Rehda: Let buyers form pro tem panels



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Rehda: Let buyers form pro tem panels
The Star 13/04/2001 By Derrick Vinesh

THE Housing and Local Government Ministry should allow house buyers to form pro tem management corporations soon after obtaining Certificate of Fitness (CF) for their apartment units.

Real Estate and Housing Developers Association (Rehda) Penang branch chairman Datuk Ong Gim Huat said that in this way, the responsibility of managing the buildings would be solely in the hands of the buyers.

"Developers are fed up of being accused of short-changing buyers and misappropriating funds.

"If buyers can form their own management corporations, they can appoint the necessary personnel to undertake administration, security and maintenance tasks,'' he told reporters after attending the Penang Local Government Consultative Forum yesterday.

Management corporations were formed only after the strata titles were issued, he said, adding that it would be a luxury for developers to receive their titles in three years.

While waiting for the titles, he said, there were often cases of buyers who refused to pay maintenance fees because the developer had failed to meet certain criteria.

Ong stressed that developers should not be bogged down with the management of buildings "because this is not their field of expertise.''

"The pro tem corporations can look into the complaints brought about by the buyers and the developer can also sit in to give his views,'' he said.

He said residents associations should not be talking to developers on the management of buildings because the RAs did not represent the actual buyers as many of them were merely tenants.

On developers opening joint fixed deposit account with house buyers for a sinking fund, Ong said that it was up to the individual developer "as long as whoever keeps the money does not simply spend it.''

He said the fund was usually kept by developers until a management corporation was formed, after which the money would be transferred to it for its operations.

On complaints by certain buyers that their renovations had been deemed as illegal despite having engaged contractors recommended by the developer, Ong said buyers should be aware that all renovations must not encroach into common areas.

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