SALE AND PURCHASE AGREEMENT From Purchasers Perspective By
SALE AND PURCHASE AGREEMENT “From Purchaser's Perspective” By : GUNASEGARAN NAIDU DEVARAJULU PRINCIPAL ASSISTANT DIRECTOR ENFORCEMENT DIVISION NATIONAL HOUSING DEPARTMENT 26 SEPTEMBER 2012 1
SCOPE 1. 2. 3. 4. 5. 6. 7. 8. INTRODUCTION PURPOSE AMENDMENTS ESSENCE OF THE ACT HOUSING ACCOMMODATION HOUSING DEVELOPER HOUSING DEVELOPMENT SCHEDULE H 2
INTRODUCTION 1. HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966 (ACT 118) 2. ENACTED IN 1966 AND ENFORCED IN 29 OGOS 1969 3. TO CONTROL AND LICENSING THE HOUSING INDUSTRY
PURPOSE AN ACT TO PROVIDE FOR THE CONTROL AND LICENSING OF THE BUSINESS OF HOUSING DEVELOPMENT IN PENINSULAR MALAYSIA, THE PROTECTION OF THE INTEREST OF PURCHASERS CONNECTED THERE-WITH AND FOR MATTERS
AMENDMENTS 1972 1977 1988 Third amendment was enacted on 01 Disember 1988 Second amendment was enacted on 10 Jun 1977 2007 2011 Fifth amendment was enacted on 12 April 2007 Forth amendment was enacted on 01 Disember 2002 The chronology of Amendments Act 118 HOUSING DEVELOPMENT (CONTROL AND LICENSING) BILL (AMENDMENTS)2011 First amendment was enacted on 04 April 1972 2002
ESSENCE OF THE ACT 1. HOUSING DEVELOPMENT (CONTROL AND LICENSING) REGULATIONS 1989 2. HOUSING DEVELOPMENT (HOUSING DEVELOPMENT ACCOUNT) REGULATIONS 1991 3. HOUSING DEVELOPMENT (TRIBUNAL FOR HOMEBUYER CLAIMS) REGULATIONS 2002 4. HOUSING DEVELOPMENT (COMPOUNDING OF OFFENCES) REGULATIONS 2002
HOUSING ACCOMMODATION “HOUSING ACCOMMODATION” INCLUDES ANY BUILDING, TENEMENT OR MESSUAGE WHICH IS WHOLLY OR PRINCIPALLY CONSTRUCTED, ADAPTED OR INTENDED FOR HUMAN HABITATION OR PARTLY FOR HUMAN HABITATION AND PARTLY FOR BUSINESS PREMISES AND SUCH OTHER TYPE OF ACCOMMODATION AS MAY BE PRESCRIBED BY THE MINISTER FROM TIME TO BE A HOUSING ACCOMMODATION PURSUANT TO SECTION 3 A
HOUSING DEVELOPER “HOUSING DEVELOPER” MEANS ANY PERSON, BODY OF PERSONS, COMPANY, FIRM OR SOCIETY (BY WHATEVER NAME DESCRIBED), WHO OR WHICH ENGAGES IN OR CARRIES ON OR UNDERTAKES OR CAUSES TO BE UNDERTAKEN A HOUSING DEVELOPMENT.
HOUSING DEVELOPMENT “HOUSING DEVELOPMENT” MEANS TO DEVELOP OR CONSTRUCT OR CAUSE TO BE CONSTRUCTED IN ANY MANNER WHATSOEVER MORE THAN FOUR 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, OVER OR UNDER ANY LAND; OR THE SALE OF MORE THAN FOUR LOTS OF LAND OR BUILDING LOTS WITH THE VIEW OF CONSTRUCTING MORE THAN FOUR UNITS OF HOUSING ACCOMMODATION;
SCHEDULE H (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS)
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) PREAMBLE -* Date of signing S&P -* Housing Developer's company name -* Valid housing development License number -* Purchaser particulars -* Proprietor particulars -* Freehold/leasehold land & No. of Title -* Lot No. /P. T No. -* Town/Village/Mukim -* Land area (hectares/square meters) -* Information on charging the said Land -* Approval of the building plans by Appropriate Authority -* Phase No.
