Many fall prey to realtor scam

KUALA LUMPUR: Some 25 people have claimed to have lost over RM200,000 to a “real estate” agent who promised to negotiate rental for their shoplots.

One of the victims, Dr Major Singh, said he became RM4,800 poorer in July after falling prey to the scam following a call from one Wilson Yong, who claimed to be from Oriental Realty.

“He told me that a company, Tong Kee Food Corp Sdn Bhd, was interested in renting my shoplot at RM4,000 a month. Two weeks later, a lady claiming to be Yong's assistant came by with a RM16,800 cheque as a three-month deposit,” he said, adding that he gave her a RM4,800 cheque made out to Yong as commission.

“He demanded that the cheque be made out to his name instead of his agency's as he wanted to save on income tax payments.,” he said at the MCA Public Services and Complaints Department here.

Poser over poser: Chong (second from right) with the victims, including Major (standing middle) at the MCA Public Services and Complaints Department in Kuala Lumpur. With them are (from left) Lee, department legal adviser James Ee and Hoong.

The following day, however, Dr Major received a call from his bank, saying that the RM16,800 cheque had bounced. He immediately asked for the payment of his own cheque to be stopped but it was too late.

All victims of the scam, believed to have been active since last October, have lodged police reports.

None of those conned have seen the man as he had only communicated with them via phone and he is believed to have at least one female accomplice who collected his “commissions”.

Department head Datuk Seri Michael Chong said that besides claiming to be a senior negotiator with Oriental Realty, the man used aliases such as “Raymond Yong Sai Toong”, “Raymond Lam Yew Soon”, “Wilson Yong Michael Yong”, “Vincent Yong” and “Andy Lum”.

He said the man would approach potential victims to tell them he had tenants interested in renting their property.

The con man, added Chong, would even provide details of one Lim Bee Bee from Tong Kee to convince the victims.

“We urge Lim to come forward to clear the air,” he said.

Oriental Realty senior manager S.S Lee said the con man had forged his company's name card to pass himself off as one of their senior negotiators.

Tong Kee owner Hoong Heng Chuan denied Lim was an employee, adding that the firm did not plan to expand for now.

Budget 2013: Revision in RPGT

Budget 2013 on Real Property:

The limited supply of real property especially in urban areas has provided opportunities for speculative activities. Therefore, the Government proposes the real property gains tax (RPGT) from the disposal of properties made within a period not exceeding 2 years from the date of purchase will be taxed at the rate of between 15% and 10% of disposal of property within a period of 2 to 5 years. For property disposed after 5 years from the date of acquisition, RPGT is not applicable. In addition, gains from the disposal of one residential property once in a lifetime and disposal of properties based on love and affection between husband and wife, parents and children, grandparents and grandchildren are exempted from RPGT.

Dewan Rakyat approves Strata Titles Act amendment

Malaysia's House of Representatives (Dewan Rakyat) has approved the new amendments to the Strata Titles Act, mandating the simultaneous issuance of strata titles and vacant possession (VP) to home-buyers, reported The Sun Daily.

According to Natural Resources and Environment Minister Datuk Seri Douglas Uggah Embas, the Strata Title (Amendment) Bill of 2012 aims to address the problems encountered when applying for and registering strata titles for buildings occupied before 1996.

The latest amendment to the Strata Title Act 1985 follows four previous revisions in 1990, 1996, 2001 and 2007.

Uggah noted that since the introduction of the Strata Titles Act 27 years ago, Malaysia's land administration has registered over 970,000 strata titles comprising more than 15,000 multi-storey buildings.

Apart from safeguarding the rights of strata unit buyers, the ministry will also impose stringent penalties to ensure that developers will abide with the law. For instance, Section 8 of the newly amended Strata Titles Act compels state authorities to act against developers who fail to apply for such titles, especially for old buildings.

If convicted, a developer could face a jail sentence of up to three years and a fine not exceeding RM100,000, added Uggah.

