Section 17 — Act 663

(a)

all charges received by him from the purchasers in the development area for the maintenance and management of the common property of the development area; and

(b)

all charges for the maintenance and management of the common property to be paid by the developer in respect of those parcels in the development area which have not been sold, being a sum equivalent to the maintenance charges payable by the purchasers to the developer had the parcels been sold.

(2)

The developer shall—

(a)

cause proper accounts of the Building Maintenance Account to be kept in respect of all sums of money received from and all payments made out of the Building Maintenance

Account;

(b)

appoint a professional auditor to audit the Building

Maintenance Account annually or in the case of where money is to be transferred under subsection 19(3), one month before the date of actual transfer;

(c)

file with the Commissioner a copy of the statement of accounts certified by the auditors and a copy of the auditor’s report within fourteen days of the accounts being audited; and

Building and Common Property

(Maintenance and Management)

(d)

permit the Commissioner or any person authorized by the Commissioner in writing to act on its behalf full and free access to the accounting and other records of the Building Maintenance Account and to make copies or extracts of those accounting or other records.

(3)

The Commissioner shall have the right to appoint an approved company auditor to investigate the books, accounts and transactions of a Building Maintenance Account and the developer shall pay all the expenses incurred for that purpose.

(4)

The developer shall, upon the completion of a building and until the Body is established, insure and keep insured the building against any loss of the building and against fire and other risks.

(5)

The developer shall furnish to the Commissioner or any public authority as may be specified by the Minister such returns, reports, accounts and information with respect to its activities and finances as the Commissioner or Minister may, from time to time, require or direct.

(6)

The returns, reports, accounts and information shall be in such form as the Commissioner or Minister may, from time to time, specify.

(7)

A developer who fails to comply with this section commits an offence and shall, on conviction, be liable to a fine of not less than ten thousand ringgit but not more than one hundred thousand ringgit and shall also be liable to a fine not exceeding one thousand ringgit for every day during which the offence is continued after conviction.

Moneys to be deposited into Building Maintenance Account