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Association of Owner And Tenant of Condominium Unit (P3SRS)

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The establishment of P3SRS must be facilitated by the developers no later than the end of transition period.
The transition period is at the latest 1 year from the first handover of condominium unit to the owner, despite that the condition all condominium units have not been sold.
The “facilitation” must consist of at least:
providing meeting rooms along with its supporting equipment, which must consist of at least tables, chairs, whiteboards/stationaries, microphones, and information/media boards for the owners and/or tenants.
providing ownership and/or tenancy data, along with the location of condominium units based on the record conducted by the developers.
supporting the administration and providing meals (consumption).
The establishment of P3SRS consists of the (i) preparation for the establishment, and (ii) implementation of establishment, with the funding that will be borne by the developer.

Published in: Real Estate

Association of Owner And Tenant of Condominium Unit (P3SRS)

  1. 1. Association of Owner And Tenant of Condominium Unit (P3SRS)
  2. 2. Establishment of P3SRS • The establishment of P3SRS must be facilitated by the developers no later than the end of transition period. • The transition period is at the latest 1 year from the first handover of condominium unit to the owner, despite that the condition all condominium units have not been sold. • The “facilitation” must consist of at least: a. providing meeting rooms along with its supporting equipment, which must consist of at least tables, chairs, whiteboards/stationaries, microphones, and information/media boards for the owners and/or tenants. b. providing ownership and/or tenancy data, along with the location of condominium units based on the record conducted by the developers. c. supporting the administration and providing meals (consumption). • The establishment of P3SRS consists of the (i) preparation for the establishment, and (ii) implementation of establishment, with the funding that will be borne by the developer.
  3. 3. Preparation of P3SRS Establishment • The Developer shall conduct the direct socialization and using information media (a) since the beginning of marketing activities of the condominium units to prospective buyers, and (b) before the establishment of P3SRS. • The data collection of owners and/or tenants is carried out by developer in accordance with the principle of valid ownership or tenancy. • The valid ownership or tenancy is based on the evidence of condominium ownership or tenancy. • The Developer delivers the results of data collection to the Committee Meeting to be used in the deliberation meeting.
  4. 4. Preparation of P3SRS Establishment (Cont’d) • The Developer facilitates the owners for establishing the Committee Meeting before the establishment of P3SRS. • The facilitation is conducted by holding a meeting for the establishment of Committee Meeting. • The Committee Meeting consists of at least (i) chairman, (ii) secretary, (iii) treasurer, and (iv) four members. • The members of Committee Meeting comes from (i) owners that have been elected in the establishment meeting, and (ii) 2 person from the representatives of Developer.
  5. 5. Implementation of Establishment Meeting of P3SRS • The establishment meeting is carried out by the Committee Meeting by formally inviting all owners as well as representatives of regional government to observe the meeting. • The meeting is led by the Chairman of Meeting which consists of the Head of Meeting accompanied by 2 members. The Chairman of Meeting is elected from and by the participants by deliberation or voting in case the deliberation is failed to make a decision. • The Chairman of Meeting is not allowed to be the candidate of management or supervisor of P3SRS.
  6. 6. Implementation of Establishment Meeting of P3SRS • The Chairman of Meeting shall stipulate the rules of meeting, articles of association, by-laws, and the working program of the management. • The establishment meeting is conducted to: • form the structure of organization; • arrange the articles of association and by-laws; • elect the management of P3SRS; and • elect the supervisor of P3SRS. • The decision of meeting is valid if the quorum of meeting is achieved, in which the meeting is attended by more than 50% from the total number of owners.
  7. 7. Implementation of Establishment Meeting of P3SRS(Cont’d) • The decision of the (a) formation of organization structure, (b) arrangement of the articles of association and by-laws, (c) working program of the management, must be made by deliberation or voting in case the deliberation is not achieved. • The election of management and supervisors of P3SRS is made by voting. The voting can only be used by the owners or their representatives. Each owner or its representative only has 1 vote, even though the owner has more than 1 condominium units.
  8. 8. Implementation of Establishment Meeting of P3SRS (Cont’d) • The deed of establishment, articles of association, and by-laws are recorded to the technical agencies of the regency/city government that administer the government affairs in the housing sector, whilst for the DKI Jakarta Province, the recordation is conducted with the province’s technical agencies that administer government affairs in the housing sector that shall be evidenced by recordation numbers. • The aforementioned recordation is carried out by the Chairman of P3SRS or other management as listed under the deed of establishment, no later 14 business days after the meeting is held.
