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HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966

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1 PART I PRELIMINARY-1. Short title and application.

(1) This Act may be cited as the Housing Development (Control and Licensing) Act 1966 .*

(2) (Omitted) .

(3) This Act shall apply only in Peninsular Malaysia.


* NOTE - Where, on or after 1 December 2002, a reference is made in any written law to the "Housing Developers (Control and Licensing) Act 1966", such reference shall be construed as a reference to the "Housing Development (Control and Licensing) Act 1966" - see section 5 Act A1142.


Federal Territory of Labuan (Extension and Modification of Housing Development (Control and Licensing) Act 1966) Order 2010 - P.U.(A) 441/2010 c.i.f. 01-01-2011.

(3) This Act shall apply only in Peninsular Malaysia and the Federal Territory of Labuan.




Legal Commentary on Housing Development (Control and Licensing) Act 1966 - Section 1

Introduction

The Housing Development (Control and Licensing) Act 1966 (Act 118) is a pivotal piece of legislation in Malaysia that regulates the housing development sector. It aims to protect the interests of purchasers and ensure that housing developers operate within a controlled framework. Section 1 serves as the introductory provision, outlining the short title and application of the Act.

What Does Section 1 Say

Section 1 of the Act states that this legislation may be cited as the Housing Development (Control and Licensing) Act 1966. It establishes the legal framework for the regulation of housing development activities in Malaysia.

Essential Ingredients

  • Short Title: The Act is officially known as the Housing Development (Control and Licensing) Act 1966.
  • Application: It applies to all housing developments within the jurisdiction of Malaysia.

Scope of Section

The scope of Section 1 is primarily administrative, providing a foundational reference for the entire Act. It sets the stage for subsequent sections that detail the licensing requirements, obligations of developers, and protections for purchasers.

Punishment for Section

While Section 1 itself does not prescribe penalties, subsequent sections of the Act outline various offences and penalties for non-compliance with the provisions of the Act.

Legal Comments

  • Short Title - Establishes the formal name of the legislation, ensuring clarity in legal references - .
  • Application - The Act applies to all housing developments in Peninsular Malaysia, emphasizing its jurisdictional reach - .
  • Regulatory Framework - The Act aims to regulate the housing development industry, ensuring that developers operate under a controlled environment - .
  • Consumer Protection - One of the primary objectives of the Act is to protect the interests of house buyers, addressing potential abuses in the housing market - .
  • Licensing Requirement - Developers must obtain a license to operate, which is a critical aspect of the regulatory framework - .
  • Compliance Obligations - Developers are required to comply with various provisions of the Act, failure of which may lead to penalties - .
  • Scope of Development - The Act governs developments involving more than four units of housing accommodation, indicating its focus on larger projects - .
  • Public Policy - The Act reflects public policy considerations aimed at ensuring safe and reliable housing for the public - .
  • Legal Clarity - By providing a short title and application, the Act enhances legal clarity and facilitates easier reference in legal proceedings - .
  • Framework for Enforcement - The Act lays the groundwork for enforcement mechanisms to ensure compliance by housing developers - .
  • Historical Context - The Act was introduced to address issues in the housing industry during a period of rapid development in Malaysia - .
  • Legislative Intent - The intent behind the Act is to create a balanced environment for both developers and purchasers, promoting fair practices - .
  • Foundation for Subsequent Regulations - Section 1 serves as a foundation for the detailed regulations that follow, which govern various aspects of housing development - .
  • Importance of Licensing - Licensing is emphasized as a critical control mechanism to prevent unqualified developers from entering the market - .
  • Framework for Accountability - The Act establishes a framework for holding developers accountable for their obligations to purchasers - .
  • Legal Recourse - The Act provides avenues for legal recourse for purchasers in case of developer non-compliance - .
  • Impact on Housing Market - The Act has a significant impact on the housing market by regulating developer conduct and protecting consumer rights - .
  • Legislative Evolution - The Act has evolved over time to address emerging issues in the housing sector, reflecting changes in market dynamics - .
  • Judicial Interpretation - Courts have interpreted the provisions of the Act to ensure that its objectives are met, reinforcing its legal standing - .
  • Public Awareness - The Act contributes to public awareness regarding the rights of purchasers and the responsibilities of developers - .
  • Framework for Future Legislation - The principles established in this Act may serve as a model for future housing-related legislation in Malaysia - .

2 PART I PRELIMINARY-2. Saving and exemption.

(1) [Deleted by Act A1142: s.6] .

