List Of Blacklisted Developers After Projects Abandoned Or Delayed
The Housing and Local Government Ministry has blacklisted 1,345 developers and 5,000 individuals serving as directors in the companies after their projects were delayed or abandoned.
The home buyer would be heavy burden by the result of the abandoned housing projects because they have to service the mortgage loans and fork out rents for a roof over their heads.
A double blow to their finances!
Buying a ready made home from secondary market definitely a Good choice even the Price maybe higher.
House buyers can minimize this issue by becoming more knowledgeable and discerning and they will shop around before making their home purchase.
The list not only involve housing projects that were abandoned but also involved housing projects that were not completed on schedule.
The list of Abandoned Housing Projects until 31st Dicember 2009 by National Housing Department (JPN) is now available at:
1)www.kpkt.gov.my/kpkt/fileupload/terbengkalai/PROJEK_KELUAR_SENARAI_TERBENGKALAI_Sehingga311209.pdf
2)www.kpkt.gov.my/kpkt/fileupload/terbengkalai/PROJEK_SEDANG_DIPULIHKAN_Sehingga311209.pdf
3)www.kpkt.gov.my/kpkt/fileupload/terbengkalai/PROJEK_RANCANGAN_PEMULIHAN_Sehingga311209.pdf
.
1,345 developers blacklisted after projects abandoned or delayed
.
.
1,345 builders blacklisted
.
DENGKIL: The Housing and Local Government Ministry has blacklisted 1,345 developers and 5,000 directors of the companies over delayed or abandoned projects.
Minister Datuk Seri Kong Cho Ha said some had failed to comply with the Housing Act in submitting scheduled reports for their projects while many were issued compound fines for various offences.
“Some of the big players have also been blacklisted,” he added.
Checking things out: Kong (left) having a word with Rimbunan Corporate Advisory managing principal Kumar Nathan during his visit to the revived housing project in Dengkil Momday.
Their names are on the ministry’s website.
Kong said the ministry kept close tabs on all 18,000 housing projects nationwide and looked through all the scheduled reports to ensure that the projects ran according to plan.
“Housing projects are always a cause of concern for us because it is the buyers who suffer when irresponsible developers fail to deliver on time,” he told reporters after visiting the recently revived Putra Intan Condominium project here yesterday.
The project was to have been completed in 2005. The units were on sale since 2002 but buyers were told later the same year that development works had stalled.
The developer was forced to “close shop”, but through the ministry’s intervention, Rimbun Corporate Advisory Sdn Bhd, brought on board as liquidators, managed to get a new contractor and buyers were told they will receive their units by October.
Kong said there were 135 abandoned, delayed or “sick” projects nationwide currently and efforts were under way to revive them. However, he said, the ministry should not be held accountable for ailing projects.
“When projects are stalled it is the fault of the developer,” he said. “The ministry’s role is only to issue the development order and sales permit after the developers receive approval from the local authority, district office and the state government.”
Asked on repeated calls from various quarters to force developers to build and then sell the houses or apartments, Kong said the Government would be happy if all developers did this.
“But not all companies can do this. Making (build-and-sell) compulsory will limit the industry to only the big boys who can then corner the market, and this will not be good for consumers.”
fr:thestar.com.my/news/story.asp?file=/2010/2/9/nation/5637159&sec=nation
.
Years of waiting for victims
.
IT can be extremely frustrating to be at the mercy of property developers who have abandoned their property projects, not least because most of them do not offer any explanation to their house buyers.
When asked, this is the usual excuse provided by developers: “We are temporarily having some minor problems but will revive the project as soon as possible.”
“Soon” unfortunately, more often than not, turns to years of waiting for the victims.
Cashflow problems, demand shortage and budget over run, owing to poor planning by the developer are mainly the causes that lead to projects being abandoned.
Dr Ernest Cheong … ‘As progress payments are disbursed to developers through certificates issued by architects, end-finance banks can be misled into making excessive payments.
But while some abandoned projects are caused by unanticipated market conditions and economic uncertainty, including rise in building materials and labour costs, there are many cases where developers have only themselves to blame.
Industry observers say there are cases where developers have channelled purchasers’ deposit money for personal use while some others deliberately hold back their projects for better resale prices.
There are also instances where developers inflate progress payment claims to draw more money from purchasers and the banks. Observers say this can be done with the help of architects, who are responsible for issuing certificates on the construction progress of the purchased houses, which are then used for progress payment claims.
“As progress payments are disbursed to developers through these certificates, end finance banks can be misled into making excessive payments,” Ernest Cheong PTL Chartered Surveyors property consultant Dr Ernest Cheong tells StarBizWeek.
“Some of these developers end up not using these inflated payments to develop the housing projects,” he says, adding that perhaps they would channel it for some personal investments.
But when these investments sour, the consequences are dire; the developer will not be able to pay the contractors and suppliers and the brakes are then slammed on the construction activities.
“This is what contributes to the problem of rising abandoned housing projects,” he says. But in most cases, the culprit is poor planning and research. Developers that rush into a development without comprehensive market study will most likely find themselves stuck in a project due to poor cashflow.
“They end up facing poor sales due to the mismatch of supply and demand patterns in the project location,” says PPC International Sdn Bhd executive director Thiruselvam Arumugam.
Chan Ai Cheng, the general manager of S.K. Brothers Realty (M) Sdn Bhd, says developers shouldn’t be over ambitious and ought to be realistic.
fr:biz.thestar.com.my/news/story.asp?file=/2009/7/18/business/4230506&sec=business
.
Grappling with abandoned projects
.
The Housing and Local Government Ministry is looking at further tightening the laws and punishing errant developers that do not complete their housing projects.
THERE is a great deal of excitement that comes with booking one’s first home – you finally own a property which you can call your own (well, technically it belongs to the bank until the loan is repaid, but you are close), the stark relief when you have secured the financing for it and later, the mounting anticipation as you wait to occupy the property.
But alas, the project is stalled and you’re left saddled with financing a house which has indefinitely been abandoned. Sounds familiar? You’re not alone – there are some 31,337 housebuyers who currently face such predicament.
