Frontage, a commercial development by UDA Land in Taman Pauh Jaya, Prai. Strategically located facing Jalan Baru, with easy access to Penang Bridge, Butterworth and Bukit Mertajam. Comprises commercial lot with built-up area ranging from 1,180 sq.ft. onwards.
Property Project : Frontage
Location : Prai, Penang
Property Type : Commercial
Built-up Area: 1,180 sq.ft. onwards
Indicative Price: from RM330,000 onwards
Land Tenure: Freehold
Developer : UDA Land
Location Map:
“THE developer says I must sign the letter to collect the keys.”
How often do we hear that from house buyers? Too often. How often do house buyers know what to do when faced with such dilemma when taking vacant possession? Not often enough. Do you know the entire content of the letter that you are asked to sign? Not really. Are the content too confusing and legalistic? Ehh Conclusion: Guess there is too much pride to admit that they are ignorant. The worst affected ones are the nave and unwary first-time house buyers.
When completion of a house is delayed, the developer must pay compensation or liquidated damages, commonly referred to as LAD (liquidated ascertained damages) to the house buyer. This LAD is calculated at 10% per annum on the purchase price for the period of delay in handing over the house.
Developers (unscrupulous ones) are known to have resorted to various ways and means to avoid paying LAD and these include misleading house buyers into signing waiver letters before handing over the keys to the house buyers. Some even resort to refusing to hand over the house keys unless the house buyers sign such waiver letters. What are house buyers to do?
First of all, house buyers must know their rights, benefits and entitlement. Secondly, they must not sign their rights away.
The developer must hand over the keys to the house buyers when the house is completed and ready for delivery of vacant possession. Buyers will be asked to sign a letter when collecting their keys. What house buyers must know is that this letter for collection of keys should contain nothing more than an acknowledgement by the buyer that he has collected the keys and a confirmation as to how many sets of keys are given. This letter must not contain any terms or conditions that the buyer waives LAD or other rights, benefits and entitlement under the sale and purchase agreement (SPA) or that the buyer will not make any claim whatsoever against the developer.
HD Act and its governing regulations
Under the Housing Development (Control and Licensing) Regulations 1989 (HDR) [which are regulations made under the Housing Development (Control and Licensing) Act 1966 (HDA)], the sale and purchase agreement (SPA) for any housing accommodation sold by a housing developer must be in the format prescribed under the HDR. This SPA, unlike any other contract of sale, contains provisions which cannot be changed at all unless such changes have been sanctioned by the Controller of Housing at the Housing and Local Government Ministry (MOH). In other words, this SPA is a statutory contract and all the provisions in this SPA are statutory requirements which must be strictly complied with.
One of the provisions of the SPA gives the house buyer a right to be paid LAD immediately by the developer in the event of delay in the completion of the housing accommodation. It is found in Clause 22(2) of Schedule G and the corresponding Clause 25(2) of Schedule H – Sale & Purchase Agreement.
Can this statutory right be waived by the house buyer? According to the Federal Court, the answer lies in the overall purpose of the legislations and whether this purpose would be defeated by permitting waiver and contracting out.
There is no shortage of cases whereby the Courts of Law have decided that the housing legislations are a social legislation, the main purpose of which is to protect the interest of house buyers. And, according to the Federal Court, the protection given to house buyers under the HDA and HDR is not just a private right but a matter of public interest. Such court decisions have even received affirmation and endorsement by Parliament in 2007 when it amended the long title to the HDA to read as “An Act to provide for … the protection of the interest of purchasers… ”
If statutory rights given to house buyers could be waived by them individually, surely the good and commendable intention of parliament to provide the much-needed protection for house buyers (and indeed the whole purpose of the housing legislations) would be defeated and eroded.
The conclusion is therefore clear and simple. Waiver letters are not worth the paper they are written on. They cannot be held against the house buyers and must be declared null and void. Developers must be made to stop trying to wriggle their way out of paying LAD. They must accept that the only way they can escape liability to pay LAD is for them to secure a certificate from the Controller of Housing extending the delivery date.
Word of caution
House buyers are strongly cautioned not to sign waiver letters to avoid possible undesired delay(s) or outcome in their claims and unnecessary legal battles with unscrupulous developers who will raise whatever issues possible to avoid or simply delay the legitimate claims from the house buyers.
