What should you do if you discover some defects in your new house?

Complaint One:
When the house was handed to us, we found some cracks etc. We made a report listing all the defects. When we checked again after a few months, not all the defects were rectified. What do we do now?

Complaint Two:
I received the keys to our dream home a day prior to Chinese New Year, and to our dismay, the property had many defects, ranging from minor problems to major misalignment of the walls and beams. The developer is rectifying the minor defects but is not willing to align the walls or beams that have been placed improperly. I wish to seek your advice on how I can have the process for rectification expedited as we have paid in full and are still unable to occupy the house.

Complaint Three:
I got the keys to my house last year and rented it out. After a few months, my tenants complained that their water bills are as high as RM900 per month. I checked and noticed that the underground pipe was leaking. I made a complaint to the developer, but as of last month, the problem has yet to be fixed.

Complaint Four:
The floor tiles in my apartment’s living room were not properly fixed. When one walks over them, they give a certain hollow, quaky sound. There are at least 30 floor tiles with this problem. Also, the edges of the walls where the tiles meet were not properly done. I submitted a complaint form, but the developer has not done anything to rectify them. Now, it’s been almost 12 months, and every time we call to enquire about the repair work, they tell us they could not find the right colour tiles to match. We were told that the only alternative is for us to change all the tiles. The developer will only bear the cost of the workmanship!

Over the years, the HBA has recorded thousands of complaints from house buyers who were not satisfied with the condition of their new homes or the way defects were rectified. Construction defects range from very complex structural issues, which threaten the integrity of buildings, to simple items relating to aesthetics. After receiving the keys to their houses, these buyers’ smiles soon fade when they are caught in a situation of getting the multiple defects in their homes rectified satisfactorily.

The new generation of house buyers expects their homes to be defect-free. The quality of houses, which although has improved over the past decade, has not kept pace with buyers’ expectations in terms of both design and finishes. There is also a lack of a set of industry quality standards that are compatible with public interests and expectations. This has resulted in many disputes over the rectification of defects as developers, contractors and house buyers have different expectations.

Defect Liability Clause

The pre-determined `Defect Liability Clause’ in the sale and purchase agreement (SPA) states that the developer is required to repair and make good, at its own cost and expenses, any defects, shrinkage or other faults that become apparent within a period of 18 calendar months after delivering vacant possession and which can be attributed to defective workmanship, materials or a failure to construct the property in accordance with the plan and description appended to the SPA within 30 days of having received written notice from the purchaser.

The second part of the clause states that the purchaser shall, at any time after the expiry of the 30-day notice, notify the developer of the cost of repairing and making good of the said defects by giving the developer a grace period of 14 days.

What to do

In layman’s language, this is what a buyer has to do if he finds defects in his new home:

• List all defects in writing as soon as they are apparent; take pictures of them if possible.
• Make sure the developer receives the defects list either by registered post or acknowledgement of receipt.

If the developer is responsive:

• The developer has 30 days from the date of receipt to do the rectification works.
• Go through the list of defects with the developer, for a discussion on the rectification work schedule.
• Be prepared to spend time or appoint someone to be around for the appointed contractors to do their work.

If the developer is unresponsive:

• Get a quotation from a reputable independent contractor for the cost of repairing and making good the defects.
• Give the developer a second notice and a stipulated 14-day grace period to do the rectification work.
• Recover the cost (any sum) of the repair from the developer’s stakeholder lawyer after having given written notification to require the stakeholder to withhold release of the stakeholder sum.

What next?

Besides the legal steps, buyers should band together. Contact neighbours who have similar difficulties in getting defects rectified. You may have more in common than you think. There is power in numbers, and you can share tasks to lighten the load. The main objective is to convince the developer that you are serious in getting the defects rectified properly.

Remember that the quality of construction in your neighbourhood will affect your resale value and possibly your safety.

Source: National House Buyer Association

Disclaimer
The article was obtained from www.hba.org.my and sources believed to be reliable. While every effort has been made to ensure the accuracy and reliability of this material, www.hba.org.my does not guarantee the information is complete or accurate, or up to date. The information contained is for informational purposes only and should not be construed as advice on facts specific to the reader.

