Dear StarProperty,

I recently moved into a new 3 storey link house in Seksyen 11, Kota Damansara, it’s a gated and guarded community with individual title. In the Deed of Mutual Covenants signed with the developer, it was stated that the developer will provide security services for 12 months from the date of vacant possession and thereafter the residents will need to form the Resident Association to takeover such services.

Therefore by the expiry of the 12 months, the residents formed the Resident Association, called for the general meeting, put in the necessary papers to the Registrar of Societies and officially formed the association.

To continue providing for the security services, the Resident Association had to collect security fees from each household. The developer still holds 17 units in the area and is only willing to pay 50% of the security fees.

Whilst we understand that the Resident Association may not have the legal rights to force the residents to pay the security fees, but it is extremely disappointing that the developer who sold the property to us with the concept of gated and guarded refusing to pay the full amount of the security fees on the units that they still hold. There’s only 100 units in the residential area, so 17 units held by the developers essentially represents 17% of the entire area, which is quite a significant amount, also meaning to say that the other residents will have to shoulder the shortfall from the developer if we want to maintain the security services.

Why are house owners always bullied by developers ? All we ask for is to own a home in a decent housing area and live peacefully and safely. Is there no other ways which we can protect our interest and safety ?

Disapointed house owner

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Dear Disappointed house owner,

Indeed there is currently no law regulating gated and guarded communities unless they are landed strata developments, as verified by prominent legal expert on strata title properties, Lee Kim Noor.

When it comes to gated communities with landed strata titles, the collection of service charges is mandated by the Strata Management Act. When it comes to guarded neighbourhoods with individual titles however, there is no federal law. There is a state government gazette in Selangor which approves and regulates gated and guarded developments, while the Ministry of Housing has released guidelines on what can be described as gated and guarded.

“The bottom line is there is no law governing the collection of service charges for this type of project except by a contract between the developer and the first purchaser,” says Lee. “After sub sale, the enforcement will be a problem. Without money all the facilities would not be able to be maintained.”

According to the Peninsular Malaysia Town and Country Planning Department, a gated community focuses on a community which lives in landed properties with strata titles.

Guarded neighbourhoods are houses with individual land titles, where the “guarded” factor is not based on the provisions of any law or regulation but exists only on an 'ad-hoc' basis with the agreement of residents in a neighbourhood.

Officially, common services such as security and rubbish disposal would be handled by the police and the municipal authorities, since the roads within the development are still public road reserves, unless the residents’ association opts to implement a joint private contract.

Therefore, it would be misleading to market a development with individual titles as a gated community, or “gated and guarded”. It is especially misleading when a developer offers such security services for a certain amount of time only for this precedent not to be followed upon.

Of course, it seems that insult is added to injury when the developer still owns several units and refuses to pay for the shares of these units. The developer would imaginably suffer in the long run, however, as if the development suffers, the value of the developer’s units would also fall.

It would seem as if individually titled developments must be clear about their developments not being “gated and guarded” developments, as well as not promise private security services.