Buyers refusing to accept strata titles

10/12/2001 The Star By Derrick Vinesh

PENANG: While delays in obtaining strata titles for high-rise apartment units have become a common problem, a reverse trend of owners refusing to accept the titles is now emerging.

Deputy Land and Co-operative Development Minister Dr Tan Kee Kwong said the ministry had received more of such complaints from developers, which was quite worrisome.

“The increase in such cases is mainly due to house buyers refusing to pay stamp duty on their units while many had failed to settle outstanding maintenance fees.

“Some buyers had even tried to shift the responsibility of settling the stamp duty to the person who had proposed to buy their units,’’ he said at a briefing session on “Residents Association/ Management Corporations – Formation, Problems, Issues and Solutions” in Bayan Baru yesterday.

Dr Tan said most developers would insist that buyers settle all outstanding payments, including stamp duty, maintenance fees, quit rent and legal fees before handing over the strata titles to them.

House buyers are required to pay a stamp duty of 1% for apartment units costing RM100,000 and below and an additional 2% on the remaining value if the unit costs more than that.

He noted that if house buyers did not accept their strata title within six to eight months after it had been issued to the developer, it would be sent back to the state Land and Mines Department.

“To address such issues, the Housing and Local Government Ministry and my ministry have set up a joint working committee to look into problems related to high-rise buildings.

“The committee, which is four days old, hopes to settle problems of strata title issuance as well as management of high-rise buildings,’’ he said.

Dr Tan said a similar committee was formed five years ago but was inactive due to various reasons, noting that the new committee was co-chaired by Deputy Housing and Local Government Minister Datuk Peter Chin Fah Kui.

He said it was hoped that the new committee would act as a “problem-solver” between developers, house buyers and the authorities, and would resolve between 30 and 40 cases a year.

Chief Minister Tan Sri Dr Koh Tsu Koon, who opened the briefing, said those living in high-rise apartments should enjoy high quality living rather than incur “high-risk living”.

“It is time that both ministries work closely on this issue and I am sure the committee will be effective if the ministries can get their act together,’’ he said.

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