Statute Details
- Title: Building Maintenance and Strata Management (Exemption of Certain Management Corporations from Section 27(1)) Order
- Act Code: BSMA2004-OR5
- Legislative Type: Subsidiary legislation (Order)
- Authorising Act: Building Maintenance and Strata Management Act (Chapter 30C, section 134(1))
- Primary Provision Addressed: Exemption from section 27(1) of the Building Maintenance and Strata Management Act
- Citation: G.N. No. S 645/2006
- Revised Edition: 2010 RevEd (31 May 2010)
- Original Commencement (as per extract): 1 December 2006
- Status: Current version as at 26 Mar 2026
What Is This Legislation About?
The Building Maintenance and Strata Management (Exemption of Certain Management Corporations from Section 27(1)) Order is a targeted regulatory instrument that allows certain management corporations in strata developments to opt out of a specific statutory requirement found in section 27(1) of the Building Maintenance and Strata Management Act (the “Act”). In plain terms, it creates a mechanism for smaller or tightly controlled strata communities to obtain an exemption, provided they meet defined structural criteria and follow a “resolution by consensus” process.
Section 27(1) of the Act (not reproduced in the extract) is a core compliance provision that typically imposes obligations on management corporations. The Order does not repeal or rewrite section 27(1); instead, it carves out an exemption for management corporations that fall within specified categories. This approach reflects a common legislative technique: rather than applying a uniform rule to all strata developments, the law recognises that some developments are small enough, or ownership structures are sufficiently unified, that the policy rationale for the section 27(1) requirement may be less compelling.
Practically, the Order is about governance flexibility. It permits eligible management corporations to decide—by consensus—whether they should be exempted. The exemption is time-bound in the sense that it continues only while the management corporation remains within the statutory descriptions and does not revoke the resolution. If the resolution is revoked or the corporation no longer qualifies, the exemption ends after a six-month wind-down period.
What Are the Key Provisions?
1. Citation (section 1)
Section 1 provides the short title: the “Building Maintenance and Strata Management (Exemption of Certain Management Corporations from section 27(1)) Order”. This is standard drafting, but it is important for practitioners because it identifies the exact instrument that should be cited when advising on the exemption regime.
2. Exemption framework (section 2(1))
The heart of the Order is section 2. Under section 2(1), a management corporation is exempt from section 27(1) of the Act if it satisfies both (i) the eligibility criteria in sub-paragraphs (a) to (d) and (ii) the procedural requirement that the management corporation resolves—by a resolution by consensus—that it wishes to be exempted.
The eligibility criteria are based on the number of subsidiary proprietors and the structure of the strata title plan:
- (a) No more than 2 subsidiary proprietors: If the management corporation is constituted by not more than two subsidiary proprietors, it may qualify.
- (b) Exactly 3 subsidiary proprietors for a strata title plan with 4 lots: This is a specific combination—three subsidiary proprietors, but the strata plan must have four lots.
- (c) Strata title plan with no more than 3 lots: This criterion focuses on the number of lots rather than the number of subsidiary proprietors.
- (d) Joint subsidiary proprietors of all the lots: Where the management corporation is constituted by any number of subsidiary proprietors, but those subsidiary proprietors are “joint subsidiary proprietors of all the lots” in the strata title plan, the management corporation may qualify.
Resolution by consensus is a critical procedural gatekeeper. The Order requires that the management corporation’s decision to seek exemption is made by consensus resolution. For lawyers, this raises evidential and process questions: what constitutes “consensus” in practice, how it is recorded, and whether dissenting owners can be said to have prevented consensus. While the extract does not define the term, the requirement is legally meaningful—failure to meet the consensus standard could expose the exemption to challenge.
3. When the exemption takes effect (section 2(2))
Section 2(2) states that the exemption “shall have effect from the date of the resolution.” This is a clear commencement rule. It means that once the consensus resolution is properly passed, the management corporation’s exemption from section 27(1) applies immediately from that date (subject to the continuing conditions in section 2(3)).
4. When the exemption ceases (section 2(3))
Section 2(3) provides two triggers for cessation:
- (a) Revocation of the resolution: If the management corporation revokes its exemption resolution, the exemption will cease.
- (b) Cessation of eligibility: If the management corporation ceases to come within any of the descriptions in section 2(1)(a) to (d), the exemption will also cease.
Importantly, cessation is not immediate. The exemption ceases “on the expiry of the period of 6 months” from the date of revocation or cessation. This six-month period is likely intended to prevent abrupt compliance disruption and to allow the management corporation time to adjust its governance and operational arrangements to meet the requirements of section 27(1) once the exemption ends.
For practitioners, this creates a compliance planning issue: during the six-month tail period, the management corporation may still be exempt, but it should prepare for the transition back to full compliance. Advising clients should therefore include a timeline: identify the date of revocation/cessation and calculate the six-month expiry date, then plan the necessary steps to comply with section 27(1) before that expiry.
How Is This Legislation Structured?
This Order is extremely concise and consists of two substantive provisions:
- Section 1 (Citation): identifies the Order by its short title.
- Section 2 (Exemption): sets out the exemption eligibility criteria, the consensus resolution requirement, the effective date, and the circumstances and timing for cessation.
There are no additional parts, schedules, or detailed procedural rules in the extract. The Order therefore functions as a narrow legal instrument that modifies the application of section 27(1) of the Act for specified management corporations.
Who Does This Legislation Apply To?
The Order applies to management corporations constituted under the strata title framework governed by the Building Maintenance and Strata Management Act. Eligibility is not universal; it depends on the management corporation’s composition and the strata title plan’s characteristics.
In particular, the management corporation must fall within one of the four categories in section 2(1): (i) up to two subsidiary proprietors; (ii) three subsidiary proprietors for a four-lot plan; (iii) a strata plan with no more than three lots; or (iv) any number of subsidiary proprietors where they are joint subsidiary proprietors of all lots. Even if the management corporation meets these structural criteria, it will only be exempt if it passes a resolution by consensus to be exempted.
Accordingly, the Order is most relevant to small strata developments, and to developments where ownership is effectively unified through joint subsidiary proprietorship across all lots. Larger developments, or those that do not meet the specified lot/subsidiary proprietor thresholds, will not benefit from the exemption.
Why Is This Legislation Important?
This Order matters because it provides a legally recognised pathway for eligible strata communities to reduce regulatory burden by opting out of a particular statutory requirement in section 27(1) of the Act. For lawyers advising management corporations, the exemption can affect governance, compliance obligations, and administrative processes. Even though the Order is narrow, the practical consequences of being exempt from a core provision can be significant depending on what section 27(1) requires.
From an enforcement and risk perspective, the Order also highlights the importance of process and eligibility. The exemption is conditional: it depends on the management corporation’s structure and on a consensus resolution. If the resolution is not properly passed, or if the management corporation later changes such that it no longer fits the statutory descriptions, the exemption will cease after six months. This creates a continuing compliance duty to monitor changes in the strata title plan and ownership structure.
Finally, the six-month cessation period is a practical feature that supports transition planning. Lawyers should treat this as a compliance management tool: when advising on revocation or when anticipating changes in lot ownership or plan structure, counsel should build a timetable for re-compliance with section 27(1) well before the six-month expiry.
Related Legislation
- Building Maintenance and Strata Management Act (Cap. 30C): Section 27(1) (the provision from which eligible management corporations may be exempted) and section 134(1) (the authorising provision for making this Order).
Source Documents
This article provides an overview of the Building Maintenance and Strata Management (Exemption of Certain Management Corporations from Section 27(1)) Order for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.