Move to get developers to repair
defects
The Star 12/10/2001
DEVELOPERS will have to continue to repair defects in their units even
after the expiry of their licences under sweeping new amendments to the
Housing Developers (Control and Licensing) Act.
Housing and Local Government Minister Datuk Seri Ong Ka Ting said this
would protect the interests and rights of housebuyers whose project had
been abandoned.
“Previously, developers will often deliberately not renew their licences
as one way of “escaping” their obligations as this would have meant that
they must remain responsible, under the Act.
“This amendment will ensure that developers be made liable and that they
continue to be tied down to the provisions of the Act after the expiry
of their licences,” he said when tabling the Bill.
This new provision, added Ong, would also make it compulsory for the
developer – whose licence has expired – to inform the ministry regarding
any sale or merger of projects. Developers must also inform the housing
controller should their companies be handed over, transferred,
restructured or had the management changed, said Ong.
“Such an amendment will enable the controller to better monitor the
management of the companies and thus, protect the rights of
housebuyers,” he said.
Developers must also keep the controller informed of the status of their
applications for strata or individual titles.
Under Clause 18, the minister would also be empowered to terminate a
sale and purchase agreement if the developer had yet to begin
construction six months after the signing or that 75% of the buyers had
agreed with the developer to end it.
Co-operatives, corporations or federal and state government agencies –
which developed housing projects – would no longer be exempted from the
provisions of this Act.
The Bill would also see the setting up of a housing tribunal, an
increase of a developers’ deposit from RM100,000 to RM200,000, tighter
criteria for the issuance of licences and harsher fines for various
offences.
The Bill would see a change in the name of the Act to that of the
Housing Development (Licensing and Control) Act. |
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