Housing Development Regulation

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

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

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

Compensation taken away by Housing Controller

AT the stroke of a pen, monies payable to a group of aggrieved house buyers are taken away by the Controller of Housing (Housing Controller). We are talking about a group of house buyers who had suffered losses due to a delay in completion of their homes by their developer and the very ministry that is supposed to protect them signed away their rights and remedies. We are talking about such rights and remedies being taken away from them for the benefit of the very culprit developer who caused them the loss and suffering. What is happening to the Housing Ministry? The ministry many an aggrieved house buyer turns to in times of developer defiance of the law, the ministry house buyers rely on for protection and for all the desperately needed interventions and assistance when a housing project...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

Act 242 – The proposed Register of Property Managers

A BILL was tabled in the current session of Parliament on 1.8.2017 for its First Reading and subsequently on 3.8.2017 for its Second and Third Readings. It is titled RANG UNDANG- UNDANG – D.R 26/2017 – Bill to amend the Valuers, Appraisers and Estate Agents Act, 1981 (Act 242). The proposal by the Ministry of Finance to amend the Act primarily was to substitute the principal Act to read “Valuers, Appraisers, Estate Agents and Property Managers Act, 1981” to give clarity that the legislation covers aspects of ‘property managers’ and its proposed Register of Property Managers amongst other issues. Readers could download the proposals from: http://www.parlimen.gov.my/ Pertinent Points to Note The National House Buyers Association (HBA) is in support of the Bill to amend the Valuers, Appraiser...Read More