Buying a piece of property is a very important decision for everyone. It takes a lot of time and consideration, and for a lot of people, their life-savings. Are house buyers protected in any way from unscrupulous developers who are out to cheat or deviate from their end of the bargain?
The House Buyers Association (HBA) is a non-governmental organization, non-profit and non-political association of volunteers that comprises lawyers, accountants, architects, engineers, contractors and managers from all walks of life.
HBA was formally registered on July 26 last year. The formation of the Association for Kuala Lumpur and Selangor as a forerunner for future branches in all states was motivated by the innumerable complaints from disgruntled house buyers who had found their developers cutting corners. House buyers should be careful of the following problems which can happen after putting a down payment or full payment for a house, and could occur at any time until the completion of the house.
Developers not following the terms of Sales and Purchase Agreement;
Developers not following approved plans;
Departure from plans approved by local authorities, with new amendments to the original plan without consulting or obtaining the consent of the house buyers;
Shoddy workmanship and sub-standard finishing;
Buildings not completed on schedule, some even after five years;
Related problems becoming a bone of contention between the feuding parties, such as developer with house buyers;
Conveniently and deliberately ignoring to apply for Certificate of Fitness (CF);
Deliberately not applying for permanent CF from temporary status;
Blatantly delaying applicant for strata title which is the final documentary proof ownership for condominium purchasers;
Incomplete and abandoned projects by run-away developers, some of which results in "no house" because of foreclosed property by the bridging financier;
Developers charging hefty maintenance and "consent fees" of 2%;
Developers making use of the sinking fund and accumulated maintenance charges (paid by owners) to defer expenses/overhead incurred by subsidiary companies;
The formation of the HBA will see the need for an appropriate and watertight legislation, governing the housing industry, whether it’s the Housing Developer (Control & Licensing) Act, its related regulation Strata Title Act and National Land Code.
The Association will:
Promote awareness of the legal rights and liberties of their members;
To make representations and liaison to maintain close relation with the related ministries and local authorities;
As "watchers" of the building and housing industry;
To look after the interest of house buyers as a group with common problems (HBA doesn’t handle individual problems);
Acting as a consultative body on matters affecting house buyers;
To assist in updating legislation towards the new millennium;
To obtain feedback and collect data/proposals for the betterment of the housing industry.
