PETALING JAYA: Developers must reimburse housebuyers who carry out rectification works on their own units within 14 days from the day they receive the buyers’ written demand under the Housing Developers Act (Control and Licensing) (Amendment), 2002 which took effect on Dec 1.

The amount claimed would be released from the 5% retention sum (5% of the purchase price of the unit) which the developers’ lawyers keep as stakeholder.

Prior to the amendment, there was no timeframe for the lawyers to release money for such claims.

Housing and Local Government Ministry legal adviser Shamsulbahri Ibrahim and its advocate and solicitor Teh Sek Hock said in a statement that: “Notices, requests or demands sent by registered post shall be deemed to have been received upon the expiry of five days after the posting of such registered letter.”

In another matter, the Act also provides buyers the right to initiate and maintain action on their own.

This provision “allows buyers who have assigned their rights and interests under the respective sales and purchase agreements to their financiers as security for the loans granted to them to maintain an action in their capacity as buyers against their developers in connection with the S & P agreements.”

It means that buyers can act without having to involve the relevant financier as a plaintiff or as a co-plaintiff in the actions, said the statement.

“The buyers on their own are entitled to initiate, commence, institute and maintain at any court or tribunal any action, suit or proceeding against their developers or any other person in respect of any matter arising out of the S & P agreements between the buyers and their developers.

“This entitlement applies unless contrary intentions is expressed in any agreement, assignment or charge between the buyers and their financiers.’’