KURSUS AKTA H.D.

By & AR Adrianta & Ar Ridha

HOUSING DEVELOPMENT (CONTROL
AND LICENSING)
ACT 1966 (ACT 118) & REGULATIONS
WHY NEED H.D.A?
 WHY WAS THE ACT ESTABLISH?

PRIOR TO 1969,

• The industry was completely unregulated.

• Any company can start a housing development

project without owning any piece of property.

• Put up sign board on an empty land and collect

booking fees from eager buyers.

• It was a major problem in the Malaysia housing

development.
TOO MANY FRAUD,
FRADULENT ACT
AND PUBLIC BEING
MANIPULATED
 AS A RESULT,
1. MANY PURCHASER CHEATED OF THEIR
DEPOSITS,
2. SOME END UP PAYING INTEREST TO THE
BANK, AND

3. MOSTLY DO NOT GET THEIR DREAM

HOME
 ON THE 29th
August 1969
HOUSING DEVELOPMENT
(CONTROL AND LICENSING) ACT
1966 KNOWN AS ACT 118
WAS ESTABLISH
IN 1966, H.D.A WAS PASS THROUGH THE PARLIAMENT
WITH THE PRIMARY OBJECTIVE TO:

i. to check abuses of the infant housing

industry;

ii. to regulate the activities of housing

developers;

iii. to protect house buyers

 SINCE 1969 THE ACT AND
REGULATION HAS BEEN
AMENDED MANY TIMES TO
UPGRADE THE DEALINGS FOR
THE HOUSING INDUSTRY
 IMPORTANT MILESTONES TO REMEMBER

1969 – H.D.A 1966 WAS ESTABLISH

1989 – HD (CONTROL AND LICENSING) REGULATION

WAS ESTABLISH

1991 – HD (ACCOUNTS) REGULATON WAS ESTABLISH

2002 - Housing Development (Tribunal for Homebuyer

Claims) Regulations & Housing Development
(Compounding of Offences) Regulations was establish
 WHAT IS THE COMPONENT OF THE ACT?

Consist of

Principle Act
1. Housing Development (Control and Licensing) Act 1966 (Act 118)

Regulation extended from principle act

2. Housing Development (Control and Licensing) Regulations 1989

3. Housing Development (Housing Development Account) Regulations

1991

4. Housing Development (Tribunal for Homebuyer Claims) Regulations

2002

5. Housing Development (Compounding of Offences) Regulations 2002

 HDA 1966 (AKTA 118)
SECTION

1 5 7A 16 24

LICENSE ACCOUNT TRIBUNAL POWER TO MAKE RULES

KAEDAH/ RULES

HDR (LESEN) HDR(APP) TRIBUNAL PENGKOMPAUNAN

KESALAHAN
1989 1991 2002 2002

3 LESEN

PERMIT AKTA 318 (STA)

5

S&P
11 (KONTRAK G H I J
JUALAN)

15 1 1

JADUAL KETIGA – JADUAL

PEMBAYARAN

32 36
THE PRINCIPLE ACT

Housing Development (Control and Licensing)

Act 1966 (Act 118)
 WHAT IS THE PURPOSE OF THE
HOUSING DEVELOPERS ACT

i. An Act to provide for the control & licensing

of the business housing development in
West Malaysia

ii. To protect the interest of the buyer

 THE ACT HAS BEEN AMENDED 4
TIMES IN 43 YEARS
Principle Act 118 Housing Development (Control and Licensing) Act 1966 29/08/1969

Amendment Act A402 Housing Developers (Control and Licensing) (Amendment) Act 1977 10/06/1977

Amendment Act A 703 Housing Developers (Control and Licensing) (Amendment) Act 1988 01/12/1988

Amendment Act A1142 Housing Developers (Control and Licensing) (Amendment) Act 2002 01/12/2002

Amendment Act A1289 Housing Developers (Control and Licensing) (Amendment) Act 2007 12/04/2007

Amendment Act A 1415 Housing Developers (Control and Licensing) (Amendment) Act 2012 09/02/2012
 Changes on Amendment Act A 1415
on 09/02/2012
1. Sec 6- Amount of deposit changed

2. Sec 8A – Only purchaser can terminate S&P as appose

to either party

3. Sec 16AD – Penalty on failure to comply to 10k-50k in

lieu of 5k-10k.