(2) The Minister may by order published in the Gazette exempt any housing developer or housing accommodation from any or all of the provisions of this Act and such exemption may be granted for such duration as may be specified in the order, and may be made subject to such limitations, restrictions or conditions as the Minister may specify in the order.

[Subs. by Act A1289: s.3]

(2A) The Minister may at any time by order published in the Gazette , revoke any exemption granted by him under subsection (2).

[Ins. by Act A1289: s.3]

(3) The provisions of this Act which relate to a company shall be construed as in addition or supplementary to, and not in derogation from, the provisions of any written law relating to companies.


3 PART I PRELIMINARY-3. Interpretation.

In this Act, unless the context otherwise requires:

  "bank"  means any bank licensed under the Banking and Financial Institutions Act 1989 [Act 372] or under the Islamic Banking Act 1983 [Act 276];

  "body of persons"  means a group of persons, not being an incorporated body or group;

*"certificate of completion and compliance" means the certificate of completion and compliance given or granted under the Street, Drainage and Building Act 1974 [Act 133] and any by-laws made under that Act certifying that the housing accommodation has been completed and is safe and fit for occupation but does not include partial certificate of completion and compliance;

[Subs. Act A1289:s.4]

  "company"  means any company incorporated, formed or registered under any written law for the ti

3A PART I PRELIMINARY-3A. Powers of the Minister to determine housing accommodation.

(1) The Minister may, from time to time, by order published in the Gazette , prescribe any type of accommodation to be a housing accommodation.

(2) In the event of any doubt as to whether a housing accommodation falls within the meaning of this Act, the Minister's decision shall be final and shall not be questioned in any court.

[Ins. by Act A1289: s.5]


4 PART I PRELIMINARY-4. Appointment of Controller, Deputy Controllers, Inspectors and other officers and servants.

(1) For the purpose of this Act, the Minister may appoint a Controller of Housing and such number of Deputy Controllers of Housing, Inspectors of Housing and other officers and servants as the Minister may deem fit from amongst members of the public service.

(2) The Controller and Deputy Controllers shall have and may exercise any of the powers conferred on an Inspector by or under this Act.

(3) The Controller may, in writing, delegate all or any of his powers or functions under this Act, except his power of delegation, to any Deputy Controller, Inspector, officer or servant appointed under subsection (1).

(4) Without prejudice to subsection (2), the Controller may, in writing, delegate any of his powers and functions under this Act in respect of the investigation of offences under this Act and the enforcement of this Act to any public officer or officer of a local authority.

(5) Any delegation under subsection (3) or (4

5 PART II LICENSING OF HOUSING DEVELOPERS-5. Prohibition against housing development except by virtue of a licence and provisions relating to the grant of a licence.

(1) No housing development shall be engaged in, carried on, undertaken or caused to be undertaken except by a housing developer in possession of a licence issued under this Act.

(2) Except with the written consent of the Controller no housing developer other than a licensed housing developer shall assume or use in relation to his business or any part of his business the words "housing developer" or any of its derivatives or any other word indicating the carrying on of the business of housing development.

(3) A housing developer who desires to engage in or carry out or undertake or cause to be undertaken a housing development shall apply to the Controller for a licence and any such application shall be made in the prescribed form and in the case of any applicant listed in column (1) of the Schedule the application shall be accompanied by the documents listed against him in column (2), every such document being verified by means of a stat

6 PART II LICENSING OF HOUSING DEVELOPERS-6. Conditions or restrictions for the grant of a licence.

(1) Subject to the exercise of power of waiver by the Minister under subsection (2), the licence applied for under section 5 shall not be granted:

(a) unless the applicant has a capital issued and paid up in cash of not less than two hundred and fifty thousand ringgit and makes a deposit with the Controller of a sum equivalent to three per cent of the estimated cost of construction as certified by an architect in charge of the housing development in cash or in such other form as the Minister may determine, if the application is made by a company; or

[Am. Act A1415:s.3]

(b) unless the applicant makes a deposit with the Controller of a sum equivalent to three per cent of the estimated cost of construction as certified by an architect in charge of the housing development in cash or in such other form as the Minister may determine, if the application is made by a person or body o

6A PART II LICENSING OF HOUSING DEVELOPERS-6A. Controller to keep deposit.

Subject to any direction of the Minister, the Controller shall keep the deposit made under paragraphs 6(1) (a) and (b) until the expiry of the defect liability period of the housing development.


6B PART II LICENSING OF HOUSING DEVELOPERS-6B. Controller may forfeit deposit.

