3. After Checking Land, Check Developer: Track Record, Development License, Sales Permit & Advertisement Permit
Yesterday, it was said that a Malaysian home buyer should 1st check whether the home (house, bungalow, semi-detached house, apartment, condominium apartment, apartment above shop or office, townhouse or simply any residence) he intends to buy is indeed sited on residential land and not commercial land - just to ensure whether the protections and safeguards under the Housing Development (Control & Licensing) Act (Act 118) apply.
When you do the above check on the land, obviously you will also check on whether it is a:
- leasehold land, or
- freehold land - if leasehold, how many years left? If you are non-Malay, check also that it is not
- Malay Reserve land.
- developer's track record - experience of past customers? any stalled projects? delayed completions? finished products fell short of legitimate expectations? refusal to pay Liquidated Damages for late delivery of vacant possession?
- developer's license for the development - yes or no? still valid?
- developer's advertisement permit - yes or no? still valid?
- developer's sales permit - yes or no? still valid?
In my next post, i will talk about the time for completion of the home as per the standard Sale & Purchase Agreements of the HDA Act. Stay tuned.
Douglas.
Posts