4. New Sec 18A- Offences relating to abandonment of

housing development by license developer. Guilty shall
be charge between 250k-500k or 3 year imprisonment.

5. Sec 24(g) – Penalty for act or omission in contravention

50k in lieu of 20k
HOUSING DEVELOPERS ACT IS
DIVIDED INTO 7 PARTS AND 24
SECTIONS.
 H.D.A PARTS

PART I – PRELIMINARY

PART II - LICENSING OF HOUSING DEVELOPER

PART III - DUTIES OF A LICENSED HOUSING DEVELOPER.

PART IV- INVESTIGATION AND ENFORCEMENT

PART V – POWERS OF MINISTER

PART VI- TRIBUNAL FOR HOMEBUYERS CLAIM

PART VII- MISCELLANEOUS


M - Permulaan
S3 –Taksiran :
• APP – akaun dibuka &
disenggara PP/Dev’r.
• PP – memaju/bina >4
unit tempat tinggal, kutip
wang,kendali bldg, jual >
4 lot.
• Stakeholder/pemegang
amanah – Penguamcara
S3A – Kuasa Menteri
i. Berkuasa tetapkan jenis
development.
ii. Keputusan muktamad
L- Pelesenan
S5 – Pemberian Lesen
i. PP perlu miliki lesen.
ii. PP perlu mohon lesen dr Ctrlr dan
dikenakan caj/fees.
iii.Ctrl ade power batalkan lesen
anytime.
S6 – Syarat pemberian Lesen:
i. Modal tunai >250K
ii. WP to Ctrlr >200K
iii.Director/personal clean record.
iv.Pendaftran akitek/engr renew .
v. PP/director tidak pernah disabitkan (f) 21hari setelah terima CCC, perlu
kesalahan HDA/denda
>10k/penjara.
S6A – Ctrlr Simpan Wang
P’dahuluan (WP)
i. Simpan wang Pendahuluan
sampai habis DLP.
S6B – Ctrlr Boleh Rampas WP
sekiranya PP:
i. jejas kepentingan p’beli/awam.
ii. Salahi akta HAD
iii.Bankrup
- PP boleh buat rayuan to Ctrlr
supaya WP x blh dirampas.
HDA 1966 (AKTA 118) – 7 Bahagian
W- Kewajipan PP
S- Peyiasatan M- Kuasa Menteri T- Tribunal P- Pelbagai
S7 – Kewajipan PP & Penguatkuasaan
(a) Dlm tempoh 14 hari , inform PP jika
terdapat perubahan dlm. Mana S16-Tbnl tuntutan Pembeli S18- PP Salah guna Lesen
S11 – Kuasa Menteri utk beri
plan/dokumen. Ringkasan : Rumah Related to S5,S5(2)
arahan.
(b) Pamer lesen,permit. Akta / Seksyen ini 16C - Anggota : i. fraud,penipuan dgn guna lesen, x
i. Digunakan apabila kpentingan patuhi akta S5 = denda
(c) Simpan rekod financial etc dipejabat menerangkan:- i.Pengerusi
terjejas 250K-500K@Jail<5thn.
dan mudah diaudit/ west Msia. i.kuasa menteri/org berkaitan ii.Timbalan pengerusi.
ii. Arah PP solve the problem
(d) Lantik juruaudit setiap tahun. untuk jalankan siasatan, iii.X < 5 peguam
iii.Ambil tindakan mengikut kuasanya S19 – Kesalahan oleh PP.
• Submit to Ctrl :- ii. perlindungan kpd pemberi Semua ahli perlu drpd anggota
untuk kuatkuasa akta.
- financial audit report. maklumat, P’khidmat’ Kehakiman & i. langgar S7/langgar tgjwb.
iv.Blh arah kos munasabah/aduan ii. Langgar S8.
(e) Every 6 bulan submit kenyataan iii. kuasa utk bertindak, buyer dibyr drpd APP. Perundangan.
bertulis kemajuan pemajuan Iv. had kuasa peg. Daftar bwh Akta Profesion iii. Langgar S11.
perumahan. undang. Denda :
penyiasat/pemeriksa S13 – Batal & Gantung Lesen
50K- 250K@Jail<3thn@daily
