If you’re in the midst of surveying for your dream house and want to avoid being cheated by an unscrupulous developer, read on. Already bought a property from a blacklisted developer? We also have a solution for you.
Before committing to buying a house, check if the developer has faced any problems in their projects or is currently in hot water with the authorities. The Housing and Local Government (KPKT), which is under the National Housing Department (JPN) regularly compiles a list of blacklisted property developers in Malaysia and has released an updated list of blacklisted property developers recently.
These developers are divided into four offence categories as per below:
A property developer is bound by the Housing Developers Act (Control and Licensing) 1966 Act, which requires them to apply for a license and permit before commencing a project development and selling it to the public. Failing to do so is an offence under the Act. Usually, the developer will display the license and permit number on their pamphlet, brochure or at their sales gallery.
According to the latest list provided by KPKT, there are three types of developers who fall within the no license category:
i) developers with completed projects and the certificate of completion and compliance (CCC) has been issued
ii) developers with completed projects but no certificate of completion and compliance (CCC)
iii) problematic developers
Here is an excerpt from the list of 59 property developers, which has been updated as of 30 September 2022:
➡️ Here is a full list of property developers without licenses in Malaysia.
There are many reasons for a project to be abandoned. It could be because of inexperienced developers, poor marketing and sales strategies, financial problems, challenging economic conditions, disputes between shareholders, mismanagement of the company and business affairs, or even lack of enforcement and monitoring by the authorities.
As of 30 September 2022, the government had registered 242 abandoned private housing projects in Peninsular Malaysia, with the highest number from Selangor. Most of these developers have gone bankrupt or the property development company has been liquidated.
Some of the developers with abandoned projects include:
➡️ Here is the full list of developers with abandoned projects in Malaysia.
KPKT has also shared on its website the list of abandoned property projects that are in the midst of being recovered or might be recovered by either the government or a white knight developer:
For those who are unaware, the Tribunal for Homebuyer Claims provides homebuyers with an easier, cheaper and faster means of dispute resolution for home-related issues with housing developers such as property defects claims and late delivery of vacant possession. The TTPR is under the purview of the Ministry of Housing and Local Government (KPKT) and any final decision of the Tribunal is called an Award, where the developer is then supposed to act on or compensate the aggrieved homebuyer(s) accordingly.
As of 23 September 2022, 299 property developers have failed to adhere to the TTPR, including:
➡️ Check the full list of developers who did not honour the Tribunal for Homebuyer Claims (TTPR) Award.
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Developers who break the law will be charged with an additional fee, known as compounds. Just to break it down for you, property developers will be compounded between RM5,000 to RM50,000 based on the offences made. These are divided into three main clusters as below:
i. Compounding of the offence of the licensed housing developer under sections 7 and 18 (c) of Act 118 under the Housing Developers Act
ii. Compounding of Advertising and Sales Permits in compliance with regulation 5 (Housing Development (Control and Licensing) Regulations 1989
iii. Compounding of the management and maintenance offences of the Housing Development Account (HDA) under the Housing Development Regulations (1A), 5 (6), 6 Housing Development Account) 1991.
As of 23 September 2022, there were 465 property developers who are guilty of not settling their compound payments – this is a slight decrease from the 412 developers who failed to settle their TPPR as of 20 October 2020.
Some of the guilty developers are:
➡️ Here is the list of property developers who failed to settle compound payments.
To answer this question, we called KPKT and the feedback wasn’t as helpful as we’d hoped. The representative said that they weren’t able to do anything, so we would need to talk to a lawyer and file a civil suit.
We couldn’t just stop there! So we engaged a real estate lawyer, Khairul Anuar Sharudin of Khairul, Suhaila & Hazlina, to get a more thorough answer. Apparently, there is another way to approach this matter – You can cancel your sales and purchase agreement (SPA)!
Based on the amended Housing Development Act (Control and Licensing) 1996 Act 118, homebuyers can revoke their SPA if the housing project that they bought shows no progress within six months since they signed the contract. To make this happen, you need to acquire approvals from the Ministry and request written consent from the banks.
Another thing you should know is that the financier should not unreasonably withhold permission to terminate the agreement. Once the process is settled, the licensed housing developer should refund your money within 30 days (interest-free).
According to the former Housing and Local Government Deputy Minister, Halimah Mohamed Sadique in a media report, you can bring your complaints to the Housing Claims Tribunal, including problems you face with the unlicensed developers, under the same Act.
While there are many factors to consider when deciding when or where to purchase a house, the safest way is to start with an easy background check. As you can see, there are hundreds of blacklisted property developers. It doesn’t matter if you encounter them at the mall or a property expo – double-check their credibility with KPKT and look up their CTOS profile. As cliche as it may sound – prevention is better than cure.
Source : (Updated) Blacklisted property developers in Malaysia - iproperty.com.my
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