House buyers in a quandary

The Star 8/4/2006

SEVERAL house buyers in Kajang Utama are in a quandary because they cannot move into their homes built two years ago.

To date, they have not received keys to their properties because progress payments made to a lawyer amounting to RM458,808 never reached the developer. The law firm was listed on the panel of lawyers recommended by the developer.

A group of residents who related their predicament to the StarMetro near their double-storey terrace houses at Peak 208 Kajang Utama on Wednesday said the developer has refused to hand over the keys to their properties because the payments never reached them.

“Most of the house buyers who are civil servants obtained government housing loans for their properties. The Housing Loan Section of the Treasury then released progress payments to the law firm,” explained pro tem residents committee chairman Firdaus Cheng.

“More than 70% of the payments were paid to the developer without any glitches. However, the buyers were only informed when the lawyer defaulted on several progress payments and by the time, it was too late for either party to act,” he added.

Cheng and a few others went to the law firm in Wisma Central, Kuala Lumpur, but the premises were locked. Calls to the number listed for the firm also went unanswered and a check with Telekom revealed that the service provider had terminated the line.

Another buyer who only wanted to be identified as Dr K said it was unfair for the developer to refuse to hand over the keys when the law firm was appointed to its panel for the project.

He said the onus was on the developer to recover the money because house-buyers still had to service their loans.

“At present, we are paying for the loan and forking out extra for house rentals while our properties are lying idle. It is only a matter of time before vandals target our property and more money would be required for repairs when we move in,” he said.

Residents are unanimous in their decision to request that they be allowed to move into their homes before more problems crop up.

Cheng, who met with the developer’s representatives several times, claimed they said if the house buyers were allowed to move in, they would not be bothered about recovering the payment owed to the company.

The residents have lodged reports with the Kajang police who are attempting to trace the lawyer while the Bar Council has suspended the solicitor from legal practice. The firm is also under investigation.

When contacted, the developer said both parties were victims in the case and that according to the S&P agreement, house buyers can only move into their properties after full settlement is made to the developer.

In an e-mail reply, the developer proposed several measures, including “settling the outstanding amount due by instalments” and “providing legal advice and support for house buyers to take legal action against the solicitor and the firm either through civil litigation or via the Bar Council”.

Another proposed measure was that “the developer will provide an extension of the defect liability period and will consider a waiver for the interest on late payment as soon as the issue of payment recovery is resolved”.

When informed of the proposed measures, the house buyers said they still preferred to work out the issue after they receive their keys and move in.

A meeting between the two parties is expected to be arranged soon.