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Check property developersí false promises

The Star 30/01/2004

TIME and time again we read of failed property development in the country that leave buyers high and dry. And the authorities, in most cases, only seem to come to the aid of helpless property buyers after the media exposure.

The latest incident involving some 400 buyers of commercial units of a project in Shah Alam is a classic case reflecting how developers seem to easily get away after failing to deliver on their promises.

Scores of properties being developed throughout the country have been wooing potential buyers with all kinds of promises.

Misleading words on colourful brochures, banners and billboards with grandiose claims are aggressively used to market the developments.

Sweet-talking marketers are employed to get people to sign up with a down payment.

Eventually, buyers end up with largely defective buildings or, worst, abandoned structures while the banks continue to collect the monthly instalments from the trapped borrowers.

This scenario has been around for far too long. It is about time the relevant ministry acted proactively to free the country from such modus operandi.

To begin with, the following should be put in place:

ENSURE all promotional materials will bind the developer to deliver on their promises;

DO not issue the permits and licences to errant developers who make unsubstantiated claims in their marketing materials;

MONITOR marketers who mislead walk-in buyers; and

ENSURE banks do not support projects that are dubious or suspect of making dubious claims and promises.


The relevant ministry must demand all such promotional materials carry its seal of authentication.

The number of abandoned projects nationwide, the numerous complaints that reach the relevant authorities and the various plights highlighted in the media indicate that the relevant ministry needs to get its act together.

(via e-mail)


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