For over two decades, the property sector has been grappling with the scourge of abandoned housing projects, which has understandably caused hardship to many buyers. It remains a major thorn till today.
Datuk Seri Kong Cho Ha … ‘Project abandonment is serious as the casualties are consumers and their hard-earned money.’
Based on data from the Housing and Local Government Ministry, as at May 30, some 148 housing projects have been abandoned, involving a total of 48,664 housing units (of these, 31,337 units have been sold).
On its own, these numbers may not seem astonishingly high but when viewed from the perspective that there are tens of thousands of people who are aggrieved by such failed projects, it becomes a major problem that needs to be resolved urgently.
The biggest headache for housebuyers when a project is stalled is monetary losses – the victims have to settle monthly loan repayments and deal with much anguish as, more often than not, there’s little chance of reviving these projects and getting the houses completed.
Over and above that, many have to continue forking out rental for their current abode.
Needless to say, from an industry perspective, the economic cost is staggering; abandoned projects also affect many other related industries (over 140) including suppliers of construction materials, transportation companies, contractors and consultants.
In an interview with StarBizWeek, Housing and Local Government Minister Datuk Seri Kong Cho Ha says although only 1.8% of all projects licensed by the ministry are abandoned, project abandonment is serious as the casualties are consumers and their hard-earned money as well as many other related industries.
“We are looking at further tightening the laws and punishing errant developers that do not try their best to complete their housing projects. We do not want errant developers to spoil the reputation of the whole industry,” says Kong.
Tackling the issue
Since 1998, the ministry has been collecting data on the matter and it has also taken several measures to tackle the problem of abandoned housing projects.
There are several stages, as defined by the ministry, before a project is declared abandoned. If it has passed its promised delivery date by 10%, it’s considered late; if the delay stretches beyond 10%-30%, then it’s considered “sick”; and finally, if no work has been carried out or no workers are on the project site for up to six months, then it is deemed abandoned.
Noting that there are multiple reasons why a project is stalled, Kong points out that ultimately the responsibility lies with the developers to ensure their projects are completed on time.
“If they encounter problems, they have to take the necessary actions to overcome them and seek help if necessary. At the end of the day, the interests of all the stakeholders – developers, buyers and bankers – have to be protected,” he adds.
Datuk Ng Seing Liong … ‘Rehda does not condone any project abandonment caused by non compliance to the laws.’
Kong says the Housing Development (Control and Licensing) Act, 1966 (Act 118) is meant to ensure the orderly development of the housing industry and to protect house buyers.
“The legislations are in place to ensure the success of housing schemes and to minimise abuse and quarrels between developers and buyers. Section 7 (F) of the Act stipulates that developers have to submit half-yearly reports to the ministry on the progress of their projects.
“If this requirement is duly adhered to, any work delay will raise a red flag and will be watched early on to prevent the problem from escalating into a full blown abandoned project,” Kong says. Invariably, he says, when projects are abandoned, fingers are pointed at the ministry that it should take over with the aim of reviving the projects.
But Kong says: “The ministry is not in the position to take over abandoned projects as it will cost a substantial amount of taxpayers’ money. Also, they must understand there are many unsolved problems associated with abandoned projects such as claims from buyers, bank borrowings and other liabilities, which are best left to the professionals to resolve.”
Instead, he points out that the ministry takes on the role of a mediator who looks for white knights to help revive abandoned projects.
Crunching numbers
Of the 148 abandoned projects, eight projects involving 4,591 units (4,306 units sold) are at various stages of being revived by Syarikat Perumahan Negara Sdn Bhd under the Government’s recent economic stimulus packages, 14 projects with 7,750 units (5,139 units sold) are in the process of being revived by white knights, and six projects with 1,361 units (1,262 sold) are being revived by the original developers.
But not all abandoned projects can be resuscitated. Some 12 projects involving a total of 1,601 units (554 sold) have failed to take off and the ministry is in the process of mediating a settlement between the developers and buyers.
Consumer groups and industry players are calling for the protracted problem of abandoned projects to be nipped in the bud through stricter enforcement of the laws and for punitive measures to be meted out on errant developers.
They say abandoned projects will continue to plague housebuyers unless more stringent punishments, including jail terms, are meted out to offenders.
By punishing the “few bad apples” who have failed to fulfil their obligations spelt out in the sale and purchase agreement with housebuyers, industry players that have duly performed their duties in building and delivering their projects on time to buyers will hopefully be spared the bad image.
The call for stiffer penalties has the support of the Real Estate and Housing Developers Association (Rehda), which has urged the Government to take action against these “culprits”.
President Datuk Ng Seing Liong says the association does not condone any project abandonment caused by non-compliance to the laws, in particular the Housing Development (Control and Licensing) Act and its subsidiary regulations.
“Developers who are facing problems completing their projects should seek help from the relevant authorities including the Housing and Local Government Ministry that has a team to help solve problems relating to delayed and ailing projects,” Ng says.
He adds that the current lull in the market provides a good opportunity for developers with the expertise to step forward to help revive abandoned projects as part of their corporate social responsibility.
“Whatever the reasons may be, it is certainly crucial for developers to uphold their responsibilitites towards housebuyers by ensuring proper feasibility studies are conducted to ascertain a project’s viability before it is launched and duly complete their projects on time.
“Developers should also adopt proper cash flow management to avoid liquidity problems and to fully abide by all the guidelines spelt out in the Housing Development Act,” Ng adds.
fr:biz.thestar.com.my/news/story.asp?file=/2009/7/18/business/3987963&sec=business
Task force to clean up abandoned projects
AN estimated 80% of abandoned projects in the country are in Selangor and the state government has set up a task force to solve the problem.
According to Selangor Housing, Building Management and Squatters Committee chairman Iskandar Abdul Samad, the possible reason behind the high number of abandoned projects could be an oversight in sales.
“These developments began during the economic upturn but many units could not be sold or the project size was too large to complete,” he explained.
A large number of buyers were also speculators who purchased the houses to be resold or rented out.
He said the task force was a collaboration between the private sector and the government sector. Several companies have been appointed to monitor abandoned projects and come up with possible solutions.
“We do not have enough manpower to monitor and solve the problems of the abandoned projects so these companies help appoint new contractors for the previous developer,” Iskandar said.
