|
Know what you buy
01/04/2004 Published in Malaysian Business - Housing & Property By National House Buyers
Association of Malaysia
Things may not be
as they seem
How many of us have
based our decision to buy a home on
colourful brochures and enticing
lifestyle illustrations? Many
prospective house buyers usually have
little knowledge of what aspects to look
for when acquiring a home.
The construction of a
project involves numerous parties and
legislation, and when problems arise,
help in any form is often time consuming
and costly. The onus is on prospective
house buyers to be well educated on
their rights and to seek help from all
sources available before they make their
first payment. It is important that buyers know their
rights and how to use them. The Housing
Development (Control & Licensing) Act
1966 (Amended 2002) ("Housing Act")
controls the development of 'housing
accommodation'. "Housing Accommodation'
may not be same as what you think you
are buying. Buyers of of service
apartments and vacant bungalow lands are
often surprised when told they have
bought a commercial property.
In a recent newspaper
article on a new trend in housing
development - gated communities - house
buyers were advised to be aware that
there is no proper legislation on this
type of schemes.
Development schemes may
be called by various names coined by
developers - such as condominium service
apartments, condotel, cluster bungalow,
resort homes, bungalow homestead,
country homes, golf course villas - but
these are only concepts of the
development projects. It is a good idea
to find out the legalities, for example,
whether these developments are
controlled by the Housing Act.
Extra Precaution
When purchasing a
strata-title property, such a
condominium or apartments, there are
several additional precautions to take.
For this type of property, you own not
only your unit or strata lot, but also a
share of the common property. Common
property usually includes pipes, wires
and other services contained within a
floor, wall or ceiling of a building
shown on the strata plan. It may also
include facilities such as parking,
recreational facilities and common
storage areas, as well as the roof and
the exterior walls.
Before you sign the
sales contract, have your lawyer review
all the documents, including the 'deed
of covenants', bylaws, rules and
regulations etc. It is recommended that
purchasers of strata-title properties
check out if the strata-title fees have
been paid before the commencement of
construction by the developer. Pay
particular attention to any references
to building repairs, defects and special
funds (sinking fund). Know the payments
that you will have to bear in order not
to be caught unaware.
You should also be aware
of the legal requirements around the
formation of a management corporation of
a strata-title building. Remember that
the quality of the strata-title property
you buy and, thus, the continuing value
of your unit, will be significantly
influenced by how well the management
corporation performs its duties. If you
intend to purchase one, be prepared to
take an active interest in the affairs
of the management corporation and ensure
that the management council is being
properly accountable to the strata unit
owners.
|
LICENCE
REQUIRED |
LICENCE NOT
REQUIRED |
|
Any building,
tenement or messuage that is
wholly or principally
constructed, adapted or
intended for human
habitation or partly for
human habitation and partly
for business premises, to be
developed by:
-
private
housing developers;
-
any
society registered or
incorporated under any
written law relating to
co-operatives societies;
and
-
any body
or agency established
and incorporated by
statute and under the
control of the Federal
Government or the
Government of any State.
Examples:
-
Apartments (low, medium,
cost), Condominiums,
-
Terrace
houses.
The Minister
may by notification
published in the Gazette
exempt any housing
developer from any or all of
the provisions of the
Housing Development (Control
& Licensing) Act, 1966.
Contract
of Sale
Housing
Development (Control &
Licensing) Regulations 1989
(Amended 2002)
|
Examples:
Contract
of Sale
|
|
