By Farah Wahida:
To protect home buyers from abandoned projects, Malaysia’s Housing and Local Government Ministry will bar 1,261 blacklisted residential developers from participating in any new projects starting in 2015, reported Bernama.
This as the government implements a new law on the “build first, sell later” policy. To ensure it takes effect in 2015, authorities are working closely with banks and financial institutions, said Housing Minister Datuk Seri Chor Chee Heung.
“The blacklisted developers, together with 4,150 individuals and board members of the companies involved, will not be given another chance to handle a housing project.”
“This is a part of the government’s efforts to ensure that the public will not fall victim to abandoned housing projects caused by irresponsible developers.”
There is still a chance these companies could return to business, but only by completing their abandoned projects and clearing company records.
Chor added: “Under the new law, each housing developer will have to bear 90 percent of the cost of the project because the buyer will only pay 10 percent of the house price upfront and pay the rest of the price when the project is completed by the developer.”
Farah Wahida, Editor of PropertyGuru Malaysia, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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