Housing Development Act 1966 in Malaysia

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This act is mainly to control, giving license for the business of housing development in Peninsular Malaysia, protection of the interest of purchasers and for matters connected herewith. This act was enacted on 1966 and has been revised for the first time on 16 August 1973. There are 7 parts in the act.

1. Part 1 : Preliminary

2. Part 2 : Licensing of Housing Developers

3. Part 3 : Duties of a Licensed Housing Developers

4. Part 4 : Investigation and Enforcement

5. Part 5 : Powers of Minister

6. Part 6 : Tribunal for Homebuyer Claims

7. Part 7 : Miscellaneous

Part 1 : Preliminary

This part tells that this act only applicable in West Malaysia. Besides that, this part explain the saving and exemption of the act; interpretation of each parties relating to the act such as banks, finance company, housing development, license, controller, local authority, purchaser, stakeholder and tribunal; powers of the minister to determine housing accommodation; appointment of controller, deputy controller, inspector and other officers and servants.

Part 2 : Licensing of Housing Developers

These parts explain the prohibition against housing development except by good quality of a license and provision relating to the grant of a license, condition or restrictions for the grant of a license and controller to keep or forfeit deposit.

All the housing development should only be developed by a housing developer who has obtain the license of developer under this act. The housing developer who desires to carry out the housing development shall apply to the Controller for a license and that application shall be made in the prescribed form and every document must be verified. Upon receiving an application for a license under this act, the Controller may grant the license and he may impose any condition to the license. During the application, the applicant shall be paid the fees to the Controller and the Controller at any time can cancel, alter, and impose new or additional condition to the application.

Subject to the exercise of power by the Minister, the license applied for under this Act shall not be granted, unless:

- The applicant has a capital issued and paid up in cash not less than RM250,000/-, if the application is made by a company;

- The applicant makes a deposit with the Controller of not less than RM200,000/-, if the application is made by a person or a body of persons;

- The applicant is not himself or any other member or partner of a person convicted of an offense involving fraud or dishonesty or an undercharged bankrupt;

- No one is convicted of an offense involving fraud or dishonesty or who is undercharged bankrupt is holding as director, manager or secretary of the applicant, if the application is made by a society;

Direction from the Minister, the Controller shall keep the deposit until the expiry of the defect liability period of the housing development. At some reason, the Controller may forfeit the deposit at the following reason:

- Is carrying on his business and in the opinion of the Controller, the developer may be harmful to the interest of the purchaser or to any member of the public

- Has sufficient assets to cover his liabilities

- Is breach any of the provision of this Act

- Has ceased to carry on housing development in West Malaysia

Part 3 : Duties of a Licensed Housing Developer

These parts 3 tell the duties of a licensed housing developer. Every licensed housing developer shall keep in his office in West Malaysia all the accounting and other records to enable them to be properly audited. Within 6 months after the close of the financial year, they should and must send the financial report to the Controller and publish a copy of the report together with a copy of his balance-sheet and profit and loss account as well. During the development &...
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