Mar 6, 2009

Left high and dry

Malaysian Institute of Estate Agents (MIEA) Q&A

Q. My husband and I purchased a house in Puncak Jalil, Lestari Perdana, LP4. Until today, we are unable to move in because most of the houses in this area are still vacant or abandoned. We heard that the developer of this area has gone bankrupt and therefore many of the projects here have stopped progressing.

We are very concerned about the future progress of this area and wonder if it has been taken over by any reputable developer or likely to be taken over. We might want to dispose of it or keep it for ourselves, depending on the development. - Helen Tan

A. It is important to note that until you have paid in full you are only a beneficial owner and not the legal owner and selling it when the project has been abandoned is not easy and no one will want to buy it from you. You would need to check with the developer on the current status and whether anyone has taken over the development.

Trying to sell a house in an abandoned project is not easy.

Q. I bought an apartment (25-year-old building with freehold status) near Imbi, KL, seven years ago. I have not received the strata title yet. What is the developer’s obligation in this matter? Also, the building has its own 0.4ha (1 acre) vacant land used as car park. This part of the land was given up to a government concessionaire a few years back and a highway was constructed through it. Are the owners of the apartments entitled to any compensation for the piece of land? If yes, what is the developer’s obligation and how do I go about it? - Anonymous

A. It is the duty of the developer to apply for the strata title. However, there are many buildings in this country constructed much earlier than yours that are still waiting for the issuance of the strata title. Check with the developer on the current status of the application to the authorities.

It is important to know whether the vacant land as described by you was part of the common property of the building. If it is, then the owners of the apartments have a right to the land. Check with your lawyer on this and he will be able to advise you.

Q. I bought a unit in a condominium through an auction but didn’t have the chance to view the unit due to lack of access. In the proclamation of sales, it is stated that the subject property is a 2+2 bedroom unit. However, later I found that the unit has only three bedrooms. Is it possible for me to take a legal action on the bank that auctioned it to me? - Lina

A. I don’t think so, as it is said in the documents that you are buying on a ‘as it is basis’. You are required to check the details and the property before you go for the auction.

Q. I would like to ask about an underground pipe defect in my house that happened after staying 2 1/2 years.

The underground pipe started to clog and I suspected that it was broken as mud was flowing into the pipe, causing it to clog and causing a backflow of waste water to my toilet. The pipe is buried 3.1m (10ft) underground and I did not do any renovation around the area Is it possible to hold the developer responsible for this repair? Is the house owner responsible for any underground pipe leakage in the unrenovated area? Can I take any action or ask for compensation from the developer for the cost of repair, even though the house liability has expired? - Law Kok Siang

A. From my experience, the developer cannot be held responsible as the defect liability period has expired. It will be your responsibility and at your cost to get it repaired as it is underneath your house.

Check the property before going to the auction.

Q. You mentioned, “Leasehold land can only be owned until the end of the period of lease”. Does this mean that the owner will not get any compensation when the period of lease expires? What about the cost of building the house on the land? - Anonymous

A. Yes, you will not be compensated when the lease expires. The building is on the land, which has the lease, and once the land is taken, the building goes with it. There will be no compensation.

Q. I am planning to buy a unit in Saujana Apartment, Damansara Damai. Most of the owners there are selling their property through agents and negotiators - how do I know the price quoted by the agent is reasonable? Are there any websites for us to the check the market price of properties in Malaysia? - Kelly

A. The agent is probably the best person to advise you on the latest transaction as he is working in your area. If you are not confident with the values given, you can check with other agents who are active in that area. Furthermore, you can do a valuation on the property, which will cost you some money. The other way is to check the classifieds in the papers and compare the advertised prices.

*This series is supported by MIEA, whose primary objective is to promote a beneficial influence on the profession, promote high ethical standards of conduct, maintain a high level of professionalism and to safeguard the public. It can be contacted at 03-79602577. or visit its website, www.miea.com.my

*Do you have a query on real estate in Malaysia? Having trouble buying or selling property? How do you choose the right estate agent to market your property? If you are facing such problems, we will be happy to help out. You may e-mail your questions to qa.metrocls@thestar.com.my and we will publish selected questions together with our answers.