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Making builders keep promises
The Star 22/04/2002 By FREDERICK FERNANDEZ

KLANG: The Housing and Local Government Ministry will study a proposal to make it mandatory for developers to include the additional facilities they promise in promotional brochures in the sale and purchase agreement.

Its Deputy Minister Datuk M. Kayveas said the move was being considered as developers often failed to fulfil what they promised in their brochures.

“When threatened with legal action, the developers often escape as they would argue that they were only bound by what was stated in the sale and purchase agreement, or that the additional facilities would be constructed at a later date.

“These are among the loopholes which place property buyers at a disadvantage. So, we will study the proposal to make it mandatory to have what is promised in the promotional brochures to also be included in the sale and purchase agreement,” he added.

Kayveas also said that it was time to do away with the practice of getting property buyers to sign the sale and purchase agreement on the spot without giving them the opportunity to study the provisions in the document.

“The potential buyer should have the chance to have a solicitor present to assist him or her to clearly interpret the conditions of the agreement before signing,” he told reporters after opening the People’s Progressive Party’s (PPP) Taman Meru branch yesterday.

Asked if the ministry would introduce a policy to compel developers to complete units before selling them, to discourage shoddy work, Kayveas said although it would be an ideal move, smaller companies may not be able to meet such a requirement.

“This is already being carried out in certain developed countries. Although it can solve a lot of problems raised by property buyers, it is difficult to implement it here as it will affect development programmes, which are taking place at a rapid pace,’’ he added.

On property buyers getting a raw deal from developers, Kayveas said the ministry would work closely with the Domestic Trade and Consumer Affairs Ministry, consumer associations and the Real Estate and Housing Developers Association to conduct awareness campaigns for the public.

“We will educate property buyers on what they should look out for in the sale and purchase agreement and also make them aware of their rights as consumers,” he said.

Kayveas said the amendment to the Housing Development Act would stipulate stiffer penalties for errant developers, especially those who indulged in false and misleading advertisements.

 
 

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