Amendment to Housing Development (Control & Licensing) Act, 1966 – Part II

The Housing Development Act (amendment) Bill was debated in ParliamentPosted Date: Mar 15, 2012 By: HBA

The Housing Development Act (amendment) Bill was debated in Parliament on 1 December 2011 and HBA was invited to brief the Members of Parliament (MPs) prior to its debate. The National House Buyers Association (HBA) lauds the positive engagement from YB Dato’ Seri Chor Chee Heung, Minister of Housing & Local Government in addressing the cumulative problems faced within the housing industry with the intention of providing further protection to house buyers against errant developers. Within the parameters of this Act, there were a number of points brought up for discussion, we now turn our focus on refundable deposits and the Sales & Purchase Agreement (SPA). This is the continuation from last month’s first installment. Imposing a 3% Refundable Deposit We are pleased that the Government heeded our call to have Section 6(1)(b) (Conditions or Restrictions for the grant of a (developer’s license) of the Housing Development (Control & Licensing) Act, 1966 (Act 118) to be amended. The Minister recently announced that laws will be enhanced to make the requisite deposit (refundable) from the current RM200,000 to 3% of the Construction Costs. Firstly, we will not even use the word “increase” as it is due to the case of small developers who build a small number of houses in the smaller towns, where total construction cost is RM2 million or less, the RM200,000 that they are currently forking out actually represents over 10%. Thus, the new 3% is actually a vast reduction! Compare this to a big project developer whose construction cost is, say, RM20 million. The present RM200,000 represents a miserable 1%!! Thus, any contention that the 3% will weigh down on the smaller developers is incorrect. The present RM200,000 is flawed because it assumes a “one-size-fits-all” formula, where small developers are compelled to wear the “big size shoes” that clearly do not fit them. The proposed introduction of the 3% formula (HBA’s proposal was for 5% imposition on GDV) is a realistic and a fair figure (and to an extent, a compromised one) because the actual deposit sum is dependent on the size of the project. As to whether the new 3% deposit will curb abandonment, our contention is that it will indirectly reduce such incidences. Developer-aspirants who are financially so weak that they are unable to raise the 3% deposit (which is refundable) should stay out of the industry because the probability of them running into trouble is higher. The increased finance cost to fork out the 3% deposit is negligible when measured against the potential gross development value (GDV). Further, any additional cost (interests) is only incurred during the construction phase because upon project completion, the 3% is fully refunded by the Controller of Housing. In a small way, it also serves as insurance for the Ministry of Housing & Local Government to have a source of funding in the event of unforeseen eventualities caused by developers where immediate expenses need to be incurred. The havoc created by abandoned projects and the amount of funds made dormant (and in many cases, written off) is far more devastating and adverse than the amount of funds held in refundable security deposits. Project abandonment cannot be totally prevented but the 3% deposit only acts as proof of commitment, seriousness, financial standing and a safety net. The proposed 3% deposit can, to a larger degree, assist in the revival efforts by the Government compared to the present insignificant RM200,000. The tightening of the Housing Development (Control & Licensing) Act, 1966 which was revised in the years 2002 and 2007 has failed to arrest the problem of abandoned housing projects. The statistics speaks for itself. The situation of Enforcement needs to be tightened up regardless of the amount of security deposit(s) demanded. The 3% deposit represents only a minute factor in the whole risk equation. We would like to state that the proposed 3% is the minimum norm and that Controller of Housing should be empowered to increase this percentage to our proposed 5%, if deemed necessary due to higher risk or whatever other reasons. Sec 8A: Statutory Termination of Sales & Purchase Agreement (SPA) The clause reflects the severity of house buyers’ problems such that it entitles them to terminate the contract of sale after a delay of 6 months after the execution of the Sales & Purchase Agreement’. By this amendment, any house buyer would have the equitable right to get out of the agreement which present legislation fails to allow. However, instead of ‘6 months after execution’, it should be, at the least, read as ‘at any continued period of six (6) months during the subsistence of the Sales & Purchase Agreement’. There have been numerous situations where a developer resumes works and then stops for a period of time only to restart to the frustration of the buyers. However, to ensure public confidence in the termination mechanism which among others, requires the Controller’s certification before the homebuyer may terminate the contract, we propose that express provisions on the issuance of the Controller’s certificate is important. This is to ensure that the certification is issued in a prompt and transparent manner. Another glaring weakness not addressed by the amendment is the question of where can buyers claim back whatever they have paid when a project is abandoned and the developer becomes insolvent? The proposed amendment to Section 8A (1) (c) may be as follows: c) the Controller has certified that the licensed housing developer has refused to carry out or delayed or suspended or ceased work for a continuous period of six months or more after the execution of the Sale & Purchase Agreement in reliance upon any act, omission, failure or neglect of the Developer or documents available to the Controller at the material time. Section 8A (6) – The word ‘lawfully’ in line 1 creates unnecessary confusion and argument. It should not matter whether the Sale & Purchase Agreement was ‘lawfully’ entered or not because we do not wish parties to take advantage of his/ their own wrongdoing. In the next issue, we will look at other points raised in the amendment to this Act including the definitions of the Act and the parameters set within it. NATIONAL HOUSE BUYERS ASSOCIATION [HBA]  No. 31, Level 3, Jalan Barat, Off Jalan Imbi, 55100, Kuala Lumpur Tel: 03-2142 2225 | 012- 334 5676 | Fax: 03-22601803 Email: info@hba.org.my | Web Site: http://www.hba.org.my