If any licensed holding developer:

(a) is carrying on his business, in the opinion of the Controller, in a manner detrimental to the interest of the purchasers or to any member of the public;

(b) has insufficient assets to cover his liabilities;

(c) is contravening any of the provisions of this Act; or

(d) has ceased to carry on housing development in Peninsular Malaysia,

the Controller may, after having given the licensed developer an opportunity to submit reasons within a specified time on why the deposit under paragraph 6(1) (a) or (b) should not be forfeited, forfeit the whole or a part of the deposit.


7 PART III DUTIES OF A LICENSED HOUSING DEVELOPER-7. Duties of a licensed housing developer.

In addition to the liabilities and duties imposed in sections 8 and 9, a licensed housing developer shall:

(a) within four weeks of the making of any alterations in or to any documents submitted to the Controller under subsection 5(3) furnish to the Controller written particulars of the alterations;

(b) exhibit at all times in a conspicuous position in any office and branch office of the licensed housing developer and at any other place where a sale of housing accommodation is conducted, a copy of his licence, advertisement and sale permit and a copy of his last audited balance-sheet as soon as the same is available and such information as the present or former full name, usual residential address, nationality, nationality of origin (where the present nationality is not that of origin), business or occupation (if any) of each person who has the control and management of the business of the licensed housing


Legal Commentary on Housing Development (Control and Licensing) Act 1966 - Section 7

Introduction

The Housing Development (Control and Licensing) Act 1966 (HDA) is a pivotal piece of legislation in Malaysia that regulates the housing development industry. It aims to protect the interests of purchasers and ensure that housing developers adhere to specific standards and practices. Section 7 outlines the duties of licensed housing developers, establishing a framework for compliance and accountability.

What Does Section 7 Say

Section 7 of the HDA mandates that licensed housing developers must fulfill certain obligations in their operations. This includes adhering to the approved plans and specifications, ensuring the timely completion of housing projects, and maintaining transparency in dealings with purchasers.

Essential Ingredients

  • Licensing Requirement: Only licensed developers can engage in housing development activities.
  • Compliance with Approved Plans: Developers must construct housing according to the approved plans and specifications.
  • Timely Completion: Developers are obligated to complete housing projects within the stipulated timeframes.
  • Transparency: Developers must provide clear and accurate information to purchasers regarding the housing development.

Scope of Section

The scope of Section 7 is broad, encompassing various duties that licensed developers must adhere to throughout the housing development process. It applies to all licensed developers engaged in housing projects, ensuring that they operate within the legal framework established by the HDA.

Punishment for Section

Violations of Section 7 can lead to penalties, including fines and potential revocation of the developer's license. The specific penalties may vary depending on the nature and severity of the violation.

Legal Comments

  • Licensing - Only licensed developers are permitted to engage in housing development activities, ensuring a regulated industry. -
  • Obligations - Section 7 outlines specific duties that licensed developers must fulfill, promoting accountability. -
  • Protection of Purchasers - The Act is designed to protect the interests of house buyers, ensuring they receive what they are promised. -
  • Compliance with Plans - Developers must adhere to approved plans, which are integral to maintaining standards in housing development. - [ "BEAUFORD BARU SDN BHD vs GOPALA KRISHNAN V K GOPALAN"]
  • Timeliness - The obligation to complete projects on time is crucial for maintaining trust between developers and purchasers. - [ "BEAUFORD BARU SDN BHD vs GOPALA KRISHNAN V K GOPALAN"]
  • Transparency - Developers are required to provide accurate information to purchasers, fostering a transparent relationship. - [ "BEAUFORD BARU SDN BHD vs GOPALA KRISHNAN V K GOPALAN"]
  • Regulatory Framework - The HDA establishes a regulatory framework that governs the housing development industry in Malaysia. -
  • Consequences of Non-Compliance - Developers who fail to comply with Section 7 may face legal repercussions, including fines. -
  • Joint Venture Agreements - The obligations under Section 7 may intersect with other agreements, such as Joint Venture Agreements, affecting payment structures. - [ "FOONG SEONG EQUIPMENT SDN BHD vs KERIS PROPERTIES (PK) SDN BHD & ANOTHER APPEAL"]
  • Statutory Form of Contract - The Sale and Purchase Agreement (SPA) is considered a statutory form of contract under the HDA, reinforcing the legal obligations of developers. - [ "BEAUFORD BARU SDN BHD vs GOPALA KRISHNAN V K GOPALAN"]
  • Consumer Rights - The Act enhances consumer rights by ensuring that developers adhere to their commitments. -
  • Regulatory Compliance - Developers must navigate various regulations under the HDA to ensure compliance and avoid penalties. -
  • Impact on Housing Market - The provisions of Section 7 play a significant role in shaping the housing market by regulating developer conduct. -
  • Legal Precedents - Case law reinforces the obligations of developers under Section 7, highlighting the importance of compliance. - [ "BEAUFORD BARU SDN BHD vs GOPALA KRISHNAN V K GOPALAN"]
  • Public Interest - The HDA serves the public interest by regulating housing development and protecting buyers from potential exploitation. -
  • Amendments and Updates - The Act has undergone amendments to address emerging issues in the housing sector, reflecting its evolving nature. -
  • Enforcement Mechanisms - The Act provides mechanisms for enforcement, ensuring that developers are held accountable for their actions. -
  • Role of Authorities - Regulatory authorities play a crucial role in monitoring compliance with Section 7 and enforcing penalties for violations. -
  • Consumer Education - The Act emphasizes the need for consumer education regarding their rights and the obligations of developers. -
  • Future Implications - The ongoing enforcement of Section 7 will likely influence future housing developments and the overall market landscape. -

