Property Management

Do necessary checks before buying

THE NATIONAL House Buyers Association (HBA) refers to the statements from the Real Estate and Housing Developers’ Association Malaysia (Rehda) that the recent proposal from the Minister of Urban Wellbeing, Housing and Local Government, Tan Sri Noh Omar for eligible property developers to be given a moneylender license is only for the property developers to lend money to buyers as a “bridge” for downpayment on their home purchases and not as a full loan as speculated claiming that most bank loans today will only give margin of financing of 80% compared with 90% previously. HBA reaffirms our earlier view that despite the clarification from Rehda that developers lend money to buyers as a “bridge” for down payment for houses priced at RM500,000 and below, this proposal is still detrimental to ...Read More

Damages for late delivery

Addressing and defining vacant possession. “MY new house is ready and I can now collect my keys,” or so the house-buyer thinks. No more having to pay rent. But his dreams come crashing down, however, when he is informed that although he may have gained vacant possession, he cannot not move into his house because the Certificate of Fitness for Occupation (CFO) is not ready. Months later, he receives a copy of the CFO, and when he asks to be compensated for the delay, the developer says liquidated damages for late delivery (liquidated ascertained damages or LAD) is calculated up to the date of their notice for delivery of vacant possession and not up to the date of the CFO. Who then is to compensate the house-buyer who has to service a housing loan for a house he or she is not allowed to occ...Read More