  9. 9. Membership and Organization Structure of P3SRS • The member of P3SRS consists of owners or tenants that obtained proxy from the owners. • The owners of condominium unit are allowed to give a power of attorney to the tenants for attending a meeting of P3SRS. • The power of attorney from the owners to the tenants is limited for tenancy matters. • The member of P3SRS owns voting rights for deciding matters related to : a. tenancy; b. ownership; and c. management. • The member of P3SRS owns 1 voting right to decide matters related to tenancy. For the voting rights to decide matters related to ownership and management, the voting right of member should be based on the Proportional Comparison Value (NPP). The voting rights for the ownership and management matters can be authorized to the tenants in writing.
  10. 10. Membership and Organization Structure of P3SRS • The organization structure of P3SRS consists of management and supervisors, and it shall be formulated in the deed of establishment, articles of association, and by-laws. The management and supervisors are owners that present at the establishment meeting and domicile in the condominium. • The organization structure of the P3SRS management consists of at least : a. chairman; b. secretary; c. treasurer; and d. sectors that are related to management and tenancy. • The supervisors consist of 5 persons or in any other odd number, with the formation of (a) chairman, (b) secretary, and (c) 3 members from the owners of condominium units. • The management period of P3SRS is for 3 years.
  11. 11. Condominium Management • The developer within a maximum period of 3 months after the establishment of P3SRS must handover the management of common facility, common equipment and common land to the P3SRS that shall be done before a notary. • Before the handover of management, the Developer must conduct a financial audit by using public accountant that has been agreed by the management of P3SRS. • After P3SRS receives the handover, the Developer shall be considered as the owner of the condominium units that have not been sold.
  12. 12. Condominium Management • In managing the condominium, the P3SRS can establish or appoint a manager no later 3 months after the establishment of P3SRS. • The manager that is established or appointed by P3SRS must meet the following requirements : a. legal entity; and b. business permit from a regent/mayor, or governor for DKI Jakarta Province. • If the manager is established by the P3SRS, then its management organization should be separated from the management organization of the P3SRS. The manager that is appointed by P3SRS is based on the result of selection process from several managers that has been carried out transparently.
  13. 13. Meeting of P3SRS • The meeting of P3SRS consists of : • management meeting; • general meeting. • General meeting consists of : • annual general meeting; • extraordinary general meeting, as the general meeting outside of annual general meeting. • The decision in the general meeting is carried out based on the principle of deliberation and consensus with the family spirit, and if that cannot be achieved then the decision can be made based on majority vote.
  14. 14. Cooperation in the Gradual Construction of Condominium • The construction of condominium that is planned in one construction system on a single plot of land can be done gradually. • The establishment of P3SRS in the condominium that is constructed gradually shall be held on each construction stages of condominium. • In the event that there is a construction stage of condominium that has not been completed, the Developer must cooperate with the P3SRS that already established. • The cooperation is carried out based on a cooperation agreement in a form of an authentic deed.
  15. 15. COMPARISON OF PROVISIONS ON VOTING RIGHTS OF P3SRS MEMBERS No. Kepmen 6/1995 Permen 23/2018 1. Tenancy voting rights, is the voting rights for PPRS members to determine matters related to tenancy rules, use of facilities, and obligation to pay service charge and fire insurance towards common right, common facility and common land. Each owners of the right of condominium units are represented by one vote. Tenancy interest voting rights, is the voting rights for P3SRS members to determine matters related to social relationship between the tenants, namely the right to determine the tenancy rules, to conduct other community services and to determine the amount of fees for security, sanitation, and social welfare. Each member of P3SRS is represented by one vote. 2. Management voting rights, is the voting rights for P3SRS members to determine matters related to maintenance, repairmen, and construction of environmental infrastructure, as well as social facilities, common facility, shared property, and shared land. Management voting rights are calculated based on the NPP of the condominium. Management voting rights, is the voting rights for P3SRS members to determine matters related to operations and maintenance activities of the common equipment, common facility and common land, payment and determination of service charge and sinking fund. The management voting rights is calculated based on NPP.
