Housing Development Act

Purchasers’ risk in progressive payment

THE National House Buyers Association (HBA) has complained to the Minister and those under his charge about purchasers becoming victims when they lose their homes as a result of foreclosure proceedings taken against them by banks to recover loans taken by developers secured by purchasers’ houses bought from the same developers, because the said developers did not settle the loans taken by them. The crux of the problem is that the Housing Ministry-prescribed sale and purchase agreement (SPA) allows the developer to build the purchaser’s house with the instalments of the purchase price paid by the purchaser from the day the SPA is signed. On top of this, and even more seriously, the developer is allowed to borrow from the developer’s banks on the security of the purchaser’s property. The pur...Read More

Pre-requisite condition for licensing of a housing developer

It is noteworthy that the Housing and Local Government is providing further protection to house buyers against the antics of irresponsible developers. The recent amendments to the Housing Development Act comes to mind. One of the most pertinent clause that was amended is Section 6(1)(b) of the Housing Development (Control & Licensing) Act, 1966. The matter refers to the amendment to the requisite deposit, which is refundable, from the current RM200,000 to 3% of the construction cost. Small developers who build small number of houses in the smaller towns and where total construction cost is RM2mil or less, the RM200,000 that they are currently forking out actually represents over 10%. Therefore, for them the new 3% is actually a vast reduction! To a big project developer whose construct...Read More

Malaysia’s errant developers still not afraid

KUALA LUMPUR, Nov 17 — No amount of new laws against offences committed by property developers will be effective without strict enforcement, said the House Buyers Association (HBA) today. This comes as the Housing and Local Government Ministry moved to propose amendments to the Housing Development Act 1966 to impose stiffer penalties against developers of abandoned housing projects. HBA secretary-general Chang Kim Loong said tougher enforcement of laws was needed to deal with errant developers without which the new laws would remain “ornamental pieces”. “Wayward developers well know that their chances of getting away with their wayward deeds are extremely good,” he said in a statement. He called on the authorities to act against developers “without fear or favour”. He also said that while ...Read More

Full-disclosure by developers

THE National House Buyers Association seems to have finally succeeded in persuading the Government to make developers provide purchasers with a full set of detailed approved documents of the property. In fact, this has all along been a legal requirement. As far as landed properties are concerned, the approved layout plan and the approved building plan are to be included in the sale and purchase agreement (SPA) as the first schedule and second schedule respectively. With respect to the strata titles, there are the site plan, layout plan, floor plan of the parcel, storey plan of the building, accessory plan and common facilities plan, all approved, which comprised the first and second schedules. The Urban Wellbeing, Housing and Local Government Ministry has now agreed with HBA that the detai...Read More

Pre-requisite condition for licensing of a housing developer

It is noteworthy that the Housing and Local Government is providing further protection to house buyers against the antics of irresponsible developers. The recent amendments to the Housing Development Act comes to mind. One of the most pertinent clause that was amended is Section 6(1)(b) of the Housing Development (Control & Licensing) Act, 1966. The matter refers to the amendment to the requisite deposit, which is refundable, from the current RM200,000 to 3% of the construction cost. Small developers who build small number of houses in the smaller towns and where total construction cost is RM2mil or less, the RM200,000 that they are currently forking out actually represents over 10%. Therefore, for them the new 3% is actually a vast reduction! To a big project developer whose construct...Read More

Plight of kampung land owners

Where’s the prosecution against the 205 unlicensed housing developers? BUYERS BEWARE BY CHANG KIM LOONG ABOUT two years ago, an English daily highlighted the plight of land owners who had entered into joint ventures with unlicensed developers to build houses on their (home owners’) land. Most of these deals involved land in the kampung (or villages). When these partnerships turned soured and were subsequently highlighted in the press, the Housing Ministry warned it was going to catch these businessmen, most of whom were small-time developers out to make a quick buck. However, until today, no action seems to have been taken on these errant developers while the victims continue in their miseries and financial nightmares due to abandoned projects and botched joint ventures. The Housing Minist...Read More