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) PREAMBLE -* Sales & Advertisement Permit number -* Parcel No. (shaded GREEN) -* Storey plan/Delineation plan (square metres) -* Storey No. -* Building No. -* Land Parcel No. (shaded RED) -* Accessory Parcel Plan (shaded BLUE)
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) Parcel free from agricultural, industrial and building restrictions Parcel free from encumbrances before the Purchaser takes vacant possession of the said Parcel - The developer can't subject the land to any encumbrances without prior approval from Purchaser after signing the S&P. - Upon vacant possession must be free from any encumbrances. - In the event 'its' encumbered, upon signing S&P, the Developer must deliver to the Purchaser & Financier the redemption statement and undertaking letter issued by bank.
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) Indicate the purchase price Schedule of payment Loan - In accordance to 3 rd Schedule. - Every claim must be supported by Architect / Engineer certification. - Shall apply within 14 days after receipt a stamped copy of S&P. - Whole loan should be utilised towards the payment of purchase price as per 3 rd Schedule. - Failure to obtain loan with proof of ineligibility, 1% can be forfeited. Any refund must be made within 21 days. - If the purchaser fails to accept the loan or default, Purchaser liable to pay in full. - Developer should undertake to refund the loan sum to Financier in the event MOT cannot be registered.
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) Purchaser's right to initiate & maintain action - can initiate or institute any proceedings arising from S&P in any court or tribunal against the Developer/Proprietor provided the Financier have been notified within 14 days from the actions filed. Interest on late payment - all claims must be paid within 21 working days. - 10% per annum can be charged on any delays thereof. - the Developer can't claim late interest if : (a) the progressive claim notice is incomplete (b) if the said land is encumbered; the bank delay or fail to issue the redemption statement & undertaking letter to Purchaser/End-Financier (c) if the Financier refuse to release on the ground that such payment is insufficient to settle the full redemption sum.
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) Default by Purchaser & determination of Agreement - if the Purchaser fails to pay any installment or payment for period in excess of 28 days after the said due date, or commits any breach of S&P, or commits an act of bankruptcy, Developer may; - dispose the said parcel within their power - refund the money paid (excluding any interest) by deducting all chargeable interest & forfeit 10% of purchase price if the claim is up to 50%; forfeit 20% for claim more Than 50%. Separate strata title & transfer of title - Developer have to apply for strata title in accordance to Strata Title Act 1985. - Upon of issuance of the strata title & subject to the full payment of purchase price, the Developer shall within 21 days execute a valid & registrable MOT
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) Position & area of the Parcel - if the area in strata title is less than the area shown in building plan in excess of 2%; Developer have to pay for the differences at the price agreed upon per sqm. Within 14 days of the issuance of the title. - No any adjustment of price for exceeded area. Materials & workmanship to conform to description - should be in accordance to 4 th schedule & the plans approved by the Authority - No changes can be made without consent from the Purchaser except if required by Authority. - No charges for any changes done but if it is down graded; Purchasers entitled for reduction in purchase price or to damages.
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) Restriction against variation by purchaser - cannot carry out any variation before CCC issued. - if the developer agrees to any alterations, it can be done by annex an inventory list with prefixed schedule of rates with S&P. - this additional payment must be paid within 21 working days upon claim. Restriction against change to color code # - for Putrajaya; cannot carry out any change in color of the exterior without concern from Perbadanan Putrajaya. Infrastructure & maintenance; common facilities & service - the Developer have to built & maintain all infrastructure at its own cost until VP.
