Module 1: INTRODUCTION HOUSING DEVELOPMENT (CONTROL...

Module 1:

INTRODUCTION

HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966 (ACT 118) & REGULATIONS

25 February 2017

WHY WE NEED H.D.A ?

IN 1966, H.D.A WAS PASSED THROUGH THE PARLIAMENT WITH THE PRIMARY OBJECTIVES TO:

i. To check abuses of the infant housing industry;

ii. To regulate the activities of housing developers;

iii. To protect house buyers

WHAT IS THE COMPONENT OF THE ACT?

Consist of

Principle Act 1. Housing Development (Control and Licensing) Act 1966 (Act 118)

Regulations extended from principle act2. Housing Development (Control and Licensing) Regulations 1989

3. Housing Development (Housing Development Account) Regulations 1991

4. Housing Development (Tribunal for Homebuyer Claims) Regulations 2002

5. Housing Development (Compounding of Offences) Regulations 2002

1

HDA 1966 (AKTA 118)

5 7A 24

PENGKOMPAUNANKESALAHAN

2002

TRIBUNAL2002

HDR(APP) 1991

HDR (LESEN)1989

ACCOUNTLICENSE

PERATURAN/ REGULATION

1

15

LESEN

PERMIT

S&P (KONTRAK JUALAN)

G H I J

1

33 36

1

JADUAL KETIGA – JADUAL PEMBAYARAN

AKTA 318 (STA) / AKTA 757 (SMA)

SECTION

3

5

11

16

TRIBUNAL POWER TO MAKE RULES

THE PRINCIPLE ACT

Housing Development (Control and Licensing) Act 1966 (Act 118)

WHAT ARE THE PURPOSES OF THE HOUSING DEVELOPERS ACT

i. An Act to provide for the control & licensing of the business housing development in West Malaysia

ii. To protect the interest of the buyer

Changes on Amendment Act A 1415 on09/02/2012

1. Sec 6- Amount of deposit changed

2. Sec 8A – Only purchaser can terminate S&P as appose to either party

3. Sec 16AD – Penalty on failure to comply to 10k-50k in lieu of 5k-10k.

4. New Sec 18A- Offences relating to abandonment of housing development by license developer. Guilty shall be charge between 250k-500k or 3 year imprisonment.

5. Sec 24(g) – Penalty for act or omission in contravention 50k in lieu of 20k

HOUSING DEVELOPERS ACT IS DIVIDED INTO 7 PARTS AND 24

SECTIONS.

H.D.A PARTS

PART I – PRELIMINARY

PART II - LICENSING OF HOUSING DEVELOPERPART III - DUTIES OF A LICENSED HOUSING DEVELOPER.

PART IV- INVESTIGATION AND ENFORCEMENTPART V – POWERS OF MINISTER

PART VI- TRIBUNAL FOR HOMEBUYERS CLAIM

PART VII- MISCELLANEOUS

W- Kewajipan PP

HDA 1966 (AKTA 118) – 7 Bahagian

L- PelesenanM - Permulaan S- Peyiasatan & Penguatkuasaan

M- Kuasa Menteri T- Tribunal P- PelbagaiS3 –Taksiran :• APP – akaun dibuka &

disenggara PP/Dev’r. • PP – memaju/bina >4

unit tempat tinggal, kutip wang,kendali bldg, jual > 4 lot.

• Stakeholder/pemegang amanah – Penguamcara

S3A – Kuasa Menterii. Berkuasa tetapkan jenis

development.ii. Keputusan muktamad

S5 – Pemberian Leseni. PP perlu miliki lesen.ii. PP perlu mohon lesen dr Ctrlr dan

dikenakan caj/fees.iii.Ctrl ade power batalkan lesen

anytime.

S6 – Syarat pemberian Lesen:i. Modal tunai >250Kii. WP to Ctrlr >200K iii.Director/personal clean record.iv.Pendaftran akitek/engr renew .v. PP/director tidak pernah disabitkan

kesalahan HDA/denda >10k/penjara.

S6A – Ctrlr Simpan Wang P’dahuluan (WP)

i. Simpan wang Pendahuluan sampai habis DLP.

