Bill protects house buyers, Dewan told
13/12/2006 The Star

THE newly passed Housing Development (Control and Licensing) (Amendment) Bill will protect house buyers from becoming victims of abandoned housing projects, the Dewan heard.

Housing and Local Government Minister Datuk Seri Ong Ka Ting said consumers would now have the right to call off the sale and purchase agreement six months after they signed it.

The amendment was aimed at protecting the interest of house buyers.

“Previously, only the developers had the right to call off the agreement but now buyers can do the same.

“This is to protect house buyers from becoming victims of abandoned housing projects,” he said in winding up the debate on the Bill.

Another amendment, which included a new section (Section 3A), gives the Minister the power to determine housing accommodation.

Ong said the new section would prevent developers from trying to avoid being controlled by the law, especially those developing shophouses and serviced apartments.

“Previously, commercial projects and serviced apartments were not controlled by law,” he said.

“But now, with the amendments, if there is a grey area in terms such as shop-lots, we can still determine if the unit purchased is a housing accommodation to protect the consumer.”

The minister's power, however, is subject to judicial review.

Developers too, are not left out from the amendments.

Ong said the ministry had not set a time frame to fully enforce the build and sell concept.

“Besides the 90/10 option, there is also the 100/0 option, whereby the developer completes the house before collecting payment.

“But not many developers are able to fulfil this option,” he said.

He also said that the amendment would provide the ministry with powers to charge developers if they continued to drag their cases in the House-Buyers Claims Tribunal.

At the Senate, Ong said the ministry was not planning to make it mandatory for developers to provide houses for policemen in their projects.

He said that having them to do so would only push up construction costs which would be passed on to house buyers.

However, the ministry was still reviewing the Community Amenities Guidelines on the relevance of providing police beat bases in housing areas under the prevailing conditions and for future needs, he told Senator Hiang A Li.