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We commend the Deputy Minister of Housing & Local Government YB Datuk M Kayveas for assuring the public that his ministry will carry out a study to determine the waiver of the imposition of the so-called ‘administrative charges’ of 1% levied by Developer when one wants to transact on their property prior to the issuance of strata title.

Strata title

As you are well aware, the purchase price in the sale and purchase agreement between the developer and the purchaser includes the costs and expenses of the developer in applying for strata titles and subsequent issuance thereof. However, very often the developers are deterred in applying for the strata titles since it costs them money to do so. You must understand that the cream of an apartment project is the proceeds from the sale of the units. Presently, there is no monetary motivation on the part of an errant developer to apply for strata titles as the supervision and strict enforcement by the relevant department is lax.  It is often left to the moral obligations of the developer to apply for the said strata titles.

We urge the relevant ministry to identify nationwide all cases that do not have strata titles. The Ministry should come up with statistics to reflect the non-availability of strata title in categories as to the number of years delayed.  The ministry should address the public as to the steps taken to remedy the situation before it worsen.

Malacca has been the fore-runner to a new process of eliminating problems relating to non-application for strata title. Their concept is that Building Plans will not be approve until the developer (for high rise buildings) had pre-paid all surveyors fees and premiums, processing fees for subdivision and application for strata title. Upon completion of the project Certificate of Fitness and strata title will be simultaneously issued.  This will eliminate obstacles for house buyers against errant developers who delay the application for strata or conveniently wind up their businesses after reaping the proceeds from the sales.  We compliment the Chief Minister YAB Dato Wira Mohd Ali Rustam for having the foresight of adopting stringent control that is due from a public holding officer and with the public at heart.

Administrative charges

In the event, after the study by MOH, the so called ‘administrative fees’ cannot be waived, HBA is of the view that a nominal fees be charged in the following instances:-

  • RM250.00 or 1% of the transacted price, whichever is the lower for property that is RM200, 000.00 or lower in value;

  • RM500.00 or 1% of the transacted price, whichever is the lower for property that is RM200, 001.00 or higher in value.

Maintenance Charges

In relation to the issue of maintenance charges, house buyers would be happy to pay whatsoever sum that is reasonable provided always that the developer must exercise transparency and accountability in arriving at the calculation of the maintenance charges.

Residents to take over maintenance

On the issue of residents taking over management and maintenance of the respective apartments, HBA urge MOH to conduct regular workshop to educate residents on the essence of running the apartment and responsibility for the well being of all the residents at large. One must understand that to be in the working committee of a resident group, it is a thankless job and people who are committed should serve on the committee for the sake of their common neighbours.

 
 

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National House Buyers Association (HBA)

No, 31, Level 3, Jalan Barat, Off Jalan Imbi, 55100, Kuala Lumpur, Malaysia
Tel: 03-21422225 | 012-3345 676 Fax: 03-22601803 Email: info@hba.org.my

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