Developer's Background Must Be Checked, Housebuyers Told
04/07/2007 Bernama

KUALA LUMPUR, July 4 (Bernama) -- The people have been reminded to check the background of a property developer before proceeding to buy any property from the developer in order to avoid being cheated.

The chief executive officer of Companies Commission of Malaysia (CCM), Abdul Karim Abdul Jalil, in a statement here Wednesday said that many housebuyers have been cheated because they failed to check up the background of a developer beforehand.

Knowing the status of a developer is important to avoid any future problems such as difficulties in gaining financing, abandoned housing project and houses unfit for occupation.

Members of the public wishing to check on the background of developers can do so at any of the CCM office in the states or through the e-Info service corner featured in the CCM website.

"If the company does not have any strong assets, the housing project is likely to be abandoned and the deposit money that has been saved to buy a house could evaporate just like that," he said.

Housing developers are covered under the Companies Act 1965.

Up till now, six housing agents have had suits filed against them for various offences under the Act.

Among the offences have been the failure to submit company financial statement at the annual general meeting, failure to hold an AGM, and failure to inform of changes in the business address.

Each offence is punishable by a fine of up to RM30,000 or imprisonment for five months.

-- BERNAMA