purchasedmay be
situated “just a couple
of minutes away from
conveniences and
highways”, but getting
to these locations in
realitymay take a
while. “Some brochures
highlight the amazingly
short travelling time to
important places
without mentioning the
mode of travel, while
others promote close
proximity to upmarket
Mont Kiara, even if the
place is closer to
Segambut,” Chang adds.
How about fully-
equipped state-of-the-art
gyms and spa facilities
like heated swimming
pools and jacuzzis, steam
and sauna rooms - to find
that the only state-of-the-
art you receive are that of a sorry state. And
don’t forget the undulating hills and nature’s
forests located just a stone’s throw away - that
these could be developed, to give you a
“neighbourly” concrete jungle welcome
onmoving into your newhome. “Some even
guarantee return on investment
(ROI), provided you spendmore
money on furniture and fittings.”
Reinforced regulation
“Advertisements calculated to
mislead andwhich havemisled
purchasers may give purchasers a
private right to a civil suit against
the developer where the housing
ministry cannot bemoved to act.
Under the 1989 regulations,
developers are required to give
‘accurate and true particulars’ in
advertisements of their housing
schemes or on conviction, be fined a
sumnot exceeding RM20,000 or
face imprisonment, not exceeding
five years or both; if ever there is a
prosecution. So far, there have not
been any prosecutions, not that
there have not been any violations
for advertisements that mislead
buyers,” informs Chang.
He says that theministry has
recently reinforced a law requiring
developers to provide purchasers
with a “full set of detailed approved
documents” of the property
purchase. “This has actually been a
long-standing requirement.
For landed properties, the approved
layout plan and approved building
plan has to be included in the S&P
agreement as the first schedule and
second schedule, respectively.
With respect to strata titles, the site plan,
layout plan, floor plan of the parcel, storey
plan of the building, accessory plan, common
facilities plan – all these need to be approved
CUT AND KEEP
APRIL 11, 2014
Please email your feedback and
queries to:
“
Get
away from it all, the noise,
and the hustle and bustle of city life.
Come back to nature with all its
promise of clean, fresh, healthy air,
where the birds sing and the ambiance is
forever spring. The X is where luxury and
serenity awaits the privileged smart
investor. Rejuvenate the soul, relax the
mind andwatch the world go by. All
these andmore are just 30-minutes
away from the suburbanmetropolitan
of Kuala Lumpur.”
Just words and visuals
This excerpt is gleaned froma property
brochure. Now, imagine a potential house-
buyer taking it all in. Captivating images of
a serene-looking lake, a streamwith
flowing water, undulating hills with
endless greens … combinedwith a
picturesque scene of a family enjoying
quality time at a waterfall or a couple
lounging bear an infinity-edge pool.
What about gated and guarded
neighbourhoods withmulti-tiered 24-hour
security patrol; fully serviced residential
high-rise residences with top drawer
facilities and amenities; or landscaped
gardens and parks withmanicured lawns
that stretch as far as the eye can see.
An overwhelming amount of gravy and
dressing can be found in property
brochures and flyers. Many accentuated
with breathtaking artists’ impressions
whichwould have even impressed
ClaudeMonet.
Reality
VerSus
Hyperbole
What these brochures are not stating
clearly is:
what you read and see in the
printed document, advertisement or
brochuremay not necessarily bewhat
youwill be gettingwhen the property
keys are finally handed over!
A picture
can paint better than a thousandwords,
but words can alsomislead and
visuals may foist vague, ambiguous and
incorrect impressions.
For many, buying a home or your first
property is one of themost important
decisions in life (with financial and
emotional implications). Whether the
property you finally receive is actually as
‘charming’, ‘character-filled’ and
‘glamorous’ as projected in the brochure
often needs to be examined. We asked
relevant parties and industry professionals
about the principles, practices and legal
precepts regarding what is acceptable and
unacceptable in property brochures and
promotional material.
Howunrealistic are the visuals and
words in a property brochure?What
should one particularly scrutinise in real
estate brochures and promotional material
to gauge the real situation?While waivers
exist to protect the rights of advertisers,
what rights and protection are available for
buyers and investors?
In this week’s column, the honorary
secretary-general of HBA (National House
Buyers Association) Chang KimLoong shares
his perspective on the topic.
marketing TOOL
If you look up the dictionary, brochures
are considered a printed document,
a pamphlet or booklet containing summarised
or introductory information, or advertising.
Advertising on the other hand, is reflected as
“a public promotion of a product or service”
and/or the “business of drawing public
attention to goods and services”. Having
understood that, enchanting and alluring
descriptions and visuals still get the
better of us.
