Homes: Review 'sell then build' system
09/07/2007 NST By  S. RAGUNATHAN, Petaling Jaya

I REFER to the report "Grappling with contention" (NST, June 30). The National House Buyers’ Association (HBA) has maintained that there are flaws in the "sell then build" system.

This is justified and deserves the support of house buyers.

According to a reader from Penang ("Rehda masking real issues" — NST, June 30), about 250,000 people have become victims of rogue developers.

This is not a small number to be ignored.

The Ministry of Housing and Local Government has long recognised the need to review legislation relating to the housing industry because there have been many housing projects which have been abandoned by unscrupulous developers.

To end this, the government should adopt and sanction the "build then sell" or the 10:90 variant.

The HBA’s role as a voluntary body in helping out victims of abandoned housing projects is noteworthy.

I was among hundreds who were victims of an abandoned housing project in Subang, Selangor.

I am grateful that the HBA offered free legal advice on how to handle the problem.

Our project resumed after the Ministry of Housing and Local Government intervened by handing over the project to Syarikat Perumahan Negara Berhad for completion.

This happened nearly 10 years after the sale and purchase agreement was signed.

This was due to the weakness in the "sell then build" system.

However, we have yet to get compensation from the developer for the late delivery, which means more waiting.

Thousands of others face the same plight.

In view of the above scenario, isn’t it appropriate for the government to review the "sell then build" system?