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HOUSING DEVELOPERS (CONTROL AND LICENSING) (AMENDMENT) REGULATIONS 2002
PU(A) 473/2002

In force from: 1 December 2002
Jil. 46 No. 24 1hb Disember 2002 TAMBAHAN No. 123 PERUNDANGAN (A)

IN exercise of the powers conferred by section 24 of the Housing Development (Control and Licensing) Act 1966 [Act 118], the Minister makes the following regulations:

1.  Citation and commencement.

(1) These regulations may be cited as the Housing Developers (Control and Licensing) (Amendment) Regulations 2002.

(2) These Regulations come into operation on 1 December 2002.

2.  General amendments.

The Housing Developers (Control and Licensing) Regulations 1989 [P.U. (A) 58/89], which are referred to as "the principal Regulations" in these Regulations, are amended—

(a) by substituting for the words "Housing Developers (Control and Licensing) Act 1966" wherever appearing the words "Housing Development (Control and Licensing) Act 1966"; and

(b) by substituting for the words "Housing Developers (Control and Licensing) Regulations 1989" wherever appearing the words "Housing Development (Control and Licensing) Regulations 1989".

3.  Reference to the principal Regulations.

Where, on and after the commencement date specified in subregulation 1(2), a reference is made in any written law to the "Housing Developers (Control and Licensing) Regulations 1989", such reference shall be construed as a reference to the "Housing Development (Control and Licensing) Regulations 1989".

4.  Amendment of regulation 2.

Regulation 2 of the principal Regulations is amended—

(a) in the definition of "advertisement", by substituting for paragraph (c) the following paragraph:

" (c) conveyed by means of films or communications; or";

(b) in the definition of "Appropriate Authority", by inserting after the word "regulations" at the end of that definition the words "and includes any company licensed to provide electricity, telephone, sewerage services and other related services";

(c) by inserting after the definition of "Code" the following definition:

‘ "communication" means any communication, whether between persons and persons, things and things, or persons and things, in the form of sound, data, text, visual images, signals or any other form or any combination of those forms, and includes the Internet;’; and

(d) by inserting after the definition of "contract of sale" the following definition:

‘ "film" includes—

(a) a cinematograph film;

(b) a videotape;

(c) a compact disc;

(d) a video compact disc;

(e) a digital video disc; and

(f) a record, howsoever made, of a sequence of visual images, which is a record capable of being used as a means of showing that sequence as a moving picture;’.

5.  Amendment of regulation 3.

Subregulation 3(4) of the principal Regulations is amended by substituting for the words "five hundred" the words "one thousand".

6.  Amendment of regulation 4.

Subregulation 4(1) of the principal Regulations is amended by inserting after the words "may be made" the words "not later than sixty (60) days".

7.  Amendment of regulation 5.

Regulation 5 of the principal Regulations is amended—

(a) by inserting after subregulation (1) the following subregulation:

"(1A) Any advertisement and sale shall be in accordance with the advertisement and sale permit as approved by the Controller.";

(b) in subregulation (3), by substituting for the word "misrepresentation" the words "misleading statement, false representation or description";

(c) in paragraph 5(b), by substituting for the words "Banking Act 1973 or the Islamic Banking Act 1983 or a finance company licensed under the Finance Companies Act 1969" the words "Banking and Financial Institutions Act 1989 [Act 372], the Islamic Banking Act 1983 [Act 276], the Bank Simpanan Nasional Berhad Act 1997 [Act 571], the Bank Kerjasama Rakyat Malaysia Berhad Act 1978 [Act 202] or the Bank Pertanian Malaysia Act 1969 [Act 9]"; and

(d) in subregulation (7), by substituting for the words "two hundred and fifty" the words "five hundred".

8.  Amendment of regulation 6.

Subregulation 6(1) of the principal Regulations is amended—

(a) by inserting after the word "number" at the end of paragraph (a) the words "and validity date";

(b) by inserting after the word "number" at the end of paragraph (b) the words "and validity date";

(c) in paragraph (c), by inserting after the words "authorised agent," the words "power of attorney holder or project management company"; and

(d) in paragraph (d), by inserting after the words "the tenure of the land" the words", if the land is leasehold, its expiry date".

9.  Amendment of regulation 7.

Subregulation 7(1) of the principal Regulations is amended by substituting for the words "for any site forming part of" the words "to refer to".