S6B – Ctrlr Boleh Rampas WP sekiranya PP:

i. jejas kepentingan p’beli/awam.ii. Salahi akta HADiii.Bankrup- PP boleh buat rayuan to Ctrlr

supaya WP x blh dirampas.

S7 – Kewajipan PP(a) Dlm tempoh 14 hari , inform PP jika

terdapat perubahan dlm. Manaplan/dokumen.

(b) Pamer lesen,permit.(c) Simpan rekod financial etc dipejabat

dan mudah diaudit/ west Msia.(d) Lantik juruaudit setiap tahun.• Submit to Ctrl :-- financial audit report.(e) Every 6 bulan submit kenyataan

bertulis kemajuan pemajuanperumahan.

(f) 21hari setelah terima CCC, perlusubmit ccc/cf kpd Ctrlr.

(h) Inform to ctrl within 21 dys after VP

S7A – PP buka APPi. Mesti buka APP dgn satu bank.ii. 1 projek :1akaun

1phase prjk : 1akauniii. Wang p’beli masuk dlm APP.iv. PP langgar/bersalah S7A:

denda 250K-500K@3 thn dok penjara.

S7C – Pembekuan APP.i. Ctrl blh arahkan (bertulis) bank

bekukan APP.ii. Jika gagal ikut arahan Ctrl denda

<100K

S8- PP Restructuring/agreement perniagaan .

i. PP buat perjanjian pengubahan/ menjual etc perniagaan perlumaklum kpd ctrlr.

Ctrlr bekuasa utk lulus/x lulus permohonan diatas.

S8A – Penamatan S&PPP/buyers boleh mohon kebenaran

Menteri utk tamatkan S&p jika :-i. p’mohanan disokong dgn kebenaran

bertulis PP/Byrs.ii. Permohonan diterima Menteri 6 bulan

slps S&p sign.iii.75% pembeli agree tamatkan S&P.

Setelah keputusan dibuat Menteri ;i. Keputusan muktamad.ii. x > 14hari PP perlu maklum to

buyers.iii. PP pulangkan wang pembeli.iv. Kesalahan S8A = denda 50K-

250K.

S9 Audit i. Audit 1 tahun sekali.

Ringkasan :Akta / Seksyen inimenerangkan:-

i.kuasa menteri/org berkaitanuntuk jalankan siasatan,

ii. perlindungan kpd pemberimaklumat,

iii. kuasa utk bertindak,Iv. had kuasa peg.

penyiasat/pemeriksav. Denda 10K-100k@ x lebih 5thn

jika halang kerja Peg. Pemeriksa.

S16-Tbnl tuntutan Pembeli Rumah16C - Anggota :i.Pengerusiii.Timbalan pengerusi.iii.X < 5 peguamSemua ahli perlu drpd anggota P’khidmat’ Kehakiman & Perundangan.Daftar bwh Akta Profesion undang.

Ringkasan :-Ditubuhkan untuk selesaikan masalah pembeli dgn PP.-Laksana hearing process.-Tuntutan defect.

S11 – Kuasa Menteri utk beri arahan.

i. Digunakan apabila kpentingan terjejas

ii. Arah PP solve the problemiii.Ambil tindakan mengikut kuasanya

untuk kuatkuasa akta.iv.Blh arah kos munasabah/aduan

buyer dibyr drpd APP.

S13 – Batal & Gantung LesenSekiranya PP :i. Jejas kpentingan pembeliii. Aset x cukupiii.Langgar aktaUnder S14,Action taken by Ctrlr.

S13A – Lapor kesalahan Archi/Engr.

i. Ctrlr boleh lapor kpd LAM/BEM.

S18- PP Salah guna LesenRelated to S5,S5(2)i. fraud,penipuan dgn guna lesen, x

patuhi akta S5 = denda250K-500K@Jail<5thn.

S19 – Kesalahan oleh PP.i. langgar S7/langgar tgjwb.ii. Langgar S8.iii. Langgar S11.Denda :50K- 250K@Jail<3thn@daily

fine<$500

S20 – K’salah’n Pengarah PP.i. Langgar S15(1)- jadi pengarah

walaupun telahbankrup,fraud,hutang.

Denda : 50K-250K@Jail1-3thn.

