Consequences of Non-Compliance in Strata Schemes

Context

Why Consequences Matter

Strata schemes operate on shared financial and statutory responsibilities. When non-compliance persists, the impact is rarely isolated—it extends beyond the individual parcel owner to affect the safety, value, and governance of the entire development.

For the Non-Compliant Owner

Direct legal and financial exposure.

Accumulation of Arrears: Debts continue to grow over time, increasing financial liability.
Formal Legal Demands: Receipt of legal letters issued by appointed solicitors.
Legal Proceedings: Commencement of court actions by solicitors acting for the management body.
Enforcement Outcomes: Exposure to enforcement measures determined by court orders and applicable law.

For the Strata Scheme

Operational and financial risks to the JMB/MC.

Cash Flow Constraints: Inability to fund essential maintenance, repairs, and utilities.
Deferred Maintenance: Delays in safety works and statutory inspections due to lack of funds.
Burden on Others: Increased financial pressure on compliant parcel owners to subsidise defaulters.
Governance Instability: Operational disruption and potential management disputes.

Compliance vs. Enforcement

Compliance engagement seeks voluntary resolution and rectification through administrative means. Enforcement action occurs only where non-compliance persists and is undertaken through lawful legal processes by solicitors.

Why Early Resolution Is Encouraged

Addressing arrears early benefits all parties by:

Limiting the accumulation of arrears and cost exposure.
Reducing operational disruption to the strata scheme.
Avoiding the need for escalation into formal legal proceedings.

Important Note

SEPM does not issue threats or penalties, does not compel payment, and does not exercise enforcement powers. Enforcement actions are undertaken independently by appointed solicitors.