HOUSING DEVELOPMENT

(CONTROL AND LICENSING)

ACT 1966 (ACT 118) &
REGULATIONS
( AS AT 10TH JANUARY 2017 )

2019
23 MARCH
Architects know the wishes and main objective
of our Client, ie, to make profit and
more profit if possible.
In view of our client's main objective
is making profit, Architects must ensure they
are equipped with sufficient knowledge
to discharge our professional duties
under our Code of Conduct.
 In any building development, Architect is:

- an agent to client from schematic design phase

until final completion stage

- as submitting person under UBBL

- as administrator between 2 contracting parties

 And for Architect undertaking
residential development,
Architect assumes an extra role as
Certifier under SPA.
HDA requires Architects to act impartial in
certifying works completion for
purchaser's billing purposes.
 HDA is an Act of Parliament that governs
the Conduct of all Housing Developers in
Peninsular Malaysia, the protection of the
interest of purchasers and for
matters connected therewith for
all residential developments
of more than 4 units of housing accommodation.
 Under the Act, Architect is mentioned
in the SPA contract between our
client/developer and the client's client (purchaser).
However, an architect does not have
any privity under SPA contract but we require
to response to any decisions between
Developer / Purchaser.
 There are 2 types of SPA;
one for Land And Building ( LB )
and the other for
Building or Land ( BLS )
Intended for Subdivision into Parcels
signed between Developer and
Purchaser for sales of Land or Property.
 It controls the sale of residential unit by
listing the payment schedule under the
3rd Schedule how the purchaser
will pay the developer for the residential unit
the purchaser bought.
 LAM has issued a
Standard Guidelines For
Certification Works under 3rd Schedule.
 SCHEDULE G SCHEDULE H

Schedule of Payment of Description of Description of

Purchase Price under the Construction Work That Construction Work That
Third Schedule of the Must Be Completed Need Not Be Completed
S & P Agreement For Certification For Certification
SCHEDULE G SCHEDULE H
SCHEDULE G SCHEDULE H
SCHEDULE G SCHEDULE H
SCHEDULE G
(3) On the date the
Purchaser takes
Vacant Possession
of the said Property
with water and
electricity supply
ready for connection
(17.5%)
Architect does not need to
issue any certificate for this
Stage but before the
Developer can effect
vacant possession, the
Certificate of Completion
and Compliance shall have
been issued by the
Architect as the Principal
Submitting Person.
The Developer is also
required to comply with
Clause 26 ‘Manner of
Delivery of Vacant
Possession’ of Schedule G.
SCHEDULE H
(3) On the date the
Purchaser takes
Vacant Possession
of the said Parcel
with water and
electricity supply
ready for connection
(17.5%)
Architect does not need to
issue any certificate for this
Stage but before the
Developer can effect
vacant possession, the
Certificate of Completion
and Compliance shall have
been issued by the
Architect as the Principal
Submitting Person.
The Developer is also
required to comply with
Clause 27 ‘Manner of
Delivery of Vacant
Possession’ of Schedule H.
SCHEDULE G SCHEDULE H
(4) On the date the
Purchaser takes Vacant
Possession of the said
Property as in item 3
where the Developer has
delivered to the
Purchaser or the
Purchaser’s Solicitors
the original issue
document of the title to
the said Building Lot
registered in the name
of the Purchaser.
(2.5%)
Architect does not need
to issue any certificate for
this Stage.
(4) On the date the
Purchaser takes Vacant
Possession of the said
Parcel as in item 3 where
the Developer has
executed and delivered to
the Purchaser or the
Purchaser’s Solicitors the
instrument of transfer in
favour of the Purchaser
together with the original
issue document of strata
title to the said Parcel.
(2.5%)
Architect does not need
to issue any certificate for
this Stage.
 At back portion of SPA,
there are 4 Schedules; namely

- 1st Schedule
( copy of Approved Layout Plan attached )
for ( LB )
or
1st Schedule
( copy of Approved Plan attached )
for ( BLS )
 At back portion of SPA,
there are 4 Schedules; namely