He added that the government previously only monitored the abandoned projects but nothing came out of that effort. Hence, the decision to rope in the private sector.
Iskandar said this during the handing over of keys and certificate of fitness (CF) to some 100 residents at the Mayang Court Apartments in Puncak Jalil.
The Mayang Court apartments, with 396 units, were one of the projects under the task force that was revived after a delay of nearly two years.
The original developers, Talam Corporation Bhd, began construction in 2006 but stopped due to unforeseen problems.
“There was a time when we had to send back all our illegal foreign workers as well and that caused the delay,” Talam executive director Chua Kim Lan said.
Iskandar said the project could have been done in stages to avoid the problem since it was a large scale of development.
A total of five other projects are will be completed by August 2010 including Lestari Putra Puchong, Saujana Puchong and Lestari Permai.
One of the homeowners of Mayang Court, Siti Nor Sanisah, 39, said she was still unhappy with the entire proceedings.
“I want to know how much arrears we will have to pay. We have been paying the bank all this while despite the house not being ready,” she added.
Her husband Syed Mustaffa, 44, added that some of the fixtures first promised when they purchased the house in 2006 were missing.
The front was supposed to have marble and the rooms should have parquet floors but all that is missing. Now the house is not worth the RM 90,000 we are paying for. It’s like any other flat,” he said.
On top of that, both husband and wife feel the company should have added incentives to appease the home owners for the delay.
fr:thestar.com.my/metro/story.asp?file=/2010/2/22/central/5717950&sec=central
Move to revive some of 83 abandoned projects
JOHOR BARU: The Housing and Local Government Ministry will try to get federal funds to help revive at least 20% of the 83 abandoned projects nationwide.
Housing and Local Government Minister Datuk Seri Kong Cho Ha said that there were about 83 abandoned housing projects in the country and some of them could be aided by the government.
“We are hoping that the federal government will be able to provide financial assistance for the revival of 15 to 20 of these abandoned housing projects as it effects many people,” he said.
Kong explained that not all of the projects were easily revivable as they were too old and, even if a new developer were to adopt it, they would not be able to make any profit.
“One of the ways to revive these projects is with the financial aid of the federal government,” he said during a press conference at the Cahaya Kota Putri housing development project here on March 5.
The project, which was abandoned in 2001, was finally picked up for revival by Mahabuilders Sdn Bhd and is scheduled to be completed in the next two years.
“Another way to make these projects more viable for revival is to change or upgrade their status,” he said.
Kong explained that abandoned sites for medium cost houses could be upgraded to high cost houses or commercial sites in order to make the project more attractive to developers.
“Initially, the ministry had recorded about 148 abandoned projects but some of them have been revived or are in the process of revival,” he said.
He added that currently 15 abandoned housing projects have been successfully revived and another seven were awaiting their Certificate of Fitness for Occupation (CFO).
Kong also said the Special Task Force (STF) to Revive Abandoned Housing Projects which was set up last year was also working hard to handle the problem.
“So far, we are working towards amending the Housing Developers Act and also adopting a build then sell mechanism for housing delivery to reduce the occurrence of abandoned projects,” he said.
fr:thestar.com.my/news/story.asp?file=/2010/3/5/nation/20100305144742&sec=nation
Need to tighten sale and purchase agreement
THE sale and purchase agreement prepared in accordance with the relevant Acts states that purchasers have the right to claim liquidated ascertained damages (LAD) for delay in handing over of vacant possession by developers.
Is this clause enforceable? Yes. That’s what the lawyers will say, but in reality, this is what will happen:
A. Upon handing over of vacant possession, there is an 18-month maintenance period.
B. There are issues on strata titles or individual titles.
C. There are issues pertaining to uncompleted phases of the project.
D. There are issues of the liquidity of the developers.
The developers will say: “If you sue us, you will not get the property maintained; you will not get the title to your property; the court of law will not side you against the purchasers from whom have yet to get your houses; and we can close shop if you pursue” which will affect everyone, especially house buyers, financial institutions, Kementerian Perumahan dan Kerajaan Tempatan, etc etc etc.
Abandoned housing projects or problem projects are caused by nothing but liquidity. Therefore, it is imperative that house buyers should actually chose between having their houses (after suffering for years) or go after LAD, which cannot be finalised under the law until vacant possession certificates are issued.
This is the predicament of purchasers and this Catch 22 situation can only be solved by the following:
A. The purchasers waive their right to LAD against the developers or White Knights.
B. Hold discussions with developers on the possibility of getting “some LAD”.
C. Have the KPKT freeze the HDA accounts and at the end see if there is enough money to be spread around (plus, minus whatever is payable under ‘B’).
Going to court will only hurt the purchasers further as they have to pay legal fees.
The Federal Government has to change the terms of the sale and purchase agreement by changing the law – namely Housing Developers Act and Companies Act.
Dr NIK ZAMRI MAJID,
Kuala Lumpur.
fr:thestar.com.my/news/story.asp?file=/2010/3/8/focus/5815153&sec=focus
The goverment should be more transparent to let the public all those black listed developer so that consumer will be more cautious when purchasing for a new house . The public has all the right to know rather than keeping them in the dark .
1,345 developers blacklisted
A TOTAL of 1,345 housing developers were blacklisted from carrying out projects last year, Housing and Local Government Minister Datuk Seri Kong Cho Ha said.
As at March 5 this year, a total of 1,120 developers were blacklisted, he said, adding that the highest number of blacklisted developers were from Selangor, followed by Kuala Lumpur and Johor.
He said these developers and their board of directors could be fined RM10,000 each if found guilty.
“However, the ministry doesn’t have the power to stop them from forming a new company or getting involved in business.
“This is because the companies are formed under the purview of the Malaysian Companies Commission,” he said in a written reply to M. Manogaran (DAP-Teluk Intan).
Earlier, Deputy Minister Datuk Seri Lajim Ukin told Datuk Juslie Ajirol (BN-Libaran) that 72 People’s Housing Projects (PPR) had been created in the country. This involved 54,788 units for rent and 2,668 units to be sold to eligible buyers.
“The Cabinet had in May 2006, given approval for the houses which were originally rented out, to be sold to the people.