10.  Amendment of regulation 9.

Regulation 9 of the principal Regulations is amended—

(a) in subregulation (1), by inserting after the words "shall be" the words "made not later than sixty (60) days before the date of expiry"; and

(b) in subregulation (3), by substituting for the words "two hundred and fifty" the words "five hundred".

11.  Amendment of regulation 11.

Regulation 11 of the principal Regulations is amended—

(a) by inserting after subregulation (1) the following subregulation:

"(1A) Subregulation (1) shall not apply if at the time of execution of the contract of sale, the certificate of fitness for occupation for the housing accommodation has been issued and a certified true copy of which has been forwarded to the purchaser."; and

(b) by inserting after subregulation (3) the following subregulation:

"(4) A purchaser’s solicitor shall be entitled to a complete set of the contract of sale including its original and duplicate copies and all annexures required for the licensed housing developer to execute the contract of sale with the purchaser, free of charge subject to the undertaking of the purchaser’s solicitor to return the said documents intact in the event the contract of sale is not executed by the purchaser within fourteen (14) days from the date of receipt of such documents unless otherwise agreed by the licensed housing developer.".

12.  New regulation 11A.

The principal Regulations are amended by inserting after regulation 11 the following regulation:

"11A. Consent to assignment.

(1) Subject to subregulation (2), where in the sale of a housing accommodation to which no separate or strata title has been issued, no housing developer shall impose any administrative fee or any fee by whatever name called upon any purchaser or subsequent purchaser for giving his consent, if required, for such purchaser to resell the housing accommodation if such fee shall exceed zero point five per centum (0.5%) of the purchase price or five hundred ringgit, whichever is the lower.

(2) No housing developer shall collect any fee by whatever name called for giving his consent to any purchaser or subsequent purchaser of a housing accommodation to assign his rights and benefits to and in the contract of sale to any financial institution providing a loan for such purchaser to finance or part finance the purchase of the housing accommodation.

(3) Where in the sale of a housing accommodation to which no separate title has been issued, a housing developer shall execute the instrument of title within twenty one (21) days from the date the separate title is subsequently issued and received by the housing developer from the Appropriate Authority and thereafter forward the same to the purchaser who shall execute the instrument of transfer within twenty one (21) days from the receipt of the same from the housing developer.

(4) This regulation shall have effect notwithstanding anything to the contrary in any agreement.".

13.  Amendment of Schedule A.

Schedule A to the principal Regulations is amended—

(a) in paragraph 1—

(i) in subparagraph (b), by inserting after the word "subdivision" at the end of that subparagraph the words "(attach receipt of premium paid for land conversion, approved Form 9A or 7D of the National Land Code, approved precomputational plan and a certificate of surveys from the Land Surveyors Board and any other proof of payment pertaining to this approval)";

(ii) in subparagraph (d), by inserting after the words "balance-sheet" at the end of that subparagraph the words "and an estimation statement of projection cash flow";

(iii) in subparagraph (f), by inserting after the words "Form 24" the words "or the latest form of annual return and Form 49"; and

(iv) by inserting after subparagraph (f) the following subparagraph:

" (g) a copy of approval letter from the Foreign Investment Committee of the Economic Planning Unit of the Prime Minister’s Department, if any";

(b) in subparagraph 2(c), by inserting after the word "society" the words "/ cooperative society";

(c) by inserting after subparagraph 3(d), the following subparagraph:

" (e) Please specify holding company or subsidiary company(s) under the same management or group, wherever is applicable:.........

.............................................................................................";

(d) in paragraph 4—

(i) in subparagraph (iii), by inserting after the word "society" the words "/ cooperative society"; and

(ii) by inserting after subparagraph (iii) the following subparagraph—

"(iv) statutory body or government – Office-agency Bearers or Board of Directors);";

(e) in paragraph 7, by substituting for the word "misrepresentation" the words "misleading statement, false representation or description";

(f) in the column "For Office Use Only"—

(i) in paragraph (4), by inserting after the words "balance sheet" the words "and an estimation statement of projection cash flow";

(ii) in paragraph (5) by inserting after the words "section 6(1) of the Act" the words "and none of the present directors have been or are directly involved in the business of any licensed housing developer which has been wound up by a court of law";

(iii) in paragraph (6), by inserting after the words "Form 24" the words "or the latest form of annual return and Form 49";

(iv) in paragraph (7) by inserting after the word "society" the words "/ cooperative society"; and

(v) by inserting after paragraph (7) the following paragraph:

"(8) a copy of approval letter from the Foreign Investment Committee of the Economic Planning Unit of the Prime Minister’s Department (if any)".

