KUALA LUMPUR (Nov 11): The proposed amendments to the Housing Development (Control and Licensing) Act 1966 (Act 118) is expected to be tabled in Parliament in the third quarter of 2022, in an effort to address issues concerning abandoned housing projects and prevent such problems in the future.
Housing and Local Government Minister Datuk Seri Reezal Merican Naina Merican said the move to amend the Act is in line with the country’s housing development direction and the adoption of the Build-Then-Sell (BTS) concept.
He said among the proposed amendments is that the Sales and Purchase Agreement (SPA) payment under Schedule G and H will be more similar to the BTS concept involving an advance payment of 40%, while the remaining amount is to be paid after the buyer receives the vacant possession notice, supported by the Certificate of Completion and Compliance (CCC) from the developer.
“The payment claim by the developer will be deducted 5%. For example, if the claim is 40%, then the buyer will only have to pay 35%. The remaining amount will be made after the project gets the CCC.
“This is to prevent (the developer) from making claims that do not match the certified work,” he said during the question and answer session at the Dewan Rakyat on Thursday (Nov 11).
He was replying to a question from William Leong Jee Keen (PH-Selayang), who wanted to know whether the government would adopt the BTS 10:90 concept to address the problem of abandoned housing projects.
Under the BTS 10:90 concept, buyers are required to make a 10% downpayment of the property’s purchase price, while the remaining 90% can be paid when the house is ready.
Reezal Merican said with the amendment of the Act, the government is of the view that the adoption of the BTS concept in the country’s real estate industry can be implemented comprehensively after 2023.
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