From: http://thestar.com.my/news/story.asp?file=/2012/2/27/nation/20120227224104&sec=nation (accessed 28 February, 2012)
KUALA LUMPUR: The government is to implement the build-and-sell concept by 2015 to stem the problem of abandoned housing projects, according to the 2012 annual report of the Special Task Force to Facilitate Business (Pemudah).
The report, which was issued Monday, said the concept would be implemented through the financing of houses based on Syariah to buyers.
The government also imposed tighter laws through an amendment to the Housing Development Act (Control and Licensing) 1966 (Act 118), it said.
Among others, the deposit was increased from RM200,000 to three percent of the cost of physical development, including professional fees for the Housing Development Account, and a maximum penalty of RM50,000 has been set, compared to RM20,000 previously for offences under any provision of Act 118.
The amendment, passed by Parliament, also gave buyers more rights on matters of house buying, including the choice to cancel the sale-and-purchase agreement if there is no progress at the site six months after the date of agreement.
The scope of the House Buyers Claims Tribunal was also expanded to enable buyers to seek compensation from unlicenced housing developers.
A list of developers who were blacklisted and problematic housing projects were also displayed on the website of the Housing and Local Government Ministry.
According to the report, 32 abandoned housing projects had been revived by the Special Task force for Revival of Abandoned Housing Projects last year.
“The remaining 62 abandoned projects with 26,486 units and 17,400 buyers, are at various stages of revival while 22 other projects are in the planning stage to be revived by developers identified by the government,” said the report. – Bernama (emphasis added).