News by Datuk Chang Kim Loong

The new generation of house buyers expects their homes to be defect-free. However, the quality of houses, which although has improved over the past decade, has not kept pace with buyers’ expectations in both design and finishes.

The basic purpose for a statutory declaration is to obtain confirmation of execution of any deed, written instrument or allegation or proof of debt which would otherwise be too impossible to prove. In other words, it is to provide written proof to confirm something either too tedious or impossible to verify

“It is therefore clear that the Parliament no longer saw fit for housing developers to collect booking fees before the signing of SPA. This has put to rest any notion that the collection of booking fees is still permissible.”

“There remain uncertainties and gaps in the legislation, which, we believe, have been intended to make the legislation flexible enough to allow for more protection for homebuyers. Yet it leaves lots of wiggling room for housing developers too…”

Datuk Chang Kim Loong: One thing is certain though, similar to the 2020 moratorium, the 2021 one does not reduce borrowers’ lending costs as it is not interest-free. Hence, interests will continue to be charged during the moratorium period, and ultimately, borrowers will end up paying more to the banks when the moratorium period ends.

“The unhealthy practice of liquidators imposing exorbitant administrative fees up to 2% or 3% of the purchase price (or in some cases, current market value of the properties) for executing the transfer of individual titles to purchasers has now become a norm.”

Datuk Chang Kim Loong: Our contention is, this fee for a standard form has been charged since 2013. Surely, such costs must have been amortised over the years. Must the banks continue to profit from the sale of forms? Isn’t their major source of income derived from giving out loans?

Datuk Chang Kim Loong: The recent news reports on inflating housing prices caused by discounts and rebates have made many sit up and take notice and the National House Buyers Association (HBA) is glad that commercial banks are aware of such discounting practices by developers and its impact to the property market.

Datuk Chang Kim Loong: It is still very difficult to understand why taxpayers’ money is being “sacrificed” to facilitate the niche market buyers and for the benefit of the housing developers, because that is exactly what is being done here.

The Government has heeded the recommendations of the National House Buyers Association (HBA) to close the floodgates and resolve the issue.