S21 – PenaltiKesalahan yg tiada penaltidiperuntukan@dinyatakan:PP boleh didenda x lebih

250K@Jail<3thn.

S22E – Kesalahan Pelepasanwang o Stakeholder.

i. Stakeholder x blh release duit (kpd PP/org) melanggari peruntukan dlmS&P.

ii. Sesiapa yg bersubahat.Denda 10K-100K@Jail<5thn.

S22F – Tipu Perakuan Kemajuan.i. Arkitek/engr isukan

perakuan kemajuan ygsalah / premature CF.

ii. Arch/engr boleh disaman.iii. Sesiapa yang bersubahat.Denda : 10K – 100K@Jail<5thn.

S24 – Kuasa Buat PERATURAN

i. Menteri blh buat rules.

Rules yg blh dikuatkuasa Menteri:i. Kawal selia iklanii. Kawalselia nama kawasaniii. Tetapkan bentuk kontrakiv. Tetapkan penaltiv. Tetapkan wang masuk&

keluar APPRules yg dibuat perlu dibentang dlm

MAJLIS PARLIMEN.

H.D.A salient points to know

5. Prohibition against housing development except by virtue of a license & provisions relating to the grant of license.

6. Conditions or restrictions for the grant of a license

6A Controller to keep deposit

6B Controller may forfeit deposit

7 Duties of a licensed housing developer

7A Licensed housing developer to open & maintain HD Account

7C Freezing of the HD Account

8A Statutory termination of sale and purchase agreement

13A Controller to report the conduct of an architect or engineer

16M Jurisdiction of tribunal

22E Release of money by stake holder

22F Progress certification

When will a developer be required to have a license to develop a property?

PART I – PRELIMINARYS3. INTERPRETATION

Housing development means

•to develop or construct or cause to be constructed in any manner whatsoever more than 4 units of housing accommodation and

•includes the collection of moneys or the carrying on of any building operations for the purpose of erecting housing accommodation in, on, over or under any land; or

•sale of more than 4 lots of land or building with the view of constructing more than 4 units of housing accommodation

CLARIFICATION OF WHAT CONSTITUTE A PROJECT UNDER H.D.A?

1. Act define the development as the business of developing more than 4 units of housing accommodation.

2. A person who construct 4 units of housing accommodation is notgoverned by the act.

3. A developer who builds only commercial units such as shops or offices or factories will not be subjected to the act

4. If the unit constructed comprises partly shop or office and partly residential units, the act will apply.

WHAT IS THE DIFFERENCE BETWEEN LANDED AND NON LANDED PROPERTY?

Landed- Horizontal mass housing Intended for sell(can be individual or strata)

Non landed- Vertical mass housing intended for sell(strata)

WHO ARE THE PARTIES INVOLVED?

Obtain LicenseMHLG

DEVELOPER PURCHASER

H.D. ACCOUNTBANK

PURCHASER FINANCIER

S&P agreement via parties solicitor

PSP BuildingARCH/ ENG

PSP KMPLANNER

Sales permitMHLG

Progress billing supported with Arch stage certification

Deposit purchaser loan

Loan aggreement

Obtain CCC and developer give VP

PART II - LICENSING OF HOUSING DEVELOPER

PART III - DUTIES OF A LICENSED HOUSING DEVELOPER.

OVER VIEWPART II - LICENSING OF HOUSING DEVELOPER

PART III - DUTIES OF A LICENSED HOUSING DEVELOPER

Part SEC Description

ii 5 Prohibition to license Prohibition against housing development except by virtue of a license and provisions relating to the grant of a license.

6 Condition to license Conditions or restrictions for the grant of a license.

iii 7 Duties Duties of a licensed housing developer.

7A Account Licensed housing developer to open and maintain Housing Development Account

8 Special arrangement Arrangement or agreement affecting the business of a license housing developer

8A Terminate agreement

Statutory termination of sale and purchase agreements

9 Audit account Audit


S5. Prohibition against housing development except by virtue of a license and provisions relating to the grant of a license.

(1) No housing development shall be carried on except by a housing developer in possession of a license issued under this Act.

(3) A housing developer who desires to carry out a housing development shall apply to the Controller for a license in a prescribed form.

