
| Stage | What happens | Basis |
|---|---|---|
| 1. The bill | Charges and sinking fund are payable within 14 days of the notice or bill. | Act 757, sections 12, 25 and 52 |
| 2. Interest starts | Late sums attract interest: a fixed 10% a year during the developer’s period, or the rate the AGM sets (no more than 10% a year) under a JMB or MC. | Sections 12(6), 25, 52(5) and 60 |
| 3. By-law measures | 14 days after you receive notice of the sum owed: access card deactivated, facilities and car park bay suspended, unit and amount posted on the notice board. | 2015 Regulations, Third Schedule (standard by-laws) |
| 4. Notice of demand | A written demand (Form 20 for an MC) giving at least 14 days to pay. | Sections 34 and 78; regulation 31 |
| 5. Recovery | A claim at the Strata Management Tribunal or in court, or a COB warrant to attach and sell movable property. | Sections 33 to 35 and 77 to 79 |
| 6. Prosecution | Failing to comply with the notice without reasonable excuse: fine up to RM5,000, up to 3 years’ jail, or both, plus up to RM50 a day if it continues. | Sections 34 and 78 |
The developer, a Joint Management Body (JMB) or a Management Corporation (MC) may be chasing you, depending on the building’s stage; the powers are almost the same (see JMB vs MC).
Late-payment interest: how the debt grows
During the developer’s management period, the Act fixes interest at 10% a year, calculated daily, on anything unpaid after 14 days (sections 12(6) and 52(5)). Once a JMB or MC is running, the owners set the rate at a general meeting, and it cannot exceed 10% a year (sections 19(1)(d) and 25 for a JMB, section 60 for an MC). The rate is stated on the notice the body sends after each AGM that sets the charges (2015 Regulations, regulations 13, 24 and 27).
Illustration only: on RM3,000 of arrears left unpaid for a year at 10%, interest adds about RM300. Meanwhile new monthly charges keep coming, so the balance keeps growing.
How the charges themselves are set, and why your unit pays what it pays, is covered in my maintenance fee and sinking fund guide and the guide to share units.
Access cards, facilities and the notice board
The standard by-laws in the Third Schedule of the 2015 Regulations apply to every strata scheme in Peninsular Malaysia. Their defaulter rules are where most owners first feel the effect of arrears. The position in November 2026:
| Management may | Management may not |
|---|---|
| Deactivate your access card or tag 14 days after you receive notice of the sum owed, until it is paid | Bar you from entering your own unit (Court of Appeal, 26 October 2026) |
| Ask you to sign the register at the guardhouse to enter or leave | Leave you without a safe, reasonable alternative way in, such as signing in at the guard post and using a basic lift or the stairs |
| Suspend your use of common facilities and services, including your designated car park bay on common property | Cut your water or electricity supply (COB Kuala Lumpur guidance) |
| Post your name, unit and the amount owed on the notice board, updated monthly | Report you to a private credit-reporting agency (COB Kuala Lumpur guidance) |
The Court of Appeal case concerned a strata mall in Nilai whose JMB refused an owner’s representatives entry; the court declared this unlawful (Malay Mail, 27 October 2026). The housing minister then told Parliament that KPKT is reviewing the Act (Bernama, 29 October 2026). More in my condo by-laws guide.
Owner with arrears, or buying a unit that has them?
Tell me the project and unit. I’ll explain what the management’s letters mean, which documents to ask for, and how arrears are usually settled in a JB sale.
WhatsApp JasonLegal recovery: tribunal, court and seizure
Unpaid charges are a debt the management body can recover (sections 33 and 77). It must first serve a written notice of demand giving you at least 14 days (sections 34 and 78), then it can sue in court, file at the tribunal or use the COB. A court judgment can be enforced against your assets, usually with costs added.
The Strata Management Tribunal
KPKT’s tribunal hears claims of up to RM250,000, including claims for charges and sinking fund contributions, and JMBs and MCs are among those who may file. The filing fee is RM100 for residential property and RM200 for commercial (KPKT, updated 9 July 2025). If you are served with a claim, respond within the time on the form. My Strata Management Tribunal guide explains the process from the owner’s side.
Seizure of movable property by the COB
On a sworn application, the Commissioner of Buildings can issue a warrant to attach the defaulter’s movable property in the state (sections 35 and 79). Entry by force is allowed in the daytime. If the debt is still unpaid after 14 days and no challenge is pending, the goods can be auctioned under the COB’s supervision. You can dispute the attachment in the Magistrate’s Court within 14 days. In Johor, the COB sits at your local council, such as MBJB, MBIP, MBPG or MPKu.
The criminal offence
Separately, an owner who fails to comply with the notice of demand without reasonable excuse commits an offence. The maximum is a fine of RM5,000, three years’ jail, or both, plus up to RM50 for every day the offence continues (sections 34 and 78). Paying before the notice expires avoids this risk.
Your vote and the committee
The COB’s guidance for strata communities is that an owner in arrears may attend the AGM or EGM but cannot vote, and cannot be elected to the management committee (Pesuruhjaya Bangunan DBKL, FAQ 2015–2016). The meeting rules in the Act check arrears shortly before the meeting, so pay well ahead if you plan to vote. See condo AGM voting and standing for the condo committee.
If you rent the unit out
- The debt is the owner’s. Charges are billed to you, but a deactivated card or suspended car park bay hits your tenant.
- Tenants can pay to stop a seizure. If the COB moves to attach property, a tenant or occupier may pay the owner’s debt and deduct it from the rent (section 35 sets this out for JMB buildings).
- Put it in the agreement: who pays charges and by-law fines; see landlord tenancy agreements.