Looks good: (From left) Ang, Patahiyah, public relations assistant director Xavier Sebastian, Corporate Department head Akbar Mustapha and Heritage Department head Noorhanis Noordin going through a news report on MBPP after the council’s monthly press conference at Komtar.

Penang Island City Council (MBPP) will hold discussions with the developer of a high-rise project in Tanjung Bungah to reduce the number of levels of the building.

Mayor Datuk Patahiyah Ismail said even though the MBPP had already approved the housing project, it would still hold talks with the developer’s consultant.

She said this was because many residents in Tanjung Bungah had voiced their concerns about the building’s height.

She added that the council had approved the project as it had fulfilled the building guidelines and requirements.

Patahiyah was commenting on a recent news report in which Tanjung Bungah residents voiced their concerns over the proposed development which was expected to cause traffic congestion in the area.

Desa Embun Emas Apartments Council chairman George Lee had said the residents foresaw an additional 2,000 cars in the vicinity based on an estimation of two cars per household.

Speaking during her monthly press conference with the media in Komtar, Patahiyah said four units under the previous Penang Municipal Council (MPPP), would now have their status upgraded to departments.

The new departments will be the Landscape Department, Heritage Department, Enforcement Department and Solid Waste Management and Public Cleanliness Department.

She explained that the upgrading was needed to cater for the demands that came with the new status of the MBPP.

Patahiyah also said that MBPP had hired an additional 388 staffers for the new departments, bringing the total to 3,964.

MBPP secretary Ang Aing Thye who was also present, said the hiring of extra staff involved an additional expenditure of about RM12mil annually for their sala-ries.

Patahiyah said the Heritage Department would work closely with the George Town World Heritage Incorporated (GTWHI) to handle heritage-related mat-ters.

“Currently, our Heritage Department is working with the GTWHI to identify heritage buildings out of the core and buffer zones.

“We’re still fine-tuning the list and we expect it to be completed by end of the year,” she added.

Patahiyah also said the council would hold a press conference in Komtar on every second Tuesday of the month, as well as after the full council meeting, which usually falls on the last Friday (subject to changes) of the month.

“We will address issues during the press conferences. The heads of departments will be around to answer questions too,” she said.

Source: StarProperty.my

If  you are interested in affordable housing projects, officers from the state housing department together with PDC will be in two different locations, namely Tesco (e-Gate) and PDC Sales Gallery (Batu Kawan), for the ‘Mission: Home-Possible’ road-show, to showcase affordable housing projects as well as assisting potential buyer to submit their completed application forms.

Click on the link below to find out more details about affordable housing projects in Penang. There are currently 8 projects open for registration.

>> Full list of Affordable Housing in Penang <<

Applicants are advised to bring along the following documents to facilitate their registration:

• Photocopy of applicant’s identity card and their spouse
• Photocopy of certificate of marriage / sijil nikah / statutory declaration of marriage
• Photocopy of certificate of divorce or death certificate of spouse (if relevant)
• Photocopy of children / dependents’ identity card or birth certificate
• Confirmation letter of employer / photocopy of pay slip for both applicant and spouse
• Employee’s Provident Fund (KWSP) statement of applicant and spouse
• Letter of confirmation from KWSP if the applicant or spouse are not EPF contributors
• Statutory declaration of income for applicant and spouse (for those running their own business / working on their own)
• Photocopy of business registration certificate / trade license (for those running their own business)
• Form B of Income Tax (for those running their own business)
• Photocopy of OKU card (if relevant)
• Letter of confirmation by employer confirming residence of at least 5 years in Penang

The eligibility criteria for applicants for affordable housing, are as follows:-

• must be a Malaysian citizen
• born in Penang, working in Penang and a registered voter in Penang; or having resided in Penang for at least 5 years as at the date of application, and a registered voter in Penang
• 21 years old and above
• nett household income of not more than RM2,500 for low cost units
• nett household income of not more than RM3,500 for low medium cost units
• nett household income of not more than RM6,000 for affordable housing units under RM200,000
• nett household income of not more than RM8,000 for affordable housing units under RM300,000
• nett household income of not more than RM10,000 for affordable housing units under RM400,000
• for low and low medium cost units, the applicant must not have owned any property in Malaysia
• for affordable housing units, the applicant will be given priority if he or she does not own any property in Malaysia but if they have owned either a low or low medium cost unit, the applicant may still be considered

A newly upgraded stretch of Jalan Masjid Negeri here has reduced traffic congestion during rush hour by some 15% according to the Penang Island City Council Engineering Department deputy director A. Rajendran.