v. Denda 10K-100k@ x lebih 5thn Sekiranya PP :
submit ccc/cf kpd Ctrlr. Ringkasan : fine<$500
jika halang kerja Peg. i. Jejas kpentingan pembeli
(h) Inform to ctrl within 21 dys after VP Pemeriksa. ii. Aset x cukup -Ditubuhkan untuk selesaikan
masalah pembeli dgn PP. S20 – K’salah’n Pengarah PP.
iii.Langgar akta i. Langgar S15(1)- jadi pengarah
S7A – PP buka APP Under S14,Action taken by Ctrlr. -Laksana hearing process.
i. Mesti buka APP dgn satu bank. -Tuntutan defect. walaupun telah
ii. 1 projek :1akaun bankrup,fraud,hutang.
S13A – Lapor kesalahan
1phase prjk : 1akaun Denda : 50K-250K@Jail1-3thn.
Archi/Engr.
iii. Wang p’beli masuk dlm APP. i. Ctrlr boleh lapor kpd LAM/BEM.
iv. PP langgar/bersalah S7A: S21 – Penalti
denda 250K-500K@3 thn dok penjara. Kesalahan yg tiada penalti
diperuntukan@dinyatakan:
S7C – Pembekuan APP. PP boleh didenda x lebih
i. Ctrl blh arahkan (bertulis) bank 250K@Jail<3thn.
bekukan APP.
ii. Jika gagal ikut arahan Ctrl denda S22E – Kesalahan Pelepasan
<100K wang o Stakeholder.
i. Stakeholder x blh release
S8- PP Restructuring/agreement duit (kpd PP/org)
perniagaan . melanggari peruntukan dlm
i. PP buat perjanjian pengubahan/ S&P.
menjual etc perniagaan perlu ii. Sesiapa yg bersubahat.
maklum kpd ctrlr. Denda 10K-100K@Jail<5thn.
Ctrlr bekuasa utk lulus/x lulus
permohonan diatas. S22F – Tipu Perakuan Kemajuan.
i. Arkitek/engr isukan
S8A – Penamatan S&P perakuan kemajuan yg
PP/buyers boleh mohon kebenaran salah / premature CF.
Menteri utk tamatkan S&p jika :- ii. Arch/engr boleh disaman.
i. p’mohanan disokong dgn kebenaran iii. Sesiapa yang bersubahat.
bertulis PP/Byrs. Denda : 10K – 100K@Jail<5thn.
ii. Permohonan diterima Menteri 6 bulan
slps S&p sign. S24 – Kuasa Buat PERATURAN
iii.75% pembeli agree tamatkan S&P.
i. Menteri blh buat rules.
Setelah keputusan dibuat Menteri ;
i. Keputusan muktamad. Rules yg blh dikuatkuasa Menteri:
ii. x > 14hari PP perlu maklum to i. Kawal selia iklan
buyers. ii. Kawalselia nama kawasan
iii. PP pulangkan wang pembeli. iii. Tetapkan bentuk kontrak
iv. Kesalahan S8A = denda 50K- iv. Tetapkan penalti
250K. v. Tetapkan wang masuk&
keluar APP
S9 Audit Rules yg dibuat perlu dibentang dlm
i. Audit 1 tahun sekali. MAJLIS PARLIMEN.
 H.D.A salient points to know

5. Prohibition against housing development except by virtue of a license &

provisions relating to the grant of license.
6. Conditions or restrictions for the grant of a license
6A Controller to keep deposit
6B Controller may forfeit deposit
7 Duties of a licensed housing developer
7A Licensed housing developer to open & maintain HD Account
7C Freezing of the HD Account
8A Statutory termination of sale and purchase agreement
13A Controller to report the conduct of an architect or engineer
16M Jurisdiction of tribunal
22E Release of money by stake holder
22F Progress certification
 When will a developer be required to have a license to
develop a property?

