New law to protect high-rise buyers

The Star 18/04/2001

SUBANG JAYA: High-rise residential unit owners and developers will jointly manage buildings until the strata titles are issued, under a new law being planned by the Government.

Housing and Local Government Minister Datuk Seri Ong Ka Ting said the the Common Properties and Buildings Management and Maintenance Act was needed to protect buyers before they receive strata titles.

Ong said buyers and developers would be required to open a joint account where all payments would be deposited.

The account would be managed by a joint committee comprising representatives from the buyers and developers.

He added that if both parties still could not resolve their disputes this way, the Government would appoint a building commissioner who would take over the management of the funds and act as the middleman.

Ong said the proposed Act had been been drafted and sent to the Attorney-General's Office for comments before being submitted to the Cabinet for approval.

He pointed out that the introduction of the new legislation had become imperative and necessary to address some of the issues and problems confronting the housing industry.