7A PART III DUTIES OF A LICENSED HOUSING DEVELOPER-7A. Licensed housing developer to open and maintain Housing Development Account.

(1) Subject to subsection (9), every licensed housing developer shall open and maintain a Housing Development Account with a bank or finance company for each housing development undertaken by the licensed housing developer.

(2) Where a housing development is to be developed in phases, the licensed housing developer shall open and keep a Housing Development Account under subsection (1) for each phase of such housing development.

(3) The licensed housing developer shall pay into the Housing Development Account of a housing development the purchase moneys received by the licensed housing developer from the sale of housing accommodation in the housing development and any other sum of money which are required by regulations made under this Act to be paid into the Housing Development Account.

(4) The licensed housing developer shall not withdraw any money from the Housing Development Account except as authorized by regulations made un

7B PART III DUTIES OF A LICENSED HOUSING DEVELOPER-7B. Licensed housing developer for the purpose of sections 7, 8, 8A, 11 and 12.

[Shoulder note. Am. Act A1415:s.4]

For the purpose of sections 7, 8, 8A, 11 and 12, "licensed housing developer" includes any housing developer whose licence has expired.

[Am. Act A1415:s.4]


7C PART III DUTIES OF A LICENSED HOUSING DEVELOPER-7C. Freezing of the Housing Development Account.

(1) If the Controller has reason to believe that a licensed housing developer is carrying on his business in a manner detrimental to the interest of the purchasers or is contravening any of the provision of this Act, the Controller may in writing order a freeze on the Housing Development Account and direct the bank or finance company, as the case may be, not to part with, deal in or otherwise permit any withdrawal of any moneys from the Housing Development Account until the order is revoked or varied or unless in accordance with any conditions as may be imposed by the Controller at his absolute discretion from time to time during the currency of the order.

(2) No bank or finance company, or director, officer or employee of the bank or finance company, as the case may be, shall be subject to any claim or demand by or liability to any person in respect of anything done or omitted to be done in good faith in pursuance of or execution or intended e

8 PART III DUTIES OF A LICENSED HOUSING DEVELOPER-8. Arrangement or agreement affecting the business of a licensed housing developer.

(1) Where a licensed housing developer proposes to enter into an arrangement or agreement to sell, transfer, assign, dispose of or reconstruct his business or management relating to housing development either by amalgamation or otherwise, the licensed housing developer shall as soon as possible notify the Controller of the proposed arrangement or agreement and unless approved by the Controller under subsection (2), the licensed housing developer shall not proceed with that arrangement or agreement.

(2) Where the Controller receives the notification of the proposed arrangement or agreement under subsection (1), the Controller may approve the arrangement or agreement or refuse to give approval thereto; and in approving the same he may impose thereon such conditions as he may deem fit and proper for the purpose of carrying into effect the provisions of this Act.



8A PART III DUTIES OF A LICENSED HOUSING DEVELOPER-8A. Statutory termination of sale and purchase agreements.

(1) Notwithstanding anything contained in any agreement, a purchaser shall at any time be entitled to terminate the sale and purchase agreement entered into in respect of a housing development which the licensed housing developer is engaged in, carries on, undertakes or causes to be undertaken if:

(a) the licensed housing developer refuses to carry out or delays or suspends or ceases work for a continuous period of six months or more after the execution of the sale and purchase agreement;

(b) the purchaser has obtained the written consent from the end financier; and

(c) the Controller has certified that the licensed housing developer has refused to carry out or delayed or suspended or ceased work for a continuous period of six months or more after the execution of the sale and purchase agreement.

