Strata & Building Management
Management fined you: is that fine actually enforceable?
An additional by-law may impose a fine on an owner, occupant or invitee in breach — but not more than RM200, under s.32(3)(i) for a JMB and s.70(2)(i) for an MC. Paragraph 7 of Part 2 of the Third Schedule makes the fine a debt due, payable into the maintenance account.
Quick summary
Quick answer
Best for
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Buyer action
| Best for | Residents in a neighbour dispute, and buyers weighing high-rise living against landed on quality-of-life grounds. |
|---|---|
| Risk level | Low-Medium |
| Buyer action | Send Lewis your building name, the charge you pay and what you are trying to decide, and he will tell you what to check first. |
What the by-laws actually allow
This post works through there is a statutory basis for by-law fines and a ceiling on them. Anything beyond that is a demand, not a debt. A rule your building invented is only enforceable if it was made the way the Act requires.
The power and the cap
Section 32(3)(i) for a joint management body and s.70(2)(i) for a management corporation expressly include, within the permitted scope of additional by-laws, the imposition of a fine against any parcel owner, proprietor, occupant or invitee who is in breach of any of the by-laws. The Act then caps it: the fine must not exceed two hundred ringgit. That cap applies regardless of how serious the breach is or how many times it has happened. A penalty above RM200 attached to a by-law breach is not an enforceable fine.
Where the money goes
Paragraph 7(1) of Part 2 of the Third Schedule to the 2015 Regulations allows the management body to impose a fine, up to the statutory limit, against any person in breach of the by-laws. Paragraph 7(2) then requires the fine to be treated as a debt due and deposited into the maintenance account. That second half is worth knowing: a fine is not a payment to the committee or to a manager, and it should be identifiable in the accounts. If you are paying fines and cannot find them as income in the audited accounts, that is a question worth asking.
The two checks before you pay
First, which additional by-law does the fine rest on? A fine can only follow a breach of a by-law, so ask for the by-law itself. Second, was that by-law validly made — proposed at a general meeting on at least twenty-one days' notice and passed by not less than three-quarters of the valid votes cast? If it was, the fine stands and the RM200 cap tells you the maximum. If the by-law cannot be produced, or was introduced by circular or committee decision, the fine has no foundation and that is the point to put in writing.
Verify this against your own building
Get a copy of your scheme's additional by-laws and the resolution that passed them. A rule that cannot be traced to a properly passed resolution is a request, not an obligation.
Buyer checklist
Fines are lawful, capped and traceable. Lawful because ss.32(3)(i) and 70(2)(i) expressly allow an additional by-law to impose one on any parcel owner, proprietor, occupant or invitee in breach. Capped at two hundred ringgit. Traceable because paragraph 7(1) of Part 2 of the Third Schedule lets the management body impose it and paragraph 7(2) requires the money to go into the maintenance account.
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| 1 | Ask which additional by-law the fine is based on and get a copy of it. |
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| 2 | Check that by-law was passed by special resolution — 21 days' notice, three-quarters of valid votes cast. |
| 3 | Check the amount against the RM200 cap in ss.32(3)(i) and 70(2)(i). |
| 4 | Look for the fine income in the maintenance account, as paragraph 7(2) requires. |
| 5 | If the by-law cannot be produced, put the objection in writing before paying. |
Common questions
Can management fine me for breaking a house rule?
Yes, if the rule is a validly made additional by-law. Sections 32(3)(i) and 70(2)(i) allow an additional by-law to impose a fine on an owner, proprietor, occupant or invitee in breach.
How much can the fine be?
Not more than two hundred ringgit.
Where does the fine money go?
Paragraph 7(2) of Part 2 of the Third Schedule requires it to be treated as a debt due and deposited into the maintenance account.
The rule was announced by notice, not voted on. Can they still fine me?
A fine follows a breach of an additional by-law, and additional by-laws must be made by special resolution. Ask for the by-law and the resolution before paying.
Lewis Chong
REN 69566 · IQI GlobalProperty advisor helping KL, JB, and Penang buyers make data-backed property decisions.
Related reading
Use one buyer framework across different news.
Can management cut your water, lock your meter or bar you from the lift over arrears?
Act 757 and the 2015 Regulations give a management body no express power to cut water or electricity to a parcel over arrears. What they do allow is suspension of common facilities and services under by-law 6(5), and deactivation of your access card under by-law 6(4) with a reactivation charge of not more than RM50.
Lewis Conclusion
Know the difference before you argue. Access-card deactivation and facility suspension are lawful and management will use them; a utility cut has no express statutory footing and is worth challenging in writing straight away. Either way, settle the arrears first — every remedy here switches off the moment the account is clear.
Can management rent out, reserve or charge for common-property parking?
A management body can rent out or allocate common-property bays — a JMB under s.23(2)(c), an MC under s.50(2)(c) read with s.60(2) — and can regulate parking through additional by-laws under s.32(3) or s.70(2). But those additional by-laws need a special resolution at a general meeting, not a committee decision.
Lewis Conclusion
Ask one question when a new parking rule appears on the notice board: which special resolution, passed at which general meeting, authorised it? If nobody can answer that, what you are looking at is a committee preference wearing the clothes of a by-law.
When management is legally liable
Committee members face personal liability under s.26(5) for a JMB and s.62(5) for an MC if they fail to maintain, audit, or permit inspection of accounts — fines up to RM250,000 and imprisonment up to three years. The management body must keep common property in repair under s.21(1)(a) and s.59(1)(a). By-laws exempt the MC from liability for vehicle towing, removal of unauthorised animals, and disposal of unclaimed items, but there is no general provision making the body liable for theft or loss. Claims go to the tribunal under ss.102 and 105(1).
Lewis Conclusion
If the committee has failed on accounts, the personal exposure is real and expensive — cite s.26(5) or s.62(5). If you are suing over theft or vehicle damage, ask a lawyer whether the by-law exemptions in the Third Schedule will apply — the body does not have blanket liability for loss, but the contract between you and the body may impose one.
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Ask which additional by-law the fine is based on and get a copy of it.
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Check that by-law was passed by special resolution — 21 days' notice, three-quarters of valid votes cast.
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Check the amount against the RM200 cap in ss.32(3)(i) and 70(2)(i).
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Look for the fine income in the maintenance account, as paragraph 7(2) requires.