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The long road to getting CFS
24/06/2003 The Sun By Goh Ban Lee

Penangites call them OCS while the rest of Malaysians CFs. They are Certificates of Fitness for Occupation that are issued by local authorities to certify that buildings are built according to approved plans and are safe to occupy.

CFs are controversial because housing developers are allowed to hand over vacant possession of houses to buyers without first obtaining these very important documents.

For most house-buyers, the absence of CFs is a very frustrating experience as their new houses are practically useless. Yet they have to service bank loans for the full cost of the houses. To add salt to injury, some developers even start collecting maintenance charges.

In the past, there were cases of buyers having to wait for months or even years for CFs for their houses. Since 2001, the Housing and Local Government Ministry has been urging local authorities to process applications for CFs within 14 days and last year, amendments to the Uniform By-laws made it a legal procedure.

Last week, as part of the economic stimulus package, Housing and Local Government Minister Datuk Seri Ong Ka Ting called on local authorities to set up one-stop agencies to ensure that CFs be issued within 14 days. Furthermore, no individual officers would be allowed to add new condition for the issuance of CFs.

There has been no reaction from the developers. The House Buyers Association is not impressed. There is no guarantee that CFs are issued within the time given.

Local authority officers could still reject the application on the flimsiest of excuses and 14 days could stretch to months while the blame game continues. While it is very difficult to prove an officer's bad intention, a system must be established to detect and punish those found guilty.

CFs could also be rejected because the buildings are not built according to approved plans or clearly not completed. The main reason for premature applications for CFs is to enable developers to hand vacant possession so that they do not have to pay late delivery charges or the final instalment of the progress payments.

As a result of numerous cases of short-changing house-buyers, developers do not have good reputations despite their numerous donations to charitable organisations and federal and state honours.

Many developers deserve the brickbats thrown at them. But society, through the government, does not expect much from developers. All it needs to be a developer is RM250,000 paid-capital for his company and RM200,000 as deposit for each project.

That is why the government does not trust developers. For housing projects of more than four units each, developers have to obtain licences from the Housing and Local Government Ministry. They cannot sell houses without obtaining permits from the ministry.

Property developers also cannot do anything on the land without approval from about 15 governmental departments and corporatised utility suppliers. Only those who have been through the processes of getting approval from these departments and agencies can appreciate the difficulties encountered and frustrations involved.

Furthermore, at every step of the development process, builders are required by law to engage professional consultants largely because the government does not have the necessary mechanisms to monitor every aspect of the development projects.

Such confidence in the consultants is justified. To be a professional consultant, such as an architect or an engineer, surveyor a town planner or a lawyer, a person has to spend 16 or 18 years of formal education.

In all these years, especially in the universities, apart from technical subjects, they are taught to be sensitive to ideals like environmental conservation, responsibility and social justice, assuming of course, that their lecturers are good at their work.

The consultants have to be members of their respective professional institutes, which have stringent codes of ethics, to be able to practise. Most importantly, the law requires that only those properly qualified and accredited can prepare plans and certify to their implementations.

There have been too many cases of professional consultants losing their professionalism and misplacing the trust society has placed on them. In such cases, the professional institutes and the government must take strong punitive action.

The present practice of planning and building control is to carry out inspection of housing projects at the stage of application of CFs. Any withholding of issuance of these documents only punishes the house buyers as the consultants and developers have largely collected their dues.

A better practice is for enforcement officers, especially those of the ministry and local authorities, to monitor the progress of housing projects. They should facilitate the smooth implementation of the projects where they can. However, they should prosecute the errant ones where there are cases of cheating or negligence of duties.

The government has taken some steps to facilitate the issuance of CFs. If problems persist, it may be forced to implement the build-then-sell concept. At the very least, it could legislate that vacant possession means completed houses with CFs.
 

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