PAM supports amendments to Strata Title Act

By theedgeproperty.com
Friday, 14 September 2012 17:34


KUALA LUMPUR (Sept 14): The Malaysian Institute of Architects (PAM) is supporting the government’s move to amend the Strata Titles Act 1985 to enable simultaneous issuance of strata titles and vacant possession to property buyers.

The Act will be known as the Strata Management Act (SMA) after the amendment. “The institute welcomes the initiative by the government to ensure prompt delivery of titles to the house and property owners and improvement in the efficiency of the housing delivery system,” said PAM president Saifuddin Ahmad recently in a press statement.

The proposed amendments aim to ensure the rights of buyers of stratified properties and housing are protected. Upon synchronising the system and following the proposed amendment, strata titles will be issued together with the issuance of vacant possession.

As it involves not only one party but all the stakeholders, PAM is of the view that the government must ensure that the Housing Development (Control and Licensing) Act 1966 be amended to be in correlation with the new SMA.

PAM agrees with the government’s suggestion that the process of issuance of strata titles must be initiated as early as at the completion of “super structure stage”.

The completion of the “super structure stage” is defined as the “completion of building works up to the stage of completion of all walls that are necessary for the measurement of all parcels including any accessory parcels and common property needed to be shown on the strata plan”.

Although the developer must submit the proposed strata plan within three months of the issuance of the certification of “super-structure stage”, in practice based on the amended act, the surveyor could carry out survey works much earlier at some parts of the building which has been completed.

In these instances, the plan could be submitted much earlier especially for smaller projects. Upon submission of proposed strata plan by the licensed surveyor, The Department Survey and Mapping Malaysia is to approve within one month the proposed strata plan.

Following the approval and issuance of the certified strata plan by Jupem, the developer, through its licensed surveyor, is required to submit to the Land Office the application for the strata title within one month from the date of approval.

The government has proposed to complete the entire process from submission to the issuance of strata title within nine months from the date of completion of “super structure stage”, therefore targeting to issue strata title with vacant possession.

PAM noted that aside from developers, the stakeholders should involve the Land Office, local authorities, project consultants and contractors.

However, developers should not be penalised for delays beyond their control and end up paying liquidated and ascertained damages (LAD) to the house or property buyers if they are not able to deliver vacant possession with strata title on time, said PAM.

It added that if the delay is beyond the developer’s control, there should be a provision to issue vacant possession without strata title. PAM believes it is important that a new and clear guideline be drawn up for certification on the completion of “super structure stage” as proposed and defined in the new SMA.

Equally important is for the Land Office to have sufficient manpower to speed up strata title issuance once the new Act is implemented, concluded PAM.

This article is appeared in The Edge Financial Daily on Sept 14, 2012.

LEGAL: Late delivery

I purchased a new apartment four years ago. Unfortunately, the development was subsequently abandoned a year later. A new developer has taken over the project. However, they have requested for us to waive our entitlement to claim of late delivery damages. Five months have elapsed since the due delivery date. Should I waive my entitlement? What recourse do I have?

Chris Tan of Chur Associates answers: When the new developer took over the project, you should consider what is the basis of the take over. Did you execute a new set of documents to waive certain rights at the material time? If you didn't sign anything during the take over, your recourse is with the previous developer. If you have executed a fresh set of documents with the new developer, then your recourse is with the new developer subject to the terms and conditions of the new agreement.

