New housing Act to take effect on Dec 1

The Star 19/11/2002

KUALA LUMPUR: The implementation of the long-awaited Housing Development (Control and Licensing) (Amendment) Act 2001 under which a Housing Tribunal will be formed, will take effect on Dec 1, Housing Minister Datuk Seri Ong Ka Ting announced yesterday. 

Gazetted on Jan 31, the new Act will effectively replace the aging Housing Developers (Control and Licensing) Act 1966. 

The main intention for the setting up of the Tribunal is to circumvent the slow and expensive court process under the old law. It is for buyers who have grouses against the developer or a purchaser who has bought the property from the initial buyer. It will not hear any cases from third or subsequent purchasers of the property. All proceedings of the Tribunal shall be open to the public. 

Jurisdiction of the tribunal, said Ong, was limited to hearing a claim not exceeding RM25,000 per complaint. Exception is given if both parties agreed to otherwise in writing. 

A buyer can have several complaints, worth RM25,000 each against the developer as long the complaint is within the ambit of the sale and purchase agreement.  

The tribunal will comprise a chairman, a deputy appointed from among members of the Judicial and Legal Service and not less than five members who must be either serving in the service or advocates and solicitors of the High Court in Malaya who have practised for seven years or more. 

The Minister can set up branches in Peninsular Malaysia to hear the disputes. The chairman, his deputy or a member can sit alone to preside over any matter. 

“We have put in a lot of effort for this and it is time that we get down to business and we are going to be very strict with housing developers,” Ong told reporters after closing the Aquatex Malaysia 2002 international flower horn competition and exhibition. 

“Now for all housing development projects they (developers) will have to plan carefully and responsibly before they start selling houses. They have to make sure they can deliver before they sign the sale and purchase agreement.  

The Bill went through Parliament in October, received the Royal Assent on Jan 24 and was gazetted on Jan 31.