Every strata development must form a management corporation to maintain the common property

A worked RES examination question on strata management share value, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.

Paper 1Lesson 2Strata management share valueFree — no sign-up

The question

A buyer of a unit in a strata development asks his agent two things before he commits. First, whether the development is obliged to have some body responsible for running and maintaining the common property, or whether that is left to the owners to arrange among themselves as they see fit. Second, whether the rules that govern the use of the common areas are the same across every condominium in Singapore, or whether they are particular to each development, so that what is allowed in one might be forbidden in another. He is thinking in particular of whether he will be able to keep a dog.

Which statement is correct?

A. A management corporation is optional, and where one exists its rules are standard.
B. A management corporation is optional, but its by-laws once made bind every development.
C. A management corporation is compulsory, and its by-laws are identical everywhere.
D. A management corporation is compulsory, and each may add by-laws of its own.

The answer, and why

Answer: D

The rule. Every strata development must form a management corporation to maintain the common property. A baseline set of by-laws applies to all such developments, and each corporation may add by-laws of its own by resolution.

Why D is correct. Compulsory corporation; each adds its own by-laws.

The other options.

A and B make the corporation optional.
C treats the by-laws as identical everywhere, which ignores the project-specific additions an agent must check.

Exam note. The corporation is compulsory, and the by-laws are baseline-plus-local — which is why you check the particular development's rules before answering a buyer about, say, pets.

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