14.  Amendment of Schedule B.

The principal Regulations are amended by substituting for Schedule B the following schedule:

"SCHEDULE B

HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966

HOUSING DEVELOPMENT (CONTROL AND LICENSING) REGULATIONS 1989

(Regulation 3(6))

HOUSING DEVELOPER’S LICENCE

Name of Housing Developer:.................................................................................................................. Registered Address: .....................................................................................................................

.....................................................................................................................

is hereby granted a licence under section 5 of the Housing Development (Control and Licensing) Act 1966 to undertake housing development on the land as specified below:

Name of Housing Development .............................................................................................................

* Delete whichever is not applicable.".

15.  Amendment of Schedule C.

Schedule C to the principal Regulations is amended—

(a) in paragraph 5, by substituting for the words "Expiry of licence" the words "Validity of licence from ......................... to ....................";

(b) in paragraph 8—

(i) by inserting after the words "Particulars of the" the words "office-bearers of the";

(ii) in subparagraph (iii), by inserting after the word "society" the words "or co-operative society"; and

(iii) by inserting after subparagraph (iii) the following subparagraph—

"(iv) Statutory body or government – Office-Bearers agency or Board of Directors);";

(c) by inserting after subparagraph 9(f) the following subparagraph:

" (g) Statement from auditor on whether Housing Development Account under section 7A of the Act has been complied with ......

"; and

(d) in paragraph 10, by substituting for the word "misrepresentation" the words "misleading statement, false representation or description".

16.  Amendment of Schedule D.

Schedule D to the principal Regulations is amended—

(a) in paragraph (11)—

(i) by substituting for subparagraph (b) the following subparagraphs:

" (b) three copies of each type of the proposed advertisement in national language and the language that is being proposed if the advertisement is as defined in regulation 2;

(bb) three copies of the proposed advertisement in national language and the language that is being proposed if the advertisement will be in audio or visual form;"; and

(ii) in subparagraph (d), by substituting for the words "licenced under the Banking Act 1973, the Islamic Banking Act 1983 or a finance company licenced under the Finance Company Act 1969" the words "or a finance company licensed under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983, the Bank Simpanan Nasional Berhad Act 1997, the Bank Kerjasama Rakyat Malaysia Berhad Act 1978 or the Bank Pertanian Malaysia Act 1969";

Internet
Radio
Television
Video Compact Disc
Cinema
		";

(b) in paragraph 3—

(i) in column "Type", by inserting after the row of "Signboard" the following rows:

"

Internet
Radio
Television
Video Compact Disc
Cinema

"

(ii) in column "NOTE"—

(A) in subparagraph (d), by inserting after the word "land" the words ", if the land is leasehold, its expiry date";

(B) by inserting the word "and" at the end of subparagraph (j); and

(C) in subparagraph (k) by inserting after the word "agent" the words ", power of attorney holder or project management company"

(c) in paragraph 4, by substituting for the word "misrepresentation" the words "misleading statement, false representation or description"; and

(d) in paragraph 2 in the column "For Office use only", by substituting for the words "2 copies" the words "3 copies".

17.  Amendment of Schedule E.

The principal Regulations are amended by substituting for Schedule E the following schedule:

"SCHEDULE E

HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966

HOUSING DEVELOPMENT (CONTROL AND LICENSING) REGULATIONS 1989

(Regulation 5(4))

ADVERTISEMENT AND SALE PERMIT

Name of Housing Developer: ....................................................................................................

Registered Address: ...................................................................................................................

..................................................................................................................

is hereby granted an advertisement and sale permit for housing development under regulation 5 of the Housing Development (Control and Licensing) Regulations 1989 as specified below :

Name of Housing Development : .........................................................................

Developer is required to submit one copy of "Guideline to the House Buyers" to each buyer before signing the agreement (enclosed a copy of guideline).

Other conditions:

18.  Amendment of Schedule F.

Schedule F to the principal Regulations is amended—

(a) in paragraph (1), by substituting for the word "Two" the word "Three";

(b) by inserting after subparagraph 2(g) the following subparagraphs:

" (h) Advertisement and Sale permit number ........................... (i) Valid from ............................ to ....................................".

