Facts & Terminology (FAQs)
Who are Subsidiary Proprietor's (SP's)?
A subsidiary proprietor (SP) is a purchaser to whom the developer has transferred ownership of a unit, as shown on the strata certificate of title. Each SP is required to pay a certain amount of contribution to help maintain and manage the common property of the development. This amount is levied by the management corporation (MC). If you don’t pay your contributions, the MC has a right to recover any unpaid contribution from you as a debt [SECTION 40], or register it as a charge against the strata lot [SECTION 43].
Introduction to Share Value
(Excerpt from full report at https://www.bca.gov.sg/bmsm/others/strata_living.pdf)
What is Share Value? Before buying a unit in a property, there are some important factors buyers should consider like, among other things, price, location, tenure of land and quality of the development. It is also useful to find out the monthly contribution to the maintenance fund. In most cases, the contribution is proportional to the share value of the unit.
Significance of Share Value: The share value of a property is a figure that represents the
proportionate share entitlement assigned to each strata unit in the same development. The purpose of the share value is to determine the amount of shares each owner has in relation to the other owners in the development.
What does share value represent? First, the share value determines the amount of contributions for maintenance that an owner has to pay to the management corporation of the estate for maintaining the common areas in the development. Second, the share value of a strata lot determines the voting right of a unit owner. The higher the share value an owner has, the more voting rights he or she has. Third, the share value determines the share that an owner has in the common property, which is jointly owned by all the owners in a development.