| Builders to be told to hand out guides
03/12/1999 BT
Developers will be compelled to distribute a buyer's guide
drawn up by the Housing and Local Government Ministry to ensure people know
their rights when buying houses.
Housing and Local Government Minister Datuk Dr Ting Chew
Peh said the "Guide For House Buyers" pamphlets will be given to developers
when they collect their sales and advertising permits.
"If they refuse to do so, we know what to do," he told a
news conference in Kuala Lumpur yesterday.
Dr Ting said with the guide, house buyers will not be duped
into doing something detrimental to their interest, such as making payments
to developers without the sales and purchase ( S and P) agreement.
The guide clearly states that developers are not allowed
to collect any payment from buyers without the S and P agreement, and that buyers
must sign the S and P agreement on making the first payment of 10 per cent of
the house prices to the developer.
"Collecting deposits before the signing of the S and P agreement
is against the law," he said.
He said the guide is also an advantage to developers as it
reminds buyers to pay their progress payments promptly or they may have to pay
interest for late payments. House buyers must know their rights through the
guide to protect their interests and avoid being cheated, he added.
The ministry will seek the cooperation of the media and the
Federation of Malaysian Consumer Associations to help educate house buyers on
their rights.
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