Housebuyers to enjoy 24
months' warranty
16/12/2007 Sunday Star By CHIN MUI YOON and NG SI HOOI
KUALA LUMPUR: Developers will now have to repair any defect in houses
detected within two years of handing over vacant possession to housebuyers.
Previously, the warranty period was 18 months.
This is one of the benefits that consumers will enjoy with the enforcement
of the amendments to the Housing Development (Control and Licensing) Act
1966 from Dec 1.
Any defect, shrinkage or other faults in the building have to be repaired by
developers at their own cost within 30 days of having received a written
notice from buyers.
Such faults include defective workmanship or materials, or if the building
has not been constructed in accordance with the plans and description as
specified.
Housing and Local Government Minister Datuk Seri Ong Ka Ting said the
changes to the Act, which came into effect from Dec 1, were made to protect
housebuyers from irresponsible developers.
“There are black sheep but we cannot let this happen, even if the number is
not that big.
“The amendment to the Housing Development (Control and Licensing) Act, which
is the principal or parent Act, was done on April 12 this year. The
regulations gazetted on Dec 1 bring all provisions into conformity under the
Act.
“It includes new features such as the introduction of two new Schedule I and
Schedule J catering for the Build-then-Sell (10:90) concept.
“The scheduling is vastly different for the current conventional way of
selling houses.
“There is also no 5% retention fee so the onus is on developers to be
responsible in building and delivering a quality property to buyers in order
to collect payment.”
Ong said the Build-then-Sell concept remains optional to developers instead
of mandatory.
This parallel system will be observed for a period of time.
As it is, he said, only companies that are financially sound are able to
adopt the new concept.
On the extended warranty period for defects, Ong said the increase to 24
months was a period acceptable to both housebuyers and developers after the
ministry’s technical team had evaluated feedback from both parties.
Significant changes include a requirement for developers to deliver vacant
possession to buyers that must be supported by a Certificate of Completion
and Compliance (CCC) certified by registered architects that a building is
safe and fit for occupation.
Previously, when developers handed over vacant possession of a property, the
keys were given to buyers for inspection.
But buyers could not move in until the Certificate of Fitness (CF) was
issued by the local authorities, which could be several months later.
Also for strata titles (applicable under Schedule H for apartments,
condominiums, flats and townhouses), a crucial change is the mandatory
enforcement of the Fifth Schedule in the sale and purchase (S&P) agreement
on what buyers can expect to pay besides the cost of their individual unit,
including service charges. |