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Read t he S & P t er ms
c ar ef ul l y bef or e you si gn up
t o buy a pr oper t y
Last updated on 19/01/2014 - 14:10
Posted on 18/01/2014 - 12:30
Sonia Ramachandran
PETALING J AYA: With skyrocketing property prices in the
country, houses are becoming increasingly unaffordable,
especially to young workers and other first-time buyers.
On top of high prices, there are also issues of quality of the
house as well as legal protection of the consumers especially
when the developer does not fulfill his obligations.
Thus, it is no wonder that there were 1,734 complaints related
to the housing and real estate sector involving potential losses
of more than RM5.8 million lodged with the National Consumer
Complaints Centre (NCCC) in 2012.
Of the total complaints received for this sector, 29 per cent were
in relation to the purchase of a property, while 23.7 per cent
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The Ant Daily | Diligently Digging Deeper
http://www.theantdaily.com/news/2014/01/18/read-s-p-terms-carefully-you-sign-buy-property[1/20/2014 5:22:49 PM]
Don' t mi ss
t hese
were in relation to tenancy, lease and rental issues and 22.9
per cent concerned construction or renovation works.
Delays in project completion including those that are
abandoned and key handovers seem to pose problems as per
the complaints received. Complaints also include those related
to the quality of new properties, deposits and refunds.
For construction and renovation works, delays in completion
and poor workmanship were identified as a major complaint
among purchasers, said NCCC chief executive officer Datuk
Paul Selvaraj.
Selvaraj pointed out that the level of protection afforded to
property purchasers in Malaysia was comparatively low
compared to other parts of the world.
Being laymen, most purchasers are quick to jump the gun
when signing a Sales and Purchase Agreement (SPA),
negligently not reading the terms and conditions stipulated in it.
Purchasers should hire an independent lawyer or someone
with the ability to examine the SPA prior to purchasing the
property to ensure that his or her rights are at all times
protected and that they understand the depth of what they are
signing up for, he said.
Most SPAs, said Selvaraj, do not
afford purchasers the necessary
protection in the event of disputes
arising due to issues such as
deposits.
He cited deposits paid under the
SPA as an example.
Should a purchaser fails to obtain
a loan within a time stipulated in
the SPA, then he or she will be
liable to a one per cent penalty of
the total purchase price of the
property payable to the vendor.
The balance of the deposit however, must be refunded to the
purchaser. Although such is the case, some vendors refuse to
abide by the law and do not refund the purchaser with the
balance of the deposit, said Selvaraj.
He also stressed that the Housing and Local Government
Ministry and the Construction Industry Development Board
should regulate the industry strictly to ensure purchasers are
protected.
With skyrocketing property prices, these bodies must ensure
quality construction. This is important as most developers are
seen to utilise substandard materials despite charging high
prices for properties.
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Read t he S & P t er ms c ar ef ul l y
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Before the certificate of fitness (CF) is issued, the relevant
bodies and authorities should perform quality checks on the
property to ensure the materials used are of acceptable
standards and are safe for dwellers, said Selvaraj.
He also suggested that the government work closely with
consumers organisations such as the National House Buyers
Association and NCCC in ensuring all complaints are dealt with
effectively, promptly and without bias.
Perhaps the government should heed Selvarajs call. After all,
consumer organisations are the ones who have the ears of
consumers and with recent reports of hospital ceilings
collapsing, the government surely would want to prevent such
incidents from happening to homes of consumers, especially
looking at property prices in the country.
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