- 2nd Schedule
( copy of approved Building Plan attached )
for ( LB )
or
2nd Schedule
( list of Common Facilities and Service provided )
for ( BLS )
 At back portion of SPA,
there are 4 Schedules; namely

- 3rd Schedule
( schedule of Payment of Purchase Price )

- 4th Schedule
( Building Description )
 CERTIFICATE OF STAGE COMPLETION
PROJECT : - PROJECT TITLE -

- DEVELOPMENT ADDRESS -

FOR : CLIENT NAME

TYPE : TYPE L, TYPE M, TYPE N, TYPE O AND TYPE P ONLY
LEVEL : LEVEL 11, LEVEL 12 AND LEVEL 13
UNIT NO : L11-01, L11-02, L11-03, L11-04, L11-05, L11-06, L11-07 and L11-08 only
L12-01, L12-02, L12-03, L12-04, L12-05, L12-06, L12-07 and L12-08 only
L13-01, L13-02, L13-03, L13-04, L13-05, L13-06, L13-07 and L13-08 only
 STAGES OF WORK COMPLETION STATUS
2. Within thirty (30) days after receipt by the Purchaser of the Developer’s written notice of the completion of :
a) the work below ground level of the said Building comprising the Percel including foundation of the previously completed
said Building

b) the structural framework of the said Parcel previously completed

c) the wall of the said Parcel with door and window frame placed in position Previously completed

d) the roofing / ceiling, electrical wiring, plumbing (without fitting), gas piping (if any) and internal
completed
telecommunication trunking and cabling to the said Percel

e) the internal and external finishes of the said Parcel including the wall finishes not completed

f) the sewerage works serving the said Building previously completed

g) the drains serving the said Building not completed

h) the road serving the said Building not completed
 To minimize Architect's liability,
and before commencement of any design,
Any submission of KM / BP and
Any construction works:
 a) WITH YOUR CLIENT / DEVELOPER

the importance of approved SIFUS and

accepted SOP for SPA of (BLS)

'educate' them on Borang F1 and Borang F and

their implications on VP

discuss the 'pros and cons' on Mixed or Integrated

Development and its implications on VP
 a) WITH YOUR CLIENT / DEVELOPER

state clearly what is to be expected to be completed at

each Stage before an Architect can certify completion

obtain a sample copy of SPA; either signed or unsigned,

including all Schedules

agreed on the time frame for Certification,

either weekly or monthly
a) WITH YOUR CLIENT / DEVELOPER

agreed on the required number of units before

Certification
.
 b) WITH PROJECT TEAM

Architect must inspect before he certifies.

Where completion of works for certification involving

Structural and M&E works, obtain their agreement
by having them certifying completion to Architect
before Architect certifies.
 b) WITH PROJECT TEAM

at Stage 3, should your client / developer desire that

all elec, water and sanitary fittings and fixtures
to be deferred for security reasons until VP,
then individual purchaser's
written consent must be obtained or
if written consent is not secured,
a letter of undertaking from client / developer
to hand over these loose items during VP and
install them later, if required.
SPA FOR LAND AND BUILDING
Architect to pay special attention to following clauses:

Clause 4 - Purchase Price

Clause 5 - Manner of payment of Purchase Price
Clause 14 - Position, measurement, boundaries or
area of the Building Lot
Clause 15 - Materials and Workmanship to conform
to description
Clause 16 - Restriction against Variation by Purchaser
Clause 24 - Time for Delivery of Vacant Possession
Clause 26 - Manner of Delivery of Vacant Possession
Clause 27 - Defect Liability Period
 SPA FOR
BUILDING OR LAND INTENDED FOR
SUBDIVISION INTO PARCELS
Architect to pay special attention to following clauses:
Clause 4 - Purchase Price
Clause 5 - Manner of payment of Purchase Price
Clause 13 - Position and Area of Parcel
Clause 14 - Materials and Workmanship to conform
to description
Clause 15 - Restriction against Variation by Purchaser
Clause 25 - Time for Delivery of Vacant Possession
Clause 27 - Manner of Delivery of Vacant Possession
Clause 28 - Strata Title not yet issued and Transfer of Title
Clause 29 - Completion of Common Facilities
Clause 30 - Defect Liability Period
FOR DEVELOPER TO COMMENCE SALES