(2) For the purpose of paragraph (1) (b) , no end financier shall

9 PART III DUTIES OF A LICENSED HOUSING DEVELOPER-9. Audit.

(1) Subject to subsection (2), every licensed housing developer shall every year or as often as the need arises appoint a person approved by the Minister to be his auditor; and where a licensed housing developer fails to make the appointment or fails to appoint another auditor in place of an auditor who has resigned his office or dies or whose appointment has been terminated, the Minister may appoint any person who in his opinion is or are fit and proper to be an auditor for the licensed housing developer in question and fix remunerations which shall be paid to the auditor so appointed and such remunerations shall be paid by the licensed housing developer for whom the auditor is or are so appointed.

(2) No person having an interest in the business of a licensed housing developer either as a shareholder or otherwise; and no director, officer, employee or agent of a licensed housing developer shall be eligible for appointment as an auditor of the

10 PART IV INVESTIGATION AND ENFORCEMENT-10. Investigation.

(1) Either on his own volition or upon being directed by the Minister under subsection (2), the Controller or an Inspector may from time to time under conditions of secrecy investigate the commission of any offence under this Act or investigate into the affairs of or into the accounting or other records of any housing developer.

(2) The Minister may direct the Controller or an Inspector to make an investigation under subsection (1):

(a) if he has reason to believe that the housing developer in question is carrying on his business in a manner detrimental to his purchasers; or has assets insufficient to meet his liabilities or is contravening any of the provisions of this Act; or

(b) if an application for such an investigation is made to him, and every such application shall be supported by not less than five purchasers and accompanied with such evidence and such security as the Minister may require

10A PART IV INVESTIGATION AND ENFORCEMENT-10A. Powers of entry, search and seizure.

(1) If it appears to a Magistrate, upon written information on oath and after such inquiry as he considers necessary, that there is reasonable cause to believe that any premises have been used or are about to be used for, or there is in or on any premises evidence necessary to establish, the commission of an offence under this Act, the Magistrate may issue a warrant authorizing an Inspector to whom it is directed, at any reasonable time by day or night and with or without assistance:

(a) enter any premises and there search for, seize and detain any property, book or other document;

(b) inspect, make copies of, or take extracts from, any book or other document so seized and detained;

(c) take possession of, and remove from the premises, any property, book or other document so seized and detained;

(d) search any person who is in, or on, such premises, and for the purpose of

10B PART IV INVESTIGATION AND ENFORCEMENT-10B. Search of person.

(1) An Inspector may search any person whom he has reason to believe has on his person any property, book or other document, or other article necessary, in his opinion, for the purpose of an investigation into any offence under this Act, and for the purpose of such search may detain such person for such period as may be necessary to have the search carried out, which shall not in any case exceed twenty-four hours without the authorization of a Magistrate, and may remove him in custody to such place as may be necessary to facilitate such search.

(2) An Inspector making a search of a person under subsection (1) may seize, detain, or take possession of any property, book or other document, or article, found upon such person for the purpose of the investigation being carried out by him.

(3) No female person shall be searched under this section or under section 10A except by another female person and with strict regard for decency.

10C PART IV INVESTIGATION AND ENFORCEMENT-10C. Obstruction to exercise of powers by an Inspector.

No person shall:

(a) refuse any Inspector exercising his powers under section 10A or 10B access to any premises or any part of such premises, or fail to submit to the search of his person;

(b) assault, obstruct, hinder or delay such Inspector in effecting any entrance which he is entitled to effect;

(c) fail to comply with any lawful demands of any Inspector in the execution of his duties under section 10A or 10B;

(d) refuse to give to an Inspector any information which may reasonably be required of him and which he has it in his power to give;

(e) fail to produce to, or conceal or attempt to conceal from, an Inspector, any property, book, other document, or article in relation to which an Inspector has reasonable grounds for suspecting that an offence has been or is being committed under this Act;

(f) rescue or endeavour to rescue any thi

10D PART IV INVESTIGATION AND ENFORCEMENT-10D. Requirement to provide translation.

