Housing Development (Control & Licensing) Act 1966 (Act 118) & Regulations

Land development projects in Malaysia are governed by statutory legislations.
They are necessary to ensure that land development projects are carries out in proper and
orderly manner so as to protect the interests of the various groups in the country.
Housing developer play importance role which to ensure that the projects
undertaken by them are according to the government law such as housing development
(Control nd Licensing! ct "#$$. %nder &ection '( )housing developer* means any
person( body of persons( company( firm or society (by whatever name described!( who or
which engages in or carries on or undertakes or causes to be undertaken a housing
The purpose of this act is to provide for the control and licensing of the business
of housing development in +est Malaysia and for matters connected therewith. %nder
&ection , of Housing development (Control and Licensing! ct "#$$ is mandatory for the
developer to have a licence. +here a housing development is to be undertaken in phases(
a licence is re-uired for each and every phase of such housing developments. &o( our
client as a housing developer should has a licence which our project at +est Malaysia
based on this act. This is because under &ection . (.! of Housing development (Control
and Licensing! /egulations "#0#( any misrepresenting of the particular or information
re-uired under paragraph (1! of this regulation shall be an offence under these
2aragraph (1! stated that a licensed housing developer applying for the renewal of
a housing developer3s licence shall4
(a! submit the application in the form prescribed in schedule C5
(b! give particular of any change of company5
(c! give particular of any change to the lots to be developed5 and
(d! &upply such other relevant particulars or information as may be re-uired by the
6eside that( housing developer should have a sale permit. %nder section , ("!
Housing development (Control and Licensing! /egulations "#0#( no advertisement or
sale shall by any licensed housing developer without an advertisement and sale permit
having first been obtained from the Controller. ny advertisement and sale shall be in
accordance with the advertisement and sale permit as approved by the controller.
%nder &ection (,! (1!( housing developer shall submit his application in the from
prescribed in schedule 7 when applicant for an advertisement and sale permit and shall
supply the following4
(a! copy of the approved building plans5
(b! Two copies of the proposed advertisement including the brochure containing
particulars as prescribed under paragraph ("! of regulation $ of these /egulations5
(c! &uch other relevant particulars or information as may be re-uired by the
t the same time( housing developer should obey the particular that stated under
&ection $ of %nder section , ("! Housing development (Control and Licensing!
/egulations "#0#
(a! the housing developer3s licence number and validity date
(b! the advertisement and sale permit number and validity date
(c! authori8ed agent( power or attorney holder of project management company if
any( as approved by the Controller5
(d! the tenure of the land( if the land is leasehold( it e9piry date and encumbrances( if
any( to which the land is subject5
(e! the description of the proposed housing accommodation5
(f! the name of housing accommodation( if any5
(g! the e9pected date completion of the proposed housing development5
(h! the selling price of each type of housing accommodation5
(i! the number of units of each type available5 and
(j! the name of the ppropriate uthority approving the building plans and the
reference number.
Through the statement above( the tenure of the land should in the particular of
advertisement because our land constructed is leasehold. :ur apartments have many
types such as penthouse and other apartment are different in si8es. &o the selling price is
different and the number of units of each type must states in the particular of
advertisement by housing developer.
+e also make sure that Housing developer renew their licence may be not less
than si9ty ($;! days before the date of e9piry and the controller may grant a renewal of
licence with or without attaching conditions thereto or refuse to grant a renewal of such
licence under section . of Housing 7evelopment (Control and Licensing! /egulations
Contract of sale should considered by housing developer when they sell the
apartment. %nder section < ("!( every contact of sale for the sale and purchase of a
housing accommodation together with the sub divisional portion of land appurtenant
thereto shall be in the form prescribed in schedule = and where the contact of sale is for
the sale and purchase of a housing accommodation in a subdivided building( it shall be in
the form prescribed in the &chedule H. &o( the contact that we used should be in the form
prescribed in the &chedule H. this is because the schedule H is for flats( apartments and

%nder section <(a! of Housing 7evelopment (Control and Licensing! ct "#$$(
licensed developer shall within four weeks of the making of any alterations in or to any of
the documents submitted to the controller under section , ('! furnish to the Controller
written particular of the alteration. Licensed developer ensure that the development of the
housing accommodation has been carried out in accordance with any re-uirements
prescribed under any law regulating buildings and has e9ercised all such diligence as may
be re-uired for the issuance of certificates of fitness for occupation and for the issuance
and transfer of this titles to the housing accommodation to the purchasers
6eside that( we also make sure that housing developers follow the conditions such
". Certificate from the developer architect stating that the building is completed
1. +ater and electricity are ready for connection
'. The developer has applied for 4
(a! The issue of the Certificate of >itness for :ccupation (C>:! through >orm ? @
(b! The local authority has issued a notice stating that >orm ? has been checked and
accepted by the relevant authority.