“The Federal Territories and Urban Well-being Ministry is now implementing the programme to sell the PPR houses in Kuala Lumpur in stages,” he added.
Lajim said the ministry was considering a move to sell PPR homes that are being rented out in Sabah to the people.
Women, Family and Community Development Minister Datuk Seri Shahrizat Jalil said her ministry would assist those who needed supporting letters to be exempted from paying for health treatment.
She clarified that health related issues including funding were the Health Ministry’s responsibility.
“The ministry has funds for the poor but there are also funds under the National Welfare Foundation for those in critical condition,” she said when replying to a supplementary question by Dr Mohd Hayati Othman (PAS-Pendang).
fr:starproperty.my/PropertyScene/TheStarOnlineHighlightBox/3293/0/0
Weed out errant businessmen
I REFER to the report “1,345 developers blacklisted: Kong” (The Star, March 23) which quoted him as saying that the ministry can’t stop them from forming new companies. It is indeed discouraging to read that there is no comprehensive solution being offered to address the issue effectively.
Abandoned projects, particularly housing projects, cause so much pain to affected buyers, as widely reported in the news every now and then. In most cases, they involve lifetime savings and financial difficulties to the innocent victims striving to build a decent living. Hopes are dashed and hearts broken but the culprits remain scot-free and in some cases can still laugh all the way to the bank.
The Government must make every effort to nail down the errant developers. This means going beyond the corporate veil. It should be holistically pursued with seriousness and sincerity on the part of policy makers and regulators.
In all fairness, it is agreed that individuals involved cannot be stopped from forming new companies. As long as the newly formed companies are not involved in the property development business, everyone is free to pursue any business venture.
But if new companies are formed by the same individuals whose companies have been blacklisted before, and are venturing again into the same business, there must be something that can and should be done by the relevant authorities and the ministry concerned.
As in most other industries, there are requirements for accreditation, registration, licensing and permit to carry on the property development business. It is at these points that the necessary checks and filtering process should be instituted to blacklist the responsible parties. The processes should go beyond the corporate veil to identify the responsible individuals behind the corporation.
The Government put in place the multi-million ringgit electronic procurement system, e-Perolehan, some years back where supplying and contracting companies doing business with the Government have to undergo stringent procedures including furnishing information on the companies’ shareholders, directors, key management and even right down to bank signatories.
One of the purposes, I believe, is to identify the individuals behind the corporation to ensure no overlapping applications and tender submissions as well as to address the “proxy culture”.
Perhaps a similar system can be adopted by the relevant authorities and ministry with regard to property developers. The model and proven working system is already available. There is no necessity to even reinvent the wheel in this instance.
Nik Abdul Hamid Shukri,
Puchong.
fr:thestar.com.my/news/story.asp?file=/2010/3/26/focus/5927641&sec=focus
No longer a dream home
FLOOR tiles giving way and cracks on the walls were not what buyers expected when they bought their houses in Taman Pelangi Semenyih (TPS), Semenyih, five years ago.
However, defects started showing after the 18 months defect liability period (DLP) was over.
Initially the owners took up the matter with the developer, Gerak Teguh Sdn Bhd (GTSB) individually, since there were no response, they decided to come together to address the matter.
M. Ravi, 36, bought the double-storey link house five years ago and has been renting it. But now his tenant wants to move out because the floor tiles started giving way in the master bedroom, and the living room upstairs.
Ravi has brought the matter up with the developer but so far nothing has been done.
“This is clearly a building defect. It is not just one unit but many buyers are facing similar problems which started in the second year the owners moved in,’’ said Ravi.
He said his last letter to the developer was on March 13 and they have yet to reply.
Ravi said the cracks on the walls was another problem upsetting the houseowners.
As for the tiles, most of the affected homes had placed carpets or linoleum to conceal the floors.
Housewife Manisoh Danuri, 49, said her husband had also made numerous complaints to the developer when the defects started showing two years after they bought the house, but to no avail.
“The developers just gave us some tiles so we can repair it on our own,’’ said Manisoh.
Ravi, who acted as the spokesman for the affected residents, said the developer should try to find out what had gone wrong instead of passing the buck around.
When contacted GTSB general manager Lee Seng Bee said they carried out remedial work even after the 18-month defect liability period by providing tiles to the affected homes.
Lee said as a goodwill gesture, the company had also provided tiles to affected residents even as recent as six months ago.
“Initially there were 70 houses and the problems were rectified. We cannot go on providing tiles whenever residents come with such complaints,’’ said Lee.
He said the buyers were also advised on the remedial measures to take.
fr:thestar.com.my/metro/story.asp?file=/2010/4/16/central/6047648&sec=central
30 abandoned housing projects revived and finished
KUALA LUMPUR: A total of 30 abandoned housing projects were revived and completed between May last year to March, said Housing and Local Government Minister Datuk Seri Kong Cho Ha.
Under the abandoned housing revival project, he said 44 housing projects were in different stages of being completed.
Kong, who marked his first year as Housing and Local Government Minister, said 10 local authorities managed to gain one extra star after the regrading process under the new star-rating system was introduced.
“After several visits to the field, I am satisfied with efforts taken to revive the abandoned projects,” he said at the ministry’s monthly gathering here yesterday.
The rating system evaluates the performance of local authorities and helps them improve operations so that services are efficient and effective.
It uses 352 indicators under four areas namely management, core services, managing customers and community participation, and residents’ views.
As the lead agency for the National Key Results Areas (NKRA) Safe City Programme, Kong said the ministry was looking at crime prevention through an environmental design manual for housing schemes, business premises and use of land for other purposes.
“The ministry is also helping local authorities achieve the NKRA for minor projects through the Safe City Programme and the installation of closed-circuit television cameras to ensure that they are people-centric,” he said.
On the urban public transport lab, Kong said the ministry had also been given the responsibility to build and maintain all bus stops with information on bus services in areas that fall under Klang Valley local authorities.
“Currently, 40% of the 4,055 bus stops in the Klang Valley do not have basic infrastructure and we will address this issue,” he said.
fr:thestar.com.my/news/story.asp?file=/2010/4/16/nation/6063939&sec=nation
A raw deal for home purchasers
I AM one of the unfortunate purchasers of an abandoned high-rise residence located in USJ 21 in Subang Jaya. It’s now been more than 10 years and the half-built structure is basically rotting away.
