HOUSING DEVELOPMENT (CONTROL AND LICENSING) (AMENDMENT) ACT 2012

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette.

This Act applies to Peninsular Malaysia.

Amendment of section 3

in paragraphs (1)(a) and (b), by substituting for the words

“not less than two hundred thousand ringgit” the words

“a sum equivalent to three per cent of the estimated cost of construction as certified by an architect in charge of the housing development”; and

by inserting after subsection (1a) the following subsection:

“(1b) For the purpose of paragraphs (1)(a) and

, “estimated cost of construction” means the cost of constructing a housing development and includes financial costs, overhead costs and all other expenses necessary for the completion of the housing development but excludes land cost.”.

Amendment of section 7b

in the shoulder note, by inserting after the word “sections”

the word “7,”; and

by inserting after the word “sections” the word “7,”.

Substitution of section 8a

the licensed housing developer refuses to carry out or delays or suspends or ceases work for a continuous period of six months or more after the execution of the sale and purchase agreement;

Housing Development (Control and Licensing)

(Amendment)

the purchaser has obtained the written consent from the end financier; and

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 and purchase agreement.

For the purpose of paragraph (1)(b), no end financier shall unreasonably withhold its written consent to the termination of the sale and purchase agreement.

In the event that the purchaser exercises his right to terminate the sale and purchase agreement under subsection (1), the licensed housing developer shall within thirty days of such termination refund or cause to be refunded to such purchaser all monies received by the licensed housing developer from the purchaser free of any interest.

Upon receipt of the refund under subsection (2), the purchaser shall immediately cause all encumbrances on the land to be removed and the cost and expenses for such removal shall be borne by the licensed housing developer and may be claimed as a civil debt from the licensed housing developer.

Any person who fails to comply with this section shall be guilty of an offence and shall, on conviction, be liable to a fine which shall not be less than fifty thousand ringgit but which shall not exceed two hundred and fifty thousand ringgit and to a further fine not exceeding five thousand ringgit for every day during which the offence continues after conviction.

This section applies only to an agreement lawfully entered into between a purchaser and a licensed housing developer after the date of coming into operation of the

Housing Development (Control and Licensing) (Amendment)

Act 2012 [Act A1415].”.

Amendment of section 16n

in paragraph (1)(b)—

in subparagraph (ii), by inserting after the word

“goodwill;” the word “or”;

in subsection (2), by deleting the word “licensed”.

Amendment of section 16q

by substituting for the word “five” the word “ten”; and

by substituting for the word “ten” the word “fifty”.

New section 18a

For the purpose of this section, “abandons” means refuses to carry out or delays or suspends or ceases work continuously for a period of six months or more or beyond the stipulated period of completion as agreed under the sale and purchase agreement.”.

Amendment of section 24

Where a licensed housing developer has been granted a licence immediately before the date of coming into operation of this Act but has not paid the deposit under subsection 6(1), the provisions of the principal Act applicable to the payment of deposit shall continue to apply as if the principal Act had not been amended by this Act.

KUALA LUMPUR