Not all apartments are the same

CALL them what you like – small office home office (Soho), small office flexi office, small office versatile office, condotel, hotel suite or butler serviced apartment. The names are coined by housing developers with creative plans to woo investors with enticing marketing tools on yet-to- be-built stratified properties. Where people used to buy an apartment unit/parcel for a roof over their heads, of late, so many other styles have crept up to boggle the minds of investors and buyers. However, for the uninitiated – not all apartments are created equal. Although the sales and marketing brochures may look alike, the small prints will tell you the difference, if you care to take a magnifying glass to inspect. Then again, for the first-timers, they are unlikely to spot the difference. This art...Read More

Making it legal

  Addressing the issue of unsanctioned extensions to the kitchen, porch and upper rear floor SCENARIO A: I bought my terrace house some 20 years ago and I didn’t know that I have to obtain building plans for my extended kitchen. Scenario B: Waste of time to legalise the balcony that was created on-top of the car porch. After all, I am selling my house to migrate. Scenario C: All my neighbours have the same illegal extension to their kitchen without the five feet setback. We just copied them. What should I do then? Scenario D: We have obtained the approved building plans from the local council but didn’t procure the Certificate of Compliance and Completion (CCC) from our architects. We are not sure whether the contractors built according to the plans. But, our architects have not issue...Read More

Leakage – A strata living nightmare

IF you live in a high rise building and have an inter-floor leakage issue, you can be rest assured that you are not alone. Inter-floor leakage is without a doubt one of the biggest problems faced by many dwellers of high rise buildings. Whilst the leakage may appear only in a particular parcel, the source of the leakage may lie in the parcel above or even elsewhere. The cooperation of more than one party is therefore required; without which one cannot even begin to identify the problem, let alone solve it. Two issues must be identified when there is an inter-floor leakage. Firstly, the source of the leakage and secondly, the person or body responsible for repair or rectification. Who is supposed to identify the source of the leakage to start with? The person or body responsible of course, ...Read More

Is the Housing Tribunal effective?

  Scenario A: You want to file your claim at the Housing Tribunal? Aiyah, better not lah, waste of time only. My friend filed his claim two years ago. Until now, still cannot get his money. You better go to court. Scenario B: But very expensive if go to court. The lawyer says my case must go to the magistrates’ court, and you know how much he wants to charge? RM5,000! On top of that, he says RM5,000 does not include filing fees and travelling. Worse still, he says he cannot guarantee I will get my money. Where I got money to pay the lawyer, the developer delayed my house for so long. I told the lawyer he can deduct from the money the developer has to pay me, but he says cannot. If the developer doesn’t pay I still have to pay his legal fees and expenses, he says. Where got justice? &n...Read More

HBA takes legal action against KPKT

“Buyers of Palace Court suffered a delay in the delivery of their homes and the granted E.O.T. will now extinguish their compensation rights”, says HBA. The National House Buyers Association (HBA) has declared that it will be pursuing legal action against the Ministry of Urban Wellbeing, Housing and Local Government (KPKT) with regard to a project called Palace Court in KL, developed by BHL Construction Sdn Bhd. The decision, said the association, is so it can challenge the existence of Extension of Time (EOT) issued by KPKT to the developer, which has denied unit buyers the rights for entitlement of compensation in the form of liquidated ascertained damages (LAD) for the delay in delivering vacant possession of purchased units. According to HBA’s honorary secretary-general Cha...Read More

Addressing abandonment issues

ALTHOUGH the Housing Development (Control & Licensing) Act, 1966 (HDA) has been tweaked and fined-tuned on numerous occasions in the past, it has still not been able to address the issues of abandonment. The amendments to Housing Development (Control & Licensing) were tabled in Parliament and debated, received its royal assent and was gazetted on Feb 2, 2012. Its implementation was inordinately delayed because of the governing HD Regulations, 2015 (HDR) and a host of other crossed referred laws that related to strata management and maintenance. It finally was implemented by the Housing Minister and came into operation on June 1, 2015. But has the amendments to the principal legislation and its governing regulations with a new set of sales & purchase agreements plugged some of t...Read More

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