Obviously there’s an ongoing bank loan that goes with the purchase. About two years ago, a second developer took over the project and another direct drawdown from my financing bank was made. However, the second developer too disappeared without making much progress.
Recently, I’ve been summoned to court to settle the outstanding loan by my financing bank, paying up for nothing!
My questions are:
> Why is it that while the developers go scot-free, the end-purchasers are the ones being charged?
> Who protects the end-purchasers?
> Why doesn’t a financing bank conduct its due diligence on the status of the developer (in this case, the second developer) before releasing the money?
Even if I pay up with my hard-earned money, what’s next? I don’t think I’ll even get a piece of brick in return.
I certainly hope there is a body that protects the interest of end-purchasers like us.
SUMMONED PURCHASER,
Kuala Lumpur.
fr:thestar.com.my/news/story.asp?file=/2010/5/5/focus/6188122&sec=focus
Housing tribunal gets back RM400mil for disgruntled buyers
KUALA LUMPUR: Seven years since it was set up, the Tribunal for Homebuyers Claims has been flooded with nearly 4,000 cases annually, or an average of 10 complaints daily, from disgruntled purchasers.
Up till last year, the tribunal under the Housing and Local Government Ministry, resolved 93.7% of the 27,277 cases, with compensation totalling almost RM400mil.
“Complainants received between RM10,000 and RM15,000 from developers, mostly for late delivery,” tribunal deputy chairman Pretam Singh said in an interview recently.
The tribunal handles cases worth less than RM50,000. Those seeking more would need to file legal action.
Pretam said housebuyers in Selangor topped the claims list by far, numbering 16,425 in the past seven years, followed by Kuala Lumpur (2,840) and Penang (1,804).
None were received from Perlis and Terengganu.
He said, for a RM10 fee, one may file a claim with the tribunal for losses incurred, or any matter concerning a person’s interest as homebuyer.
The tribunal will not accept cases currently being contested in court. However, disputes decided by the tribunal can be referred to the courts by the parties involved.
The Federation of Malaysian Consumers Associations (Fomca), too, receives over 2,000 complaints every year from dissatisfied home purchasers, also for late delivery and shoddy workmanship, through its national consumer complaints centre.
“Leakage, cracks, unsafe wiring and crumbled cement are major complaints that we received and this must be resolved during the 18-month period after delivery,” said Fomca secretary-general Muhammad Sha’ani Abdullah.
Housebuyers have also lodged grouses of developers wanting booking fees before the sales and purchase agreement was signed which, he said, was against the Housing Development Act.
Lawyer Chang Kim Loong, secretary-general of the National House Buyers Association, said housing developers were not allowed to impose booking fees.
“Potential buyers must be aware of this and only get your 10% payment ready when the buyer is sure of purchasing,” he said.
Chang reminded purchasers that they should not use the same lawyer as that of the developer.
Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Ng Seing Liong hoped the Government would approve a Redha-proposed fund to to assist housebuyers in the event of abandoned projects.
“It is hoped the fund could be realised to protect housebuyers in the event their homes are not completed, or abandoned,” he said.
Redha had suggeted that all housing developers in the country contribute 0.25% or 0.5% of the value of their projects to the fund.
He said in the past 20 years, 1.5% of 148 housing projects were stalled due to reasons such as cash flow problems, lack of sales and improper management.
Home buyers can approach the tribunal claims only in completed projects.
“If the projects are abandoned, they cannot file claims with the tribunal”, he added.
The website for the tribunal is at kpkt.gov.my/tribunal.
fr:thestar.com.my/news/story.asp?file=/2010/5/9/nation/20100509122859&sec=nation
Polystyrene window frame shock for house buyers
BUTTERWORTH: Several house buyers in Taman Ampang Jajar here had a rude shock when they checked the houses – the outer frames of their windows were made from polystyrene.
A buyer, Lee Kim Tatt, 35, claimed that the polystyrene pieces were covered with a thin layer of cement.
“What would happen if a person steps on the window sill, thinking that it was made of concrete?” he asked when Seberang Prai Municipal Council (MPSP) president Mokhtar Mohd Jait visited the project site yesterday.
A representative for the project’s architect said the frames were merely decorative pieces that should not be stepped on.
Another buyer, Yan Wei Seong, 33, claimed the houses did not follow the original plan as per the sale and purchase agreement (S&P) signed in 2006.
“Some units in a particular row have double steps leading to the back lane while some in the same row only have one step, which shows that the ground is uneven,” he alleged.
Barisan Nasional’s Bagan parliamentary constituency co-ordinator David Chua, who was present, said he was surprised that the relevant departments and agencies had given the green light for the MPSP to issue the Certificate of Fitness (CF) to a majority of the units in 2008.
“How could the CF be given when some of the units are not in good condition?
“Access to these houses is also blocked with hoardings and there are no street lights in this area,” he said.
Mokhtar said the developer had agreed to extend the defect-liability period for the housing units by another two years.
“Disgruntled house buyers are advised to list down their grouses, so we can hold further discussion with the developer.
“We will try to come up with amicable solutions,” he added.
Mokhtar said of the 101 housing units, 22 units as well as 17 shophouses had yet to receive their CFs, pending approval from the relevant departments and agencies.
fr:thestar.com.my/news/story.asp?file=/2010/5/11/nation/6232975&sec=nation
20-year wait for their homes over at last
CHONG Ying Fong was only five when her father bought a RM25,000 low-cost cost house at Taman Pelangi in Sikamat near here in 1990.
However, he never lived to see it complete as the project was abandoned mid-way after work started.
Thanks to Syarikat Perumahan Negara Berhad (SPNB), Chong and 256 other families finally got the keys to their homes at a ceremony held here recently.
The low and medium-cost homes then cost between RM25,000 and RM63,000.
“I am so happy, yet a little sad — happy because the house which my father bought has finally been completed and sad because he never lived to see it,” said 26-year-old Chong, who now works in Kuala Lumpur.
