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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.

 

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