(4A) A prescribed fees to be paid to Controller


S6. Conditions or restrictions for the grant of a license.

(1) License applied under section 5 shall not be granted –

(a) unless the applicant has a capital issued and paid up in cash of not lessthan RM 250,000.00 and makes a deposit with the Controller a sum

equivalent to 3% of the estimate cost of construction as certified by architect incharge of the development ; (application by a company) or(b) unless the applicant makes a deposit with the Controller of a sum equivalent to 3% of the estimate cost of construction as certified by architect in charge of the development; (application by a person or body of persons)

(c) unless the applicant convicted of an offence involving fraud or dishonesty orbankrupt

(g) if the registration of the applicant’s architects or engineer has been cancelled& has not been reinstated under BOE/BOA

NEW AMENDMENT


S6A. Controller to keep deposit.

Controller shall keep the deposit made under paragraphs 6(1)(a) and (b) until the expiry of the DLP of the housing development.

S6B. Controller may forfeit deposit.

If any licensed holding developer -

(a) carry on business in a manner detrimental to the interest of the purchasers

(a) has insufficient assets to cover his liabilities

(b) Is contravening any of the provisions of this Act; or

(c) had ceased to carry on housing development


S7. Duties of a licensed housing developer.

b) exhibit at all times a copy of his license, advertisement and sale permitc) keep in his office accounting records, transactions & financial position d) appoint an auditor (every year)

f) not later than the 21st day of January and the 21st day of July of each year send to the Controller statement in writing on the progress of the housing development until CCC have been issued

g) inform Controller If unable to meet his obligations to the purchasers at any stage of the housing development before the issuance of the CCC

(h) (i) submit CCC to Controller (within 21 days after received) ;

(ii) within 21 days after the date of handing over of VP to the first purchaser, inform the Controller in writing of the handing over;

(i) inform Controller of any refusal in the issuance of CCC

(j) ensure that the development are in accordance to any law regulating buildingsand has exercised all such diligence as may be required for the issuance of

CCC

(k) inform the Controller of the progress in the issuance of strata titles



S7A. Licensed housing developer to open and maintain Housing Development Account

(1) Every licensed housing developer shall open and maintain a HD Account for each housing development

(2) For phased development, the licensed housing developer shall open and keep a HD Account for each phase

(3) The licensed housing developer shall pay into the HD Account :- purchase monies received from the sale - any sums of money to be paid into the HD Account.

(4) The licensed housing developer shall not withdraw any money from the HD Account except as authorized by regulations made under this Act.

(7) All monies in the HD Account and moneys held by the stakeholder shall not be garnished until all liabilities under SPA have been fulfilled.

(10) Fail to comply - fine min RM250,000.00 max RM500,000.00 & 3 year jail/ both.

S7C. Freezing of the Housing Development Account.

(1) If the licensed housing developer carry on business in a manner detrimental manner, the Controller may freeze HD Account .

(3 Fail to comply - fine max RM100,000.00


Old section 8A.

Statutory termination of sale and purchase agreements

A licensed housing developer or the purchasers may apply to the Minister for approval to terminate SPA if –

(a) Minister received application within six months after the execution of the first SPA; and

(b) at least 75% of all the purchasers who entered into the SPA agreed with the housing developer in writing to terminate the SPA


Note: This section is subjected to sec 7B of the act for housing developer including housing

developer whose license has expire and subject to8- any special arrangement of business11- power of magistrate to protect purchaser interest

Amended section 8A. (ACT A1415 2012)Statutory termination of sale and purchase agreements

(1) A purchaser shall at any time be entitled to terminate S&P agreement entered into housing development which the license developer engage in, carries on, undertakes or cause to be undertaken if:

a) License developer refuse to carry our or delay or cease work for a continuous of 6 month after the execution of S&P agreement

b) The purchaser has obtain written consent from end financier.c) The controller has certified that the license developer has refused to carry out or

delay or cease work for a continuous of 6 month after the execution of S&P agreement

(2) No end financier shall withhold written consent for termination

(3) In the event purchaser exercise his right, license developer has 30 days to refund purchaser all monies after the termination of S&P.