Selling or buying a unit with arrears
Arrears do not stop a sale, but they are settled at completion. An owner or a prospective buyer can apply for a certificate stating the charges, any arrears on the unit, the fund balances and expected major repairs (section 31 for a developer or JMB, section 73 for an MC). The fee is capped at RM50, and the body must issue it within 21 days (2015 Regulations, regulations 19 and 30).
- Sellers: arrears and interest are normally paid from your sale proceeds through the lawyers. See what sellers pay.
- Buyers in a normal sale: the management can pursue a successor-in-title for charges left unpaid, so make sure your lawyer gets the certificate and clears the arrears from the seller’s money before completion. My guide to arrears and apportionment in a subsale explains how this works.
- Auction buyers: in July 2026 the High Court held that a buyer at a court auction was not a successor-in-title and did not have to pay a wound-up previous owner’s arrears (Malay Mail, 15 July 2026). That is one decision on a judicial sale; read each proclamation of sale and take legal advice. See buying at auction in JB.
If you dispute the bill or can’t pay
Withholding charges in protest at poor service backfires: interest runs, the by-law measures apply and you lose your vote. Better routes:
- Check the bill. Charges must follow share units. In September 2026 the Federal Court refused leave to appeal in a case where unequal charge rates set at a JMB’s AGM had been held void (The Star, 28 September 2026).
- Pay and complain in writing. Pay, note your dispute, and raise it with the committee, the AGM, the COB or the tribunal. My guide to reading JMB and MC accounts helps you check where the money goes.
- Ask for an instalment plan. Write to the management early and propose a schedule. KPKT says it promotes instalment arrangements through negotiation (Bernama, 29 October 2026). Get any agreement in writing.
Owners living abroad
Owners who live in Singapore, Indonesia, India, China or elsewhere can miss letters sent to an old address. The 14-day clocks run from notices served on you, so keep your contact details current with the management office, pay by standing instruction, and check statements regularly; see managing a JB property from overseas and the vacant home checklist.
Where to buy if this matters to you
Arrears are a building issue, not an area issue. These areas have many completed strata buildings with years of AGM records to check:
- Mount Austin: many completed condos.
- Tebrau, Setia Indah and Molek: condos and gated strata homes.
- JB Sentral and Bukit Chagar: high-rises near the CIQ and RTS Link station.
- Iskandar Puteri: newer buildings, some still at the developer or JMB stage.
- Permas Jaya and Senibong: east-side condos, old and new.
Use my checklist on checking condo management before buying, and compare areas on the JB property map.
More Johor living guides: Condo running costs in JB · Buying an older condo · Condo parking disputes · Subsale property risks
Frequently asked questions
What happens if I don’t pay my condo maintenance fees in Malaysia?
Interest of up to 10% a year is added. After a 14-day notice, management can deactivate your access card, suspend facilities and list your unit on the notice board, then claim at the tribunal or in court, or ask the COB to seize your movable property. Ignoring a notice of demand is also an offence.
Can the management block me from entering my unit?
No. The Court of Appeal ruled on 26 October 2026 that owners cannot be barred from their own units over unpaid charges. Management may deactivate your card and make you sign in at the guardhouse, but it must give a safe, reasonable alternative way in.
Can they cut my water or electricity for unpaid maintenance?
No. Guidance from the Commissioner of Buildings says a JMB or MC has no power to cut an owner’s water or electricity for unpaid charges. The lawful measures are interest, the by-law measures and legal recovery.
Can I go to jail for unpaid maintenance fees?
Failing to comply with a notice of demand without reasonable excuse is an offence under the Strata Management Act 2013. The maximum is a fine of RM5,000, three years’ jail, or both. Paying or agreeing a written instalment plan before the notice expires avoids it.
Can I sell my unit if I owe maintenance fees?
Yes, but the arrears and interest are normally paid out of your sale proceeds at completion. The buyer’s lawyer will ask for a certificate of charges, which costs no more than RM50 and must be issued within 21 days.
Can I vote at the AGM if I have arrears?
You may attend, but COB guidance says an owner in arrears cannot vote or be elected to the committee. Clear the arrears well before the meeting if you want to take part.
Buying, selling or owning a condo in Johor Bahru?
Send me the project and unit. If you are buying, I will help you get the charges certificate, AGM minutes and accounts through the seller before you commit. If you are selling a unit with arrears, I will explain how they are usually settled at completion. You can also book an appointment, or a Zoom consultation if you are abroad.
Sources: Strata Management Act 2013 (Act 757), sections 12, 19, 25, 31, 33 to 35, 52, 60, 73 and 77 to 79 (copy published by DBKL), checked November 2026; Strata Management (Maintenance and Management) Regulations 2015, P.U.(A) 107, regulations 13, 19, 24, 27, 30 and 31 and the Third Schedule (copy published by DBKL), checked November 2026; KPKT, Soalan Lazim Tribunal Pengurusan Strata, updated 9 July 2025; Pesuruhjaya Bangunan DBKL, Soalan Lazim Seminar Komuniti Strata, 2015–2016; MBJB, Info MBJB (Bahagian Pesuruhjaya Bangunan), June 2018; Bernama, KPKT minister’s reply: strata owners cannot be barred from their units over unpaid maintenance, 29 October 2026; Malay Mail, Court of Appeal ruling that JMBs cannot lock owners out over maintenance fees, 27 October 2026; Malay Mail, standard strata by-laws explained, 29 September 2026; Malay Mail, High Court ruling that strata auction buyers need not inherit previous owners’ arrears, 15 July 2026; The Star, “Landmark ruling bans unequal fees”, 28 September 2026
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 14 November 2026, not legal advice. Your building’s by-laws and resolutions, the Commissioner of Buildings at your council, the Strata Management Tribunal or a lawyer decide what applies to you, and KPKT is reviewing the Strata Management Act 2013.