You would probably have seen or passed by abandoned housing development projects along your journey in Malaysia cities. Or worst still, you could probably be one of the unit owners of the housing development. This happens when housing developers ceased to continue with the development project. Did you know that when housing developers abandons their housing development projects, they are committing a crime? Under Section 18A of the Housing Development (Control & Licensing) Act 1966 (“HDA”), a housing developer who refused to continue or have postponed or suspended or stopped the projects for a period of 6 months or more can be guilty of an offence which carries the punishment of a fine of between RM250,000 to RM500,000 or imprisonment for up to 3 years or both. Where a housing development project is ceased for more than 6 months, this would mean that the affected purchasers would not be able to receive their property within the completion date or will never receive their property at all. In such circumstances, what can purchasers do? An affected purchaser has the right to terminate the sale and purchase agreement (“SPA”) entered with the housing developer pursuant to Section 8A(1)(a) of the HDA. However, 2 things must be obtained prior to the termination - (a) written consent from the end financier and (b) certification from the Housing Controller that the housing developer has refused to carry out the housing development work for 6 consecutive months after the signing of the SPA. Upon termination of the sale and purchase agreement, the housing developers must refund all monies received from the affected purchasers within 30 days from the termination. . Contents in this article are intended to provide a summary or review of the subject matter and are not intended to be nor should it be relied upon as a substitution for legal or any professional advice. For more information, contact us at hhqkl@hhq.com.my or +603 2710 3818. . . Written by: Tan Poh Yee LL.B (Hons) University of East England, CLP Team Lead Learning & Development pohyee.tan@hhq.com.my

An advertisement permit and developer's license (APDL) is a permit issued by the Ministry of Housing and Local Government (KPKT) to the housing developer to carry out development work and to advertise and sell properties under housing development project. The law governing the requirement and application for the APDL is contained in Section 5 of the Housing Development (Control & Licensing) Act 1966 (“the Act”) read together with Regulation 3 to 5 of the Housing Development (Control & Licensing) Regulations 1989. This requirement applies to property developers who build housing accommodation that falls under the Act. The APDL is an important document to both the housing developer and the purchaser. The housing developer cannot advertise and sell any of the properties under any project development without the APDL. For purchasers, It is a form of protection to ensure that they are dealing with genuine housing developers when buying properties under housing development. An APDL issued is applicable to the proposed advertisement as submitted to the Ministry. If the housing developer later wants to change the advertisement which is different from the one submitted, a new APDL has to be obtained. It is important that the application for the APDL be done properly and that all particulars and information to be submitted are correct for any misrepresentation of the particulars is an offence which may attract criminal liability. Contents in this article are intended to provide a summary or review of the subject matter and are not intended to be nor should it be relied upon as a substitution for legal or any professional advice. For more information, contact us at hhqkl@hhq.com.my or +603 2710 3818. . . Written by: Tan Poh Yee LL.B (Hons) University of East England, CLP Team Lead Learning & Development pohyee.tan@hhq.com.my

A planning permission is a written permission of the Local Planning Authority to develop a piece of land in the manner as stipulated in the permission. Planning permission is required after approval of land conversion is obtained before any building plans are approved. The law governing planning permission is contained in the Town and Country Planning Act 1976 (Act 172). Section 19(1) of the Act prohibits any person from carrying out any and development on land unless planning permission is obtained. Exceptions to the prohibition are, among others, where the party is a local authority or for carrying out work by any authority to provide utilities or for any excavation or for the use of any land or building for making temporary cinema, temporary amusement park or temporary ceremony for a period not exceeding one month. Carrying out land development without a planning permission is an offence carrying punishment of a fine not exceeding RM500,000 or imprisonment for a term not exceeding two years or both. Application for planning permission should be made by a landowner. In situation where the application is not made by a landowner, written consent of the landowner to the proposed development must be obtained. A planning permission is granted by the local planning authority which is the local authority of the area pursuant to Section 5(1) of the Act. The local planning authority is to decide on the application of planning permission as soon as possible after expiry of the time period for neighboring landowners to raise objections or after hearing the objections. In considering whether to grant or reject the application for planning permission, the local planning authority must consider a few things such as the provisions of the development plan, the direction given by the Committee, consultation with National Physical Planning Council, comments from the technical departments and the objections raised by neighboring landowners. . Contents in this article are intended to provide a summary or review of the subject matter and are not intended to be nor should it be relied upon as a substitution for legal or any professional advice. For more information, contact us at hhqkl@hhq.com.my or +603 2710 3818. . . Written by: Tan Poh Yee LL.B (Hons) University of East England, CLP Team Lead Learning & Development pohyee.tan@hhq.com.my