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) Payment of service charges - upon VP until it's taken over by Authority or JMB; Purchaser shall pay a fair & justifiable cost for maintenance to the Developer. Supported by a service charge statement. - Amount is determined according to the allocated share units. - shall pay 4 months (6 months for Schedule G) in advance & subsequent payment monthly in advance within 14 days upon notice & failure will result in 10% interest per annum. - any payment received must be paid into Building Maintenance Account. - Developer may appoint agents & should provide annual audited accounts. Sinking fund - An amount equivalent to 10% of service charge paid monthly in advance upon VP. - is used for painting, purchase or replacement of any for common property.
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) Insurance - before VP, all parties should insure the said building against loss or damage by fire & other risk after VP, shall pay fair & justifiable proportion of the insurance premium within 14 days & upon default can be charged interest up to 10% per annum. Payment of outgoings - upon VP, all outgoings including quit rent, rates, taxes, assessment & other charges must be paid by the Purchaser.
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) Time for delivery of VP - 24 months (landed) from the S&P date - 36 months (high rise) from the S&P date - failure to deliver in time, LAD will be charged at the rate of 10% per annum of the purchase price from the expiry of the delivery of VP until the date the purchaser takes VP. The payment should be paid upon the date the purchaser takes VP. Manner of delivery of VP - issuance of CCC & handing over the keys - water & electricity ready for connection - purchaser paid all monies related to this Agreement. - upon expiry of 14 days from the VP notice, purchaser shall be deemed to have taken the VP.
SCHEDULE H (Subregulation 11(1)) SALES AND PURCHASE AGREEMENT (BUILDING OR LAND INTENDED FOR SUBDIVISION INTO PARCELS) Completion of common facilities - must be completed within 36 months - failure which may result in LAD of 10% per annum of the 20% of the purchase price Defect liability period - 24 months - must rectify within 30 days from the date of notification - if the Developer fails to rectify within 30 days, purchasers may repair themselves & deduct such cost from stakeholders sum, providing purchaser have notify the Vendor of the cost of repairing & give them additional 14 days to rectify the matter. Stamp duty & registration fee - the stamp duty & registration fee for S&P and subsequent transfers shall be borne by the Purchaser.
SCHEDULE H (Subregulation 11(1)) FIRST SCHEDULE (Copy of approved following plans attached) Approved Layout Plan Reference No. : Name of Appropriate Authority : 1. 2. 3. 4. 5. 6. 7. Site Plan. . . . Attached Layout Plan. . . . Attached Floor Plan of the said Parcel. . . . . Attached *Storey Plan of the said Building/ Delineation Plan of the said Land Compromising the said Parcel. . . . Attached Accessory Parcel Plan. . . Attached Common Facilities Plan. . . . . Attached Building Plan. . . . Attached
SCHEDULE H (Subregulation 11(1)) SECOND SCHEDULE COMMON FACILITIES AND SERVICES (a) (b) List and description of common facilities serving the said housing development. List and description of services provided.