Says Chang: “As houses are rarely built and
then sold by developers themselves, it is the
non-existent nature of the houses that
requires the developer tomake use of artist’s
impressions. But if these are seen as art
pieces, theymay take any flight of fancy as
their wont. Hence, the need for actual
dimensions of the property and the purchase
price, to bemade known or advised.” He
informs that developers are required to
submit mock-ups to the housingministry for
approval. It acts as a yardstick for theministry
to check on the likely advertisements of
developers, “and if they areminded, can
easily prove the deviations from the
approved versions.”
While visuals may bemisleading,
so is the accompanying “verbiage”.
Some advertisements fall into a grey area.
For instance, the location of the property you
Advice fromChang
* Internal:
Check on ‘corner-cutting’ as many
developers make unauthorised alterations
tomeasurements and use “sub-standard”
or “alternative” materials eg. wiring and
plugs, plumbing, quality of fixtures etc.
* External:
The purchaser does not only buy the four
walls and roof of his property. He or she
may have been seduced by the external
features. If the developer promotes
features like a playground at the time of
sale (when answering your queries and
questions), take down the answers and the
name of the developer’s staff and
designation, and have “your solicitor” (not
the legal-worthy chosen by the developer)
confirm this in writing. It may constitute
what is known in law as “a collateral oral
warranty to the transaction” andmay be
read into the SPA tomake it binding on
the developer.
The density of the area is expressed in the
number of houses allowed to be built in
the housing estate; it makes all the
difference between spaciousness and
over-crowdedness. Sometimes
developers addmore houses, types of
houses or shop houses, differing from the
approved plan. This may affect the quality
of life the purchaser bought into and
allows cause of action to be taken against
the developer.
SCHEDULE G
HOUSINGDEVELOPMENT (CONTROL AND
LICENSING)
ACT 1966
HOUSINGDEVELOPMENT (CONTROL AND
LICENSING)
REGULATIONS 1989 (Regulation 11(1))
SALE AND PURCHASE AGREEMENT (LAND AND
BUILDING)
Materials and workmanship to conform to
description (Ref -
/
borang/lesen/Schedule_G.pdf)
14. The said Building shall be constructed in a good
and workmanlike manner in accordance with the
description set out in the Fourth Schedule hereto
and in accordance with the plans approved by the
Appropriate Authority as in the Second Schedule,
which descriptions and plans have been accepted
and approved by the Purchaser, as the Purchaser
hereby acknowledges. No changes thereto or
deviations therefrom shall be made without the
consent in writing of the Purchaser except such as
may be required by the Appropriate Authority. The
Purchaser shall not be liable for the cost of such
changes or deviations and in the event that the
changes or deviations involve the substitution or
use of cheaper materials or the omission of works
originally agreed to be carried out by the Vendor
the Purchaser shall be entitled to a corresponding
reduction in the purchase price herein or to
damages, as the case may be.
Island retreat home
Prominent property developer LBS Bina
Group Berhad (LBS) offers affluent
homeowners and investors, luxury segment
homes at D’Island Residence in Puchong.
Spread across 175 acres of land surrounded
by 1,000 acres of water.
Choose from spacious layouts at Balvia or
Nautilus, or go for bungalow lots providing
freedom to build and design dream homes
and lavish residential spaces.
Priced fromRM2,588,800 – Balvia
offers semi-detached three-storey homes of
4,864 sf. These are designed to include five
bedrooms, six baths and two utility rooms,
and are equipped with impressive features
like rainwater harvesting system, alarm and
intercom, as well as a private in-
house lift.
Nautilus is created eulogising the
“less is more” concept which the
minimalist will find attractive. These
three-storey super link homes offer
more layout options: Type A1
offering 4,791 sf at RM1,965,900;
and Type B1 offering 4,246 sf at
RM1,817,900. Spacious layouts offer
five bedrooms, six baths and one
utility. Other features include
rainwater harvesting system, solar
panel and hot water piping, alarm and
intercom, and a private in-house lift.
Home is more than just a home at
D’Island Residence. It is a place offering
respite and retreat, established on an
exclusive piece of property that allows you
to return home daily to your island paradise.
and compiled in the first and
second schedules.”
These legal requirements have until now
been honoured, but more in the breach than
in the observance by developers. “They have
been followed perfunctorily, more to appease
the
letter of the law
rather than
spirit of the
law
. This makes it difficult for purchasers to
visualise their non-existent propertywith
only the showhouse to aid the imagination.”
Chang adds that the housingministry
requires that detailed dimensions of a
property and its facilities are to be given to
the purchaser from the time of the outset, as
part of the building plan, and attached to the
statutory S&P agreement. “Thesemay take
the formof hard copies of the approved plan
on paper (nomatter how thick the S&P
agreement) or in electronic form (on compact
disc) with readable format accessible through
the ordinary computer,” informs Chang.
Don’t miss our follow-up article next week
including legal advice and the opinion of
industry professionals.
Scrutinising
real estate
brochures
>Hyperbole andvisuals versus reality
PART 1