(4) All encumbrances by purchaser on land will be borne by license developer.(5) Offence – min 50k and not more 250k, further fine 5k perday after conviction.


NEW AMENDMENT

PART V – POWERS OF MINISTER

PART V – POWERS OF MINISTER

S13A. Controller to report the conduct of an architect or engineer.

If Controller satisfied that the conduct of an architect or engineer of a housing developer has prejudiced the interest of the purchaser, Controller may report such conduct to BOE/BOA

Most common mistakes:

(a) Premature certification – including providing undated signed certificates to developers and before proper application has been made for the Certificate of Fitness for Occupation (CFO) together with all prior clearances from subsidiary approving authorities.(b) Inaccurate certification – when aspects of work still remain incomplete.(c) Delegating a part of the Architect’s duty to others (especially to the developer or his nominees) in satisfying himself that the work has been completed in accordance with the Sale and Purchase Agreement notwithstanding that this may have been authorized in writing.

BOA punishment ‐ impose suspension or remove the names from the register of all Architects found guilty of improper or fraudulent certification

PART VI- TRIBUNAL FOR HOMEBUYER CLAIMS

PART VI- TRIBUNAL FOR HOMEBUYER CLAIMS

S16M. Jurisdiction of Tribunal.

(1) Total amount - does not exceed RM50,000.00

S16N. Limitation of jurisdiction.

(2) Claim based on a cause of action arising from the SPA entered into between thehomebuyer and the licensed housing developer which is brought by a homebuyer notlater than 12 months from -

(a) the date of issuance of CCC

(b) the expiry date of the DLP as set out in the SPA; or

(c) the date of termination of the SPA by either party and such terminationoccurred before the date of issuance of CCC

Apakah bentuk tuntutan yang boleh di failkan di Tribunal ?

Terdapat dua bentuk tuntutan yang boleh difailkan di Tribunal iaitu ;i. Tuntutan Teknikalii. Tuntutan Bukan Teknikal

i. Tuntutan Teknikal

Tuntutan teknikal merangkumi kecacatan mutu kerja atau tidak mematuhi bahan atau spesifikasi sebagaimana yang dinyatakan di dalam Perjanjian Jual Beli (S&P). Tuntutan ini di buktikan antaranya secara Gambar, Quotation, Bil, Resit, Surat atau lain-lain dokumen yang boleh menyokong tuntutan atau membawa saksi-saksi yang berkenaan (jika berkaitan) dan tuntutan ini perlu dinilai dalam Ringgit Malaysia.

ii. Tuntutan BukanTeknikal

Tuntutan bukan teknikal merupakan tuntutan selain dari perkara diatas sebagai contoh gantirugi bagi kelewatan pe-nyerahan milikan kosong (Late Delivery of Vacant Possession) oleh pemaju.

PART VII - MISCELLANEOUS

NEW S18A. Offences relating to abandonment of housing development byhousing developer.

(1) Any developer who abandon or cause to abandon housing developmentwhich he has engage in liable for

(2) RM 250,000 and not more than RM 500,000

(3) Or imprisonment not more than 3 years

Abandonement means –refuse to carry out or delay or suspend or ceasedwork continuously for a period of 6 month or more.

NEW AMENDMENT

PART VII - MISCELLANEOUS

S22F. Progress certification.

(1) Any architect or engineer, as the case may be, who issues a progresscertification knowing that the works therein referred to have not beencompleted in accordance with the provisions of the SPA …..

– FINE min RM 10,000.00 max RM 100,000.00 / 5 years jail / both.

LAM CIRCULAR 1/2002– impose a suspension or remove the namesfrom the register

(2) Any person who knowingly and willfully aids, abets, counsels, procures orcommands the commission of an offence under subsection (1) shall be liableto be punished with the punishment provided for the offence.

IN CONCLUSION-KNOW THE PARTIES INVOLVED

AND THEIR DUTIES/ OBLIGATIONS

WHO IS THE PARTY INVOLVED IN H.D.A DEALINGS?

1. VENDOR – DEVELOPER

2. PURCHASER- PROPERTY BUYER

3. CERTIFIER – ARCHITECT

4. FINANCIER – BANK

5. LEGAL REP. - SOLICITOR

Any Questions ???

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