KUALA LUMPUR: The National House Buyers Association (HBA) hails the announcement made by the Minister of Housing and Local Government Zuraida Kamaruddin to ensure housing projects adhere to the build then sell (BTS) concept.
According to the statement, the HBA supports the overwhelming benefits of the BTS 10:90 that the present housing minister is referring to. The system that was referred to is not an absolute BTS concept but a hybrid that the HBA termed as build then sell 10:90 (BTS 10:90).
Briefly, in this system, buyers pay 10% down payment upon signing the Sales and Purchase Agreement (SPA) and the remaining 90% will be payable upon completion with the issuance of Certificate of Completion and Compliance (CCC), with utilities connected and houses ready for immediate occupation.
This is indeed good news for the house buying rakyat who for years have been hopeful for this concept to be adopted in order to put some orderliness into the housing industry.
According to HBA, the previous government planned for the migration to BTS from the sell then build (STB) system in 2015. The Housing Development (Control & Licensing) Regulations were amended subsequently to include the new Schedule I and J to cater for the BTS 10:90 standard Sales and Purchase Agreements.
However, the plan was cancelled for unknown reasons, much to the disappointment and anger of the rakyat.
The BTS system was one of the major subjects that was discussed at the Special Task Force for Revival of Abandoned Housing Project (STF) under the chairmanship of the Ketua Setiausaha Negara (KSN).
Every party related to the housing industry was represented including bankers, related professionals, NGOs and prominent academicians. Various forums including sub-group meetings, discussions, labs and presentations deliberated on this specific issue.
According to the HBA, the final unanimous conclusion was that the Malaysian housing industry was ready and should adopt and progress on to the BTS 10:90 system. Only REHDA objected to the proposal. In order to absorb any possible shock to the industry, the STF had proposed and decided upon a “lead-in” timeline.
Even so, the lead-in timeline was never implemented, least of all the BTS 10:90 system. The HBA feels that the situation had returned to square one and saw no point to justify the benefits of the BTS 10:90 system yet again when high powered STF had thoroughly deliberated on the subject and had made its positive conclusion.
Hence, the HBA is exhilarated by Zuraida’s announcement and hopes that the new government will ensure that housing projects adhere to the BTS concept.