Housebuyers query need to pay more

03/02/2008 The Malay Mail By Sushma Veera

Kuala Lumpur: Seven years ago, a young family moved to Sri Bayu apartments in Bandar Puchong Jaya, with dreams of living on a hill with a great view.

They were also delighted to have secured a nice corner unit and a RM7,000 discount on their buying price of RM176,900.

House owner Lim Seng Guan received a letter last month stating that the strata title had been issued.

"As it was under the developer's name, we were asked to execute a memorandum of transfer to change the strata title to our name.

"We were also require to settle all outstanding amounts with the developer," said the 37-year old operations manager.

"Although it was a long wait, we were happy to receive the letter."

Lim's dreams, however, were shattered when he turned to the second page of the letter, which stated that the developer had made a mistake on the size of the apartment. "They claimed that the apartment is bigger by 69sq ft - based on what is written in the strata title.

Lim has been asked to pay an extra RM10,000.

"This is in addition to the fees that we have to fork out to execute the transfer," said Lim.

"The developer even had the cheek to tell us that they are prepared to waive five per cent off the price if we paid within 30 days.

He said as a house owner, they are required by law to execute the MOT within one year, failing which they can be fined between RM1,000 and RM10,000.

"This is wrong."

"When we bought the unit from the developer, it was on the basis that the developer would build an apartment and for a certain price," he said, adding that it is not right for one party to say later that it has made a mistake in pricing.

He said it makes no sense how the developer is claiming this after so long and after being told by another party - the Land Office - that they had built extra space for each unit.

"Is this a sale or a scam?" asked Lim.

"We bought the unit based on the price, not the size.

"What happens to those who had bought the units from first or second owners?

"They paid a higher price and now, they have to pay more for extra space that no one requested for.

"Its too bad that the developer made a mistake in their calculation."

"What if it was the other way round?" asked Lim.

"If the strata title was issued and we found that the developer had built less than what was stated in the S&P, would they give us a refund?

"I don't think so."

Lim is also curious as to how the developer arrived at RM146 per sq ft.

"Condo prices seven years ago and now are different.

I don't even want to discuss the leaks or the cracks that we had after the warranty period expired or the fight for a second parking lot even though we were told when we bought the unit that we could rent a second parking lot.

"I thought things would be different if I bought from a listed company."

Lim urged the government, consumer associations and other parties to look into this.

"It is difficult enough to raise a family with rising costs, but to be taken for a ride by a reputable developer and to pay for its mistake is another matter."

Lim lodged a complaint with the National Consumer Complaints Centre under its collaboration with the Weekend Mail to gather complaints on housing matters.

NCCC director Darshan Singh said Lim is being victimised by the developer.

"This is unacceptable and unwarranted," said Darshan.

"Developers should not be allowed to corner consumers like this."

Another resident, William Goh, who received as similar letter, said the payment for additional built-up area is ridiculous.

Raising some of the residents' concerns, he said: "It has been six years since we had stayed there.

"Why is it only now, when the strata title is ready, such a problem arises?"