What is MCST?
MCST, Management Corporation Strata Title, is an organization formed to manage an estate. It is the managing body of a private residential community that has multiple owners and shared facilities like swimming pool, gym, security, clubhouse etc. These facilities have to be managed on a very frequent basis and this is where the MCST comes in and also to regulate the rules of the residential community.
How to form an MCST?
To form an MCST, the builder applies to the Building and Construction Authority(BCA) following the issue of Temporary Occupation Permit(TOP) by the Commissioner of Buildings(COB) when the construction has been completed and it meets all the requirements for the owners to live in the building. Upon successful incorporation of MCST, a four-digit title number is assigned to it in the format MCST XXXX.
During the initial stage, it is the builder’s responsibility to arrange the formation of the MCST upon two months from the issuance of the Temporary Occupation Permit(TOP) to the owners.
The initial period refers to the period from the day MCST is constituted and the first Annual General Meeting(AGM) is held. The maximum duration of the initial period is 12 months and the builder plays the role of the council during this period.
After the first Annual General Meeting(AGM), the responsibilities of and control over the MCST is given to the property owners. The owners collectively appoint a Management Council which in turn hires a Managing agent to manage their estate and serve as a liaison between the MCST, the management council, and the owners.
Role of the MCST:
The MCST, which is the managing body of a private condominium, manages all the facilities available in the condominium. The source of income for the MCST is the maintenance charges paid by the owners to manage the property. This income is split into management fund and sinking fund by the MCST. The management fund is used for day to day expenses whereas the sinking fund is used for future capital needs. The MCST also manages the staffs who maintain all the facilities in the condominium.
Overall, the MCST plays an important role in enhancing the asset value of the Condominium. We hope you found this article useful. If you did, don’t forget to share this with your friends.
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