WE are constantly looking for avenues to improve ourselves. We buy the latest laptops and smartphones in our efforts to keep updated. We also purchase new cars with better performance to suit our changing needs. Due to the normally expensive price tags, these purchases are not usually made on a whim. People will usually do their homework and tend to scrutinise every little detail before buying, to ensure that their purchases are value for money.
For instance, a buyer might wonder if the latest smartphone model has a high resolution, user-friendly apps and a great display. Can it be synced with their laptops at home? Does it capture photographs which can rival conventional cameras? And we would almost always ask questions about the warranties that these phones and laptops have, such as how long it is for, and under what cases is the warranty applicable. Buying a house, by right, requires even more scrutiny than buying electrical devices. Through this article, Rehda (Real Estate and Housing Developers’ Association Malaysia) hopes to educate and highlight some of the things house buyers should look into when shopping for a property.
Among other factors, what prospective homeowners should bear in mind is to check out the location of the property, amenities, type, size of built-up area, the cost of the property and the fees involved and whether the property is freehold or leasehold.
Of equal importance, is whether the house would fit into the lifestyle they have envisioned for themselves and for their family, as a house is not just a house – a house is a home where a family grows, relationships are fostered and memories are made. It is also imperative for buyers to be mindful of the provisions of the law to safeguard themselves as they commit to one of the biggest capital investments in their lifetime.
One of the most important elements that all homebuyers should be cautious about is the developer’s credibility. A background check on the company as well as on the particular development should be performed, so a buyer can be assured of the company’s credibility, especially with regards to their performance and track record on timely, quality and efficient delivery. This is to avoid complications and problems that could arise owing to a lack of due diligence.
How can house buyers do this? This can be done by making sure that the developer possesses a valid licence, under the provisions of Act 118 – Housing Development (Control and Licensing) Act 1966 (HDA), with the Ministry of Urban Wellbeing, Housing and Local Government (KPKT/ (Kementerian Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan). According to the Act, developers without a Developer’s Licence (DL) cannot operate or undertake any development projects. Developers need to also have an Advertising and Sales Permit (AP) for the project they are selling. The Housing Development (Control and Licensing) Regulation 1989 states that no advertisement or sale shall be made by any licensed housing developer without an AP, which can only be obtained by submitting the approved building plans, proposed advertisement and other specific information on the development to KPKT.
As much as possible, home buyers need to keep themselves constantly updated on the development of the projects. Developers have a responsibility to fulfil their promises to each buyer once the Sales and Purchase Agreement (SPA) is signed, and a breach of contract is punishable in the court of law. As it is quite difficult for property owners to go to the site and inspect the development themselves, the relevant end and bridging financiers do have teams assigned to check on these developments for their clients. Additionally, as it is mandatory for developers to submit reports and photographs of their projects to KPKT as well as to the banks, buyers can also go through these channels to do their checks.
While this article barely scratches the surface of what people should look out for when buying a house, the most important thing is to know what you want and make sure it ticks all the right boxes, as buying a property is a long-term commitment. There is adequate legislation inMalaysiato protect homebuyers from errant developers.
Rehda and its members are committed to the 4Rs – Responsive, Respected, Responsible and Relevant – and strive to continue to reinforce our efforts towards sustainable development in housing the nation. It is prepared to take the appropriate action against members that breach the law. In fact in 2012, it had terminated the membership of three developers that had not complied with some of the conditions set by KPKT. We believe in encouraging buyers to be more vigilant when scrutinising the identity and background of the developers by verifying that AP and DL are granted, amongst others.
Bricks & Mortar
By DATUK SERI MICHAEL YAM
Datuk Seri Michael Yam is president of Rehda.
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