THE call by the PM
for developers to build houses first before selling them should be
lauded. It is time the Government introduced it to protect house
buyers.
Cases of incomplete houses being abandoned by developers, leaving
buyers stranded, will be things of the past if this concept is the
norm.
Not only is the practice of build first and sell later being
followed in many countries, I know of a local developer who requires
only a payment of 10 per cent upon signing the Sales & Purchase
Agreement while the balance of 90 per cent is due only upon
completion of the house.
With the progress payment method, it is the consumer who is
financing the construction of the house even before he or she can
gain possession of the house. To be fair to consumers, the onus of
bridging finance should be on the developers and the financial
institutions, not the consumers.
This move will ensure that only the good and capable developers
survive to serve the consumer.
