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Johor Assembly: 1,000 housebuyers in a lurch [ 14/11/2002 ]
JOHOR BARU, Nov 14: CLOSE to 1,000 homebuyers in Johor, left in the lurch with hefty loans to repay when their housing projects were abandoned mid-way by developers, may eventually be able to recoup some of their losses without going to court. State Domestic Trade, Consumer Affairs and Housing Committee chairman Samat Aripin said respite would come in the form of a "Tribunal for Homebuyers Claims" where affected housebuyers would be compensated up to RM25,000. With the inception of the tribunal, housebuyers no longer need to file civil suits or appoint lawyers to act on their behalf when demanding for compensation from developers who fail to complete a housing project. Samat said the tribunal would be set up following the amendments made to the Housing Developers (Control and Licensing) Act, 1966 this year. Although the Act had been gazetted in January, the tribunal can only be set up after the enforcement date is announced by Housing and Local Government Minister Datuk Seri Ong Ka Ting. "Another move to protect housebuyers is the changes to the provisions under the Sales and Purchase Agreement which is currently awaiting approval from the Attorney-General's Chambers," he said in reply to Khoo Kong Ek (BN-Skudai). He added as of Dec 21 last year, Johor had 24 abandoned housing projects. "This figure is expected to rise, although we are still waiting for the latest statistics. The 24 abandoned housing projects involved 922 housebuyers who still had bank loans to settle. "The State Government does not have information on civil suits or bankruptcy cases as a result from the failure of these projects as this is between the buyer and the developer," Samat said. In replying to Mohamad Dolmat (BN-Tiram) on a similar question, Samat said the State Government had taken several measures to prevent housing projects from being abandoned. "We have talks with developers, housebuyers and technical agencies to find an end solution that benefits all parties. We also provide consultation to developers interested in taking over an abandoned project," Samat said. Source : NST 14/11/2002
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