Making builders keep
promises
The Star
22/04/2002 By FREDERICK FERNANDEZ
KLANG: The Housing and Local Government Ministry will study a
proposal to make it mandatory for developers to include the additional
facilities they promise in promotional brochures in the sale and
purchase agreement.
Its Deputy Minister Datuk M. Kayveas said the move was being
considered as developers often failed to fulfil what they promised in
their brochures.
“When threatened with legal action, the developers often escape as
they would argue that they were only bound by what was stated in the
sale and purchase agreement, or that the additional facilities would be
constructed at a later date.
“These are among the loopholes which place property buyers at a
disadvantage. So, we will study the proposal to make it mandatory to
have what is promised in the promotional brochures to also be included
in the sale and purchase agreement,” he added.
Kayveas also said that it was time to do away with the practice of
getting property buyers to sign the sale and purchase agreement on the
spot without giving them the opportunity to study the provisions in the
document.
“The potential buyer should have the chance to have a solicitor
present to assist him or her to clearly interpret the conditions of the
agreement before signing,” he told reporters after opening the
People’s Progressive Party’s (PPP) Taman Meru branch yesterday.
Asked if the ministry would introduce a policy to compel developers
to complete units before selling them, to discourage shoddy work,
Kayveas said although it would be an ideal move, smaller companies may
not be able to meet such a requirement.
“This is already being carried out in certain developed countries.
Although it can solve a lot of problems raised by property buyers, it is
difficult to implement it here as it will affect development programmes,
which are taking place at a rapid pace,’’ he added.
On property buyers getting a raw deal from developers, Kayveas said
the ministry would work closely with the Domestic Trade and Consumer
Affairs Ministry, consumer associations and the Real Estate and Housing
Developers Association to conduct awareness campaigns for the public.
“We will educate property buyers on what they should look out for
in the sale and purchase agreement and also make them aware of their
rights as consumers,” he said.
Kayveas said the amendment to the Housing Development Act would
stipulate stiffer penalties for errant developers, especially those who
indulged in false and misleading advertisements. |