PART I – PRELIMINARY
3. INTERPRETATION

Housing development means

•to develop or construct or cause to be constructed in any manner

whatsoever more than 4 units of housing accommodation and

•includes the collection of moneys or the carrying on of any building

operations for the purpose of erecting housing accommodation in, on, over
or under any land; or

•sale of more than 4 lots of land or building with the view of constructing
more than 4 units of housing accommodation
 CLARIFICATION OF
WHAT CONSTITUTE A PROJECT UNDER H.D.A?

1. Act define the development as the business of developing more

than 4 units of housing accommodation.

2. A person who construct 4 units of housing accommodation is not

governed by the act.

3. A developer who builds only commercial units such as shops or

offices or factories will not be subjected to the act

4. If the unit constructed comprises partly shop or office and partly

residential units, the act will apply.
WHAT IS THE DIFFERENCE BETWEEN LANDED AND
NON LANDED PROPERTY?

Landed- Horizontal mass Non landed- Vertical mass

housing Intended for sell housing intended for sell
(can be individual or strata) (strata)
Is service apartment is govern by H.D.A?

1. With the establishment of H.D.A, developer needs to get license, apply

advertising permit and abide by H.D.R.

2. Therefore it is dependant by the developers intention whether service

apartment is govern by H.D.A. Situation are as follows:-

Situation Service appt govern under H.D.A

• If the developer decides to sell the service apartment before completion and
intend to advertise – Refer Schedule H
• If the developer decides to sell more than 4 units after completion and intend
to advertise – Refer Schedule J

Situation not govern by H.D.A

• If a developer built the service apartment and run it like a hotel . No sale and
purchase transaction occurs
• Developer decides to sell after completion without advertising and treat it like
a sub sale.
WHICH CAN FALL UNDER
H.D.A?

1. SOHO
2. SOVO
3. SOFO
4. SOLO
 WHO ARE THE PARTIES INVOLVE?

S&P agreement via parties solicitor

DEVELOPER PURCHASER
Obtain CCC and developer give VP

PSP KM Loan
aggreement
PLANNER

PSP Building
ARCH/ ENG

Obtain License
MHLG Progress billing supported with
Arch stage certification

PURCHASER
H.D. ACCOUNT
FINANCIER
BANK Deposit purchaser loan

Sales permit
MHLG
 PART II - LICENSING OF HOUSING
DEVELOPER
PART III - DUTIES OF A LICENSED HOUSING
DEVELOPER.
 OVER VIEW
PART II - LICENSING OF HOUSING DEVELOPER
PART III - DUTIES OF A LICENSED HOUSING DEVELOPER.

Part SEC Description

ii 5 Prohibition to Prohibition against housing development except by virtue
license of a license and provisions relating to the grant of a
license.
6 Condition to license Conditions or restrictions for the grant of a license.

iii 7 Duties Duties of a licensed housing developer.

7A Account Licensed housing developer to open and maintain Housing
Development Account
8 Special arrangement Arrangement or agreement affecting the business of a
license housing developer
8A Terminate Statutory termination of sale and purchase agreements
agreement
9 Audit account Audit
 PART II - LICENSING OF HOUSING DEVELOPER

5. Prohibition against housing development except by virtue of a

license and provisions relating to the grant of a license.

(1) No housing development shall be carried on except by a housing

developer in possession of a license issued under this Act.

(3) A housing developer who desires to carry out a housing

development shall apply to the Controller for a license in a
prescribed form.

(4A) A prescribed fees to be paid to Controller

 PART II - LICENSING OF HOUSING DEVELOPER

6. Conditions or restrictions for the grant of a license.

NEW AMENDMENT

(1) License applied under section 5 shall not be granted –

(a) unless the applicant has a capital issued and paid up in cash of not less
than RM 250,000.00 and makes a deposit with the Controller a sum
equivalent to 3% of the estimate cost of construction as certified by architect in
charge of the development ; or
(b) unless the applicant makes a deposit with the Controller of a sum equivalent
to 3% of the estimate cost of construction as certified by architect in charge of the
development;

(c) unless the applicant convicted of an offence involving fraud or dishonesty or

bankrupt

(g) if the registration of the applicant’s architects or engineer has been cancelled
& has not been reinstated under BOE/BOA
 PART II - LICENSING OF HOUSING DEVELOPER

6A. Controller to keep deposit.

