Don't pay if
there's no permit
The Star 09/01/2001
Housing developers who have yet to obtain building permission and
advertising permits for their projects have been warned not to take
"even a single sen'' from buyers.
Buyers should not be made to pay registration or
booking fees to secure units when developers had yet to obtain
permits from the relevant authorities, according to a Housing and
Local Government Ministry official.
"If we find evidence of monetary transaction in such cases, we will
slap the developer with a maximum compound of RM100,000 for making
sales without licences,'' he said.
Under the Housing Developers (Control and Licencing) Regulations
1989, the developer must obtain the advertisement and sales permit
first "before making any notification or intimation of the
"In view of the slowdown in the property market, we have relaxed the
rule to enable the developer to gauge market response prior to
launching. But they have to ask for our permission first and they
are not allowed to impose any fee on the buyers,'' he added.
The official was asked to comment on several cases in Penang where
developers had put up signboards to advertise their projects even
before the local council approved their building plans.
On Saturday, The Star reported that a Singaporean developer had
proposed to build two blocks of 25-storey super condominiums behind
the historical Shih Chung Branch School building in Jalan Sultan
A property agent had put up a signboard at the site stating that 83
units were for sale from RM280 psf onwards. Checks with the Penang
Municipal Council however showed that the developer had submitted
new plans incorporating two blocks of condominiums and a hotel
building which had yet to be approved.
The original plan approved was for a massive hotel-cum-commercial
According to a spokesman from the company, the signboard on the
"Raffles-by-the-Sea'' project would be replaced with a new signboard
which only displayed the name of the project and the contact number
"We have not collected any money from the buyers,'' he added.