Everyone wants to having their own house, but if they find an irresponsible developer after buying a house, home buyers may face various unfavorable problems, such as delays in completion of the developer, the housing plan on hold, a lot of problems after moving in, and so on.
However, due to limited economic ability, it is impossible to appoint a lawyer, and do not know who help us to solve the problem. In fact, we can enter the Tribunal for Homebuyer Claims(TTPR) to preside over justice.
Conditions and Highlights:
1. Complaint period ~ The application for complaint is initiated within the following 12 months:
The date of issue of the Housing Completion Certificate (CCC) or Certificate of Conformity.
The expiration date of the Defect Liability Period as been set in the Sale and Purchase Agreement (SPA). According to the Housing Developers (Control and Licensing) Act 1966, the Defect Liability Period is 24 months (except for the business industry), whether it is a tall building or a landed home.
The date on which one of the parties terminates the sale and purchase agreement, and this termination occurs before the date of completion of the housing completion certificate or certificate of competency.
2. Claims – The amount claimed for each complaint does not exceed RM50,000 unless:
The claimant agreed to waive the remaining claims.
The developer agrees in writing to be willing to resolve the issue through the arbitral tribunal.
3. License ~ Developer must have a license
If the developer does not have a license, it will be a criminal or civil lawsuit and it is not possible to resolve the dispute through the arbitral tribunal.
4. Lawyer~ No need to represent a lawyer.
5. Industry type ~ Must be a residential industry.
6. Out from the authority ~ Can’t justice the following types of cases:
Recovery of land, or land rights.
Cases related to these disputes: survivor authorization, goodwill, chose in action, or any trade secret or other intellectual property.
Accidents caused by personal injury or death.
Sue and Registration Procedures:
1. The claimant must provide the following information and documents to the arbitral tribunal:
Completed Form 1
Statement of Claim
Sale and Purchase Agreement (SPA)
Letter from the developer on the Delivery of Vacant Possession
2. After submitting the documents, the arbitral tribunal will notify the claimant of the date of the hearing within one and a half months to two months, and will also give the latter two Forms 1. At that time, the claimant must hand over one Form 1 to the relevant developer in less than 14 days.
As for the developer, if he intends to file a counterclaim or defense, he may submit Form 2 (4 copies) and RM10 to the arbitral tribunal within 14 days after receiving the claimant’s Form 1. The claimant can also defend the developer’s counterclaim by submitting Form 3 and another RM10.
3. If the parties are unable to settle, the arbitral tribunal will make a ruling within 60 days of the first day of the hearing, and it may also make any or more of the following rulings:
Return the amount paid by the purchaser or any other person.
On the one hand, the sale and purchase agreement must be observed
Use money to compensate for any loss.
The relevant contract was modified or cancelled in whole or in part.
Any aspect must bear the cost.
Pay no more than 8% of the amount of interest each year, unless the parties concerned use other means.
Dismissed claims and prosecutions.
All decisions made by the arbitral tribunal and the results of the negotiations of the Chamber of Commerce:
1. It is the final judgment of all relevant parties. 2. Both are considered to be the order of the Magistrate’s Court or the Sessions Court, and the arbitral tribunal will submit a copy of the ruling to the court of competent jurisdiction.
Non-Compliance with the Ruling
If the developer does not comply with the ruling, the claimant (home buyer) can complain to the Department of Housing and Local Government’s Enforcement Division.
After the investigation by the Ministry of Housing and Local Government, the following actions will be taken:
1. Blacklist the relevant developers.
2. Take legal action against relevant developers. Once the Ministry of Housing and Local Government takes legal action, the case will be referred to the prosecution and handled in criminal cases. The criminal punishment methods include:
A fine of not more than RM5,000 but not more than RM10,000; or
Imprisonment for no more than 2 years; or
In the case of a repeat offense, the offender will face a daily fine of up to RM1,000.