- Approved Architect's BP by LA
- Approved SIFUS by Land Office
- Accepted SOP by COB
- Approved APDL by MOH
- Open Housing Development Account
 2016

a. The developer’s programme is for sales to commence as soon as the Building

Approval is obtained. Advise him of the requirements to be fulfilled under the
amended Strata Titles Act.
(5 marks)
 FOR DEVELOPER TO OBTAIN APDL
LICENCE APPROVAL FROM HOUSING
CONTROLLER, DEVELOPER SUBMITS:

- Prescribed form and pay processing fee

- Developer's company details
- Developer's marketing brochures
- Approved DO (KM), approved BP,
approved SIFUS and accepted SOP
- Proof of paid up capital of RM250,000.00
- Deposit 3% of estimated Construction Cost
HOUSING DEVELOPMENT ACCOUNT (HDA)
Under Housing Development (Housing Development Account)
regulations 1991 since August 1991.

PURPOSE
- purchaser's monies collected and banked into
Housing Development Account

- developer's loan from financier bank and any interest

obtained is paid into Housing Development Account

- any withdrawals from Housing Development Account

are in accordance with HDA.
 WITHDRAWALS FROM
THE HOUSING DEVELOPMENT ACCOUNT

- Under item 7, withdrawal by licensed housing developer

is possible for all or anyone of the following reasons
as tabulated from item 7(a) to 7(o)

- Conditions or Manners For Withdrawal of Monies From

The Housing Development Account by licensed housing
developer are highlighted under item 8(1) and 8(2)
WITHDRAWALS OF SURPLUS MONIES FROM
THE HOUSING DEVELOPMENT ACCOUNT
Withdrawals of Surplus Monies From
Housing Development Account by licensed
housing developer are highlighted under item 9(a), 9(b) and 9(c).
These are possible after issuance of CCC and with approval from
Housing Controller, after deducting:
1) Estimated amount required to complete the balance of works
under SPA as certified by Project Consultants

2) Another 10% allowed over item above to cover contingencies

and inflation
3) Confirmation by SPA's lawyers / solicitors that all LD claims
settled, if any
 WITHDRAWALS OF ALL MONIES OR CLOSE
THE HOUSING DEVELOPMENT ACCOUNT
Withdrawal of all Monies in Housing Development Account by licensed
housing developer are highlighted under item 11(a), 11(b) and 11(c).
Developer may withdraw and / or close HDA,
subject to Housing Controller's approval, after:

1) CCC has been issued and housing development has been

completed

2) Certification by Developer's solicitor stating Developer's

obligations with regards to transfer of titles have been
accomplished

3) Expiry of DLP
 2016

c. After issuance of CCC, the developer has requested you to prepare a certificate for
him to withdraw all the money in the Housing Development Account. State your
advice to the developer.
(5 marks)
 PRECAUTIONARY MEASURES
BY ARCHITECT UNDERTAKING HOUSING
DEVELOPMENT PROJECTS
 lack of understanding and comprehension by various parties;
from developer way across to site workers, on one's responsibilities
and obligations required by present statutory regulations.

ensure all appointed parties at Site; from consultant site staff,

main contractor way down to all clerk of works;
are competent and responsible.

updating or educating developer on various changes to present

regulations, esp on LAM guidelines for certification and
obligations under SPA, Strata Title, SMA, Borang F for VP, esp
so on Mixed / Integrated Project of Various Blocks built on
Commercial / Car Park podium.
have a systematic office filing system and always ensure your
provided information forming parts of SPA is correct.

whilst preparing Planning and Building Plans submissions

FOR LA approval, do not state unnecessary information on
drawings not required for approval since Building Plans
form part of SPA.
2018
2018
2018
2018
THE END