ACertificate of fitness for occupation* means the certificate of fitness for an
occupation given or granted under the &treet( 7rainage and 6uilding ct "#<. and any
byBlaws made under that ct. ccording to Housing 7evelopment (Control and
Licensing! ct "#$$ &ection 1,( housing developer as a vendor shall pursuant to yhe
application for the Certificate of >itness for :ccupation under sub clause 1.("!( as its
own cost and e9penses( duly comply with all re-uirements of the ppropriate uthority
which are necessary for the issuance of the Certificate of >itness >or :ccupation in
respect of the said building. )Housing accommodation* has been defined to include Aany
building( tenement or messuage which is wholly or principally constructed( adapted or
intended for human habitation or partly for human habitation and partly for business
premises but does not include any accommodation erected on any land designated for or
approved for commercial development3. Make sure any demand by the developer for
instalment payment is supported by a certificate duly signed by an architect or a certified
t the same time( we make sure that every agreed settlement complies with an
award made by the tribunal to prevent any dispute or claims made by homebuyers.
)Homebuyer* is defined under "$ of Housing 7evelopment (Control and Licensing! ct
"#$$ means a purchaser and includes a person who has subse-uently purchased a housing
accommodation from the first purchaser of the housing accommodation. %nder section
"$7 ("! of Housing 7evelopment (Control and Licensing! ct "#$$( any person who fail
to comply with an award made by the Tribunal within the period specified therein
commits an offence and shall conviction be liable to a fine not e9ceeding five thousand
ringgit or to imprisonment for a term not e9ceeding two years or to both.
+e also advise that housing developer also provide the service according to
Housing 7evelopment (Control and Licensing! ct "#$$. %nder &ection "#( our client as
a housing developer which is a vendor shall provide services( including refuse collection(
cleaning of public drains and grass cutting on the road reserves( as form the date he takes
vacant possession of the said 6uilding until such services are taken over by the
ppropriate uthority but until they are so taken over the 2urchaser.
Cevertheless( we also advise housing developer should provided water( electricity(
gas piping( telephone trunking. ccording to Housing 7evelopment (Control and
Licensing! ct "#$$ &ection 1;( housing developer as a vendor shall( at its own cost and
e9pense( lay or cause to be laid all necessary water( electricity and sewerage mains( gas
piping(if any! and internal telephone trunking and cabling.
Housing developer should complete the facilities within the day stated in Housing
7evelopment (Control and Licensing! ct "#$$. ccording to &ection 10 ("!( the
common facilities should complete within thirty si9 ('$! calendar months from the date
of this agreement. Df the housing developer fails to complete the common facilities in the
time shall pay immediately to the purchaser li-uated damages to be calculated from the
day to day at the rate of ten centum (";E! per annum of the last twenty per centum (1;E!
of the purchase price.
ale and !urchase Agreement (!A)
The &2 for two types of residential properties are addressed under &chedules =
and H of the Housing 7evelopers ct "#$$. &chedule = pertains to land and building(
while &chedule H is for subdivided buildings. Commercial property does not come under
any regulatory guidelines
2rogress payments that are re-uired from the purchaser under the various stages
of construction for both schedules are the same e9cept that the description of work that
ought to be completed may vary. &ubdivided buildings such as apartments and
condominiums are referred to as )parcels* instead of buildings in the schedules for
progress claims where the developer starts his earthworks( collects the first "; per cent
and then there is a standstill. 6uyers should clarify this matter just in case to avoid
inconvenience. &adly( the present Housing 7evelopers ct does not address this situation
and it is hoped the revised format will address the aspect of a cooling off period where a
purchaser is given the opportunity over a period to decide whether he wants to go through
with the sale or not. The Ministry of Housing (M:H! should also fi9 the reasonable
amount that the developer may be allowed as a deduction for his administrative costs.
The developer therefore is duty bound to ensure that the contractor builds house or
building as per the approved building plans and specifications drawn out.