Monday, June 13, 2011

NEW HDA Protecting Purchasers

The Housing Development Act (HDA) will be amended to make sure that developers are held liable for their actions, according to Housing and Local Government Minister Datuk Chor Chee Heung.

Mr. Chor said the amendment, which will be tabled in Parliament before the end of the year, would bring in criminal liability for developers who abandon their projects.

“This would include a jail term and fine,” he said.

“We will see fewer abandoned projects,” he commented without elaborating on the details of the fines.

Currently, 161 projects were abandoned nationwide. “Of the number, 72 have been revived,” noted Mr. Chor.

He also said that developers are required to pay a deposit of RM200,000 to the ministry prior to the issuance of permits.

“This deposit will be increased,” said Mr. Chor.

Additionally, the act would be revised to ensure that developers are professionals who have a good understanding of the business.

“We do not want purchasers to end up suffering,” he said, adding that to date, errant developers are only blacklisted.

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