theSun Property October 2014

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Trust in the tribunal
>Fast, affordabledispute resolution for homebuyers
WHEN Viannie Lim, bought her
dreamhouse in Selayang two
years ago, she had not
anticipated the nightmare it
would turn into. “I could onlymove in five
months ago, instead of the original handover
date in October 2013. I also had to fork out
RM18,000 for rental due to this delay by the
property developer,” she informs.
Scenarios like this are ubiquitous, leaving
homebuyers victimised by additional and
unnecessary costs, for years. While taking
errant developers to court is an option, many
aggrieved buyers struggle later, when
pursuing the legal route as property
developers often have a host of savvy lawyers
at their disposal. As court cases can take
months, if not years, to resolve andwith
money and time an issue, who can a
homebuyer turn to for dispute resolution?
THE SOLUTION
Established on Dec 1, 2002, the Tribunal
for Homebuyer’s Claim (tribunal), was set
up by the Ministry of Housing and Local
Government. Its main purpose is to hear
out homebuyer’s claims on losses and
other related matters pertaining to
DID YOU KNOW?
Previously the tribunal could only hear cases involving licensed property developers. In
order to help aggrieved homebuyers seek redress with less hassle, an amendment has
been made, that also allows the tribunal hear cases involving sale and purchase
agreements between homebuyers and unlicensed housing developers.
[Retrieved fromNational Housing Policy (NHP)]
LIMITATIONS OF THE TRIBUNAL
The Tribunal has no jurisdiction or claims for recovery of land and in which there is a dispute
concerning entitlement under a will or on intestacy, or concerning goodwill or choice in
action or concerning any trade secret or intellectual property right.
Source:
purchase of a home, in a fast, inexpensive
and direct manner.
“This is done in accordance with the
Housing Development (Control and
Licensing) Act of 1966 (Act 118),” says lawyer
AndrewWong. “Since its establishment, the
Tribunal for Homebuyer’s Claims has played
a significant and effective role in the
adjudication of disputes between housing
developers and homebuyers. As an informal
venue for these disputes, the tribunal
observes no hard-pressed procedures and
can adopt the procedure it thinks is most
appropriate for a case.”
To keep the process affordable to all
homebuyers, the filing fee is kept at RM10.
“Legal representation is also not allowed
unless the tribunal feels that the matter
involves complex issues of law or that one
party will suffer severe financial hardship if
he is not represented by an advocate and
solicitor. If one party is allowed to have legal
representation, then the other party will also
be entitled,” he adds.
THE CLAIMS
“Once a claim is filed with the tribunal,
the hearing date will be fixed within 21
to 30 days,” says Tribunal
for Homebuyer’s Claim
deputy chairman Jamhirah
Ali. Unlike court cases
which can take years
to resolve, the tribunal
is different. “Cases are
resolved within 120
working days from the
date of filing,” Jamhirah
says. The efficacy of the
tribunal is also seen in
its promising statistics.
Until Sept 30, 2014, 37,635
cases have been filed in
the tribunal. Of these,
37,388 cases have been
resolved. The balance (247
cases) are still pending for
hearing,” Jamhirah reveals.
There are two types of
claims that can be filed at
the tribunal - technical and
non-technical.
“Late delivery of vacant
possession is the most
common reason for a case
to be filed,” Jamhirah adds
FILING A CLAIMAT THE TRIBUNAL
The homebuyer has to file four copies of
the Statement of Claim (Form 1) at the
Tribunal’s Registry and pay a fee of RM10.
• The amount and particulars as stated in
Form 1 has to be signed or thumb-
printed by the homebuyer.
• The following documents have to be
attached to Form 1:
i) A copy of sale and purchase agreement -
Non-Technical & Technical Claims
ii) A copy of Letter of Vacant Possession -
Non-Technical & Technical Claims
iii) A copy of certificate of completion and
compliance Claims (CCC) - Non-Technical
& Technical Claims
iv) Quotation from contractor - Technical
Claims
v) Photographs of the defects - Technical
Claims
• A copy of Form 1 should also be served
on the developer and an
acknowledgment from the developer has
to be obtained as proof of service.
The developer will then have to file a
defence in Form 2 (four copies) along with
the prescribed fee of RM10 within 14 days
after the service of Form 1, which has to be
served to the homebuyer.
Source:
THE SOONER THE BETTER
The tribunal official website states that a
housebuyer must bring the claim before
the Tribunal no later than 12 months
from:
The date of issuance of the certificate of
completion or compliance (CCC) for
the housing accommodation or the
common facilities, whichever is later;
The expiry date of the defects liability
period; or
The date of termination of the S&P
agreement by either party and such
termination occurred before the date of
issuance of the CCC for the housing
accommodation or common facilities,
whichever is later.
THE DECISION MAKERS
“Cases filed with the tribunal will be
heard by members of the tribunal, as
appointed by the minister, under the
Housing Development (Control and
Licensing) Act 1966 [Act 118],” says
Jamhirah. This includes a chairman,
deputy chairman and presidents.
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ON FRIDAY OCTOBER 31, 2014
AFTER THE HEARING
The decision of the tribunal is called
an award. “Under Act 118, the tribunal is
required to make its award without
delay and where practicable, within 60
days from the first day of hearing. Hence,
much time is saved by homebuyers,”
explains Wong.
However, themaximumclaimamount for
cases heardby the tribunal is usuallykept at
RM50,000. Claims exceedingRM50,000may
beheardanddeterminedby the tribunal,
only if both theparties agree inwriting to
submit to the jurisdictionof the tribunal. If not,
the case canbe filedwith the sessions court.
“Anawardmadeby the tribunal is
considered final andbindingonall parties It is
deemed tobe anorder of themagistrate’s court
or a sessions court accordingly. Anyperson
who fails to complywith anawardwithin the
period specifiedby the tribunal, commits an
offence and shall onconvictionbe liable to
a finewhich shall not be less thanRM5,000
butwhich shall not exceedRM10,000or
imprisonment for a termnot exceeding two
years or both. Anadditional fineof up to
RM1,000 for eachdayor part of adayduring the
offence, if it continues after conviction,maybe
imposedon theoffender,” he adds.
Technical claims cover:
* defectiveworkmanship,
* defectivematerials and
* properties that are not
constructed in accordance
with the approved plans
stated in the S&P agreement
Non-technical claims
comprise:
* late delivery and
* refund of deposit concerns.
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