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Adopt system to safeguard
housebuyers
28/02/2009 The Star
WE read with despair the report entitled “Buyers left in a lurch by
abandoned project” in StarMetro dated Feb 19.
Many unwary and unfortunate buyers are suffering such a fate with no one to
turn to.
This situation is brought about by the present system of house purchase
whereby buyers (or their banks) pay progressively as the developers build.
In other word, buyers are paying for that “pie in the sky!”
If that pie does not materialise, buyers are in for some serious trouble.
Very often, there is no solution in sight and the legal quagmire can be
impossible to resolve without serious financial losses.
Such is the situation and it is brought about by our present system of
sell-then-build.
The House Buyers Association has been lobbying for the abandoning of this
system and to adopt the hybrid system that is mid-way between the STB and
the complete build-the-sell (STB).
This is the 10-90 system and the government, realising its goodness, had in
2006 introduced it to operate alongside the present system. But that option
is given solely to developers! Of course few, if any, developer has opted
for this system where buyers are insulated from the business risks. Buyers
will continue to have no say over the preferred mode of payment, in any
particular project that he decides to buy his house.
In this economic situation the BTS 10:90 system should be made mandatory to
regain confidence back in the housing industry.
Chang Kim Loong AMN
Hon Sec Gen
National House Buyers Association |
