Call to let lawyers keep deposit of house buyers
04/09/2005 Daily Express

Kuala Lumpur: The National House Buyers Association (HBA) has suggested that the 10 per cent deposits made by house buyers should be kept by lawyers in a special account instead of being paid to developers.

HBA said the developers should only be given the money with the interest accrued and the balance of the prices after the houses were completed.

Its Deputy President Brig Jen (Rtd) Datuk Goh Seong Toh said this "Build and Sell 10:90" concept would help prevent buyers from being cheated by developers who abandoned their projects after collecting the deposits.

"HBA appeals to the Government to change the existing sale and purchase concept for houses which has caused considerable problems to house buyers," he told reporters at the HBA office, here, Saturday.

Goh said many house buyers were now burdened financially and pressured psychologically after the projects in which they bought houses were abandoned.

HBA advisor, Datuk Seri Yuen Yuet Leng, who was present, said the new concept proposed by the association was similar to the concept of buying cars with less problems faced by buyers.

He said the abandoned housing projects which had caused losses totalling more than RM7 billion up to last year could cripple the economy if consumers developed a fear of being cheated by developers.

Another HBA advisor, Ernest Cheong, said the Ministry of Housing and Local Government should be more caring about the problems faced by house buyers.

He urged house buyers facing problems caused by abandoned housing projects to inform their Members of Parliament who could then bring the problems to the attention of the Government. - Bernama