“But what can I do if the letter contains a waiver? I don’t have a choice. I want my keys and the developer says I must sign then only can give me the keys.”
Sign “Under Protest” is one way. The house buyer can write a note on the letter that he does not agree to waive LAD, or that he does not agree to waive his rights, or that it is “Without Prejudice” to his/ her rights under the SPA. Alternatively, he can delete the offending words or sentences.
If the developer refuses to give the keys unless the house buyer signs without adding or deleting anything from the letter, the house buyer are constrained to sign and collect the keys but should immediately after that write to the developer to state that he was not given a choice but was “arm-twisted” and that he does not agree to waive LAD or other rights. A complaint should be immediately lodged with the Enforcement Division of the Housing Ministry (www.kpkt.gov.my ) and a claim can be filed at the Housing Tribunal, both of which should be done expeditiously.
Tribunal for Home Buyer Claims: www.kpkt.gov.my Portal TTPR)
The Tribunal for Home Buyer Claims, commonly known as the Housing Tribunal, is empowered to deal with house buyers’ claims against developers and can give awards up to RM50,000. Its awards can be enforced against developers just like a judgment from a Court of Law. In addition, non-compliance of its awards is an offence and the defiant developer can be prosecuted.
Even though its head office is in Putrajaya, the Housing Tribunal has branches in Johor Baru, Seberang Prai as well as Kuala Terengganu. It conducts court hearings, not just in Putrajaya and its branches, but also many other localities for the convenience of house buyers. The filing fee is RM10 and no lawyers are required. It has been set up for the benefit of house buyers. It is cheap, fast and easy, so make use of it.
Even though I take the view that a waiver of rights and benefits under the SPA by any house buyer is void and cannot be enforced, house buyers are strongly advised to avoid signing any such waiver letter to avoid undesired outcome to their claims.
House buyers are cautioned to exercise prudence when dealing with such shrewd and unscrupulous housing developers who have no principles. Avoid buying property from those developers who have such unprincipled track record.
Chang Kim Loong is the honorary secretary-general of the National House Buyers Association (www.hba.org.my), a non-profit, non-governmental organisation manned by volunteers. He is also a councillor at the Municipal Council of Subang Jaya.
Source: StarProperty.my
PROPERTY prices in Seberang Prai are expected to rise by an average of 10% this year, says Fook Tone Huat, associate director of property consultants Henry Butcher (Seberang Prai) Sdn Bhd.
Fook said in an interview that the rise in prices would apply to all types of properties across the board, covering residential, office, vacant development land and industrial properties.
The price for a double-storey terraced in Bukit Mertajam is currently RM385,000, compared to RM350,000 a year ago, a rise of 10%.
An office lot in Wisma Pantai in Bagan Jermal is now selling for RM175 per sq ft, an increase of 8% since 2011, while the retail properties on the ground floor of Megamall in Butterworth are priced between RM500 per sq ft and RM600 per sq ft, which is more or less the same as two years ago, due to an oversupply situation.
“The price of industrial land is now RM25 to RM30 per sq ft, about 15% more than two years ago, an industrial semi-detached unit of 5,000sq ft built up area sells presently for RM550,000 or RM110 per sq ft, compared to RM400,000 or RM80 per sq ft in 2011, an increase of 37%.
“Vacant development land is now between RM25 to RM30 per sq ft for suburban areas of Bukit Mertajam and RM40 to RM50 per sq ft for Bukit Mertajam town and Bagan Lalang, which is about 10% more than a year ago,” Fook said.
In 2011, property prices in Seberang Prai soared by about 15%, and last year the appreciation was around 10%.
“We expect prices in Seberang Prai to increase by about 10% this year,” Fook added.
The last three years could have been the best of times for property prices in Seberang Prai.
“Previously, the annual increase in prices was in single digits, below 10%,” he said.
The new property trend in Seberang Prai is the development of condominium projects with facilities.
“New condominiums planned for this year include the RM40mil Camelia Park project in Jalan Raja Uda by Tambun Indah and Condominium Berjaya at Kampung Baru in Bukit Mertajam by Five Star Contract Sdn Bhd.
