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HOUSING DEVELOPERS (HOUSING
DEVELOPMENT ACCOUNT) REGULATIONS, 1991
PU(A) 231/1991
In force from 26 August
1991
IN execise of the powers conferred by section 24 of the Housing Development
(Control and Licensing) Act 1966, the Minister makes the following
regulations:
[Am. PU(A) 474/2002]
1. Citation and commencement.
These Regulations may be cited as the Housing Development (Housing
Development Account) Regulations 1991 and shall come into force on the 26th
August 1991.
[Am. PU(A) 474/2002]
1A. Exemption.
These Regulations shall not apply if at the time of execution of the
contract of sale, the certificate of fitness for occupation for the housing
development has been issued and a certified true copy of which has been
forwarded to the purchaser.
[Ins. PU(A) 474/2002]
2. Interpretation.
In these Regulations, "Housing Development Account" means the Housing
Development Account opened and maintained under section 7A of the Act.
3. Duties of a developer relating to the Account.
(1) A licensed housing developer shall within fourteen (14) days after
the issuance of a housing developer's licence, submit to the Controller a
certificate from the bank or finance company with whom the Housing
Development Account is opened, certifying that such an account has in fact
been opened.
(2) The developer shall, within fourteen (14) days after being notified
by a purchaser of the name and address of his financier who is financing the
purchase, inform the purchaser's financier of the name and address of the
bank in which the Housing Development Account is opened and its account
number.
[Ins. PU(A) 474/2002]
3A. Deposit made by the developer.
For the purpose of paragraphs 6(1)(a) and (b) of the Act, a
deposit of RM200,000 shall be made by the developer by way of—
(a) cash;
(b) bank guarantee; or
(c) having a balance of RM200,000 at any one time in the Housing
Development Account.
[Ins. PU(A) 474/2002]
4. Deposit of all monies paid by purchaser.
(1) A licenced housing developer shall deposit forthwith into the Housing
Development Account all monies whatsoever, whether in respect of instalments
of purchase price or otherwise, paid by a purchaser in relation to his
purchase of a housing accommodation in a housing development.
[Am. PU(A) 474/2002]
(2) A licensed housing developer shall, within two (2) banking days after
the payment is made in cash, issue a statement to the purchaser that such
payment has been credited to the Housing Development Account.
[Ins. PU(A) 474/2002]
4A. Purchaser's financier to pay direct into the Account.
(1) A purchaser's financier shall, within twenty-one (21) working days
after receiving invoice sent by the licensed housing developer in respect of
the progressive payments relating to the purchase of a housing accommodation
by the purchaser, deposit directly any payment made into the Housing
Development Account with a statement to the licensed housing developer and
the purchaser that such payment has been made.
(2) Any payment to the licensed housing developer's solicitor as the
stakeholder, shall be paid directly to the solicitor with a statement to the
licensed housing developer and the purchaser that such payment has been
made.
[Ins. PU(A) 474/2002]
5. Deposit of loans.
A licenced housing developer shall deposit into the Housing Development
Account any loan obtained for the construction of housing accommodation in a
housing development.
6. Interest obtained.
Any interest obtained in respect of matters referred to in regulation 4
and regulation 5 shall be deposited into the Housing Development Account.
7. Purposes for which monies in Housing Development Account may be
withdrawn.