(c) by inserting after subparagraph 2(i) the following subparagraph:

" (j) Statement from auditor on whether Housing Developers Account under section 7A of the Act has been complied with: ........................................................";

(d) in paragraph (3), in column "Type", by inserting after the row of "Signboard" the following:

"

"; and

(e) in paragraph 4, by substituting for the word "misrepresentation" the words "misleading statement, false representation or description".

19.  Amendment of Schedule G.

The principal Regulations are amended by substituting for Schedule G the following schedule:

"SCHEDULE G

HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966

HOUSING DEVELOPMENT (CONTROL AND LICENSING) REGULATIONS 1989

(Regulation 11(1))

SALE AND PURCHASE AGREEMENT (LAND AND BUILDING)

AN AGREEMENT made this.....................................day of ..........................................................

BETWEEN.......................................................................................................................

a company incorporated in Malaysia and duly licensed under the Housing Development (Control and Licensing) Act 1966 (License No.:....................................................) with

its registered office at ....................................................................................................................

.........................................................................................................................................................

(hereinafter called "the Vendor") of the *one/first part AND............................................................. ........................................................................NRIC No. ...................................................................... of.......................................................................................................................................

..........................................................................................................................................................

(hereinafter called "the Purchaser") of the *other/second part AND............................................. ..........................................................................................................................................................

NRIC No. ............................................................of........................................................................

......................................................................................................................................................... (hereinafter called "the Proprietor") of the third part.

Preamble

WHEREAS the *Proprietor/Vendor is the registered and beneficial owner of all that *freehold land/leasehold land of ...................................years expiring on .....................................................

held under ............................................................................................... (description of title) and No. of Title ............................................... *Lot No./L.O. No. ......................................... Section ............................................ in the *Town/Village/Mukim ........................................... District of ................................................................... State of ..................................................... in an area

measuring approximately ....................................... hectares .................................... square metres (hereinafter referred to as "the said Land")* and has granted the Vendor the absolute right to develop the said Land as a housing development and to sell the said Land;

*AND WHEREAS the Proprietor hereby agrees to the sale of the said Land for the purpose of this Agreement;

AND WHEREAS the said Land is charged to ..........................................................................

with its registered office at ............................................................................................................. as security for the loan granted to the Vendor;

AND WHEREAS the Vendor has, at its own cost and expense, obtained the approval of the Appropriate Authority for the subdivision of the said Land into building lots in accordance with the approved Layout Plan a copy of which is annexed as the First Schedule (hereinafter referred to as "the Layout Plan") and separate documents of title have *since been/not yet been issued by the Appropriate Authority;

AND WHEREAS the Vendor has, at its own cost and expense, obtained the approval of the building plans (hereinafter referred to as "the Building Plan") from the Appropriate Authority, a copy of which is annexed as the Second Schedule;

AND WHEREAS the Vendor is developing the said Land as a housing development known as ..........................................................................................................................................................

...................................................................*Phase...............................................(Advertisement and Sale Permit No. : ........................................................................................................);

AND WHEREAS the Vendor has agreed to sell and the Purchaser has agreed to purchase all

that piece of land with vacant possession distinguished as *Plot/Lot No. : ........................................... and which is more particularly delineated and shaded RED in the Layout Plan measuring approximately

.............................. square metres in area (hereinafter referred to as "the said Lot") TOGETHER

with a .......................................................... to be erected thereon (hereinafter referred to as "the

said Building") described in the Vendor’s plan as Type.......................... specified in the Second Schedule hereto, (and the said Lot and Building are hereinafter collectively referred to as " the said Property"), subject to the terms and conditions hereinafter contained;

NOW IT IS HEREBY AGREED as follows:

Property free from agricultural, industrial and building restrictions

1. The Vendor hereby agrees to sell and the Purchaser agrees to purchase the said Property free from any agricultural or industrial conditions expressed or implied and any restrictions against the building of housing accommodation thereon and all encumbrances other than those imposed by the provisions hereto/already subsisting at the date hereof (if any) and any conditions expressed or implied affecting the title.

Property free from encumbrances before the Purchaser takes vacant possession of the said Building

2. (1) The *Proprietor and the Vendor shall not immediately and at any time after the date of execution of this Agreement subject the said Land to any encumbrances without the prior approval of the Purchaser and the *Proprietor and the Vendor hereby undertakes that the said Property shall be free from encumbrances immediately prior to the Purchaser taking vacant possession of the said Building.

