At Anjia SG, we break down real estate jargon every day. Today, we’ll explore the Management Corporation Strata Title (MCST) and why they might hire someone to remind you to book the BBQ pit in advance.
An MCST is the governing body made up of owners in a strata-titled property, such as a condominium or apartment complex, responsible for managing and maintaining common areas and facilities. In Singapore, MCSTs are typically associated with private residential developments.
When a management corporation is contracted to manage a property, it is named as: The Management Corporation—Strata Title Plan No. XXX, where “XXX” is a serial number used to identify the management body.
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What are the functions of a Management Corporation Strata Title (MCST)?
The nature of private housing in Singapore necessitates a management body. Many Singaporeans live in gated communities, like condominiums, where numerous owners share common facilities. Such communities are often equipped with swimming pools, parks, gyms, security, and other amenities. Of course, all these common facilities require management, maintenance, and sometimes upgrades or expansions.
This is where the MCST comes in. Some owners do not want to micromanage everything, so they delegate the tasks to a separate body, which is the MCST.
One of the most important jobs of an MCST is managing the development’s sinking fund (the money you pay to maintain the condo or mall). These accounts are audited every financial year.
But they also perform tasks like maintaining and improving common facilities, right?
Yes and no.
In theory, they should be hands-on and constantly take measures to maintain or improve the designated areas. In reality, this varies greatly across different developments.
Some MCSTs will take proactive measures to introduce new facilities, while others are content with merely maintaining them, or even letting them sit idle. In other words, some management committees will be very actively involved and promote community activities, while others are less active, less visible, almost like “phantoms.”
In most cases, the actions of the MCST will reflect the wishes of the development’s owners. For example:
Suppose an MCST wants to hold a Christmas celebration in a strata-titled shopping mall. If all the owners work together, they might create a 9-foot-tall Christmas tree and have someone dress up as Santa Claus. However, if no owner is willing to spend the time and money, the mall might only have a small, ugly plastic tree and play a pirated version of the classic Christmas carol “Jingle Bells.”
The same goes for residential developments. Not all owners appreciate an MCST that spends lavishly on upgrading facilities. This is especially common when the development is old and everyone is waiting for an en-bloc sale.
What exactly does a Management Corporation Strata Title (MCST) do?
It is difficult to precisely summarize the scope of an MCST’s work, but its responsibilities include managing daily cleaning and repairs of common facilities, maintaining the overall hygiene of the community (e.g., dealing with leaks, mold, pests, etc.), and managing the security of the entire community. A good MCST can extend its responsibilities to community development projects and even real estate appreciation.
For an MCST to stand out from its competitors, it needs to excel in both service quality and scope of work. Some MCSTs may only do the bare minimum, while others will be proactive, solving problems before you are even aware of them. Of course, most MCSTs fall somewhere between these two extremes.
In the long run, a good MCST can mean a better quality of life for you at a lower management fee.
How is a Management Corporation Strata Title (MCST) formed?
Typically, an MCST is formed after the developer submits the strata title development plan to the Chief Surveyor and the strata title application to the Registrar of Land Titles at the Singapore Land Authority (SLA). The developer must also open a bank account in the name of the MCST, deposit all collected funds into the maintenance fund, and keep proper records.
Afterward, the developer must hold the first Annual General Meeting (AGM) within 13 months of the MCST’s formation. At this meeting, the owners will take over the management responsibilities and control of the condominium.
The MCST is also responsible for maintaining and updating the development’s strata roll, which is the register of every owner in the development.
The MCST has the authority to create by-laws through the AGM, which residents of the development must abide by.
Next, the owners will collectively appoint a management council, which in turn hires a managing agent. The managing agent is the person responsible for all daily affairs and serves as the liaison between the MCST, the management council, and the owners. This is a full-time professional responsible for managing the property (you could call them the chief maintenance officer, if you like).
The Managing Agent (MA) usually has the authority to decide which cleaning and security companies to hire, how often to perform landscaping maintenance, and so on. When someone files a complaint about such services, it may be handled by the MA rather than an MCST member. However, please note that a managing agent cannot delegate their own work to another vendor (e.g., a managing agent cannot hire another managing agent).
The term of a managing agent is only three years. Whether the managing agent is reappointed will be decided at the AGM.
Managing agents are usually accredited by one of the following organizations:
- The Association of Management Corporations in Singapore
- The Singapore Institute of Surveyors and Valuers
- The Association of Property and Facility Managers
You can read more about this in this guide.
Complete list of Management Corporation Strata Titles (MCSTs)
You can find a complete list of all MCSTs here. This list includes relevant information such as condominium details and contact information. Alternatively, you can search for MCST information using the condominium name through the Building and Construction Authority (BCA)’s MCST inquiry platform.
How to find a new Managing Agent (MA) for your Management Corporation Strata Title (MCST)?
First, look for accredited managing agents from organizations such as The Association of Management Corporations in Singapore, The Singapore Institute of Surveyors and Valuers, and The Association of Property and Facility Managers. These organizations manage accreditation schemes to ensure the quality, service, and standards of management bodies.
Another approach is to go out and investigate various condominiums on the ground. Nine times out of ten, all MCSTs will tell you in advance that they will do an excellent job of managing your property. However, to get a better understanding, we recommend visiting various condominiums to see how the management committees are performing.
Here is a checklist for your reference.
- Create a shortlist of management committees that you think are excellent.
- Find out which residential areas the management companies are currently managing and add them to a separate list. Use this website to save time.
- Visit the residential areas and observe the facilities and common spaces in detail.
- Finally, it is crucial to talk to residents and tenants. After all, residents and tenants see and experience the MCST’s work daily, and they are well-suited to share the pros and cons of how the management committee manages the property.
- Additionally, you can attend the Annual General Meeting (AGM). While it may not be thrilling, you might hear a lot about the MCST and get a direct sense of how the owners feel about it.
Frequently Asked Questions
What is an MCST?
MCST is an abbreviation for Management Corporation Strata Title. It refers to the management body of a condominium or development with multiple owners and shared facilities.
When is an MCST formed?
Typically, an MCST is formed after the developer submits the strata title development plan to the Chief Surveyor and the strata title application to the Registrar of Land Titles at the Singapore Land Authority (SLA).
How many MCSTs are there in Singapore?
Currently, the Building and Construction Authority (BCA) has recorded 4,593 MCSTs in the database on data.gov.sg, which was last updated in February 2021.
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