“The unhealthy practice of liquidators imposing exorbitant administrative fees up to 2% or 3% of the purchase price (or in some cases, current market value of the properties) for executing the transfer of individual titles to purchasers has now become a norm.”
Datuk Chang Kim Loong: Our contention is, this fee for a standard form has been charged since 2013. Surely, such costs must have been amortised over the years. Must the banks continue to profit from the sale of forms? Isn’t their major source of income derived from giving out loans?
Datuk Chang Kim Loong: The recent news reports on inflating housing prices caused by discounts and rebates have made many sit up and take notice and the National House Buyers Association (HBA) is glad that commercial banks are aware of such discounting practices by developers and its impact to the property market.
Datuk Chang Kim Loong: It is still very difficult to understand why taxpayers’ money is being “sacrificed” to facilitate the niche market buyers and for the benefit of the housing developers, because that is exactly what is being done here.
The central bank, in its 2018 Financial Stability and Payment Systems report, demanded banking institutions to revise these unfair T&C and improve clarity through the use of plain language, for both new and existing housing loans and financing contracts, by end 2019.
While GRR schemes sound very attractive, investors need to know they are not as simple as they seem. In fact, they should be approached with as much caution as advertisements for fast weight loss pills, get-rich-quick ventures or striking the lottery.
The National House Buyers Association (HBA) has time and again reminded the housing minister and those under the ministry’s charge on the need to rein in the conduct of those so-called court-appointed officers, namely liquidators.
Since its enactment in 2015, there has not been any news of developers being prosecuted under this new Section, although cases of abandonment abound. Enforcement is still the key on whether the law is effective in protecting property buyers.
The Government has heeded the recommendations of the National House Buyers Association (HBA) to close the floodgates and resolve the issue.