Housing Tribunal gets the nod

Personal Money/The Edge Issue#30 February 2004 By S. Gayathri

The Court of Appeal's decision in December that allowed the Housing Tribunal to settle disputes arising from sale & purchase (S&P) agreements signed prior to Dec 1, 2002 has opened a fresh chapter for house buyers' protection in the country.

In lauding the landmark decision, the National House Buyers Association (HBA) says the verdict is a progressive and promising step towards successful implementation of legal protection for house buyers.

"This is only timely. For too long, those who can't afford [to settle their disputes via the conventional civil court] have been forced into submission and subdued but now they have an alternative avenue," says Chang Kim Loong, HBA's secretary-general.

The Verdict's Impact

At a glance, the Court of Appeal's verdict not only reinstates the Housing Tribunal's retrospective powers - it also sets aside an earlier High Court order that declared the tribunal did not have the jurisdiction to hear claims on S&Ps signed before Dec 1, 2002.

The appeal judges also reinstated the awards handed down by the tribunal in several cases involving properties bought prior to the Dec 1 deadline, which were earlier squashed by the High Court's order in September last year.

Interpretations of the verdict vary but the majority of lawyers and industry sources contacted feel that the decision is a reminder to developers not to challenge the powers of the tribunal, which was seen as the government's serious attempt to protect house buyers.

"The most significant impact was the revival of the Housing Tribunal pursuant to the recent decision, which will enable justice to prevail," says a senior lawyer who represented the house buyers in the case.

HBA's Chang agrees and adds that the most important outcome was the Court of Appeal's confirmation of the tribunal's fundamental power.

Following the High Court decision in September, the Housing Tribunal had temporarily stopped hearing cases brought by disgruntled house buyers - a move that was opposed by many, especially the public.

The tribunal is expected to resume its duties this month.

The tribunal's revival

The formation and operation of the tribunal last February was something that was long awaited by house buyers - particularly those who could not afford to obtain justice via the civil courts.

"The tribunal's formation was a sign of hope for house buyers hoping to solve their disputes faster, through an affordable channel. But when some developers challenged awards given by the tribunal and the powers of the tribunal were questioned, many almost gave up hope and felt cheated," says Chang.

The revival of the tribunal is seen as a major step towards creating a harmonious house buyer-developer relationship. says a lawyer who has been closely monitoring the case.

Although there are certain limitations to the tribunal's capacity as a whole, as stipulated in the corresponding regulations, its powers are believed to be effective in handling a majority of the complaints.

"The most common dispute filed by house buyers relates to late delivery and issuance of certificate for occupation [CFO] by developers. These cases are usually very clear-cut and best heard by specialised courts like the tribunal," explained HBA's Chang.

What's next

The Housing Tribunal is set to help drive home the point that developers should not violate the terms and conditions stipulated in S&Ps.

Also, developers have been urged to sincerely create a win-win situation for themselves and house buyers in general. For this to materialise, the HBA says there must be a strong mutual understanding between the house buyers and developers.

"The tribunal wasn't well received by developers, especially those which had cases resulting from S&Ps signed before Dec 1, 2002," says a legal source.

Although no official figures are available, the HBA believers that the bulk of the cases set to be heard by the tribunal are related to S&Ps signed prior to Dec 1, 2002. This was because some developers struggled to complete their projects at the height of the economic crisis that began in 1997 - they were unable to deliver on time and their workmanship was poor.

Conclusion

The HBA says it will continuously monitor the situation and help educate house buyers on their rights and developers on their responsibilities.

"In the future, we'd like the ministry to widen the scope and powers of the tribunal to help solve more disputes effectively but, for now,  we want the tribunal to clear the existing disputes," says Chang.