Delay by developers



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Delay by developers in applying for strata titles causing buyers hardship
NST 14/08/2001 By C. Chow, Ampang

THERE must be thousands of owners of apartments without their strata titles although they have moved in and stayed there for years.

This problem is caused by developers failing to apply for the strata titles within six months of obtaining the certificate of fitness from the local authorities as required under the Strata Titles Act.

Developers cited the 1997 financial crisis as the cause of their inability to do so. They conveniently forget that the application cost has already been factored into the selling prices of these units.

Many were caught by the crisis, unprepared. It is obvious that developers had diverted the money elsewhere and did not have the funds to make the application to the land office for this purpose.

Lack of enforcement by the authorities has embolden developers to ignore the law. There is no known case of errant developers being prosecuted. Owners end up the losers.

Is this the Government's intention? Contributing to the woes of house buyers is the manner in which the laws on the housing development industry was drafted.

It is a known fact that many developers have capitalised on the loopholes. The terms embodied in the standard sale and purchase agreement are clear evidence thereof.

Several months ago, the Minister of Housing was reported in the media as saying that amendments to the Act would be tabled in Parliament in July 2001. I've since learnt that this has been postponed to October. Why the delay? Until steps are taken by developers to apply for the strata titles, the irresponsible ones have remortgaged the master title for fresh financing of new projects without the slightest regard for the owners who are not sure if they will ever set eyes on their strata titles.

Without this piece of important document, owners face the prospect of being evicted in the worst case scenario.

What will happen if the developer defaults on the term loan? What protection is there for the hapless owner? Or, what if the developer is wound up? Who is there to continue with the application for the strata titles without imposing additional financial burden to the buyers? If the Government is sincere in wanting to protect the interest of the innocent buyers, this must be done without further delay.

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