SPNB took over the project which was between 55% and 80% completed in 2007 and revived it at a cost of RM9.8mil.
Tenaga Nasional employee Rojeah Abdullah 46 expressed relief that she would be able to finally move into her own house after two decades.
“I now work and live in a flat in Bangsar. Since I come back regularly, this will become a weekend home for my family,” she said grinning.
Electrician P Selvam 53 who also works in Kuala Lumpur said he never expected the project to be rehabilitated after being abandoned for so many years.
“I plan to retire in two years and come back to Seremban. I could not believe my ears when I got the call from SPNB telling me that my house was ready for occupancy,” he said.
Earlier, SPNB chairman Datuk Idris Harun said the bulk of abandoned housing projects in the country since 2001 involved low- and medium costs homes.
He said such problems arose when the developers realised they could not make big profits out of such projects.
“We get such problems due to irresponsible and greedy developers.
“They simply abandon the projects when they are unable to make big profits,” he said adding that based on SPNB’s data, high-end projects were rarely abandoned.
He said since 2001, SPNB has successfully rehabilitated 77 abandoned housing projects nationwide worth RM480mil.
This, he said, involved the construction of 24,326 units of various types of houses.
However, Idris did not state how many of these were low and medium cost projects.
“We have also obtained the certificates of fitness for these houses,” he said, adding that the 77 projects were among the 257 abandoned housing projects in the country.
Idris said this after handing over keys to 257 house owners at Taman Pelangi in Sikamat near Seremban. SPNB had also rehabilitated the project which had been abandoned over the past 20 years.
He said there were another 180 projects that needed to be rehabilitated involving the construction of 50,286 units of various types of houses.
Based on statistics, Selangor, Pahang, Negri Sembilan, Penang and Perak had the highest number of abandoned housing projects in the country.
Idris, who is also Tangga Batu MP, said SPNB was in the midst of reviving 11 abandoned projects costing some RM381mil. These projects are expected to be completed by next year.
On a separate note, Idris said SPNB had successfully constructed 14,568 affordable homes costing some RM840mil nationwide.
It had received 42,148 applications for such homes.
“This is in line with the government’s efforts to ensure more people owned houses,” he said adding that SPNB had received 42,148 applications for such houses
fr:thestaronline.com/metro/story.asp?file=/2010/5/18/central/6266390&sec=central
Kong: Tribunal getting fewer cases
KUALA LUMPUR: More housebuyers and developers now prefer to settle disputes amicably instead of going to the Housing Tribunal, said Datuk Seri Kong Cho Ha.
The Housing and Local Government Minister said this was reflected in the fewer number of cases filed with the tribunal – from 3,799 in 2007 to 2,465 in 2008 and 1,990 last year.
Topping the list of complaints were late delivery and defect liability, he added.
In bypassing the Housing Tribunal, developers were able to save time and money. The tribunal took time to settle cases, and generally handed out higher award quantum compared to sums agreed upon in amicable settlements.
Housebuyers, meanwhile, preferred to settle their disputes without the hassle of officially lodging complaints with the tribunal and attending hearings.
Kong said the tribunal, set up on Jan 1, 2003, had received 27,894 complaints to date; and 26,264 of the cases have been settled.
The rest included 837 cases undergoing judicial review while another 793 were newly-filed cases, he said.
Kong said all cases must be settled within 60 days from its first hearing.
There is a Housing Tribunal each in Kuala Lumpur, Penang, Johor Baru and Kuala Terengganu.
The tribunals had conducted hearings on Saturdays to expedite cases, he said.
Kong added the officers would also conduct hearings in areas without a tribunal.
“For instance, if there are 300 cases of late delivery in Cameron Highlands, we will conduct the hearing there.”
fr:thestar.com.my/news/story.asp?file=/2010/6/4/nation/6397601&sec=nation
Housing project to be revived
By BAVANI M
THE buyers of an abandoned housing project in Taman Topaz, Dengkil, who have been repaying their loans for the past 10 years may finally get to own their dream homes thanks to the reassurance given by the the Public Complaints Bureau (PCB).
Deputy Minister in the Prime Minister’s Department Datuk T. Murugiah gave his assurance to about 20 people who turned out at the PCB office in Kuala Lumpur on Wednesday for a meeting with officers from the Housing and Local Government Ministry, Selangor Housing Board, Sepang Municipal Council, Malaysian Insolvency Department and the liquidator.
Murugiah said the case had been taken over by the Abandon Project Rehabilitation Division of the Housing Ministry which would find ways to revive the project.
“We are working with other government agencies to bring this project back to life in six months and hopefully the buyers will be able to get their dream homes in one year’s time,’’ Murugiah said.
The housing project was launched in 2001 and was supposed to have been completed in 2003. The medium-cost apartments were 80% complete before it was abandoned by the developer, Perangsang Tin Consoli-dated Sdn Bhd.
Since then buyers had to pay up bank loans and some even were blacklisted for not being able to make payments.
Murugiah said the division was looking at various mechanisms to revive the project and he was confident that something could be worked out soon.
“There are about 150 abandoned housing projects in the country, and almost every week and PCB receives an average of one complaint on housing a week,’’ he said, adding that the government is trying to revive all these dead projects.
M. Mogan, 36, who bought a unit of the Topaz project said since 2001 he had been servicing the bank loan of RM400 a month.
“I still have to pay my rental for the house I am staying in with my wife and four children,’’ he said, adding that he earns RM1,500 a month and it was hardly enough to make ends meet.
“My children are growing and I will need more money for their education and we are want to see an end to this problem,’’ he said.
Division director Jana Santhiran said the government was trying to hard revive abandon housing projects, especially low-cost ones.
fr:thestar.com.my/metro/story.asp?file=/2010/7/9/central/6622199&sec=central
Selangor state govt plans to penalise those who don’t deliver CF on time
By CHOONG MEK ZHIN
THE Selangor government is working out a way to penalise developers who do not deliver the Certificate of Fitness (CF) on time without inconveniencing buyers.
State Housing, Building Manage-ment and Squatters committee chairman Iskandar Abdul Samad said they were looking into ways where the buyers could receive the CFs while penalising the developers for the delay.