He said the 600m stretch had been widened between 12m and 16m under a RM7.29 million project which was completed earlier this month.

Rajendran said other improvements to the section of road near the Jalan Udini roundabout include a U-turn just before the roundabout with dedicated entry and exit lanes.

He said removing the traffic lights at the Jalan Masjid Negeri and Jalan Delima intersection also allowed for smoother traffic flow.

“The Council is continuously monitoring the traffic flow so as to be able to further fine tune the system,” he said in a press conference today together with Penang Local Government Committee chairman Chow Kon Yeow.

On the delay of the project originally scheduled for completion in Sept 2013, Chow said relocating trees and underground utility cables and pipes took up a lot of time.

He said there were 60 trees along the upgraded section which were relocated while utility companies had to remove and replace their pipes and cables.

“Relocating the trees caused a 10-month delay while removing and replacing utility cables and pipes caused an eight-month delay,” he said.

Source: TheSunDaily.my

The first property project on land alienated in relation to Penang’s massive highway and traffic mitigation venture will have a gross development value of RM800mil.

Ewein Bhd and Consortium Zenith BUCG Sdn Bhd will undertake the mixed development project on 3.67 acres in Bandar Tanjong Pinang.

In a filing with Bursa Malaysia yesterday, Ewein said that it was expected to start in the second half of this year.

Yesterday, the Penang Island City Council approved the building plans for the development on the parcel of land alienated to Ewein Zenith, a 60:40 joint venture between Ewein and Consortium Zenith.

The parcel forms part of the 110 acres of freehold land to be alienated by the Penang government to Consortium Zenith or its nominees as partial payment for construction works on the RM6.3bil mega project which includes a 6.5km undersea tunnel. Consortium Zenith is also allowed to collect toll for the undersea tunnel for 30 years.

Ewein did not reveal the specifics of the proposed development in its announcement yesterday, but it did mention broadly in a circular to shareholders dated June 12, 2014, that the development would be a combination of residential and commercial units.

The circular to shareholders named the consortium’s shareholders as Datuk Zarul Ahmad Zulkifli’s Zenith Construction Sdn Bhd with a 99.94% stake, China state-owned Beijing Urban Construction Group (BUCG) (0.02%), niche contractor Juteras Sdn Bhd (0.02%) and Sri Tinggi Sdn Bhd (0.02%). Past press reports had assigned different equity stakes to the consortium members, including a 10% stake each for BUCG, Juteras and Sri Tinggi.

Ewein Bhd, via unit Ewein Land, will pay RM79.8mil to Consortium Zenith for the 3.67-acre land that has been valued at RM133mil (equivalent to 60% of the land value).

This marks the first property development project undertaken by Ewein, whose core business is precision and fabricated sheet metal manufacturing.

On the rationale for the diversification, Ewein said it was to mitigate any risk of dependency in its core business that fell within the electronics industry, “a competitive and rapidly evolving industry.”

The company said its proposed joint venture with Consortium Zenith was expected to result in a diversion of more than 25% of the net assets of the group to the property development business.

According to the circular, the group envisaged that profit would be shared in accordance to the respective shareholding percentages of Ewein Land and Consortium Zenith in Ewein Zenith.

Consortium Zenith was awarded the feasibility studies and detailed design works for Penang’s largest infrastructure project following an agreement inked with the Penang government in October 2013. The project comprises a RM6.3bil integrated road transport and traffic mitigation project comprising a 6.5km undersea tunnel, a 4.2km bypass from Gurney Drive to Tun Dr Lim Chong Eu Expressway, a 4.6km bypass between Tun Dr Lim Chong Eu Expressway and Bandar Baru Air Itam, and a four-lane 12km road from Jalan Tanjung Bungah to Teluk Bahang.

Source: StarProperty.my