Minimising risks for buyers

14/03/2005 The Sun

KUALA LUMPUR: Purchasing a home is a major milestone in one's life. With the exception of those fortunate enough not to worry about taking up bank loans, the purchase of a house usually represents the largest single investment of a lifetime.

Unfortunately, not many have the luxury of a learning curve in which they can equip themselves with the necessary skills to avoid getting into trouble.

Very often, by the time most house buyers realise their mistake, it is already too late and the results can be traumatic and financially crippling.

The seemingly simple undertaking of buying a house turns into a quagmire of financial nightmare and legal complications. Few are able to get out of such situations without serious financial losses.

Why do house buyers end up in trouble?

According to the House Buyers Association (HBA), the causes that result in these unfortunate victims facing such situations are many and varied.

Certain cases are brought about due to business failures on the part of the housing developers who have speculated in the market. Some are brought about by environmental factors, such as the unanticipated economic downturn. Yet others are the result of cunningly designed frauds bycertain bogus developers.

Against such a backdrop, it is important for a potential house buyer to take precautionary steps and seek necessary advice and knowledge before committing to a purchase.

In view of this, the HBA published the House Buyers Guide last year. Certain chapters in the guidebook have been revised in line with amendments to the Housing Development (Control & Licensing) Act 1966, amended in 2002.

The guide has 12 short chapters covering the following topics: housing developers, land, building, gimmicks, sites, legal fees, sale and purchase agreements, vacant possession, stratified properties, financing/loans, insurance and HBA's recommendations. The crucial chapters have options on "where to check" and whom to address complaints to.

The book is designed to provide valuable information for potential property buyers and also educate them on fundamental rights so they can be on guard and recognise the possible pitfalls in dealing with housing developers.

It is primarily targeted at buyers keen on homes that are not yet constructed, although some of the information will apply to buyers of sub-sale houses. The book comes in three languages -English, Bahasa Malaysia and Mandarin - and retails at a subsidised price of RM5. While not exhaustive, the guide has an easy checklist format that helps create awareness in formulating pertinent questions on purchase.

The HBA is a non-profit, non-governmental and non-political organisation manned by volunteers. For enquiries, e-mail info@hba.org.my or visit www.hba.org.my