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HOUSING
DEVELOPERS (CONTROL AND LICENSING) (AMENDMENT) ACT 1988
ACT A703
Date of Royal Assent: 15th May
1988
Date of publication in the Gazette: 9th June 1988
In force from: 1st December 1988 - PU(B) 630/88
An Act to amend the Housing Developers (Control and Licensing) Act 1966.
BE IT ENACTED by the Duli Yang Maha Mulia Seri Paduka Baginda Yang
di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan
Rakyat in Parliament assembled, and by the authority of the same, as
follows:
1. Short title and commencement.
This Act may be cited as the Housing Developers (Control and
Licensing) (Amendment) Act 1988 and shall come into force on such date
as the Minister may by notification in the Gazette appoint.
2. Amendment of section 3.
Section 3 of the Housing Developers (Control and Licensing) Act 1966 [Act
118], which in this Act is referred to as "the principal Act", is
amended-
(a) by inserting before the definition of "body of persons", the
following new definition:
' "bank" means any bank licensed under the Banking Act 1973 [Act 102]
or under the Islamic Banking Act 1983 [Act 276],";
(b) by inserting immediately after the definition of
"Controller", the following new definition:
' "finance company" means any finance company licensed under the
Finance Companies Act 1969 [Act 6],",
(c) by substituting for the definition of "housing developer",
the following definition:
' "housing developer" means any person, body of persons, company, firm
or society (by whatever name described), who or which engages in or
carries on or undertakes or causes to be undertaken a housing
development,";
(d) by substituting for the definition of "housing development",
the following definition:
' "housing development" means to develop or construct or cause to be
constructed in any manner more than four units of housing accommodation
and includes the collection of monies or the carrying on of any building
operations for the purpose of erecting housing accommodation in, on, over
or under any land; or the sale of more than four units of housing lots by
the landowner or his nominee with the view of constructing more than four
units of housing accommodation by the said landowner or his nominee,",
(e) by inserting immediately after the definition of "housing
development", the following new definition:
' "Housing Development Account" means an account opened and maintained
by a licensed housing developer pursuant to section 7A;';
(f) by inserting immediately after the definition of "Housing
Development Account", the following new definition:
' "housing lot" means any piece of land surveyed or otherwise, to which
a lot number has been assigned to it and which is subject to the category
"building" in accordance with the National Land Code 1965 [Act 56/65],",
and
(g) by substituting for the words "a licensed" in the definition
of "purchaser", the word "any".
3. Amendment of section 5.
Section 5 of the principal Act is amended -
(a) by substituting for the words "or undertaken" in subsection
(1), the words ", undertaken or caused to be undertaken";
(b) by substituting for the colon in subsection (1) a fullstop;
(c) by deleting the proviso to subsection (1);
(d) by inserting the words "or cause to be undertaken" after the
word "undertake" appearing in subsection (3);
(e) by substituting for the word "may", the word "shall" in
subsection (3);
(f) by substituting for the colon in subsection (4) a fullstop;
and
(g) by deleting the proviso to subsection (4).
4. New section 7A.
The principal Act is amended by inserting immediately after section 7,
the following new section 7A:
"Licensed huosing developer to open and maintain Housing Development
Account.
7A. (1) Subject to subsection (9), every licensed housing developer shall
open and maintain a Housing Development Account with a bank or finance
company for each housing development undertaken by the licensed housing
developer.
(2) Where a housing development is to be developed in phases, the
licensed housing developer shall open and keep a Housing Development Account
under subsection (1) for each phase of such housing development.
(3) The licensed housing developer shall pay into the Housing Development
Account of a housing development the purchase monies received by the
licensed housing developer from the sale of housing accommodation in the
housing development and any other sum or sums of money which are required by
regulations made under this Act to be paid into the Housing Development
Account.
(4) The licensed housing developer shall not withdraw any money from the
Housing Development Account except as authorised by regulations made under
this Act.
(5) Subject to subsection 6 (b), all monies in the Housing
Development Account shall, notwithstanding any other written law to the
contrary, be deemed not to form part of the property of the licensed housing
developer in the event -
(a) the licensed housing developer enters into any composition
or arrangement with his creditors or has a receiving order or an
adjudication order made against him; or
(b) the licensed housing developer, being a company, goes into
voluntary or compulsory liquidation.
(6) Upon the happening of any of the event referred to in subsection (5)-
(a) the monies in the Housing Development Account shall vest in
the official receiver, trustee in bankruptcy or liquidator as the case may
be, to be applied for all or any of the purposes for which monies in the
Housing Development Account are authorised by regulations made under this
Act to be withdrawn; and
(b) any money remaining in the Housing Development Account,
after all payments have been made pursuant to paragraph (a) and all
liabilities and obligations of the licensed housing developer under the
sale and purchase agreements in respect of the housing development have
been fully discharged and fulfilled, shall be held by the official
receiver, trustee in bankruptcy or liquidator as the case may be, as money
belonging to the licensed housing developer to be applied in accordance
with the law relating to bankruptcy of or the winding-up of a company.
(7) Notwithstanding any other written law to the contrary, all monies in
the Housing Development Account shall not be garnished until all liabilities
and obligations of the licensed housing developer under the sale and
purchase agreements in respect of the housing development have been fully
discharged and fulfilled.
(8) Subject to section 36 of the Banking Act 1973 [Act 102], the
Minister may, if he thinks necessary, appoint an approved company auditor to
investigate the books, accounts and transactions of a Housing Development
Account and the licensed housing developer shall pay all expenses incurred
hereto.
(9) This section shall not apply to any housing development carried on by
a licensed housing developer where all the housing accommodation in the
housing development will not be offered for sale and purchase before the
completion of the housing development.
(10) Any housing developer who contravenes or fails to comply with this
section shall be guilty of an offence and shall, on conviction, be liable to
a fine which shall not be less than ten thousand ringgit but which shall not
exceed one hundred thousand ringgit and shall also be liable to imprisonment
for a term not exceeding three years or to both.".
5. Amendment of section 10.
Section 10 of the principal Act is amended -
(a) by substituting for subsection (1), the following:
"(1) Either on his own volition or upon being directed by the Minister
under subsection (2), the Controller or an Inspector may from time to time
under conditions of secrecy investigate into the affairs of or into the
accounting or other records of any housing developer.";
(b) by deleting in the English text the comma appearing in
paragraph (a) of subsection (2); and
(c) by deleting the word "licensed" wherever it appears.
6. Amendment of section 18.
Section 18 of the principal Act is amended by substituting for the words
"not exceeding twenty thousand ringgit", the words "which shall not be less
than ten thousand ringgit but which shall not exceed one hundred thousand
ringgit".
7. Amendment of section 19.
Section 19 of the principal Act is amended -
(a) by deleting the word "licensed" appearing in the first line;
(b) by deleting in paragraph (b) of the English text the
word "licensed" appearing in the fourth line;
(c) by deleting the word "or" at the end of paragraph (c);
(d) by inserting immediately after paragraph (c), the
following new paragraph (cc);
"(cc) fails to comply with any direction given by the Minister under
paragraph (a), (b), (d) or (e) of section 11
(1); or" and
(e) by deleting the word "licensed" appearing in the marginal
note.
8. Amendment of section 21.
Section 21 of the principal Act is amended by deleting in the English
text the word "licensed".
9. Amendment of section 23.
Section 23 of the principal Act is amended by deleting the words "the
Controller". |
