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A. Background and introduction
Arising from Singapore's intractable problem of land scarcity, the number of strata developments in Singapore is constantly increasing. From just 550 such developments in 1980, the number has burgeoned to about 3,000 in 2006 ([2] BCA, 2007; Figure 1 [Figure omitted. See Article Image.]).
Strata developments in Singapore are currently governed mainly by two separate legislation. These are the Building Maintenance and Strata Management Act 47/2004 ([3] BMSMA, 2004) and the Land Titles (Strata) Act Cap. 158 (LT(S) A). The LT(S) A was originally based on the [7] Conveyancing (Strata Titles) Act 1961 of New South Wales, Australia but has since undergone radical changes. Nevertheless, the fundamental principle remains, that is, individual ownership of strata units and shared ownership of common property in the strata development.
While strata developments comprise a myriad of types including single use, simple and complex mixed use, industrial and commercial, this paper focuses on the management of residential developments, of which there are currently about 2,300 in Singapore ([2] BCA, 2007). Of these, in 2003 approximately 40 per cent were managed by Managing Agents and this figure currently stands at 57 per cent ([2] BCA, 2007). The essential inquiry in this paper pertains to the legal and practical implications of appointing a Managing Agent or in-house management team to manage common property in a residential strata development.
B. Research methodology
The research methodology adopted for this inquiry is a case study of two similar residential strata developments which utilize two different property management systems. The two developments were selected on the basis that, although they share certain similar vital characteristics, each successfully employs a different system of property management: one is managed by a professional Managing Agent while the other is managed by an in-house management team. Data was gathered mainly through interviews with the developments' Property Managers, Chairs of their Management Councils and relevant professionals in the real estate industry. Although subsidiary proprietors (unit owners) were not interviewed, the fact that changing Management Councils (elected by the subsidiary proprietors within each development) continued over a period of more than two decades with the chosen respective system is indicative of their tacit approval of the choice.
The information gleaned ([11] Seah, 2005) provides insights into...