developer of his obligation—
(a) towards the purchasers in his development area to carry out repairs to the common property or to make good any defect, shrinkage or other faults in the common property during the defects liability period; and
(b) to carry out repairs and varied and additional works to ensure that the development is constructed in accordance with the specifications and plan approved by the competent authority.
termination of management agreement
91. (1) Upon the termination of a management agreement entered
into under subsection 86(2), the managing agent shall—
(a) not more than one month from such termination, prepare and submit to the commissioner the unaudited accounts of the maintenance account and the sinking fund account, and hand over to the commissioner a complete list of the assets and liabilities of such maintenance account and sinking fund account and all records related to and necessary for the maintenance and management of the building or land; and
(b) not later than three months from such termination, submit to the commissioner the audited accounts of the maintenance account and the sinking fund account. (2) Any managing agent who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both. (3) in the event of the termination of the management agreement, the commissioner may appoint another managing agent to maintain and manage the building or land for a period to be specified by the commissioner.
Part Vii
DEPOsiT TO REcTiFY DEFEcTs
developer to pay deposit to rectify defects on common property
92. (1) A developer of a building shall deposit in cash or bank
guarantee with the commissioner such sum as may be determined by the commissioner for the purpose of carrying out any work to rectify any defects in the common property of the development area after the completion of the common property.
(2) The deposit referred to in subsection (1) shall be paid to the Commissioner upon the handing over of vacant possession. (3) The Commissioner may use the deposit for the purpose of carrying out any work which is necessary to rectify any defects in the common property of the development area.
(4) Where the Commissioner has determined that the deposit is insufficient for rectifying the defects to the common property, the Commissioner may direct the developer to deposit within fourteen days such further sums as the Commissioner may determine. (5) Any unexpended deposit shall be refunded to the developer on the expiry of the defect liability period for the development area.
(6) Any developer who fails to comply with subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five thousand ringgit and to a further fine not exceeding fifty ringgit for every day or part thereof during which the offence continues after conviction.
Part VIII
INSURANCES
Duty to insure buildings
93. (1) Any person or body who has a duty or is responsible under this Act to maintain and manage any building shall insure such building under a damage policy with a licensed insurer in accordance with this Part.
(2) A damage policy means a contract of insurance providing, in the event of the building being destroyed or damaged by fire, lightning, explosion, bursting or overflowing of water tanks or pipes, windstorms and any other occurrence specified in the policy, for—
(a) the rebuilding of the building or its replacement by a similar
building in the event of its destruction so that every part of the rebuilt building or the replacement building is in a condition not worse or not less extensive than that part or its condition when that part was new;
(b) the repair of damage to, or the restoration of the damaged
portion of the building in the event of its being damaged but not destroyed, so that the repaired or restored portion is in a condition not worse or not less extensive than that portion or its condition when that portion was new;
(c) the payment of expenses incurred in the removal of debris;
and
(d) the remuneration of architects and other persons whose
services are necessary as an incident to the rebuilding, replacement, repair or restoration.
(3) A damage policy may provide that, instead of the work and the payments being carried out or made on the occurrence of any of the events specified in subsection (2), the liability of the insurer is, on the occurrence of any such event, limited to an amount specified in the policy that is not less than the valuation of the building as determined in section 94.
Amount to be insured
94. (1) Any building shall be insured for at least the reinstatement value of the building indicated by the last valuation obtained for the building.
(2) For the purpose of determining the reinstatement value of the building that is required to be insured under this Part, a reinstatement valuation of the building shall be obtained from a registered valuer at least once every five years.
(3) The cost of such valuation shall be paid out from the maintenance account.
Insurance where area cannot be separated from main premises of building
95. (1) Where any limited common property is maintained and managed by a subsidiary management corporation, and the areas maintained and managed by the subsidiary management corporation
cannot be separated from the main premises of the building maintained or managed by the management corporation—
(a) the management corporation shall insure the building
under a damage policy; and
(b) the premiums paid for such insurance shall be apportioned
between the subsidiary management corporation and the management corporation in accordance with the share units of the proprietors constituting the subsidiary management corporation against the aggregate share units of the proprietors constituting the management corporation.
(2) For the purpose of this section, “cannot be separated from the main premises of the building” means that the area maintained and managed by the subsidiary management corporation does not exist as an independent structure, and any damage to the structure or its facilities will materially affect the existence or usability of all other structures within its vicinity.
Insurance where area can be separated from main premises of building
96. (1) Where any limited common property is maintained and managed by a subsidiary management corporation, and the area maintained and managed by the subsidiary management corporation can be separated from the main premises of the building maintained or managed by the management corporation—
(a) the management corporation shall insure the part of the
building excluding the area managed by the subsidiary management corporation; and
(b) the subsidiary management corporation shall insure the
part of the building excluding the area managed by the management corporation.
(2) For the purpose of this section, “can be separated from the main premises of the building” means that the area maintained and managed by the subsidiary management corporation exists as an independent structure, and any damage to the structure or
its facilities will not materially affect the existence or usability of all other structures within its vicinity.
Land parcels
97. The insurance required to be effected under this Part does