  16. 16. COMPARISON OF PROVISIONS ON VOTING RIGHTS OF P3SRS MEMBERS No. Kepmen 6/1995 Permen 23/2018 3. Ownership voting rights is the voting rights for the tenants to determine matters related to the relationship between the tenants of condominium, the election of management of the tenant association, and the costs for the condominium unit. Ownership voting rights are calculated based on NPP of each condominium units. Ownership voting rights is the voting rights for P3SRS members to determine the utilization of common facility, common equipment and common land and costs for the condominium units. Ownership voting rights are calculated based on the NPP. 4. Election voting rights is the owners’ voting rights to choose the management and supervisors of P3SRS. The election voting rights are calculated based on the majority votes. The owner is only entitled to give 1 vote, even though that the owner owns more than 1 condominium unit.
  17. 17. COMPARISON OF PROVISIONS ON QUORUM OF GENERAL MEETING No. Kepmen 6/1995 Permen 23/2018 1. The meetings as stipulated under the articles of association is valid if the meeting attended by at least 2/3 from the total members of the tenant association, unless stipulated otherwise in the articles of association. Decision in the general meeting is valid if it meets the quorum that is attended by more than 50% from the members of the P3SRS. 2. In principle, the decisions is made based on the agreed votes that are more than 2/3 from the members that are attended. The decision is made based on the principle of deliberation and consensus with the family spirit, and if the deliberation and consensus are not achieved, then the decision needs to be made based on majority vote.
  18. 18. COMPARISON OF QUORUM FOR MEMBER GENERAL MEETING No. Kepmen 6/1995 Permen 23/2018 3. If the number of member that attends the aforementioned meeting does not represent at least 2/3 of the total amount of member, the meeting invitation is held once again and if it still cannot achieve 2/3 from the total amount of member present, then the members present in any amount can hold a meeting and will make valid decisions that will bind other members. If the number of member that attends the aforementioned meeting, after given the extension time maximum 2 hours and minimum 30 minutes, does not represent more than 50% from the total number of P3SRS members, then the meeting has to be postponed to maximum 30 calendar days and minimum 7 calendar days and a meeting invitation is held once again. If at the second meeting, after an additional time of maximum 2 hours and minimum 30 minutes, the attendance quorum has not represented more than 50% from the total number of P3SRS members, the chairman of meeting opens the general meeting, and the meeting can take valid decision.
  19. 19. COMPARISON OF PROVISION ON AMENDMENTS OF ARTICLE OF ASSOCIATION No. Kepmen 6/1995 Permen 23/2018 1. Amendment to the provisions on the articles of association also includes the changing of the name of the association and the name of the condominium can only made based on decision from the general meeting of PPRS that is made and convened for that purpose by PPRS. Amendments to the provisions on the articles of association and by-laws also includes the changing of name of theP3SRS (name of the condominium) can be decided in a general meeting or extraordinary general meeting which must be attended directly by the owners that represent minimum 2/3 from the total valid owner’s right. 2. General meeting must be proposed by all valid tenants and must be attended by at least 2/3 from the total amount of PPRS members and the must be approved by 2/3 from the total number of tenancy voting rights. Amendments to the provisions on the articles of association and by-laws that is made in the annual general meeting or extraordinary general meeting is considered valid if they are not supported by minimum 2/3 from the total amount of valid voting rights. 3. *Not yet stipulated. If the amendments to the provisions of articles of association are only to conform with the provisions of the applicable laws and regulations, then the above conditions are excluded, and therefore the provision on quorum and decision as stipulated under the articles of association that is specifically scheduled for the matter will apply.
  20. 20. COMMENTARIES ON PERMEN P3SRS 2018 No. Positive Negative 1. The meaning of "facilitation" is clearly explained that the developer does not organize the establishment of the P3SRS and instead only facilitate the Committee Meeting. The condominium law does not mandate the Minister to issue the implementing regulations regarding P3SRS, instead it should be in a form of government regulations. 2. The procedure for establishing P3SRS becomes clear, which is through the establishment meeting as facilitated by the Committee Meeting. Decision on organization structure, arrangement of articles of association and by-laws, and working programs is stated based on majority vote. It is unclear whether it’s a one man one vote or NPP. This can make multiple interpretations and disputes. 3. Attaching the deed of establishment format that can be used easily and clearly Unfortunately, the proof of ownership in the establishment is not explained, whether a sale and purchase agreement can be used as a basis or is it has to be a deed of sale and purchase. If it has to be a deed of sale and purchase, then the establishment of P3SRS in the transition period is almost impossible / very difficult to be done. 4. The change of management and supervisors of P3SRS are recorded with the regional government so that it can be easily monitored. The introduction of “election voting rights" that never be existed in the Condominium Law. This violates the law principle. The lower regulation should not introduce new voting rights other than the voting rights that have been in force in accordance with the Condominium Law.
