Hand over keys only after CF is issued

07/04/2006 The Star

IT is time the lopsided rules pertaining to purchase of property be amended.
At present, the developer hands over the keys of a property to the buyer but that does not give the buyer the right to occupy the building until such time as the Certificate of Fitness for Occupation for the building is issued.

Then why hand over the keys in the first place?

By handing over the keys, the developer can:

SAVE on liquidated damages if completion of the building is delayed.
SAVE on maintenance of the infrastructure by making the buyer pay for it.
SAVE on maintenance of common facilities by making the buyer pay for it. The buyer does not have the right to use the facilities until the CF has been issued, and
COLLECT insurance premium from the date the keys are handed over.

In many cases, the issuance of the CF is delayed due to failure on the part of the developer to comply with all the requirements of the authorities.
This is not the fault of the buyer or that of the authorities.

The law should be amended such that the developer shall hand over the keys (vacant possession) on or after the date the CF is issued by the authorities.

A PURCHASER,
Kuala Lumpur.