Controller shall keep the deposit made under paragraphs 6(1)(a) and (b) until the
expiry of the DLP of the housing development.

6B. Controller may forfeit deposit.

If any licensed holding developer -

(a) carry on business in a manner detrimental to the interest of the purchasers

(a) has insufficient assets to cover his liabilities

(b) Is contravening any of the provisions of this Act; or

(c) had ceased to carry on housing development

 PART III - DUTIES OF A LICENSED HOUSING
DEVELOPER.

7. Duties of a licensed housing developer.

b) exhibit at all times a copy of his license, advertisement and sale permit
c) keep in his office accounting records, transactions & financial position
d) appoint an auditor (every year)

f) not later than the 21st day of January and the 21st day of July of
each year send to the Controller statement in writing on the
progress of the housing development until CCC have been issued

g) inform Controller If unable to meet his obligations to the

purchasers at any stage of the housing development before the
issuance of the CCC
 PART III - DUTIES OF A LICENSED HOUSING
DEVELOPER.

(h) (i) submit CCC to Controller (within 21 days after received) ;

(ii) within 21 days after the date of handing over of VP to the first purchaser,
inform the Controller in writing of the handing over;

(i) inform Controller of any refusal in the issuance of CCC

(j) ensure that the development are in accordance to any law regulating buildings
and has exercised all such diligence as may be required for the issuance of
CCC

(k) inform the Controller of the progress in the issuance of strata titles
 PART III - DUTIES OF A LICENSED HOUSING
DEVELOPER.

7A. Licensed housing developer to open and maintain Housing Development Account

(1) Every licensed housing developer shall open and maintain a HD Account for each
housing development

(2) For phased development, the licensed housing developer shall open and keep a HD
Account for each phase

(3) The licensed housing developer shall pay into the HD Account :
- purchase monies received from the sale
- any sums of money to be paid into the HD Account.

(4) The licensed housing developer shall not withdraw any money from the HD Account
except as authorized by regulations made under this Act.

(7) All monies in the HD Account and moneys held by the stakeholder shall not be garnished
until all liabilities under SPA have been fulfilled.

(10) Fail to comply - fine min RM250,000.00 max RM500,000.00 & 3 year jail/ both.
 PART III - DUTIES OF A LICENSED HOUSING
DEVELOPER.

7C. Freezing of the Housing Development Account.

(1) If the licensed housing developer carry on business in a manner detrimental manner,
the Controller may freeze HD Account .

(3 Fail to comply - fine max RM100,000.00

 PART III - DUTIES OF A LICENSED HOUSING
DEVELOPER.

Old section 8A.

Statutory termination of sale and purchase agreements

A licensed housing developer or the purchasers may apply to the Minister for
approval to terminate SPA if –

(a) Minister received application within six months after the execution of the first SPA
; and

(b) at least 75% of all the purchasers who entered into the SPA agreed with the housing
developer in writing to terminate the SPA

Note:
This section is subjected to sec 7B of the act for housing developer including housing
developer whose license has expire and subject to
8- any special arrangement of business
11- power of magistrate to protect purchaser interest
 PART III - DUTIES OF A LICENSED HOUSING
DEVELOPER.

Amended section 8A. (ACT A1415 2012) NEW AMENDMENT

Statutory termination of sale and purchase agreements

(1) A purchaser shall at any time be entitled to terminate S&P agreement entered into
housing development which the license developer engage in, carries on, urdertakes
or cause to be undertaken if:

a) License developer refuse to carry our or delay or cease work for a continuous of 6
month after the execution of S&P agreement
b) The purchaser has obtain written consent from end financier.
c) The controller has certified that the license developer has refused to carry out or
delay or cease work for a continuous of 6 month after the execution of S&P
agreement

(2) No end financier shall withhold written consent for termination

(3) In the event purchaser exercise his right, license developer has 30 days to refund
purchaser all monies after the termination of S&P.
(4) All encumbrances by purchaser on land will be borne by license developer.
(5) Offence – min 50k and not more 250k, further fine 5k perday after conviction.
PART V – POWERS OF MINISTER
 PART V – POWERS OF MINISTER

13A. Controller to report the conduct of an architect or engineer.