No monies in a Housing Development Account of a housing development shall
be withdrawn by a licensed housing developer except for all or any of the
following purposes:
(a) the payment of all outgoings including quit rent, rates,
taxes, assessments and other charges levied in respect of the land on
which the housing development is carried out;
(b) the payment of stamp duty payable on a charge, caveat,
debenture, guarantee or memorandum of deposit of title to secure any loan
for the construction of housing accommodation in the housing development;
(c) the payment of legal fees in respect of —
(i) (Deleted);
[Deleted by PU(A) 474/2002]
(ii) a charge, caveat, debenture, guarantee or memorandum of deposit
of title to secure a ny loan for the construction of the housing
accommodation; and
(iii) any other matters relating to the housing development;
(d) the payment of —
(i) insurance premiums; and
(ii) architect’s fees, engineer’s fees, quantity surveyor’s fees and
consultant’s fees,
for the housing development;
(e) the cost of carrying out —
(i) soil investigations;
(ii) earthworks;
(iii) foundation works;
(iv) building works;
(v) external works;
(vi) site and boundary survey for each lot;
(vii) infrastructure works;
(viii) relocation of squatters;
(viiia) works related to infrastructure preparation instructed by the
appropriate authorities;
[Ins. PU(A) 474/2002]
(ix) other works,
relating to the housing development in proportion to the housing
accommodations that have been approved under the licensed housing
developer's licence;
[Am. PU(A) 474/2002]
(f) the payment of monies for the contribution towards the
supply of water and electricity to the housing development and any other
fees payable thereof to the relevant authority responsible for the supply
of water and electricity in respect of the housing development;
(g) the payment of any lawful charges to any Government
department or other bodies in respect of the housing development;
(h) any refund of the progress payment pursuant to the sale and
purchase agreement of a housing accommodation in the housing development;
(i) the payment of interest and such other charges to the banks
or finance companies on any loan taken for the housing development;
(j) the payment of any capital sum to redeem, in full or in
part, the loan for the purchase of land for the housing development in
proportion to the housing accommodation that have been sold;
(k) the payment of cost of land where no loan is taken for the
purchase of land for the housing development, to be made as follows —
(i) an amount equal to ten per centum (10%) of the purchase price
pursuant to the sale a nd purchase agreement in respect of a housing
accommodation in the housing development w here up to fifty-five per
centum (55%) of the purchase price has been paid; and
(ii) a further amount equal to the amount referred to in subparagraph
(i) where up to s ixty-five per centum (65%) of the purchase price has
been paid:
Provided that payment of such amounts shall be in proportion to the
housing accommodation that have been sold;
(l) the payment of any capital sum to redeem, in full or in
part, the loan for the construction of housing accommodation in the
housing development;
(m) any administrative expenses (including marketing and
advertising expenses) incurred on the housing development, subject to a
maximum of ten per centum (10%) of the total cost of construction of the
housing development as certified by the architect or engineer in charge of
the housing development in respect of the relevant progressive payment;
[Am. PU(A) 474/2002]
(n) the payment for tax imposed on the licensed housing
developer in respect of that housing development by the Inland Revenue
Board;
[Am. PU(A) 474/2002]
(na) any cost and expenses incurred by persons specified by the
Minister in carrying out the Minister's direction or decision under
subsection 11(1A) of the Act;
[Ins. PU(A) 474/2002]
(nb) the payment of any liquidated damages pursuant to the
housing development;
[Ins. PU(A) 474/2002]
(nc) the payment of any defect, shrinkage or other fault
pertaining to the project during the defect liability period; and
[Ins. PU(A) 474/2002]
(o) any other expenses reasonably incurred in relation to the
housing development but such amount shall only be released by the bank or
finance company with whom the Housing Development Account is maintained
upon receipt of the prior approval in writing of the Controller.
8. Conditions for withdrawal of monies from Housing Development
Account.
(1) No monies from the Housing Development Account of a housing
development shall be withdrawn by a licensed housing developer except where
the withdrawal of such money is supported by a certificate from the
architect, engineer or quantity surveyor, as the case may be, in charge of
the housing development stating that payment is due to be made for that
purpose and where such request is supported by documents duly certified by
the director, proprietor, partner or office-bearer, as the case may be. of
the licensed housing developer’s company requesting the payment.
[Am. PU(A) 474/2002]
(2) The withdrawal of money from the Housing Development Account of a
housing development by a licensed housing developer shall be made in the
following manner:
(a) in respect of purposes in regulation 7(a). (h) and
(m), by a cheque drawn in favour of the licensed housing developer;
and
(b) in respect of all other purposes in regulation 7, by a
cheque drawn in favour of the respective recipient.
