Malaysian Home Buyers Guide (Part 4)

Hi Folks,

When you are buying a "home" or residence in a housing development built on residential land and therefore governed by the HDA & HDR, it is important that you get the Brochure not just because it usually given free by the developers but more because the law (the HDA & HDR) stipulates that certain information must be included in the brochure.

Do look out for the following information:
1. The Housing Development’s Licence number and the expiry date;
2. The Advertisement and Sales permit numbers and the expiry dates;
3. Name and address of:
· The licensed housing developer;
· The authorized agents (if any);
· The holders of power of attorney (if any);
· The project management company (if any);
4. Land details: tenure – freehold or leasehold expiring when? Land mortgaged to bank?
5. Development Description:
· Location;
· Building material specification;
· Size of the property;
· services/amenities.
6. Name of Housing Project (if any);
7. Expected Date of Completion;
8. Price of each type of home;
9. Number of units for each type;Reference number of the approved building plan and the name of the local approving authority.

When you don't see any of the above information, check whether the so-called "home" you have in mind is built on commercial land in which case you cannot rely on HDA & HDR for safeguards and protections (e.g. claiming LD for delay in delivery of vacant possession by the developer before the Housing Tribunal) - your recourse would have to be based, among others, on what you have signed with the developer in the context of Malaysian law (e.g. filing a civil suit under the Contracts Act based on a contractual clause in S&P that allows claim for LD for the delay in delivering vacant possession - this civil suit would not be subject to the limitation on the quantum of LD being claimed since it is not a claim before the Housing Tribunal and the service of a lawyer may be engaged unlike an LD claim before the Housing Tribunal).

I will cover a few more points in my next few posts. Thereafter, I will provide a summary of all the points for the benefits of those preparing for the diploma of real estate agency examinations and the Malaysian Home Buyers at large. (Of course, reliance on my notes are at your sole discretion and risks. I undertake no warranty of any kind whatsoever for the the view honestly expressed in good faith to the best of my knowledge and for public interests.)

Have a great weekend,

Douglas.