Housebuyers have been taken for a ride for too long

30/09/2005 The Star

IT IS long overdue for developers to follow the “build-then-sell” concept. For too long, housebuyers have been cheated and taken for a ride.

The following are some observations:

• WHEN housebuyers fail to make progressive payments on time, developers impose interest, but when developers deliver the house late, they either refuse to pay the penalty as stipulated in the Sale and Purchase Agreement or offer to pay less than 50% of the penalty.
  They bluntly tell you to take it or leave it. They know you will have to pay legal fees if you engage a lawyer;

• BEFORE signing the S&P, developers promise high-quality finishings. But after the S&P has been signed, they cut corners and deliver low-quality finishings and inferior workmanship because all the houses have been sold; and

• THE warranty period should be increased to 10 years instead of the current period of less than two years. Brick houses or apartments are supposed to last a lifetime. Some developers reduce the cement content and foundation work, causing drainage and flooring areas to crack, and roofs and pipes start to leak soon after the warranty period is over.

At present, there are a few developers who have followed the build-then-sell concept. Take a look at the quality of their projects. They are good, if not excellent, with a lot of “extras” thrown in.

If they can do it, why can’t others? They know very well if quality is poor there will be no buyers. If small-scale developers cannot afford to build then sell, then they should not be in the housing business in the first place.

NORMAN FRIS, Penang.
(via e-mail)