Guide to House Buyers
Some important aspects for House Buyers
Before you decide to buy a house, you must ascertain
that the housing developer:
Know the category of housing
The Sale & Purchase Agreement (S & P) for landed
property must state completion within 24 months, e.g.
bungalows, semi-detached and terrace houses.
S & P Agreement for subdivided buildings such as
condominium, flats, apartment and townhouse must state
completion within 36 months.
Buyers are advised to obtain free brochures
from the developer for full information on the project
including particulars of the license, permit, etc.
Land
Title
Status
of Land
-
Freehold
-
99 years lease
-
Malay Reserve
Obtain Information from Housing Developer
-
Free brochure on the housing project
-
Note specifications on building
materials
-
Sample sale & purchase agreement
-
Building area
-
Location of house to be constructed
-
Expected date of completion
-
Note condition of site such as
hilly, former mining land or swampy land
-
Reference No. of approval of
building plans by local authorities.
Rights and Interest of Buyers under Sale and Purchase
Agreement
The sale & purchase agreement must comply with the
standard agreement as in Schedule G & H of the Housing
Developers (Control & Licensing) Regulations 1989.
First Payment
The buyer must sign the S & P Agreement at the time of
the first payment of 10% of the purchase price to the
developer. Ensure that the date of the 1st
payment and the date of the S & P Agreement having been
signed.
Architect’s Certificate
Every notice requesting for payment shall be supported
by a certificate signed by the developer’s architect or
qualified engineer.
Interest on late payment
If the buyer or end financier of the buyer fails to
settle the installment within 14 days after receipt of the
written notice, the buyer shall be liable to pay interest
to the developer calculated from day to day at the rate of
10% p.a. on the unpaid installment.
Determination of Agreement
You are reminded that failure to pay any of the
installments and interest due for any period exceeding 28
days, the developer may terminate the S & P Agreement. The
Developer shall send notice in writing by A.R. Registered
Post of his intention to terminate S & P Agreement.
Maintenance & Management Fee
The buyer shall contribute towards maintenance charges
such as refuse removal, upkeep of public drains and
grass-cutting on the road reserves as from the date of
delivery of vacant possession for landed property and as
from the date of issuance of strata titles and the
formation of the Management Corporation.
Payment of quit rent, assessment, etc.
As from the date of S & P Agreement, the buyer shall
be responsible for the payment of quit rent, rates,
assessment and other charges on the subject property.
Vacant possession of the building with water and
electricity ready for connection must be delivered
within 24 calendar months from the date of the agreement
(for landed property) and 36 months (for subdivided
buildings)
Application for certificate of Fitness for Occupation
At the time of delivery of vacant possession, the
developer must have applied for CFO from the relevant
authorities (Form E of UBBL)
Entry into Occupation
The buyer is only entitled to enter into occupation of
the property upon issuance of CFO by the relevant
authorities.
Renovations may only be carried out upon issuance of
CFO and approval of the plans by the relevant
authorities.
Payment of Damages
If the developer fails to hand over vacant possession
of the building/parcel within the prescribed time (24
months from the date of the S & P Agreement for landed
properties and 36 months fro sub-divided properties), the
developer shall pay immediately to the buyer liquidated
damages to be calculated from day to day at the rate of
10% p.a. of the purchase price.
Claim for damages & time limit
The buyer may claim damages from the developer before
the expiry of 6 years from the date of vacant possession
in accordance with the Limitation Act 1953.
Defect Liability Period
With effect from 1 August 1996, the defect liability
period shall be 18 months from the date of delivery of
vacant possession.
Formation of Management Corporation
A Management Corporation shall be formed by the buyers
upon issuance of separate strata titles for the parcels
and transfer into the buyers’ names.
Among other functions, the Management Corporation
shall be responsible to insure and to maintain the
building.
Enquiries & Complaints
You may contact:
Control & Enforcement Section,
Ministry of Housing & Local Government,
Kementerian
Perumahan dan Kerajaan Tempatan
Block K, Level 4, Pusat Bandar Damansara,
50782 Kuala Lumpur.
Tel: 03-2094 7033
Website :www.kpkt.gov.my
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This section is a division under the Ministry of
Housing & Local Government and is responsible for
the implementation and enforcement of the provisions
of the housing Developers’ (Control & Licensing) Act
1966 (Act 118). |
Prepared by:
Control & Enforcement Section,
Ministry of Housing & Local Government,
Block K, Level 4, Pusat Bandar Damansara,
50782 Kuala Lumpur.
Translated by:
Housing Developers’
Association Malaysia for distribution to developers.
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