Paper 1 · Land Law
Strata Management: the BMSMA, the MCST & By-Laws (Singapore)
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 Maintenance and Strata Management Act (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 |
The practical consequence: external walls, corridors and the façade are common property, not part of the lot. An owner who wants to mount a condenser on the external wall, enclose a balcony or gate off a corridor needs the MC's authority — it is not theirs to alter.
The management corporation (MCST)
- The MC is constituted automatically when the strata title plan is registered — no one has to opt in.
- Every subsidiary proprietor is automatically a member. You cannot resign from it while you own a lot.
- It is a body corporate: it can sue and be sued in its own name, hold funds, and enter contracts.
- Day-to-day it is run by an elected council (chairperson, secretary, treasurer and other members) chosen at the Annual General Meeting.
- The MC may appoint a managing agent to carry out its functions — but delegating the work does not transfer the MC's legal responsibility.
- It must maintain a strata roll (SPs, share values, mortgagees) and keep the building insured for full reinstatement value against fire and other prescribed risks, plus public liability cover.
Share value — one number, three jobs
Each lot is allotted a share value when the strata title plan is registered, broadly reflecting the size and type of the lot. It is the single most-tested concept in strata law because it does three separate things:
- Money in — it fixes each SP's proportion of the contributions to the management and sinking funds. A bigger share value means a bigger maintenance bill.
- Voting power — on a poll at a general meeting, votes are counted by share value, not one-owner-one-vote.
- Ownership — it measures the SP's undivided share in the common property (and so their slice of the proceeds in a collective sale).
The two funds
| Management fund | Sinking fund | |
|---|---|---|
| Purpose | Recurrent, day-to-day running costs | Periodic / long-term capital expenditure |
| Typical spend | Cleaning, security, landscaping, utilities for common property, insurance premiums, managing agent's fee, minor repairs | Repainting the exterior, lift replacement or major overhaul, renewal of major fixtures, major structural repairs |
| Horizon | This year's operating budget | Saved up over years for works that recur infrequently |
By-laws — and who they bind
- The prescribed by-laws in the BMSMA apply to every strata development by default — no one has to adopt them.
- An MC may make additional by-laws (renovation hours, pets, use of facilities, signage), provided they are not inconsistent with the Act.
- By-laws bind the MC, the subsidiary proprietors, and also mortgagees in possession, lessees and occupiers — so a tenant is bound by the condo by-laws even though they never signed anything with the MC. Advise landlord clients to annex the by-laws to the tenancy agreement.
- A by-law granting an SP the exclusive use and enjoyment of common property is a bigger step and needs the higher 90% resolution, not an ordinary vote.
| Resolution | Passes when |
|---|---|
| Ordinary | A simple majority of votes is in favour |
| Special | Not more than 25% of the votes are cast against it |
| 90% resolution | Not more than 10% of the votes are cast against it |
| Unanimous | No votes are cast against it at a duly convened meeting |
The trap
Three classic errors. (1) Thinking votes at a general meeting are one owner, one vote — on a poll they are counted by share value. (2) Assuming by-laws bind only owners — they bind lessees and occupiers too, so a tenant can be acted against. (3) Treating the external wall, balcony façade or corridor outside the front door as part of the lot — it is common property, and altering it without the MC's authority is a breach.
Disputes and inter-floor leaks
Strata disputes — unpaid contributions, by-law breaches, unauthorised works on common property, complaints about the managing agent — go to the Strata Titles Board (STB), which typically attempts mediation before making an order. (The same Board also hears collective-sale applications under the Land Titles (Strata) Act.) For the very common problem of water seeping through a ceiling, the BMSMA sets a rebuttable presumption that inter-floor leakage originates from the lot or common property immediately above — so the upstairs owner must disprove it rather than the downstairs owner prove it.
Contrast: HDB estates are not strata-managed
- There is no MCST for an ordinary HDB block. Common property in HDB estates is managed by the Town Council, funded by Service & Conservancy Charges (S&CC) — not by an MC levying contributions on share value.
- Executive Condominiums (ECs) *are* strata developments with an MCST and BMSMA by-laws, even though they carry HDB eligibility and MOP rules at the start — a distinction the exam likes.
- Private condominiums, strata landed housing, and strata commercial/industrial developments all fall under the BMSMA.
Exam takeaway
In a strata development you own a lot plus an undivided share of common property. The MCST (constituted on registration of the strata title plan, every SP a member, run by an elected council) manages the common property, funded by contributions apportioned by share value — which also fixes voting on a poll and the ownership share. Management fund = recurrent costs; sinking fund = periodic capital works. By-laws bind owners, tenants and occupiers; disputes go to the STB. HDB blocks are run by Town Councils instead.
Worked case study · Section B style
A buyer is considering a condominium unit. The seller mentions that the management corporation has just resolved to repaint the whole development, and the buyer asks the salesperson how the development is run and who pays for what.
- Every subsidiary proprietor is automatically a member of the management corporation.
- Contributions to the management and sinking funds are levied on each SP in proportion to their lot's share value.
- Periodic major works such as repainting the exterior are properly funded from the sinking fund.
- The by-laws bind only the subsidiary proprietors, so nothing can be done about a tenant who breaches them.
- A.(i), (ii) and (iii) only
- B.All four statements
- C.(i) and (iv) only
- D.(ii) and (iii) only
Show answer & explanation
Answer: A. (i)–(iii) are correct: membership of the MC is automatic on becoming an SP, contributions are apportioned by share value, and repainting the exterior is exactly the kind of periodic capital work the sinking fund exists for (the management fund covers recurrent running costs). (iv) is wrong — BMSMA by-laws bind the MC, the subsidiary proprietors and mortgagees in possession, lessees and occupiers, so a tenant in breach can be acted against. Hence (i), (ii) and (iii) only.
Apply it · the IRAC method
A condominium owner installs a large air-conditioning condenser on the external wall beside his unit and fits a locked metal gate across the common corridor to enclose the area outside his front door. He obtained no approval. A neighbour complains to the council, and the owner insists the corridor 'has always been mine'.
- IIssue: Is the owner entitled to install the condenser and the gate, and what can the management corporation do if he refuses to remove them?
- RRule: Under the BMSMA, everything not comprised in a lot on the strata title plan is common property — including external walls and common corridors — and the management corporation has the duty to control, manage and maintain it. A subsidiary proprietor must not alter or appropriate common property without the MC's authority, and a by-law conferring the exclusive use and enjoyment of common property on an SP requires a 90% resolution. By-laws bind SPs, lessees and occupiers. Disputes may be brought to the Strata Titles Board (STB), which may attempt mediation and can make orders requiring compliance. (Confirm current procedures with the STB / BCA.)
- AApplication: Neither the external wall nor the corridor forms part of the owner's lot; both are common property, so his belief that the corridor is 'his' is wrong regardless of how long he has used it. The condenser is an unauthorised installation on common property, and the locked gate goes further — it appropriates common property for his exclusive use, which could only be conferred by a by-law passed by a 90% resolution, not by simply doing it. The MC is therefore entitled to require removal and reinstatement.
- CConclusion: The owner is not entitled to either installation. The MC should give him written notice to remove them and reinstate the common property; if he refuses, it may apply to the STB for an order. The lesson for a salesperson: before advising a client on renovations, balcony enclosures or air-con siting, check the by-laws and confirm what is lot and what is common property with the MC.
Ready to test yourself?
Practise exam-style questions on Land Law — with instant answers and explanations.
Practise Land Law questions →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 BMSMA, 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 BMSMA by-laws.
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