I WOULD like to share my recent experience with potential buyers of completed residential properties from developers. Many first-time buyers may not be aware of the disadvantages in purchasing such residential properties.With the ongoing campaign by developers to dispose of their stock of completed properties coupled with the Finance Ministry’s incentive in the form of waiver/reduction of stamp duty, first-time buyers would be tempted to purchase such houses.However, they should be aware that completed residential properties, even though purchased directly from developers, are not governed by the Housing Development Act (HDA).

As such, the completed properties are purchased on a “as is where is basis” and purchasers do not receive any protection whatsoever from the HDA. For example, purchasers are not entitled to the defects liability claim period of 24 months under the HDA.It is understandable for banks to insist on the requirement for a valuation report if the purchase of the completed property is a sub-sale. However, it is mind-boggling that banks on the developer’s panel of financiers impose such a condition when the purchase is directly from the developer.So, first-time buyers, if you have decided to purchase a completed property as your dream home, please check thoroughly with the developer and the bank before confirming the purchase.

Read more at https://www.thestar.com.my/opinion/letters/2019/02/20/bitter-experience-of-buying-from-developer/#zZZoVVEyCFzvY5Yq.99