“The Camelia Park project comprises 127 condominiums of 1,200sq ft with a gross development value of RM40mil, selling at RM250 per sq ft, while the Condominium Berjaya scheme comprises 147 units with built-up areas of 1,412sq ft and 3,798 sq ft, selling at RM290 sq ft.
“There is also New Bob’s RM50mil condominium project, comprising 148 units in Permatang Pauh, which will be priced between RM300,000 to RM400,000 each,” he said.
Older condominium schemes such as the Park View Tower by PJD Eastern Land are now selling for RM230 per sq ft, compared to RM180 per sq ft in 2008.
Newer condominium schemes such as Sea View Tower and Ocean View Tower are now selling for RM280 per sq ft and RM350 per sq ft respectively, compared to RM190 per sq ft and RM300 per sq ft in 2008 and 2010.
The pricing of industrial landed properties in Seberang Prai has appreciated substantially by about 37% since 2011.
“This is due to the limited supply of landed industrial properties in strategic locations,” he said.
According to Fook, the three key reasons for the anticipated surge in property prices are the expected completion of the second link in September this year, the new investments pledged by multi-national corporations over the past two years, and the development of new high-end mixed development projects.
Boon Siew Honda, Bosch Solar Energy, Phison Eectronics Corp, Aviatron, Bose Corp, Malaysian Automotive Lighting and UOP LLC are some of the MNCs that are committed to making investments in Penang.
“Boon Siew Honda Sdn Bhd’s new RM200mil plant in the Batu Kawan Industrial Park, launched recently, is expected to open up 1,100 job vacancies, creating demand for more properties in Seberang Prai,” he said.
He added that projects such as DNP Land Sdn Bhd’s RM1bil BM Impiana township project in Alma, Bukit Mertajam, scheduled for launch in the first half of this year and Tambun Indah Land Bhd’s RM1.64bil Pearl City project are transforming the property landscape of Seberang Prai.
Residential properties in BM Impiana such as semi-detached and super-linked homes are priced from RM1mil and RM578,000 onwards, respectively.
“Tambun Indah’s project comprises the RM640mil Pearl City Business Park and over 5,000 gated-and-guarded residential properties on a 583-acre site in Simpang Ampat.
“Residential properties in the project are priced from RM368,000 and RM568,000 respectively for double-storey terraced and double-storey semi-detached units.
“The business park comprises a controlled tenant mix leisure mall with F&B and retail outlets, a karaoke and a cineplex,” said Fook.
According to the latest National Property Information Centre’s property market report, total transactions for residential properties in Penang hit around 18,316 for the first nine months of 2012, with a transacted value of RM5.2bil.
The whole of 2011 saw the state registering some 30,674 residential property transactions valued at RM7.7bil.
“The total property transactions for Penang during the nine month period of 2012 registered 24,203 with a RM9.1bil value, of which about 40% of the transactions are in Seberang Prai,” he said.
Source: StarProperty.my
Prominence, a mixed development by Bionic Development in Bukit Mertajam, Penang. It is strategically located with easy access to Penang Bridge via Jalan Baru and mere minutes drive to AEON Seberang Prai City mall in Bandar Perda.
This development comprises 24 units of 3-storey shop-offices, 19 units of 2-storey shop-lots and 412 condominium units with condo facilities.
Property Project : Prominence
Location : Bukit Mertajam, Penang
Property Type : Mixed Development
Tenure : Freehold
Built-up Area: approx. 1,000 sq.ft. onwards
Total Units : 412
Indicative Price: RM 300,000 onwards
Developer : Bionic Development Sdn. Bhd.
Location Map:
Vilaris, a gated and guarded residential development by Warisan Penang Sdn. Bhd. along Jalan Sultan Azlan Shah in Penang. It is located within Batu Uban township, next to N-park condominium. Comprises 56 units of 3-storey terrace houses with three design types to choose from.
Property Project : Vilaris
Location : Batu Uban, Penang
Property Type : 3-Storey Terrace
Land Tenure: Freehold
Total Units : 56
Indicative Price: RM1,688,000 onwards
Developer : Warisan Pinang Sdn. Bhd. (Prima Prai Group)
Location Map:
