Crumbled dreams of house buyers
04/09/2001 The Star Articles of Law with Bhag Singh
BUYING a house and moving into it is not a dream come true for everyone. For many house buyers
it is the beginning of a period of anguish and disappointment.
A local newspaper recently highlighted a case of 40 house buyers who had forked out more than RM20,000 of their life-savings as
downpayment for their dream homes. It was for them a big thing and they felt it was worth every sen.
However, their hopes were dashed when they found that their almost-completed units were a far cry from what they had in mind.
The house buyers claimed shoddy workmanship on the developer’s part. The cracks on their houses were considered prominent
testimony of this. One house buyer is reported to have said: “I took out all my savings for it and now I’m afraid that without
proper rectification, the house might collapse one day.”
It is not the intention of this writer to discuss this particular case. This is because there could be weaknesses in the
contentions of the house buyer, or the developer may have a valid explanation or justification.
However, there are instances where such grievances are legitimate. This kind of thing happens and will continue to happen if
values and attitudes do not change.
There is no simple answer. Most people would want to blame the law as well as the legal system for the cost that is involved and
the resultant delay.
However, the real situation is much more complex and the root of the problem runs deeper. It has to do with cultural and social
values, and the lack of morality and integrity on the part of those responsible for building the houses.
Of course, such housing developers and their associates may be in the minority, but this is of little comfort to the affected
house buyers. For many people, the buying of a house is a once in a lifetime exercise.
However, many house buyers lack the drive and desire to assert their rights against delinquent developers. They often claim that
they cannot afford the legal fees to confront the developer. This may be true, but if the house buyers in a housing scheme can
unite to take collective legal action against the developer, it would not be impractical.
If they do so, they would not only be able to pay the legal fees but also engage the necessary consultants for their expert
opinions.
However, proposals to take legal action are often described as throwing away good money to go after bad money. Those who have
attended meetings of house buyers to discuss action against developers will understand what I mean. Someone will suggest that a
complaint be made to the Housing and Local Government Ministry or local council. Statements will be made that the ministry be
urged to look into the matter seriously.
Someone else will say that the developer has cheated them and therefore the matter should be reported to the police for criminal
action to be taken and that, furthermore, the housing developer should compensate them. Few people will disagree with such
sentiments and the pursuit of such action where necessary and appropriate.
However, all this overlooks one simple fact – that as far as government agencies are concerned they can only take action against
the housing developer if laws, regulations and conditions are not complied with. They could in such cases prosecute them or, in
worst-case scenario, withdraw or cancel their licence. But this will not result in the house buyer receiving any compensation.
Where does all this take the house buyer?
Reporting the matter to the police will only result in any meaningful action if the developer has committed a criminal offence. To
start with, there is always a heavy burden of proof in establishing allegations of criminal conduct. Even then it is seldom that
the acts or omissions of delinquent developers amount to criminal acts.
This is because in most complaints against housing developers, what is involved is merely a breach of contract on their part. Or
it may be acts of omission which amount to negligence in the construction of the house. Such breaches of contract are a matter
entirely up the buyer and developer to resolve between themselves. Of course, arbitration is an available option but it is not
always the best alternative in such circumstances. |
