Paper 1 · Land Law
BSMA & MCST Explained: Subsidiary Proprietors, By-Laws
Must-know for the exam
- A condominium buyer acquires a strata lot held under a subsidiary strata certificate of title plus an undivided share of the common property owned with all other owners.
- Common property is everything not comprised in any lot, including external walls, corridors, lifts, the roof and the façade; altering it needs the management corporation's authority.
- The MCST is constituted automatically on registration of the strata title plan; every subsidiary proprietor is automatically a member, and it is a body corporate run by an elected council.
- Share value fixes each subsidiary proprietor's share of fund contributions, their voting power on a poll (not one owner, one vote), and their undivided share of common property.
- The management fund pays recurrent day-to-day costs such as cleaning, security and insurance; the sinking fund pays periodic capital works such as repainting and lift replacement.
- BSMA by-laws bind the MC, subsidiary proprietors, mortgagees in possession, lessees and occupiers, so a tenant is bound without signing anything with the MC.
- Under BSMA s33, exclusive use of common property needs an
Buy a condominium unit and you buy two things at once: a strata lot you own outright, and an undivided share of the common property you own together with every other owner in the development. That shared half is run collectively — by a management corporation (MCST) under the Building (Strata Management) Act 2004 (BSMA) — renamed from the Building Maintenance and Strata Management Act with effect from 1 October 2025, so older notes and course material will still call it the BMSMA. A salesperson is asked about this constantly (maintenance fees, renovation approvals, pet rules, who fixes the leak), and it is examinable land law.
Who owns what: lot vs common property
| What it is | Who controls it | |
|---|---|---|
| Strata lot | The unit itself, as shown on the strata title plan — held under a subsidiary strata certificate of title (SSCT) | The subsidiary proprietor (SP) — the individual owner |
| Common property | Everything not comprised in any lot — lifts, corridors, driveways, roof, external walls, pool, landscaping | The management corporation, which must maintain and keep it in good repair |
| Limited common property (LCP) | Common property set aside for the exclusive benefit of some (not all) SPs — e.g. facilities serving only one tower | The MC, but costs are borne by the benefiting SPs only |
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Common questions
- What is an MCST?
- The management corporation strata title — the body corporate constituted when a strata title plan is registered. Every subsidiary proprietor (unit owner) is automatically a member. It manages and maintains the common property, levies contributions, insures the building, and is run by a council elected at the AGM. It may appoint a managing agent, but remains legally responsible.
- What is the difference between the management fund and the sinking fund?
- The management fund pays recurrent day-to-day running costs — cleaning, security, landscaping, utilities for common property, insurance premiums and the managing agent's fee. The sinking fund saves for periodic capital works such as repainting the exterior, lift replacement and major structural repairs. Both are funded by contributions apportioned according to each lot's share value.
- What does share value determine?
- Three things: each subsidiary proprietor's proportion of the contributions to the management and sinking funds, their voting power on a poll at general meetings (votes are counted by share value, not one owner one vote), and their undivided share in the common property — which also drives their share of the proceeds in a collective sale.
- Do condominium by-laws bind tenants?
- Yes. Under the BSMA, by-laws bind the management corporation, the subsidiary proprietors, and also mortgagees in possession, lessees and occupiers. A tenant is bound even though they have no contract with the MC, so landlords should annex the by-laws to the tenancy agreement.
- Is there an MCST for an HDB flat?
- No. Common property in an ordinary HDB estate is managed by the Town Council and funded by Service & Conservancy Charges, not by an MCST. Executive Condominiums are different — they are strata developments with an MCST and BSMA by-laws.
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