10th April 2009Informations stated in Part 1 are just a portion of what to come and therefore, in Part 2, you guys would need to pay a close attention as it involve more explanation to our side as Subdivided Building or another word, Condominium.
So, .......Enjoy!!!
Infrastructural Maintenance Fee
Buyers must pay the cost of maintaining the infrastructure from the date of vacant possession till the date the responsibility is taken over by the local authority or management corporation (in the case of a subdivided building).
Infrastructure is defined as:
* For land and building - Road, driveway, drains, sewerage, pipelines and sewerage tank for the housing development
* For subdivided building - Road, driveway, drains, sewerage, pipelines and sewerage tank for the building
Maintenance and Management Fee
From the date of vacant possession the buyer shall be responsible for paying for services such as:-
1. For land and building
i. Refuse removal, upkeep of drains and grass-cutting on the road reserves
ii. The buyer is responsible for such payment until such responsibility is taken over by the proper authority
iii. The buyer must pay a six months’ deposit upon being handed vacant possession for the services to be rendered. After six months, if the services are still not taken over by the relevant authority, any subsequent payment shall be payable on a monthly advance.
2. For subdivided building
i. Payment is for the cost of maintaining and managing the common area and payment starts when vacant possession is handed over.
ii. The buyer shall pay one (1) month’s deposit and three (3) months’ advance in respect of the maintenance service charges and any payment thereafter shall be payable on a monthly advance.
iii. Maintenance fee must be paid to the developer from the date of vacant possession up until the formation of a management corporation under the Strata Title Act 1985.
iv. Once the management corporation is formed under the Strata Title Act 1985, maintenance services will be handled by the management corporation and the buyer must pay the maintenance fee to the management corporation and not to the developer.
=> Reminder:- Maintenance fee must be paid as long as the buyer owns a parcel in the said maintained building
Sinking Fund (For subdivided building only)
The buyer shall upon the date he takes vacant possession of the said parcel contribute to the sinking fund an amount equivalent to 10 per cent of the service charges.
The buyer shall pay one (1) month’s deposit and three (3) months’ advance in respect of the service charges to the sinking fund and any payment thereafter shall be payable on a monthly advance.
Payment of Quit Rent, Rate Assessment, etc
From the date of vacant possession or date of assignment, whichever is earlier, the buyer is responsible for the quit rent, assessment, rate payment and other charges relating to the property bought.
Vacant Possession (VP)
Vacant possession on the building complete with water and electricity connection must be handed over within 24 calendar months from the date of signing of the SPA for landed property and 36 calendar months for subdivided building.
Regulation and Rights of House Buyers during the Handing over of Vacant Possession Ensure the property is free from any encumbrances before accepting notice of vacant possession.
If the developer leases the land or the property, the developer must settle the balance payment before handing over vacant possession.
Conditions that must be followed by housing developers:-
1. Certificate from the developer’s architect stating that:
i. water and electricity are ready for connec
ii. the building is completed
2. The developer has applied for:
i. the issue of the Certificate of Fitness for Occupation (CFO) through Form E *
ii. the local authority has issued a notice stating that Form E has been checked and accepted by the relevant authority
=> Form E is an application from the developer’s architect to the relevant authority for the issue of the CFO.
The buyer is entitled to enter into occupation of the property only upon issue of the CFO by the relevant authority and renovation may be carried out only upon issue of the CFO and approval of the plan by the relevant authority.
While inspecting the building, any defect is recorded and handed over to the developer to be rectified. Make sure you obtain a copy of the report.
The buyer is entitled to claim for late delivery from the developer.
Damages
If the developer fails to deliver vacant possession of the building as stipulated by the SPA, it must pay damages calculated on a daily rest, 10 per cent per annum of the purchase price.
Defect Liability Period
The defect liability period is 18 months after the date of vacant possession
Creation of Management Corporation for Subdivided Building
A management corporation will be created once the strata title of each individual parcel is issued to the owners.
Other functions of the management corporation include insuring and maintaining the building.
For further enquiries or complaints, you may contact:
Monitoring & Enforcement Division,
Ministry of Housing & Local Government,
Level 3, Block B North, Pusat Bandar Damansara,
50782 Kuala Lumpur.
Tel: 03-2094 7033
Fax: 03-2092 5049
Source: Ministry of Housing and Local Government
I not guarantee the accuracy of the information provided and holds no responsibilities for any mistakes made.
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