THIRD SCHEDULE (Clause 4) SCHEDULE OF PAYMENT OF PURCHASE PRICE Instalments Payable 1. Immediately upon the signing of this Agreement. 2. Within twenty-one (21) working days after receipt by the Purchaser of the Vendor's written notice of the completion of - % 10 Amount RM 10 RM (a) The work below ground level of the said Building comprising the said Parcel including foundation of the said Building (b) The structural framework of the said Parcel 15 RM (c) The walls of the said Parcel with door and window frames placed in position 10 RM (d) The roofing, electrical wiring, plumbing (without fittings), gas piping (if any) and internal telephone trunking and cabling to the said Parcel 10 RM
THIRD SCHEDULE (Clause 4) Instalments Payable % Amount (e) the internal and external finishes of the said Parcel including wall finishes 10 RM (f) the sewerage works serving the said Building 5 RM (g) the drains serving the Building 5 RM (h) the roads serving the said Building 5 RM 3. On the date the Purchaser takes vacant possession of the said Parcel with water and electricity supply ready for connection 12. 5 RM 4. On the date the Purchaser takes vacant possession of the said Parcel as in item 3 and to be held by the Vendor's solicitors as stakeholder for payment to the Vendor within twenty-one (21) working days after the receipt by the Purchaser of the written confirmation of the *Proprietor/Vendor's submission to and acceptance by the Appropriate Authority of the application for subdivision of the said Building or Land, as the case may be. 2. 5 RM
THIRD SCHEDULE (Clause 4) Instalments Payable 5. On the date the Purchaser takes vacant Possession of the said Parcel as in item 3 and to be held by the Vendor's solicitor's as stakehollder for payment to the Vendor as follows- (a) Two point five per centum (2. 5%) at the expiry of eight (8) months after the date the Purchaser takes vacant possession of the said Parcel; and (b) Two point five per centum (2. 5%) at the expiry of twenty-four (24) months after the date the Purchaser takes vacant possession of the said Parcel. % 5 Amount RM
FORTH SCHEDULE (Clause 13) BUILDING DESCRIPTION (a) Structure: (b) Wall: (c) Roofing covering (d) Roof framing (e) Ceiling: (f) Windows: (g) Doors: (h) Ironmongery: (i) Wall finishes: (j) Floor finishes (k) Sanitary and plumbing fittings: (l) Electrical installation
FORTH SCHEDULE (Clause 13) BUILDING DESCRIPTION (m) Internal telephone trunking and cabling: *(n) Fencing: *(o) Turfing: *(p) Gas piping Note : The Vendor shall at its own cost and expense install or construct all of the items listed above in accordance to the description set out save for the item or items marked with an * which may be deleted if not applicable.
FIFTH SCHEDULE (Clause 18) FORM OF SERVICE CHARGE STATEMENT Project : For the year: Date: Expense details : No. Description 1. General repair/maintenance 2. Electrical supply 3. Electrical system maintenance Estimated Monthly Expenses (RM) Estimated Annual Expenses (RM)
FIFTH SCHEDULE (Clause 18) FORM OF SERVICE CHARGE STATEMENT No. Description 4. Fire fighting system maintenance 5. Generator system maintenance 6. Lift/escalator system maintenance 7. Air conditionong system maintenance 8. Security system maintenance 9. Main television reception equipment maintenance 10. Intercom repair & maintenance Estimated Monthly Expenses (RM) Estimated Annual Expenses (RM)
FIFTH SCHEDULE (Clause 18) FORM OF SERVICE CHARGE STATEMENT No. Description 11. Building automation system 12. Water supply 13. Swimming pool maintenance 14. Sewerage maintenance 15. Refuse collection/disposal 16. Car park maintenance 17. Pest control Estimated Monthly Expenses (RM) Estimated Annual Expenses (RM)
FIFTH SCHEDULE (Clause 18) FORM OF SERVICE CHARGE STATEMENT No. Description 18. Security services 19. Cleaning/cleansing services 20. Gardening and landscaping 21. Signage 22. Bank charges 23. Audit fee 24. Management fee Estimated Monthly Expenses (RM) Estimated Annual Expenses (RM)
FIFTH SCHEDULE (Clause 18) FORM OF SERVICE CHARGE STATEMENT No. Description 25. Management office expenses 26. Staff expenses Estimated Monthly Expenses (RM) Estimated Annual Expenses (RM) Total expenses RM RM ** Amount per allocated share unit RM RM Number of allocated share units assigned to the said Parcel by the Vendor's licensed and surveyor Amount of service charge
FIFTH SCHEDULE (Clause 18) FORM OF SERVICE CHARGE STATEMENT Note: (i) Delete where any of the items described above are inapplicable (ii) Save as in Note (i) above, no addition or amendment to the above list is permitted without the prior written consent of the Controller. (iii) ** Calculated as follows: Total Expenses Total number of allocated share units assigned by the Vendor's licensed and surveyor to all parcels comprised in the housing development (iv) The service charge statement shall be issued by the Vendor to the Purchaser at the time of delivery of vacant possession with the details of the expenses duly filled in.
Q & A Session
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