In an interview with FMT, HBA Honorary Secretary-General Chang Kim Loong spoke on a recent viral Facebook post by Joseph Aidin, regarding a property development in Kayu Ara, Petaling Jaya.

Chang explained that developers were required to hand over the keys to house buyers within 24 to 36 months of signing the sale and purchase agreement (SPA).

If the developers failed to do so, they would have to pay the house buyer liquidated ascertained damages (LAD), which is a form of compensation.

However, developers may appeal under HD Regulations 11(3) for an extension under “special circumstances” and “hardship” from the Housing Controller, under the Urban Wellbeing, Housing and Local Government Ministry.

Chang said in the past, the granting of such extensions was uncommon.

“However, under the current ministerial regime, we can see frequent granting of extensions to developers and this has become a great concern as the LAD is part of a house buyer’s rights.

“So with a stroke of a pen, the Housing Controller can negate the rights of house buyers that were granted by Parliament under the Housing Development Act 1966.”
Chang said the granting of extensions was a discretionary power that must not be misused.

“Hence, whenever we see such cases, the question which arises is whether that power has been exercised in a just manner.”

Complicating matters was that “special circumstances” and “hardship” were ambiguous and not defined clearly.

Chang also pointed out that the granting of the extensions seems to be subject to the buyers signing a supplementary agreement.

He said the ministry and developers had the obligation to inform buyers on the developer’s application for an extension and the reasons for it.

“It is vital that the Housing Controller hear and consider the house buyers’ views before taking away their rights,” he said, stressing the objective of laws passed in Parliament was to protect the citizens of a country.