Errant developers now have no escape
clause
The Star 10/9/2004 Comment By V.K.
Chin
HOUSE buyers who have been awarded compensation by
the Housing Tribunal will be waiting eagerly for the outcome of the
court action by the Housing and Local Government Ministry against
errant developers who have failed to comply with the ruling.
It has been reported that the ministry will charge
42 developers for non-compliance and it will be the first such
action to be taken against the defaulters.
The Tribunal was one of the measures introduced by
the ministry to protect house buyers who were unhappy with their
developers, usually either for late delivery or shoddy workmanship.
Since its formation, the Tribunal has handled more
than 5,000 compensation cases and most of the developers involved
were said to have settled with the purchasers.
The Tribunal is one positive and cheap way for the
complainants to take up their cases. Before its formation, aggrieved
house buyers had to use the normal legal channel to make any claim.
The judicial process not only took a long time to
hear the cases but the biggest deterrent was the high cost involved
in such litigation. Should the buyers fail in their attempt, they
could end up with a hefty legal bill, which is certainly not worth
the trouble.
The purchasers had to deal with companies with the
financial resources and time to go through the legal process and
some developers might even welcome it as it would mean a delay in
payment even if they should be in the wrong.
This delay and cost kept a lot of individuals from
going to court and most of them would suffer in silence. It is to
ease their burden that the ministry has come up with the idea of a
tribunal to settle such disputes.
Some developers may decide to hold on to payment
as the Tribunal's powers are still being challenged in a court of
law. But with the ministry's determination to take them to court,
they might change their attitude and settle.
The industry has viewed the Tribunal' formation
positively, especially the reputable players, who are equally
concerned that the sector's image will not be affected by the
conduct of a few of their members.
Some of them are dragging their feet because they
are waiting to see whether the ministry will carry out its threat of
taking them to court for non-settlement of the compensation.
Such tough words had not been backed up by actions
in the past and the developers will hope that this would be the case
this time. But based on the reported statement by Datuk Seri Ong Ka
Ting, the Housing Minister, they better think again.
Some developers might have got away with their
failure to hand their units in reasonable shape or on time before
but the tough action by the ministry will surely put paid to their
irresponsible behaviour in future. |