Amendment To Law Seeks To Protect House Buyers
29/11/2006 Bernama

KUALA LUMPUR, Nov 29 (Bernama) -- House buyers can nullify their sale and purchase agreement (S&P) with the developer within six months after signing it under a proposed amendment to the housing development law.

"They can nullify the S&P agreement if the housing project encounters problems," Housing and Local Government Minister Datuk Seri Ong Ka Ting told reporters at the Parliament lobby Wednesday.

"The existing provisions of the Housing Development (Control and Licensing) Act 1966 gives the right to developers to cancel the S&P," he said.

Ong said the amendment to the law, also known as Act 118, seeks to empower the Housing and Local Government Minister to remove and replace errant contractors of government housing projects.

"The amendment will allow the minister to appoint a new contractor to replace the errant contractor without having to refer the matter to the Ministry of Finance," he said.

He said the amendment will also enable the Housing Controller to issue an order to freeze the Housing Development Account (HDA) if the developers break the law.

The proposed amendment also seeks to allow house buyers to take legal action against the developers without the consent of the financial institutions or the housing loan provider.

"The amendment will also enable the house buyers to give notice through a law firm to the developers to sell back the house after signing the S&P," he said.

It also seeks to enhance the jurisdiction of the House Buyers Claims Tribunal to hear claims of not more than RM50,000. Currently, the tribunal only hear claims of not more than RM25,000.

Ong said the penalties for offences committed by developers such as carrying development works without permits will be increased from RM50,000 to RM250,000 under the proposed amendment.

-- BERNAMA