10:90 ratio proposed for
housing units
The Star 04/09/2005
KUALA LUMPUR: The National House Buyers Association (HBA) proposed that a
10:90 ratio be used if developers adopt the build-first-pay-later concept on
residential units.
This means a buyer would pay 10% of the purchase price when signing the sale
and purchase agreement and the balance after the transfer of vacant
possession and issuance of certificate of fitness.
HBA vice-president Datuk Goh Seng Toh said the 10:90 system would help to
overcome the problem of buyers being left in the lurch due to abandoned
housing projects.
“The 10% will be kept in a special account by the lawyer. In the event that
the developer fails to complete the project, the purchaser will have the
option to withdraw the down payment with interest,” said Goh during a
presentation at the HBA headquarters here yesterday.
