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.