(3) Every claim made by the licensed housing developer under this
regulation from the Housing Development Account, a copy of the notice of
claim shall be submitted concurrently to the Controller.
[Ins. PU(A) 474/2002]
9. Withdrawal of surplus monies from Housing Development Account.
After the issuance of a certificate of fitness for the housing
development, the housing developer may, with the approval of the Controller,
withdraw any surplus monies in the Housing Development Account after
deducting —
[Am. PU(A) 474/2002]
(a) the amount required to complete the housing development and
the sale and purchase under all the sale and purchase agreements in
respect of the housing development as certified by the architect, engineer
or quantity surveyor, as the case may be, in charge of the housing
development;
[Am. PU(A) 474/2002]
(b) ten per centum (10%) of the amount referred to in paragraph
(a) for contingencies and inflation.
(c) all claims on liquidated damages that have been settled.
[Ins. PU(A) 474/2002]
10. (Deleted)
[Deleted by PU(A) 474/2002 - Prior text read - "10.
Withdrawal on furnishing of banker’s guarantee. Notwithstanding regulations
7, 8 and 9, monies in the Housing Development Account may be withdrawn after
the licensed housing developer has furnished to the Controller a banker’s
guarantee for such amount."]
11. Withdrawal of all monies in Housing Development Account.
A licensed housing developer may, with the approval of the Controller,
withdraw all monies remaining in the Housing Development Account when —
[Am. PU(A) 474/2002]
(a) the housing development has been completed; and
(b) the solicitor for the licensed housing developer has
certified that the obligations of the licensed housing developer in
respect of transfer of title under all the sale and purchase agreements in
that housing development have been fulfilled.
11A. Controller may use money in the Housing Development Account.
When the Controller is satisfied that the development of a housing
development is detrimental to the interest of the purchasers, the Controller
may use the monies in the Housing Development Account of the development to
ensure the completion of the development.
[Ins. PU(A) 474/2002]
12. Audit.
Every auditor of a licensed housing developer shall, in his report to the
Controller under section 9 (3) of the Act as to the annual balance sheet and
profit and loss accounts of the licensed housing developer for whom the
auditor is appointed, state whether or not, in his opinion, the monies in
the Housing Development Account have been withdrawn in accordance with these
Regulations.
12A. Auditor to make annual report.
Every auditor of a licensed housing developer shall, within six months
after the close of the financial year of such developer, make an annual
report to the Controller as to the Housing Development Account and shall
state in every such report whether or not in his opinion—
(a) each and every deposit and withdrawal recorded in the
account are in accordance with these Regulations;
(b) the accounting and the records examined by him are properly
kept; and
(c) if the auditor has called for an explanation or information
from the officers or agents of the developer, such explanation or
information has been satisfactory.
[Ins. PU(A) 474/2002]
12B. Auditor to lodge a report to the Controller.
An auditor of a licensed housing developer shall immediately, if he found
any fraudulent act or misappropriation of money in the Housing Development
Account, lodge a report to the Controller together with a full statement and
relevant documents relating to the act and the auditor is bound to supply
any information or document if requested by the Controller.
[Ins. PU(A) 474/2002]
12C. Penalty.
Any person who contravenes any provision under these Regulations shall be
guilty of an offence and shall, on conviction, be liable to a fine not
exceeding five thousand ringgit or to imprisonment for a term not exceeding
three years or to both.
[Ins. PU(A) 474/2002]
13. Savings.
These Regulations shall not apply to a housing development in which the
housing developer has obtained a licence or a renewal of a licence in
relation to the same housing development from the Controller prior to the
commencement of these Regulations.
Made the 6th June 1991.
DR TING CHEW PEH,
Minister of Housing and Local Government. |
