Govt mulls uniform liquidator fees and charges for buyers of abandoned private housing projects

• Currently, Akmal Nasrullah said the liquidator may charge a service charge based on Companies Winding-up Rules 1972 for the services provided and the rate of charge is subject to the complexity of the liquidator's role in managing the affairs of the housing project.

KUALA LUMPUR (June 13): A uniform set of liquidator fees and charges is being discussed by the Ministry of Local Government Development with the Malaysian Department of Insolvency, Accountant General's Department Of Malaysia and Insolvency Practitioners Association of Malaysia for buyers of abandoned private housing developments.

Acknowledging concerns by homebuyers regarding the rate of liquidator fees, Deputy Local Government Development Minister Akmal Nasrullah Mohd Nasir (pictured) said the related agencies and responsible body, who play a role in regulating and determining the liquidators’ charge and fee rates, are finding the best solutions and methods.

During the Dewan Rakyat session on Monday (June 12), Selayang Member of Parliament William Leong Jee Keen raised questions on how the government proposes to take action against private liquidators who charged exorbitant fees based on the market price of the house for signing transfer forms.

“The fee that is charged by private liquidators, they are not the white knight, their charged fee is too high in my opinion, as much as 2% to 4% of the market value of the house completed by the white knight and paid by the owner,” Leong had asked.

Based on the ministry’s statistics up to April 30, 2023, a total of 112 private housing projects have been declared abandoned. Of the total, 50 projects have been taken over by a liquidator, one project under a receiver and manager, while the rest are still under the original developers, Akmal Nasrullah said.

Any private housing project that is taken over by the liquidator is appointed by the court and is subject under the Companies Act 2016 for the management of the affairs of housing developer companies to be wound up.

Among the roles of the liquidator is to investigate the affairs and assets of the liquidated company, the behaviour of company directors and claims made by creditors.

Currently, Akmal Nasrullah said the liquidator may charge a service charge based on Companies Winding-up Rules 1972 for the services provided and the rate of charge is subject to the complexity of the liquidator's role in managing the affairs of the housing project.