Came across a case recently pertaining to a property and intestate case and a predicament a management committee/JMB is facing. Had this conversation with Reza Baharin to pick his brain as he is part of my condo’s management committee (MC) for several years now.
So here’s the snippet of the case:
Ali and Hasmah are brother and sister who co-owned a unit at Pangsapuri Bidadari Indah (bukan nama sebenar). Due to extenuating circumstances, neither kept up with management fees owed on their property and accumulated debt owed to the management committee of over RM50k.
Unfortunately, both passed away recently with no effort by the family to sort out estate administration matters on the flat.
While Ali left behind a son, Hassan , Hasmah died single. Both are also survived by a brother, Abu.
The intestate nature of the estate is an interesting case study for the MC of Pangsapuri Bidadari Indah.
(1) To whom lies the obligation to cure the debt situation on the amounts owed to the management committee ? Until the estate can be administered and sorted, should the MC prioritize Hassan the son or Abu , Hassan’s uncle when it comes to matters concerning the property? Should any of them be barred from the unit until the debts on the property are clear?
(2) If both Abu and Hassan agree that the unit should be refurbished and rented out, should there be some sort of garnishing of rents on the property while the legal ownership of the unit is sorted out with the Shariah court?
Or worse still – if neither Abu and Hassan cannot come to a consensus on whether the property is to be refurbished (or not) to be rented out, to live in or to be sold. Therein lies the issue of potential abandonment of real estate.
(3) Lastly, what is the MC’s role in all of this, especially if there could be a potential tussle over who has rights over the property?
These are real life examples of how ownership of land or homes can get complicated over time. Just because you are family does not mean that the family unit can think alike about what is best for the estate. Remember that the deceased aren’t around to convey their wishes to the living!
In short, property is not easily divisible and having property as part of your investment portfolio may not be for everyone. While the intent can be noble to leave behind a tangible legacy in the form of a family home where everyone can go ‘back to kampung’ one fine day; it may be that very one fine day that the entire family may regret and may be the very reason they break up with one another.
Always plan with the ultimate goal in mind and do not just buy property(or properties) for the sake of buying.