HOUSE buyers in Malaysia need to be educated about their rights. They have to be made aware of the issues they face and demand quality for the huge sum of money they are paying for their property.
Here are examples of complaints were received from home buyers after purchasing a new home:
Complaint 1:
“I received the keys to our home and to our dismay, the property had many defects, ranging from minor problems to major misalignment of the walls and beams. The developer is rectifying the minor defects but is not willing to align’ the walls or beams that have been placed improperly. How can I have the process for rectification expedited as we have paid in full and are still unable to occupy the house?”
Complaint 2:
“The floor tiles in my apartment’s living room are not properly fixed. When one walks over them, they give a certain hollow sound. There are at least 30 floor tiles with this problem. Also, the edges of the walls where the tiles meet were not properly done. I submitted a complaint form but the developer has not done anything to rectify them. Now, it’s been almost 12 months, and every time we call to ask about the repair work, they tell us they could not find the right colour tiles. We are told that the only alternative is for us to change all the tiles with the developer only bearing the cost of workmanship!”
Over the years, the National House Buyers Association (HBA) has recorded thousands of complaints from house buyers who were not satisfied with the condition of their new homes or the way defects were rectified.
The complaints above are just two of them and the same are constantly repeated by different owners in different housing schemes. Construction defects range from complex structural issues, which threaten the integrity of buildings, to simple items relating to aesthetics.
After receiving the keys to their houses, the smile on the buyers’ face soon fade when they are caught in a situation of getting the multiple defects in their homes rectified satisfactorily.
The new generation of house buyers expect their homes to be defect-free. The quality of houses, which although has improved over the past decade, has not kept pace with buyers’ expectations in both design and finishes.
There is also a lack of industry quality standards that are compatible with public interest and expectations which has resulted in many disputes over the rectification of defects as developers, contractors and house buyers have different expectations.
Defect Liability Period (DLP)
The pre-determined ‘Defect Liability Period’ (DLP) in the sale and purchase agreement (SPA) states that the developer is required to repair and make good, at its own cost and expenses, any defects, shrinkage or other faults that become apparent within a period of 24 calendar months after the delivery of vacant possession and which can be attributed to defective workmanship, materials or a failure to construct the property in accordance with the plan and description appended to the SPA, within 30 days of having received written notice from the purchaser.
The second part of the clause states that the purchaser shall, at any time after the expiry of the 30-days’ notice, notify the developer of the cost of repairing and make good of the said defects by giving the developer a further grace period of 30 days.
Essentially, the following is what a buyer has to do if he finds defects in his new home:
- List all defects in writing; take pictures of them, if possible.
- Make sure the developer receives the defects list either by registered post, by electronic mails or by delivery by hand with acknowledgement of receipt.
If the developer is responsive, he will do rectification work 30 days from the date of receipt. The buyer should go through the list of defects with the developer to discuss the rectification work schedule. He must also be prepared to spend time or appoint someone to be around for the appointed contractors to do their work.
If the developer is unresponsive, get a detailed quotation from a reputable independent contractor for the cost of repairing and making good the defects. Give the developer a second notice and the stipulated 30-days grace period to do the rectification work, as stated in the DLP clause.
The buyer may recover the cost (any sum) of the repair from the developer’s stakeholder lawyer after giving written notification to withhold release of the stakeholder sum the 5% of the purchase price as stated in the ‘Schedule of Payment’ in the SPA. You could adopt the “sample” template that is in HBA website @ www.hba.org.my. – Oct 9, 2021
This article is written by Datuk Chang Kim Loong, the honorary secretary general of the National House Buyers Association (HBA).
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