“Some buyers start occupying the building without receiving the CF and they are not covered by insurance. Those who opt to wait for the CFs to be issued are inconvenienced by other things,” Iskandar said.
He was speaking at the CF presentation ceremony of 96 houses in Taman Kosas Phase 2, Ampang recently.
Iskandar also got the developer Metroplex Bhd group general manager Mok Pak Hong to promise the delivery of keys to residents by Aug 2.
He said this was the sixth residential area with CF problem the committee had solved.
“This is part of my KPI and the target was to solve five cases by end of the year. However, I think we will be able to solve three times the target by then,” he said.
The Taman Kosas Phase 2 case was unique because it was the first time a house buyer had contacted him through his blog.
Zulkifli Mohd Yusoh, who represented the buyers, said his wife was the one who wrote on Iskandar’s blog and sent a text message to the number listed.
“We were surprised to receive a return call. We were called for a meeting with Iskandar, the developer and Ampang Jaya Municipal Council (MPAJ) soon after and within a month received the CF,” he said.
He said the house was sold upon completion and most buyers thought they would be able to move in soon but instead found themselves caught in a two-year long struggle.
“Buyers had to pay rent for the place they are staying in while waiting for the CF for their houses,” he said.
MPAJ architecture assistant officer Fikri Mohd @ Mokhtar, who was also present at the ceremony, said buyers had 18 months to ask the developer to repair any defects.
“If any owner is planning to renovate their homes, they will still need to submit plans for approval to the Building and Architecture Department at the 10th Floor of Menara MPAJ,” Fikri said.
He added that the department did not issue CFs for the houses because Indah Water Konsortium (IWK) had not endorsed the project, stating there were problems with the sewerage system.
“The developers only received the IWK support letter in June,” Fikri said.
fr:thestar.com.my/metro/story.asp?file=/2010/7/27/central/6731746&sec=central
Buyers have more to gain by going to Housing Tribunal
THERE is definitely no truth in the letter “Stop protecting the developers” (The Star, July 26) on the Housing Tribunal as I have attended hearings which all side the buyers without regard for the ability of the developers to pay.
My concern, however, is that the heads of the tribunal are mostly on the side of the buyers and make decisions that can be reviewed in the court of law.
This can result in more problems for the buyers who are already disadvantaged by the sales and purchase agreements.
This will also be costly for the buyers because going to the tribunal is free while going to court will cost money.
There are cases where the buyer has yet to complete the terms andconditions of the S&P (that is taking vacant possession) and claims liquidated ascertained damages (LAD).
The award is illegal and this will lead to the developers seeking a review and burden the buyer.
The tribunal normally does not take into account external circumstances such as the ability of the developer to comply with the award and it does not take into account that an award can set a precedence for future cases.
When an award is given to a buyer, other buyers in the same boat may also file their claims against the developer, which may force him to wind up his company if he cannot pay.
The Selangor Housing, Building Management and Squatters Committee chairman Iskandar Abdul Samad reportedly wanted to penalise developers for the delay in giving the Certificate of Fitness (CF) on time.
I agree absolutely but he must also play a pro-active role in ensuring that the local authorities work fast in processing the application for CFs.
Penalising the developers twice, one under the S&P when the developers have to pay LAD and again by the local government in not using discretion in the issuance of CF will defeat the purpose of helping the developer complete his project.
I believe a top-level forum involving housing developers, local authorities and related utility companies such as TNB, Syabas and Indah Water will be helpful in thrashing out the many problems facing the industry.
DR NIK ZAMRI MAJID,
Kuala Lumpur.
fr:thestar.com.my/news/story.asp?file=/2010/7/28/focus/6743207&sec=focus
House owners want land titles returned
By JAYAGANDI JAYARAJ
EIGHTY-TWO house owners from Phase 3 of Taman Fadason Park in Kepong feel neglected by various parties, particularly the developer in their struggle to get land titles.
Their lots is encumbered by a private caveat lodged by Parkfair Development Sdn Bhd, as a security for the loan granted to the developer Fadason Holdings Sdn Bhd, which is in partnership with the Kuala Lumpur City Hall (DBKL).
Kepong community centre head Yee Poh Ping said the matter was brought to DBKL, the Housing and Local Government Ministry, Ambank and OCBC bank, but no proper answers were given to the buyers, leaving them in a limbo for the last one and a half years.
Yee said DBKL’s advice to the home owners was to wait while it filed an application to cancel the caveat through a court order.
“The owners want to have a meeting with DBKL but they are not given a chance. The problem is that the developer has taken a loan from a third party, and as a result they are holding the land titles because the loan is not paid up.
“It only makes sense that the developer pays the loan because the victims here are the home owners who have spent a lot of money buying the houses.
“When we asked the banks, they tell us that Fadason has given an undertaking that the company will pay the money to Parkfair. The house owners feel helpless as they have no right to their own property,” he said during a demonstration and press conference at the housing area on Sunday.
He said it was learnt that the developer owed Parkfair RM159,450 for each one of the 82 homes.
“We are also concerned as to why the banks were not keen on the buyers’ rights,” said Yee, adding that court proceedings would only drag the matter longer.
To gain more attention to their plight, the house owners, led by Yee, would be chartering a bus to go to both the banks’ headquarters and DBKL building on Sept 23 to stage peaceful demonstrations.
“It will be a half-day city tour to show how the home owners are victimised,” he said.
fr:thestar.com.my/metro/story.asp?file=/2010/9/21/central/7064989&sec=central
1,049 developers blacklisted
PORT DICKSON: Some 1,049 problematic developers have been blacklisted by the Housing and Local Government Ministry.
A total of 3,782 board members had also been blacklisted, said minister Datuk Chor Chee Heung
He added that the ministry would tighten conditions on developer’s licences to avoid the problems of abandoned projects.
“Many still want to become housing developers despite the high price of land and houses,” he said at the relaunch of Taman Anggerik housing project in Teluk Kemang near here yesterday
fr:thestar.com.my/news/story.asp?file=/2010/10/2/nation/7145616&sec=nation
End to an agonising wait for 1,052 house buyers
By THO XIN YI
LIM AH LAN thought she will never see the day her unit at Lagoon Perdana Apartments is completed.
