Crumbled dreams of house buyers
04/09/2001 The Star Articles of Law with Bhag Singh
BUYING a house and moving into it is not a dream come true for everyone. For
many house buyers it is the beginning of a period of anguish and disappointment.
A local newspaper recently highlighted a case of 40 house buyers who had forked
out more than RM20,000 of their life-savings as downpayment for their dream
homes. It was for them a big thing and they felt it was worth every sen.
However, their hopes were dashed when they found that their almost-completed
units were a far cry from what they had in mind.
The house buyers claimed shoddy workmanship on the developer’s part. The cracks
on their houses were considered prominent testimony of this. One house buyer
is reported to have said: “I took out all my savings for it and now I’m afraid
that without proper rectification, the house might collapse one day.”
It is not the intention of this writer to discuss this particular case. This
is because there could be weaknesses in the contentions of the house buyer,
or the developer may have a valid explanation or justification.
However, there are instances where such grievances are legitimate. This kind
of thing happens and will continue to happen if values and attitudes do not
change.
There is no simple answer. Most people would want to blame the law as well
as the legal system for the cost that is involved and the resultant delay.
However, the real situation is much more complex and the root of the problem
runs deeper. It has to do with cultural and social values, and the lack of
morality and integrity on the part of those responsible for building the houses.
Of course, such housing developers and their associates may be in the minority,
but this is of little comfort to the affected house buyers. For many people,
the buying of a house is a once in a lifetime exercise.
However, many house buyers lack the drive and desire to assert their rights
against delinquent developers. They often claim that they cannot afford the
legal fees to confront the developer. This may be true, but if the house buyers
in a housing scheme can unite to take collective legal action against the
developer, it would not be impractical.
If they do so, they would not only be able to pay the legal fees but also
engage the necessary consultants for their expert opinions.
However, proposals to take legal action are often described as throwing away
good money to go after bad money. Those who have attended meetings of house
buyers to discuss action against developers will understand what I mean. Someone
will suggest that a complaint be made to the Housing and Local Government
Ministry or local council. Statements will be made that the ministry be urged
to look into the matter seriously.
Someone else will say that the developer has cheated them and therefore the
matter should be reported to the police for criminal action to be taken and
that, furthermore, the housing developer should compensate them. Few people
will disagree with such sentiments and the pursuit of such action where necessary
and appropriate.
However, all this overlooks one simple fact – that as far as government agencies
are concerned they can only take action against the housing developer if laws,
regulations and conditions are not complied with. They could in such cases
prosecute them or, in worst-case scenario, withdraw or cancel their licence.
But this will not result in the house buyer receiving any compensation. Where
does all this take the house buyer?
Reporting the matter to the police will only result in any meaningful action
if the developer has committed a criminal offence. To start with, there is
always a heavy burden of proof in establishing allegations of criminal conduct.
Even then it is seldom that the acts or omissions of delinquent developers
amount to criminal acts.
This is because in most complaints against housing developers, what is involved
is merely a breach of contract on their part. Or it may be acts of omission
which amount to negligence in the construction of the house. Such breaches
of contract are a matter entirely up the buyer and developer to resolve between
themselves. Of course, arbitration is an available option but it is not always
the best alternative in such circumstances.
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