Extending House Defective Liability Period By Six Months
25/02/2007 Bernama

GENTING HIGHLANDS, Feb 25 (Bernama) -- The guarantee period for the defective liability of purchased houses will be extended by six months to 24 months with an amendment to the housing development law that is to be implemented in April, Housing and Local Government Minister Datuk Seri Ong Ka Ting said today.

He said the new regulation, which would form part of the new sale and purchase agreement (S&P), can provide better protection for property buyers and tighten housing policies.

"Developers must give a better guarantee to house buyers. This is the house buyers' hard-earned savings and once-in-a-lifetime purchase of a house, and it is only fair for developers to build quality houses," he told reporters after attending the Genting Group's Chinese New Year celebration here.

The ministry is in the process of gazetting provisions in the Housing Development (Control and Licensing) Act 1966 which, among others, gives the right to house buyers to nullify their S&P if the housing project encounters problems.

The amendment to the law, also known as Act 118, seeks to permit house buyers to take legal action against developers without the consent of the financial institution or the housing loan provider.

Ong said the amendment also seeks to enhance the jurisdiction of the House Buyers Claims Tribunal to hear claims of not more than RM50,000. Currently, the tribunal can only hear claims of not more than RM25,000.

"House buyers can file complaints with the tribunal to claim for late delivery or defect liability after the amended act is fully implemented and effective in April," he said.

-- BERNAMA