Bill Protects House Buyers
KRISARU
Bill protects house buyers, Dewan told
THE newly passed Housing Development (Control and Licensing)
(Amendment)
Bill will protect house buyers from becoming victims of abandoned
housing projects, the Dewan heard.
Housing and Local Government Minister Datuk Seri Ong Ka Ting said
consumers would now have the right to call off the sale and purchase
agreement six months after they signed it.
The amendment was aimed at protecting the interest of house buyers.
"Previously, only the developers had the right to call off the
agreement but now buyers can do the same.
"This is to protect house buyers from becoming victims of abandoned
housing projects," he said in winding up the debate on the Bill.
Another amendment, which included a new section (Section 3A), gives the
Minister the power to determine housing accommodation.
Ong said the new section would prevent developers from trying to avoid
being controlled by the law, especially those developing shophouses and
serviced apartments.
"Previously, commercial projects and serviced apartments were not
controlled by law," he said.
"But now, with the amendments, if there is a grey area in terms such
as shop-lots, we can still determine if the unit purchased is a housing
accommodation to protect the consumer."
The minister's power, however, is subject to judicial review.
Developers too, are not left out from the amendments.
Ong said the ministry had not set a time frame to fully enforce the
build and sell concept.
"Besides the 90/10 option, there is also the 100/0 option, whereby
the developer completes the house before collecting payment.
"But not many developers are able to fulfil this option," he
said.
He also said that the amendment would provide the ministry with powers
to charge developers if they continued to drag their cases in the
House-Buyers Claims Tribunal.
At the Senate, Ong said the ministry was not planning to make it
mandatory for developers to provide houses for policemen in their
projects.
He said that having them to do so would only push up construction costs
which would be passed on to house buyers.
However, the ministry was still reviewing the Community Amenities
Guidelines on the relevance of providing police beat bases in housing
areas under the prevailing conditions and for future needs, he told
Senator Hiang A Li.
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