(2) The Purchaser shall grant such approval to the *Proprietor and the Vendor encumbering the said Land for the purpose of obtaining credit facilities from any bank and/or financial institution only if the Purchaser has first received confirmation in writing from the relevant bank and/or financial institution disclaiming their rights and interests over the said Property and undertaking to exclude the said Property from any foreclosure proceedings which such bank and/or financial institution may take against the *Proprietor and Vendor and/or the said Land.

(3) In the event the said Land shall be encumbered to any bank and/or financial institution by the Vendor, the Vendor shall deliver or cause to be delivered to the Purchaser and/or the Financier a copy of the redemption statement and undertaking letter issued by such bank and/or financial institution in respect of the said Lot and shall authorise the Purchaser to pay such portion of the purchase price or the Financier to release such portion of the Loan, as the case may be, equivalent to the amount of the redemption sum payable in respect of the said Lot directly to such bank and/ or financial institution and thereafter the balance purchase price or the balance Loan to the Vendor provided all such payments and releases are made progressively at the time and in the manner prescribed in the Third Schedule hereto.

Purchase price

3. The purchase price of the said Property is .....ringgit (RM .....................) only and shall be payable in the manner hereinafter provided.

[Am. PU(A) 42/2003]

Schedule of payments

4. (1) The purchase price shall be paid by the Purchaser to the Vendor by instalments and at the time and in the manner as prescribed in the Third Schedule hereto. The Vendor is not bound to commence or complete the works in the order referred to in Third Schedule and the Purchaser shall pay the instalments according to the stage of works completed by the Vendor provided that any damage to the completed works by subsequent stage of works shall be repaired and made good by the Vendor at its own cost and expense before the Purchaser takes vacant possession of the said Building.

(2) Every notice referred to in the Third Schedule requesting for payment shall be supported by a certificate signed by the Vendor’s architect or engineer in charge of the housing development and every such certificate so signed shall be proof of the fact that the works therein referred to have been completed.

Loan

5. (1) If the Purchaser is desirous of obtaining a loan to finance the payment of the purchase price of the said Property the Purchaser shall, within fourteen (14) days after receipt of a stamped copy of the Agreement, make a written application for such loan to the Vendor who shall use its best endeavours to obtain for the Purchaser from a bank, finance company, building society or a financial institution (hereinafter called "the Financier") a loan (hereinafter called "the Loan") and if the Loan is obtained the Purchaser shall, within a reasonable time, execute all necessary forms and documents and pay all fees, legal costs and stamp duty in respect thereof.

(2) The Purchaser shall utilise the whole of the Loan towards the payment of the purchase price of the said Property at the time and in the manner set out in the Third Schedule hereto.

(3) If the Purchaser fails to obtain the Loan due to his ineligibility of income and has produced proof of such ineligibility to the Vendor, the Purchaser shall then be liable to pay to the Vendor only one per centum (1%) of the purchase price and this Agreement shall subsequently be terminated. In such an event, the Vendor shall, within twenty-one (21) days of the date of the termination, refund the Purchaser the balance of the amount paid by the Purchaser.

(4) Subject to subclause (3), if the Purchaser fails to accept the Loan or defaults in complying with the necessary requirements for the application or is disqualified as a result of which the Loan is withdrawn by the Financier, as the case may be, the Purchaser shall then be liable to pay to the Vendor the whole of the purchase price or such part thereof as shall then remain outstanding.

(5) In the event that the Vendor shall not be able to obtain any loan the Purchaser, the Vendor shall, within fourteen (14) days after receipt of notification of rejection of the loan, inform the Purchaser of the same and the Vendor shall not in any way be liable to the Purchaser for any loss, damage, cost of expense howsoever arising or incurred and such failure to obtain the loan shall not be a ground for any delay in the payment or for any non-payment on due dates of any of the instalments of the purchase price as set out the Third Schedule hereto.

Loans from Federal or State Government or statutory authority

6. (1) If the Purchaser is desirous of obtaining a loan from the Government of Malaysia or any State Government in Malaysia or any statutory authority which provides loan facilities, the Purchaser shall, within fourteen (14) days after receipt of a stamped copy of the Agreem