HBA keeps fingers crossed on
new housing regulations
21/07/2007 NST By Zuhaila Sedek
The path to implementing the Build-Then-Sell (BTS) mode of housing delivery
is now clear � except for one aspect: How it will be incorporated in the
standard Sale and Purchase Agreement (SPA).
However, this issue is expected to be resolved over the next few weeks with
the adoption of two new schedules that won't be very different from the
Schedule G and H that governs the payment terms for landed and stratified
It is learnt that the format for the new schedules for landed and stratified
residential units built under the BTS method have already been finalised by
the Housing and Local Government Ministry's Legal Affairs Division.
"They are now awaiting the minister's approval and endorsement by the
Cabinet," a source told NST-Property.
However, the ministry's legal affairs head, Iskandar Ali Dewa, declined to
provide details when contacted.
On its part, the National House Buyers Association (HBA) is confident that
several issues it petitioned the Housing Ministry to include will become a
part of the new BTS schedules.
"Our major expectation is that the duties of developers as well as the
professionals involved, such as architects, engineers, landscape designers,
lawyers and financial institutions will be outlined," said HBA
secretary-general Chang Kim Loong.
Among the HBA's other requests are:
The need for the developer to
give purchasers written notice to apply for loans to finance the payment
of the purchase price of their units when 80 per cent of the construction
has been completed. This notice must be supported by individual document
of titles to the properties;
Purchasers should be given
notice in writing to undertake joint inspections of their buildings with
the developer, during which all defects found must be rectified at the
vendor's cost and expense before the notice to take vacant possession is
The developer should obtain, at
its own cost, a separate document of title to the property not later than
six months before delivery of vacant possession; and
Purchasers must be provided
with a valid and registrable memorandum of transfers to their properties
within 21 days from the issuance of the separate document of title.