Her husband purchased the RM109,900 unit in 2001 but the project was abandoned in 2005.
“We had already given up hope,” the 50-year-old housewife from Klang said.
But all hope was not lost for the 1,052 buyers of Block 1, 3 and 8 of the medium-cost apartments in PJS 9, Bandar Sunway.
The project was revived in 2008 and yesterday, Lim and other buyers finally received the keys and Certificate of Fitness for their units.
“We are relieved and also thankful to the state government for the completion of the project.
“We had paid off the unit and the developer agreed to have the outstanding interest and assessment rate settled by way of contra of the liquidated and ascertained damages (LAD), which came up to about RM10,000,” Lim said.
Lim’s relatives, Andrew Teh and Chin Ah Tee took a 20-odd hours flight from Toronto, Canada, to collect their keys.
The retirees, who have settled down in Canada for 22 years, bought their unit with their savings as an investment, which turned into a headache when the project was abandoned.
“It’s a great moment for us,” Teh, 70, said of the completion of the revived project.
Subang Jaya assemblyman Hannah Yeoh said there should be a total of eight blocks of apartments.
“Blocks 2, 3A, 5 and 6 were completed in 2003, and Block 7 could not be completed due to a problem with the foundation.
“The 339 buyers of Block 7 were given an option of refund, or exchange for another unit in Taman Puncak Jalil or Taman Putra Perdana,” she said.
House Buyers Association honorary secretary-general Chang Kim Loong said the purchasers have the legal rights to file a case against the developer for late delivery. “The state government’s priority was to get units ready first without compromising on the safety of the structure.
“Now, the buyers can claim compensation for LAD at the Housing Tribunal,” he said.
fr:thestar.com.my/metro/story.asp?file=/2010/11/2/central/7340482&sec=central
Good news for housebuyers
By RACHAEL KAM
PETALING JAYA: Strata titles for properties like condominiums, apartments and flats will be issued simultaneously when buyers get their keys under a proposed amendment to the current law.
National House Buyers Association honorary secretary-general Chang Kim Loong said this was among its proposals, which had been approved by the Housing and Local Government Ministry, to be tabled in Parliament by March next year.
“This will prevent errant developers from not applying for strata titles after having received the full amount,” Chang said in an e-mail interview.
He said the Housing Development Act, Strata Title Act and several other Acts must also be amended to help housebuyers who were at a disadvantage under current legislation.
He said the association also proposed that there must be separate individual titles for landed property prior to the developer being granted a license from the Housing and Local Government Ministry.
Recently, Housing and Local Government Minister Datuk Chor Chee Heung said that his ministry was working with the Natural Resources and Environment Ministry on amendments to the Building and Common Property Act.
Chor said that it aimed to table the amendments in Parliament by March next year with the goal of detailing the boundaries, roles and responsibilities of strata title owners, property managers and developers so that the rights of home owners could be better protected.
He added that the amendments were needed because they would spell out how home owners could exercise their rights under the Act and how many votes a home owner would have if he or she owned more than one unit in a building.
Commenting on the proposal for vacant possession and strata title to be issued simultaneously, a working executive Y.H. Tee, 35, who bought a condominium in Petaling Jaya two years ago, said it was good that purchasers would officially ‘own’ their properties upon receiving the keys.
Tee said that giving strata titles to housebuyers during vacant possession could prevent cases of developers not bothering to apply for them even after the projects had been completed for many years.
fr:thestar.com.my/news/story.asp?file=/2010/11/19/nation/7462037&sec=nation
“There are also instances where developers inflate progress payment claims to draw more money from purchasers and the banks. Observers say this can be done with the help of architects, who are responsible for issuing certificates on the construction progress of the purchased houses, which are then used for progress payment claims.” – End of quote
The above remark immediately gives rise to the following:
1. shouldn’t the banks have their own
people to verify whether the developers’
claims are true compared with the
situation on the ground?
In fact, the banks must make very string-
ent checks to ensure that there are no
hankypanky. They are the custodian of
the buyers’ money!!!
If they are not doing their monitoring prior
to handing over the money, then they
should have no business making the
innocent buyers pay them whatsoever!
In fact, such requirements must be
made into law!!! Immediately!!
2. shouldn’t those architects who give
inflated completed works done be held
responsible? Perhaps be banned from
practising their profession for life?
As well as, made to pay very hefty fines
and given lengthy jail sentences.
3. In the case of blacklisted developers, are
there any ongoing, stringent & foolproof
checks to make very sure that they are
out of business for good?
It’s absolute nonsense saying that they
are black-listed but still carrying on with
what they are doing.
We know that in this country, there is a
very strong possiblilty of such things
happening!!
9,278 house buyers benefit from revival of 83 abandoned projects
KUALA LUMPUR: Eighty-three of 167 housing projects abandoned since 2009 were revived as of end of October this year, said Housing and Local Government Minister Datuk Seri Chor Chee Heung.
He said the success was due to the cooperation of various quarters including state governments, which benefitted 9,278 long-suffering buyers.
“Sixty-two more projects or 37 percent are in the process of being revived while the balance 22 projects will be revived soon,” he said when opening a national housing seminar jointly organised by the ministry, Real Estate & Housing Developers’ Association Malaysia (REHDA)and National House Buyers Association (HBA) at the Putra World Trade Centre (PWTC) here, Sunday.
Chor said most cases of abandoned housing projects involved unlicensed developers who profited by taking advantage of lack of awareness of buyers of their rights.
He said, concerned with the needs of the people, the government set up a Special Abandoned Housing Project Recovery Task Force to monitor and revive abandoned housing projects nationwide.
“The government allocated RM63mil to revive 1,270 units of abandoned houses with priority on low cost houses via the 2012 budget. This allocation is proof of the government’s commitment towards the problem,” he said.
Chor also suggested the National Housing Department’s web site, which listed licensed housing developers, should have more pertinent information for buyers’ reference purposes if they wanted to make a purchase.
He also advised potential buyers not to make a down payment and sign the purchase agreement when a housing project was launched without first checking with the department.
fr:thestar.com.my/news/story.asp?file=/2011/11/13/nation/20111113171657&sec=nation