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Strata & Building Management

Strata Management Tribunal vs Homebuyer Claims Tribunal

Two tribunals, two Acts, two limits. The Strata Management Tribunal takes disputes with your management body up to RM250,000 under s.105(1) of Act 757. The Homebuyer Claims Tribunal takes claims against a licensed developer arising from the SPA up to RM50,000 under s.16M(1) of the Housing Development (Control and Licensing) Act 1966, with a 12-month time bar in s.16N(2).

Quick summary

Quick answer

Best for

Owners deciding whether, where and when to bring a strata claim.

Risk level

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.

Before you file anything

What follows takes apart defects against a developer and disputes with your management body go to different tribunals with different limits and time bars. Low-value disputes between people who must keep living together cannot be economically litigated in court. That is why the tribunal exists.

Different defendants, different Acts

The two tribunals are not alternatives for the same dispute. The Strata Management Tribunal exists under Part IX of the Strata Management Act 2013 and hears the matters listed in the Fourth Schedule — disputes with the developer acting as manager, the joint management body, the management corporation or a subsidiary management corporation. The Homebuyer Claims Tribunal, established in 2002 by amendment to the Housing Development (Control and Licensing) Act 1966, hears claims by a homebuyer against a licensed developer arising from the sale and purchase agreement. So the first question is not what went wrong, but who you say is answerable for it.

The limits are very different

Section 105(1) of Act 757 gives the Strata Management Tribunal jurisdiction where the award sought does not exceed RM250,000. Section 16M(1) of the HDA sets the Homebuyer Claims Tribunal's limit at RM50,000. That is a fivefold difference, and it matters when the same physical problem could be framed either way — a serious defect claim against a developer may exceed the homebuyer tribunal's ceiling and have to go to court, while a claim against the management body over the same building sits comfortably within the strata tribunal's.

Time is where they diverge most

Section 105(2) of Act 757 disapplies the Limitation Act 1953 to Strata Management Tribunal proceedings, so there is no standard statutory limitation period there. The homebuyer tribunal is the opposite. Section 16N(2) of the HDA requires a claim to be filed within twelve months from the date of issuance of the certificate of completion and compliance for the housing accommodation or the common facilities intended for subdivision, whichever is later; or the expiry of the defect liability period set out in the SPA; or the date the SPA is terminated by either party. Miss that and the forum closes, whatever the merits.

How to choose without wasting a year

Work backwards from the defendant. If the complaint is that common property is not being maintained, that accounts are not produced, that a resolution was invalid or that charges are wrong, the answer is the management body and the Strata Management Tribunal. If the complaint is that the unit was delivered defective, late, or not as agreed, the answer is the developer under the SPA and the Homebuyer Claims Tribunal — and the twelve months in s.16N(2) starts running whether or not you are still negotiating. Diarise that date first, then decide how patient to be.

Verify this against your own building

Check the current jurisdiction limit and filing procedure on KPKT's tribunal page before you file, and diarise the limitation date the day the dispute starts. Filing late is the most common way a good claim dies.

Buyer checklist

Who you are suing decides the forum. A dispute with the joint management body, the management corporation or the developer acting as manager goes to the Strata Management Tribunal — RM250,000 limit under s.105(1), no Limitation Act time bar under s.105(2). A claim against the licensed developer arising from the sale and purchase agreement goes to the Homebuyer Claims Tribunal — RM50,000 limit under s.16M(1) of the HDA, and a hard 12-month window under s.16N(2).

1

Identify the defendant first — management body, or licensed developer under the SPA.

2

Check the limit: RM250,000 at the Strata Management Tribunal under s.105(1); RM50,000 at the Homebuyer Claims Tribunal under s.16M(1) of the HDA.

3

For a developer claim, diarise the 12 months in s.16N(2) from the CCC, the expiry of the defect liability period, or termination of the SPA.

4

Remember s.105(2) disapplies the Limitation Act 1953 at the strata tribunal, so the two forums treat delay very differently.

5

If the claim exceeds the applicable ceiling, plan for the civil courts instead.

6

Confirm the current limits and procedure with the tribunal before filing — these figures are set by statute and can be amended.

Common questions

Which tribunal handles a dispute with my management body?

The Strata Management Tribunal, under Part IX of Act 757, with a limit of RM250,000 under s.105(1).

Which one handles a claim against my developer over the SPA?

The Homebuyer Claims Tribunal under the Housing Development (Control and Licensing) Act 1966, with a limit of RM50,000 under s.16M(1).

How long do I have to file against a developer?

Twelve months under s.16N(2) of the HDA, from the CCC for the housing accommodation or common facilities intended for subdivision (whichever is later), the expiry of the defect liability period in the SPA, or the date the SPA is terminated.

Is there the same time bar at the strata tribunal?

No. Section 105(2) of Act 757 provides that the Limitation Act 1953 does not apply to Strata Management Tribunal proceedings.

What if my claim is worth more than the ceiling?

It falls outside that tribunal's jurisdiction and must be taken to the civil courts.

Lewis Chong REN 69566

Lewis Chong

REN 69566 · IQI Global

Property advisor helping KL, JB, and Penang buyers make data-backed property decisions.

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The Strata Management Tribunal

The Strata Management Tribunal hears claims where the award sought does not exceed RM250,000 (s.105(1)), across fourteen categories in Part 1 of the Fourth Schedule. What it cannot touch is any claim in which title to land, or an estate or interest in land, is in question — s.105(3).

Lewis Conclusion

Match your complaint to a specific item in Part 1 of the Fourth Schedule before you file. Claims fail at this tribunal far more often for being the wrong kind of claim than for being weak on the facts.

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How to file at the Strata Management Tribunal

The Limitation Act 1953 does not apply to tribunal proceedings (s.105(2)), lawyers are barred unless two conditions are both satisfied (s.110(2)), and the tribunal must make its award without delay and where practicable within 60 days of the hearing starting (s.117(1)).

Lewis Conclusion

Prepare as if you will present the case yourself, because in almost every strata dispute you will. Bring the documents in date order, keep the claim inside one head of the Fourth Schedule, and let the sixty-day rule work for you rather than treating the tribunal like a court.

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You won at the tribunal and they still won't comply — what happens next

Ignoring a Strata Management Tribunal award is a criminal offence under s.123: a fine not exceeding RM250,000, imprisonment not exceeding three years, or both — plus a further fine of up to RM5,000 for every day the offence continues after conviction.

Lewis Conclusion

The daily fine is the part that actually moves people. A management body weighing whether to comply with an award is not choosing between paying now and paying later — it is choosing between complying and accumulating a criminal penalty every day it does not.

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Identify the defendant first — management body, or licensed developer under the SPA.

Send

Check the limit: RM250,000 at the Strata Management Tribunal under s.105(1); RM50,000 at the Homebuyer Claims Tribunal under s.16M(1) of the HDA.

Send

For a developer claim, diarise the 12 months in s.16N(2) from the CCC, the expiry of the defect liability period, or termination of the SPA.

Send

Remember s.105(2) disapplies the Limitation Act 1953 at the strata tribunal, so the two forums treat delay very differently.

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