Compensation in 60 days under housing tribunal

The Star 20/11/2002 By Foong Pek Yee

KUALA LUMPUR: Housebuyers can now get compensation of up to RM25,000 from developers within 60 days from the date the Housing and Local Government Ministry’s Tribunal for Homebuyer Claims starts hearing a case. 

This is provided for under the Housing Developers (Control and Licensing) (Amendment) Act 2002, which comes into effect tomorrow, a copy of which was made available to The Star yesterday. 

The Act also specifies that up to 8% interest per annum should be paid on any sum or monetary award to buyers concerned unless it has been otherwise agreed upon between the parties involved. 

Any claim should not exceed the RM25,000 ceiling to qualify for hearing by the Tribunal. 

Under the Act, an agreed upon settlement reached by the parties involved without being heard by the Tribunal should also take effect as if it is an award of the Tribunal upon approval and record of the settlement by the body. 

Such awards shall be final and binding on all parties to the proceedings and deemed to be an order of a magistrate’s court and be enforced accordingly by any party to the proceedings. 

Members of the Tribunal – comprising at least seven members from the judicial and legal fraternity – will be appointed by the Minister. 

In another move to avoid delay in compliance, the Act also states that any person who fails to comply with an award made by the Tribunal within the period specified is deemed to have committed an offence and liable to a fine of up to RM5,000 or a jail sentence of up to two years or both. 

The offender shall also be liable to a fine of up to RM1,000 each day or part of a day during which the offence continues after conviction. 

However, the powers of the Tribunal will only be executed provided the Tribunal has concluded that the cases involved do not merit reference to the High Court. 

If such cases are referred to the High Court for a decision, the Tribunal will make its award in conformity with such decision.