  21. 21. COMMENTARIES ON PERMEN P3SRS 2018 No. Positive Negative 5. The existence of a transfer period between P3SRS and the developer is clear, which is not more than 3 months after the P3SRS is established, including the financial audit by public accountants. The quorum for amending the articles of association and by-laws previously regulated based on tenancy voting rights (although in many articles of associations they the quorum based on NPP). However, this new regulation is not clear since it’s only mentioning ownership rights. This can make multiple interpretations and disputes. 6. The quorum for the second meeting has been clearly regulated, if the quorum for the first P3SRS establishment meeting cannot be met. There is no provision regarding if there are cost borne by the developer but the condominium is transferred. What is the status of the costs and whether or not the costs have to settled? There can also be a long debate on this matter before the transfer. 7. The mechanism for invitation of establishment meeting of P3SRS is clearly regulated. No period for the delivery of permit, other than the delivery of management. For that matter, it is not clear whether or not the licenses should be existed before the delivery or can be delivered after the delivery of management.
  22. 22. COMMENTARIES ON PERMEN P3SRS 2018 No. Positive Negative 8. There is a flexibility on the quorum for amending the articles of association and by-laws, specifically for the amendment that should be done based on the instruction of prevailing laws and regulations. The gradual construction of condominium does not consider the technical aspects of building planning. When the buildings are separated, and the common land s are separated, meanwhile the building is set out under the IMB, then the purpose of implementing the gradual construction of condominium becomes ineffective. If separated, then the ratio of construction will also decrease dramatically, and therefore not feasible. 9. The manager has its own organization separated from P3SRS. There is no obligation to change the name PPRS to P3SRS in accordance with condominium law. This minister regulation should stipulate this matter. 10. The elected management and supervisors must be domiciled in the condominium (in accordance with the provisions of the articles of association, but it is still unclear whether it is also for the management that have been elected at establishment of P3SRS). There is a discrepancy regarding the task of the Committee Meeting in the establishment meeting, namely arranging of the articles of association and by-laws that have been agreed by the owners. However, the articles of association states that the general meeting is the highest forum for legalize the articles of associations and by-laws. Does “arranging” means “legalization”? Does articles of association and by-laws need to be legalized at the general meeting of P3SRS? What about quorum and voting rights? This is still unclear and can lead to disputes.
  23. 23. COMMENTARIES ON PERMEN P3SRS 2018 No. Positive Negative 11. The general meeting of P3SRS must be conducted outside working hours or on holidays. There is no regulation for in case if there is an increase in the quality of the condominium as stipulated in the condominium law, which is clearly important. 12. The time period for the invitation to the general meeting of P3SRS general is set for 14 days. Provision regarding P3SRS for public condominium and for those with ownership in a form of SKBG is yet to be existed, even though this will be very relevant in the future, especially for low income communities. 13. There is a provision that obliges to establish the Committee Meeting if the term of management's will be ended, but this provision is not set out in the articles of association and by-laws. This may cause multiple interpretations and disputes in its implementation. 14. Management rules do not take into account the form of management fees that are not always in the form of money and do not state if the manager is the owner, or the owner is the manager. For example: in a complex which includes a condominium and a mall, both the condominium and the mall are owned and managed by one party.
  24. 24. COMMENTARIES ON PERMEN P3SRS 2018 No. Positive Negative 15. There is no regulation on limited joint areas (ABT), even though this is very important for mixed condominium. For example: there is an ABT for each condominium, mall, hotel, etc. This is vulnerable to multiple interpretations and disputes 16. The provisions regarding the financial statements of P3SRS in relation to mixed condominium are not described. In practice, it is possible for every regions such as condominium area and mall area, to have their own financial statements. How is the consolidation? How will the P3SRS managers be held responsible? Unfortunately, this is not clearly regulated, even though it is very important.
  25. 25. Thank You Menara Palma 10th Floor Suite 10-03 JL. H.R. Rasuna Said Blok X-2 Kav.6 Jakarta Selatan 12950, Indonesia Ph: +62 21 5795 7550 F: +62 215795 7551

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