HOUSING DEVELOPMENT (CONTROL & LICENSING ACT 1966 (ACT 118) & REGULATION
ABANDONED HOUSING PROJECTS AND PURCHASERS’ RIGHTS
(DR. JADY@ZAIDI HASSIM)
SUFFIAN MD. ISA
SUFFIAN MD. ISA
House – everyone needs one. Though some of us consider house as an investment, there are people out there that regards house as their needs, necessity and act as a shelter to their family. Abandoned housing project in Malaysia has caused problems to the purchasers. Some of them were declared bankrupt, and many still have to serve and pay to the financiers even though the actual fact that there was no house for them. Sometimes, what was left on the so-call “proposed develop land” are few pillars or worse still, the same empty land they had seen during signing the Sales & Purchase Agreement still the same except now it is filled with long grass. It is undeniable that the Sale and Purchase Agreement is between the developer and the purchaser. The loan to finance the house is between purchaser and financier. There was no direct connection between both developer and financier, but at the end of the day, failure in delivering the house to purchaser resulting burden to the purchaser in the sense of paying back the mortgage to the financier. If we were to observe some statistics related to the abandoned, delayed and problematic projects in Malaysia, one can simply conclude that, this is not new issue but it has happened long time ago since the 80’s. Table 1: Abandoned housing project as of May 2012
| No of Project| Progress Status|
Year| Current| New| Total| Plan| Build| Completed|
2009| 144| 4| 148| 87| 46| 16|
2010| 133| 13| 146| 50| 60| 36|
2011| 110| 6| 116| 22| 62| 32|
2012| 84| 10| 94| 16| 58| 20|
2009-2012| 144| 33| 177| 16| 58| 10|
Table 2: Statistic on delayed and problematic project as of May 2012 by state. No| STATE| No Of Delayed Project| No of Problematic project| 1| Perlis| -| 1|
2| Kedah| -| 12|
3| Pulau Pinang| 3| 9|
4| Perak| -| 8|
5| Selangor| 26| 84|
6| Wilayah Persekutuan| 6| 11|
7| Negeri Sembilan| 4| 10|
8| Melaka| 3| 6|
9| Johor| 5| 23|
10| Pahang| 4| 20|
11| Terengganu| 2| 17|
12| Kelantan| 1| 23|
| Jumlah| 54| 223|
KPKT has defined and categorized the problems project as below: - Delayed Project: Project that has been delayed in between 10% to 30% from the schedule.
Sick Project: Project that has been delayed more than 30% from the schedule or Perjanjian Jual Beli has expired.
Abandoned Project: Project that has been defined to fulfill the criteria below: * Project that has not been completed within the period stipulated in the Sale and Purchase Agreement (S&P) and the construction works has consecutively stopped for six month. * Winding up petition has been filed in High Court pursuant to Section 218 Company Act 1996 or * The company has been put under the Receiver & Manager or * The developer failed to continue and write official to the Pengawal Perumahan; and * Endorsed by the Minister of Housing and Local Government pursuant to Section 11 (1) (c) of the Housing Development (Control and Licensing) Act 1966 (Act 118).
Housing Development (Control & Licensing) Act 1966 and Sale and Purchase Agreement (SPA) The purpose of Housing and Planning Act is to protect the purchaser from irresponsible housing developer, and not making the purchaser as the victim. The act is often called the “consumer-oriented legislation”. Act 118
“An act to provide for the control and licensing of the business of housing development in Peninsular Malaysia, the protection of the interest of the purchasers and for the matters connected therewith.”
“An act to provide for the control and licensing of the business of housing development in Peninsular Malaysia, the...