UDA to submit Pudu Jail master plan by year-end

By Bernama


Tuesday, 11 September 2012 14:31

KUALA LUMPUR (Sept 11): UDA Holdings Bhd will submit the master plan for the redevelopment of the former Pudu jail site to the Finance Ministry by year-end, said group managing director Ahmad Abu Bakar.

He said it will be up to the government to decide on the plan.

"We will submit it to the ministry and let it decide," he told reporters on the sidelines of UDA's Hari Raya Aidilfitri Open House on Monday.

Ahmad said the ministry after deliberation will decide whether the development will be executed via a special-purpose vehicle.

Last year, the government directed UDA to redraw the master plan to enable the participation of more bumiputeras in the real estate sector in Malaysia.

On the development of Bukit Bintang Plaza, Ahmad said, UDA is still awaiting the feasibility study by Tradewinds Corp Bhd.

"The study is scheduled to end by November this year," he said.

Ahmad said UDA has set aside RM50 million to refurbish some of its complexes.

"Some of them are old. So we need to start refurbishing them from the washrooms to the exterior," Ahmad said.

UDA owns some of the well-known complexes in the Klang Valley such as the Bukit Bintang Plaza, Pertama Complex, Plaza Warisan, Cahaya Suria, Pudu Sentral and Hentian Duta.

It also owns Plaza Angsana and Plaza Ampangan Seremban in the southern region and Greentown Mall phase 1 in the north. — Bernama

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Selangor Dredging targets five property launches worth RM1.2 billion

By Bernama

Thursday, 30 August 2012 15:30 KUALA LUMPUR: Selangor Dredging Bhd plans to launch five new property projects, with a total gross development value of RM1.2 billion, within the current financial year ending March 31, 2013. Managing Director Teh Lip Kim said one project, the 'Laman and Bayu' residential project in Batu 11, Jalan Puchong, Petaling Jaya, was already launched while the second project, 'Windows On The Park', in Cheras Selatan, was opened for preview. Three other projects in the pipeline were 'Jia' in Taman Melawati, Kuala Lumpur, 'The Hub' in Petaling Jaya and 'Village' in Pasir Panjang, Singapore, and were expected to be launched over the next few months. "This is the first time Selangor Dredging is slated to launch so many projects within a single year. In the past eight years, since it started out in the property development, the company launched an average of one or two projects a year," she told reporters after the company's annual general meeting. Teh also said the company brought forward unbilled sales of RM730 million from the last financial year and hoped to realise some of the value in the current financial year. Saying that the company was optimistic that demand for properties in the Klang Valley would continue to expand, she added that the outlook for the sector remained quite positive. Infrastructure projects such as the My Rapid Transit project in the Klang Valley and the high-speed rail link between Kuala Lumpur and Johor Baharu were also expected to be a boost for the property market. For the last financial year ended March 31, 2012, Selangor Dredging posted a higher pre-tax profit of RM61.985 million from RM44.366 million recorded the previous year. Revenue for the period also rose to RM354.452 million from RM345.999 million previously. -- Bernama

Thailand's new infrastructure projects to link with Asean countries

By Bernama

Thursday, 30 August 2012 16:01 BANGKOK: The Thai government is planning new mega-infrastructure development projects worth some two-trillion-baht but foreign investors will be invited to run the projects to limit public debt at no higher than 60 per cent of the country's gross domestic product (GDP). In revealing the plan at the “Thailand Focus 2012” seminar here Aug 29, Deputy Prime Minister and Finance Minister Kittirat Na-Ranong said the projects are aimed at linking Thailand with other member countries of the Association of Southeast Asian Nations (Asean). Thai News Agency reported Kittirat as reiterating the new mega projects would not raise Thailand's public debt beyond the 60 per cent benchmark of the GDP. "As part of the plan, the government has proposed a joint venture law to the Parliament and is working out details of its infrastructure fund while seeking permission from the Securities and Exchange Commission (SEC) to sell the fund's shares in a few months time," he said. The deputy premier added the government has supported national economic growth mainly by stimulating domestic consumption through, for instance, a minimum wage hike, a debt moratorium for local farmers and tax privileges for first-home and first-car buyers.-- Bernama