Prospective buyers are required to register their name at any Secretary of the State Government’s office (SUK). SPNB shall procure the names of the low cost house buyers from the SUK office.

Guide for House Buyers
Source: Ministry of Housing and Local Government
http://www.kpkt.gov.my/kpkt/borang/tribunal/panduanpembeli.pdf

Important Reminders for House Buyers
Before settling on a decision, please ensure:
The housing contractor has a legitimate and valid license
Has a legitimate advertising and sales permit which is still valid

House Type
The Sale and Purchase Agreement (S&P) for land and landed property such as bungalows, semi-detached houses and terrace houses are for 24 months. However the S&P for buildings intended for subdivision/sublets such as condominiums, flats, apartments and townhouses are for 36 months.

Buyers are advised to get the free information brochure from the housing developer where they would get all the important information on the project including license number, permit and such

Land Status
Ensure that the land status is either:
Freehold property - remains freehold forever
Leasehold - ensure that the lease ends by the date of purchase
Malay reserve
The land status can be checked by inquiring for a search at the Land Office or the State Registrar Office

Information Brochure
Developers give free informational brochures which should have the following information:
1. Developer’s license number and its validity date
2. Advertising and Sales license number and its validity date
3. Names and addresses of:
Licensed housing developer
Authorized agents (if applicable)
Holder of representative’s letter of authorization (if applicable)
Project management company (if applicable)
4. Land Status:
Freehold
Leasehold - ensure that the lease ends by the date of purchase
Bebanan - sama ada telah dicagarkan kepada bank untuk pinjaman.
5. Description of location
Specification
Built-up area
Facilities
6. The name of the housing project, if applicable;
7. Estimated date for project completion
8. Selling price for each type of house
9. Number of available units for each type of house; and
10. The name of the Local Governing Body who authorized all the building plans and reference numbers

Buyers' Right in the Sales & Purchase Agreement
Buyers have to fully understand the contents of the S&P as required by Table G and H in the Housing Developer Rules (Control and Licensing) 1989.

First Payment
Buyers need to sign the S&P at the first payment of 10 percent of the house value to the developer. Ensure that the date of the first payment and the S&P Agreement date stated as the same date. In addition, it is to be noted that the developer is not allowed to receive any payment for any reason without the S&P Agreement.

Architect Testimony
Ensure that any required installment payments to the developer is supported by a testimony signed by an accredited Developer Architect or Engineer.

Interest Charged
If the buyer or End Financier fails to make the installment payments within 21 working days from the date of receiving the written payment notice, buyers will be charged with an interest by the developer counted from day to day at the rate of 10% per year on the unpaid installments.

S&P Agreement Void
Please note that buyers’ failure to pay installments and subsequent interest rate charged for a period of over 28 days, the developer may choose to end the S&PA. Developers are required to send a registered letter to the buyer detailing their intent to void the S&PA.

Infrastructure Management Fee
Buyers are required to pay the cost of the infrastructure management from the date of empty possession until it is taken over by the Authorities or Management Bodies (for sublet buildings).

Infrastructure here is defined as:
a) For land and landed property
Roads, driveway to the house, drains, sewerage, water lines for the applicable housing development
b) For buildings intended for sublets
Roads, driveway to the house, drains, sewerage, water lines for the applicable building

Service Management Fee
From the date of empty possession, buyers are required to pay for these following services:

For land and buildings
(i)	Garbage disposal, cleaning of public drains and road reserve cuts services.
(ii)	These fees are compulsory only until the services are taken over by the right Authorities.
(iii)	Buyers are required to pay a 6 months advance upon empty possession.
If the service is still not taken over by the Authorities after 6 months, any recurring charges should be made in terms of monthly advances.
For buildings intended for sublets
(i)	Service charges are for the management and administration of mutual property and the payments starts after empty possession is taken.
(ii)	Buyers are required to pay a deposit of one month with an additional three months advance whereas for administration fees and any recurring charges must be paid a month in advance.
(iii)	Administration fee is compulsory to be paid to the developer starting from the date of empty possession until the forming of a union in accordance with the Ownership Strata Act (Akta Hakmilik Strata) 1985.
(iv)	When a Management Body is established under the Ownership Strata Act (Akta Hakmilik Strata) 1985, administrative services will be taken over by the Management Body and buyers are obliged to pay to the Body and not to the developers.

Important Reminder
Buyers have to note that payment of the Administration Fees is compulsory as long as the buyer is the owner of a lot in the building.

Sinking Fund
For the building to be sublet only. Buyers are required to pay an an amount which is equal to 10 percent of the administration fees into the sinking fund upon the date of empty possession.

Buyers need to pay a deposit of 1 month in addition a 3 months advance to the sinking fund beginning at the date of empty possession and further deposits 1 month in advance.

Payment of Land Tax
Starting from the date of empty possession or change of ownership date, whichever preceds first, buyers are accountable to pay all the tax involved or any other payments regarding the property bought.

Empty Possession Duration
Empty possession of building with water supply and electricity ready for connection must be handed over to the buyer within a 24 months period from the date of S&PA (for land and buildings) and 36 months (for buildings intended for sublets).

Conditions and Buyers' Right During Hand Over of Empty Possession
Ensure that the property is free from any legal obligations when accepting the handover notice. If the developer mortgaged the land or property, please request them to settle the balance of any payment due by the time of hand over.

Conditions to be adhered to:
(i) Developer Architect Testimony validating:
The building mentioned is completed.
Water supply and electricity ready for connection.
(ii) Developers have applied for:
CFO through Form E*
PBT issuing a letter assuring that they have received and are checking the Form E.
*the Form E is an application from the developer’s Architect to the PBT to issue CFO

Buyers may stay at the house only after the PBT issues CFO and renovation works on the house can only be done after receiving the CFO and getting the renovation plans approved by the PBT in charge.

Any problems or physical deformity will be recorded during the building inspection and forwarded to the developer for repairs. Buyers are urged to acquire a copy of the complaint as they have a right to demand upon the delay in the house completion.

Indemnity Payment
If the developer failed to handover empty possession of the building on the appointed date as agreed previously in the S&PA, the developer is required to pay compensation to the buyer counted daily on the rate of 10 percent per anum from the purchase price of the house.

Deformity Liability Duration
The deformity liability duration is 18 months after the handover of empty possession.

The Formation of A Management Body for Land and Buildings Intended for Sublets
A management body will be established by the buyers when the ownership strata for each lot are issued and passed over to the buyers. Amongst other functions, the management body is responsible to insure and manage the building.

For any questions or complaints regarding housing issues please contact:

Control and Enforcement Division,
Ministry of Housing and Local Government,
Paras 3, Blok B Utara, Pusat Bandar Damansara
50782 KUALA LUMPUR
No.Tel : 03 - 20947033
No.Fax : 03 - 20925049