hda

Whether as an investment or for own use, there are different types of properties and houses in Malaysia for buyers to choose from. We detail the differences between terrace homes, bungalows, condominiums, studio apartments and more.

In Malaysia, homebuyers are protected under the Housing Development (Control and Licensing) Act 1966, also known as the HDA. The HDA lists out the duties of a property developer selling units within a housing development. What happens when a developer does not adhere to the terms and conditions listed in the Sale and Purchase Agreement (SPA)? Or when the developer does not rectify defects properly within the defect liability period (DLP)?

The National House Buyers Association (HBA) raises concerns over the introduction of an electronic Sale and Purchase Agreement function (eSPA) by KPKT. The public might now think that since there is access to a DIY SPA aka the eSPA, there would be no need for checks and balances from a lawyer during a property purchase. Let's take a look at the issues at hand.

Many new home buyers are not aware that their interests are protected under the (HDA) Housing Development (Control and Licensing) Act 1966. Protections include defect liability period, management of strata title issues and safeguard against unscrupulous developers.

Some unscrupulous property developers are making a mockery out of the system by forcing homebuyers to waive their legitimate rights when it comes to claiming Liquidated Ascertained Damages (LAD) for delayed housing developments.

There are distinct differences between commercial-titled properties and residential-titled properties. This includes their purposes, legal protection, taxes, and utility fees.

HBA looks into a recent dispute over the delivery of vacant possession of properties - some homebuyers are shocked to find that their "completed properties" do not have running water and electricity. The developer claims that all that is required from them, as per the Housing Development (Control and Licensing) Act 1966 (HDA 1966) - is that they lay the necessary cables and make an application for internal connection to the related utility companies.

In 2019, the Federal Court administered that the Controller of Housing Controller can no longer grant an extension of time or EOT to property developers who are unable to complete their housing developments on time. Unfortunately, there have been recent initiatives to circumvent the previous ruling - some parties are calling for a new provision in the HDA to enable for the EOT to be granted freely again.

HBA highlights the various existing and emerging issues in the Malaysian housing market for KPKT to overhaul, hopefully in the short term. We need to stop putting profits over people and our planet.