Some Important Aspects For House Buyers
Before you decide to buy a house, you must ascertain that the housing developer:
- Has obtained a valid Developer’s License; and
- Has a valid Advertisement and Sales Permit
*Checks may be done through the Ministry website, www.kpkt.gov.my, or through the Housing Developers Licensing Division at 03-8891 5000.
Financial Capability of House Buyers
Before making any payment, please ensure:
- Loan eligibility and loan amount obtainable (partial or full)
- If you fail to obtain the loan amount required from the bank, are you prepared to pay the differential sum?
*The banking system implements the Customer Credit Report Information System (CCRIS). All existing loan would be taken into consideration in your loan application.
*Once the bank releases progressive payments to the developer, you would be charged monthly interest on the amount released.
Location of Project
- Location of project
- Layout Plan has been approved
*Checks can be made with the relevant Local Authorities
Tenure of Land
- Leasehold – check the expiry date of the lease
- Malay reserved
*You may conduct a search at the Land Office or the State PTG.
Information on the Brochure
Please ensure the brochure contains the following information:
- Developer’s License and its validity period;
- Advertisement and Sales Permit and its validity period;
- Name and address of the:
- Licensed housing developer;
- Authorised agent, if any;
- Holder of the Power of Attorney, if any; and
- Project management company, if any.
- Tenure of land:
- Leasehold – check the expiry of lease; and
- Encumbrances – whether the land is being charged to the bank for financing.
- Description of the property:
- Specifications on building materials;
- Building area; and
- Facilities /amenities.
- Name of project, if any.
- Expected date of completion.
- Selling price for each type of house.
- Number of units for each type of house, and
- Name of Local Authority approving the Building Plans and its reference number.
Reminder Prior to Signing of Sale & Purchase Agreement (SPA)
House buyers must:
- Check that the SPA is the standard Schedule G (Land and Building) and Schedule H (Subdivided Building) under the Housing Development (Control and Licensing) Regulations 1989.
- Read and understand the contents of the SPA before signing it.
- Request that a lawyer explain the terms of the SPA.
- Sign the complete set of SPA instead of separate pages.
Reminder during Signing of SPA
Please be reminded that:
- SPA is provided free of charge by the developer.
- The first payment is 10% of the house purchase price. Ensure that the date of the receipt and the date of the SPA is the same.
- House buyers may choose to appoint their own lawyer.
Conditions and Rights of House Buyers Upon Vacant Possession (VP)
- Ensure that the property is free from encumbrances upon delivery of VP.
- If the land or property is still charged to a financial institution, developer must settle the balance amount before delivering VP to house buyers.
- Conditions to be fulfilled:
- Under CCC Circumstances
Certification by the architect to verify that:
- Property is completed
- Water and electricity is ready for connection*VP will be delivered to the purchaser once CCC is issued by the Principal Submitting Person (PSP)
- Under CFO Circumstances
Developer must also apply for:
- CFO through the submission of Form E *
- Local Authority has issued an acknowledgement that Form E has in fact been received and verified by the Local Authority*Form E is the application submitted by the developer’s Architect to the Local Authority for the issuance of CFO.
- Under CCC Circumstances
- House buyers can only occupy the property upon issuance of CFO/CCC. Renovation works can only be carried out after obtaining CFO/CCC and provided that the renovation plans have been approved by Local Authority.
- Record any defects on the property and submit the complaint form to the developer for rectification works. Please keep a copy for own record.
- House buyers have a right to claim for Liquidated Ascertain Damages (LAD) for delayed delivery of vacant possession.