Minister can end housing pacts 

The Star 17/10/2001

THE Housing and Local Government Minister is empowered to terminate housing sale and purchase agreements if construction work does not begin six months after the deals are signed. 

This, however, can take place only if 75% of the buyers consent to the termination, said its minister Datuk Seri Ong Ka Ting, adding that the move was to protect the interests of both buyers and developers. 

Under an amendment to the Housing Developers (Control and Licensing) (Amendment) Bill, Ong said developers, upon the termination of agreements, should refund all money received from buyers. 

Those who fail to comply with the provisions can be fined up to RM50,000 and a further fine of not more than RM5,000 for each day the offence continued after the conviction. 

The minister’s decision is final and not to be questioned in any court of law and no injunction shall be granted to restrain those carrying out the minister’s decision. 

In resuming his winding-up of the debate on the Bill, Ong said the ministry had drawn up a work charter to stipulate the number of days needed for each stage of work, beginning from development planning right up to the issuance of certificates of fitness. 

He hoped all the relevant authorities would co-operate, saying that the guidelines would be monitored by the ministry. 

Ong also said the ministry was drafting the Building and Common Property (Maintenance and Management) Bill to deal with problems, which rose from the time when buyers took vacant possession of their units until the strata titles were out. 

On the setting up of a tribunal for homebuyers to make claims amounting to not more than RM25,000, Ong said that those who had higher claims could seek legal redress. 

“The tribunal is meant for those who have straight forward claims which do not entail much technical expertise,’’ he said, adding the fines under the original Act had been increased five times under the amendments