If Controller satisfied that the conduct of an architect or engineer of a

housing developer has prejudiced the interest of the purchaser,
Controller may report such conduct to BOE/BOA

Most common mistakes:

(a) Premature certification – including providing undated signed certificates to developers and
before proper application has been made for the Certificate of Fitness for Occupation (CFO)
together with all prior clearances from subsidiary approving authorities.
(b) Inaccurate certification – when aspects of work still remain incomplete.
(c) Delegating a part of the Architect’s duty to others (especially to the developer or his nominees)
in satisfying himself that the work has been completed in accordance with the Sale and Purchase
Agreement notwithstanding that this may have been authorized in writing.

BOA punishment - impose suspension or remove the names from the register of all Architects
found guilty of improper or fraudulent certification
PART VI- TRIBUNAL FOR HOMEBUYER
CLAIMS
 PART VI- TRIBUNAL FOR HOMEBUYER CLAIMS

16M. Jurisdiction of Tribunal.

(1) Total amount - does not exceed RM50,000.00

16N. Limitation of jurisdiction.

(2) Claim based on a cause of action arising from the SPA entered into between the
homebuyer and the licensed housing developer which is brought by a homebuyer not
later than 12 months from -

(a) the date of issuance of CCC

(b) the expiry date of the DLP as set out in the SPA; or

(c) the date of termination of the SPA by either party and such termination
occurred before the date of issuance of CCC
Apakah bentuk tuntutan yang boleh di failkan
di Tribunal ?
Terdapat dua bentuk tuntutan yang boleh difailkan di Tribunal
iaitu ;
i. Tuntutan Teknikal
ii. Tuntutan Bukan Teknikal
i. Tuntutan Teknikal

Tuntutan teknikal merangkumi kecacatan mutu kerja atau tidak mematuhi bahan atau
spesifikasi sebagaimana yang dinyatakan di dalam Perjanjian Jual Beli (S&P). Tuntutan ini
di buktikan antaranya secara Gambar, Quotation, Bil, Resit, Surat atau lain-lain dokumen
yang boleh menyokong tuntutan atau membawa saksi-saksi yang berkenaan (jika
berkaitan) dan tuntutan ini perlu dinilai dalam Ringgit Malaysia.

ii. Tuntutan BukanTeknikal

Tuntutan bukan teknikal merupakan tuntutan selain dari perkara diatas sebagai contoh
gantirugi bagi kelewatan pe-nyerahan milikan kosong (Late Delivery of Vacant Possession)
oleh pemaju.
 PART VII - MISCELLANEOUS

NEW 18A. Offences relating to abandonment of housing development by

housing developer.

(1) Any developer who abandon or cause to abandon housing development

which he has engage in liable for

(2) RM 250,000 and not more than RM 500,000

(3) Or imprisonment not more than 3 years

Abandonement means –refuse to carry out or delay or suspend or ceased

work continuously for a period of 6 month or more.

NEW AMENDMENT
 PART VII - MISCELLANEOUS

22F. Progress certification.

(1) Any architect or engineer, as the case may be, who issues a progress
certification knowing that the works therein referred to have not been
completed in accordance with the provisions of the SPA …..

– FINE min RM 10,000.00 max RM 100,000.00 / 5 years jail / both.

LAM CIRCULAR 1/2002– impose a suspension or remove the names

from the register

(2) Any person who knowingly and willfully aids, abets, counsels, procures or
commands the commission of an offence under subsection (1) shall be liable
to be punished with the punishment provided for the offence.
 IN CONCLUSION-
KNOW THE PARTIES INVOLVE
AND THEIR DUTIES/
OBLIGATIONS
 WHO IS THE PARTY INVOLVE IN H.D.A DEALINGS?

1. VENDOR – DEVELOPER
2. PURCHASER- PROPERTY BUYER
3. CERTIFIER – ARCHITECT
4. FINANCIER – BANK
5. LEGAL REP. - SOLICITOR
QUESTIONS AND ANSWERS
 GROUP EXERCISE………(6 marks each)

1. WHAT ARE THE OBLIGATION OF DEVELOPER IN RESPECT TO

HOUSING DEVELOPERS ACT?

2. WHAT ARE THE DUTY OF THE BUYER AFTER SIGNING THE

SPA?

3. WHAT ARE THE SALIENT CLAUSES FOR YOU AS AN

ARCHITECT TO PERFORM YOUR DUTIES AS THE PSP UNDER
H.D. ACT?

4. WHAT ARE THE PENALTY INVOLVE IN H.D.A ACT?

 What are the obligation of developer in respect to
Housing developers Act?

The basic developer obligation in accordance to the H.D.A act are as follows:

1. To obtain H.D.A license if development falls under the guideline of H.D.A

act under sec 5 of the act.
2. To fulfill the duties of a license housing developer under sec 7 of the act.
3. To open & maintain HD Account under sec 7A of the act
4. To abide by the S&P agreement with the purchaser.
5. To know their obligation to obtain progress certification from architect to
collect stage billing under sec 22F
6. To comply tribunal award for non compliance of S&P.
 What are the duty of the buyer after signing the S&P?

The duty of buyer are as follows:-

1. After signing S&P, buyer have to realize that they are now potential legal
owners of the property and have to settle all the necessary payment
required of them. (payment consist of registration fee, stamp duty and
legal fee)
2. Buyer must settle payment as stipulated in schedule 3.
3. Other payment that need to be borne by buyer such as:-
• Compulsory payment – land premium, assessment, other charges to land
• Payment incurred after VP – maintenance service fee, infra and
maintenance service fee,
• Insurance for building
• Utilities connection
4. Liaise with developer for MOT for the issuance of title from land office.
 What are the salient clauses for you as an architect to
perform your duties as the PSP under H.D. act?

Before undertaking any housing projects which involves H.D.A act and
regulation, architects must know their duties as follows:

1. To inform developer the need for H.D.A license if fall under sec 5 of the
act.
2. To know his obligation under the S&P, LAM circular 3/2008 and to
administer the contract for the interest of the purchaser.
3. To know when to certify for progress stage certification under sec 22F of
act
4. To act professionally in dealing with the act to avoid any misconduct and
reports under sec 13A of the act.
 WHAT ARE THE PENALTY INVOLVE IN H.D.A ACT?

SEC Offence Penalty

6B Fail to comply the followings Forfeit deposit of minimum RM

(a) carry on business in a manner detrimental to the 200,000
interest of the purchasers
(b) has insufficient assets to cover his liabilities
(c) Is contravening any of the provisions of this Act; or
(d) had ceased to carry on housing development

7A(10) Fail to open and maintain H.D.A account fine min RM250,000.00 max
RM500,000.00 & 3 year jail/
both.
7C(3) Fail to comply freezing of account fine max RM100,000.00

22F(1) PSP Fail to comply progress certification RM 10,000.00 max RM

100,000.00 / 5 years jail / both
16P Tribunal home buyers claim Total amount - does not
exceed RM50,000.00
16AD Criminal penalty for failure to comply tribunal award Not less than RM 10,000 and not
less than RM 50,000
 DEVELOPER UNABLE TO CARRY OUT TO COMPLETE THE
HOUSING DEVELOPMENT DUE TO FINANCIAL STANDINGS.
WHAT CAN BE DONE?

1. Seek controller direction – Controller has

power to direct another company to carry
on the business 11(1)(c)
2. Sell management- Sell the developer
management under sec 8(1) with controller
consent.
3. Joint Venture- JV with other developer and
share profit.
 DEVELOPER INSOLVENT :-

1. Sec 7g – developer to inform

controller.
2. Sec 7A(5) – Money held in H.D.
account be deem not property of
developer
3. Sec 11- Controller can use money to
complete the works.
 Any Questions???

Next HD(control and licensing) regulation 1989……