(1) Where an Inspector finds, seizes, detains, or takes possession of any book or other document in the exercise of any power under this Act, and such book or other document or any part of it is in a language other than the national language or the English language, or in any sign or code, the Inspector may orally or in writing require the person who had the possession, custody or control of such book or other document, to furnish to the Inspector a translation in the national language of such book or other document within such period as, in the opinion of the Inspector, would be reasonable having regard to the length of the book or other document, or other circumstances relating to it.

(2) No person shall knowingly furnish a translation under subsection (1) which is not an accurate, faithful and true translation, or knowingly make a translation under that subsection which is not accurate, faithful and true.


10E PART IV INVESTIGATION AND ENFORCEMENT-10E. Power to examine persons.

(1) Where an Inspector suspects any person to have committed an offence under this Act, he may, if in his opinion it is reasonably necessary to do so for the purposes of investigating into such offence:

(a) order any person orally or in writing to attend before the Inspector for the purpose of being examined orally by the Inspector in relation to any matter which may, in the opinion of the Inspector, assist in the investigation into the offence;

(b) order any person orally or in writing to produce before the Controller or the Inspector books, other documents, property, articles, or things which may, in the opinion of the Controller or the Inspector, assist in the investigation into the offence; or

(c) by written notice require any person to furnish a statement in writing made on oath or affirmation setting out in the notice all such information which may be required under the notice, being

10F PART IV INVESTIGATION AND ENFORCEMENT-10F. Specific persons in respect of whom powers of investigation may be exercised.

The powers of investigation conferred by this Act on an Inspector, may be exercised by him against:

(a) any past or present business associate; or

(b) any person who is or was concerned in the control or management, in whole or in part of the affairs, of the person suspected to have committed an offence under this Act.


10G PART IV INVESTIGATION AND ENFORCEMENT-10G. Assistance to police or other public officer.

The Controller may on his own initiative, or on the request of an Inspector:

(a) supply to a police officer or any other public officer a copy of any book or other document seized, detained or taken possession of under section 10A or 10B, or of any record of examination under paragraph 10E(1) (a) , or of any written statement on oath or affirmation made under paragraph 10E(1) (c) , or of any book or other document produced under paragraph 10E(1) (b) , or otherwise in the course of any examination under paragraph 10E(1) (a) , or under any written statement on oath or affirmation made pursuant to paragraph 10E(1) (c) , and such police officer or other public officer may make such use of such copy of such record, statement, book or other document as may be necessary or expedient in relation to the exercise of his powers, the performance of his functions, or the discharge of his duties, in re

10H PART IV INVESTIGATION AND ENFORCEMENT-10H. Protection of informers.

(1) Except as provided in subsection (3), no witness in any civil or criminal proceedings shall be obliged or permitted to disclose the name or address of any informer or the substance and nature of the information received from him or to state any matter which may lead to his discovery.

(2) If any books, documents, records or papers which are in evidence or are liable to inspection in any civil or criminal proceedings contain any entry in which any informer is named or described or which might lead to his discovery, the court shall cause all such passages to be concealed from view or to be obliterated so far only as may be necessary to protect the informer from discovery.

(3) If on trial for any offence under this Act the court after full inquiry into the case believes that the informer willfully made in his complaint a material statement which he knew or believed to be false or did not believe to be true, or if in any other proceeding

10I PART IV INVESTIGATION AND ENFORCEMENT-10I. Authority to act.

An Inspector when acting under this Part shall on demand declare his office and produce to the person against whom he is acting such written authorization as the Controller may direct to be carried by such Inspector.


10J PART IV INVESTIGATION AND ENFORCEMENT-10J. Limitation on the powers of an Inspector.

No Inspector shall be entitled to exercise any of the powers under this Part without prior written authorization from the Controller.


10K PART IV INVESTIGATION AND ENFORCEMENT-10K. Penalty for obstruction and failure to provide translation.

Any person who contravenes section 10C, subsection 10D(2) or section 10E shall be guilty of an offence and shall, on conviction, be liable to a fine which shall not be less than ten thousand ringgit but which shall not exceed one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.

[Ins. by Act A1289: s.10]


11 PART V POWERS OF MINISTER-11. Powers of the Minister to give directions for the purpose of safeguarding the interests of purchasers.

(1) Where on his own volition a licensed housing developer informs the Controller or where as a result of an investigation made under section 10 or for any other reason the Controller is of the opinion that the licensed housing developer becomes unable to meet his obligations to his purchasers or is about to suspend his building operations or is carrying on his business in a manner detrimental to the interests of his purchasers, the Minister may without prejudice to the generality of the powers of the Minister to give directions under section 12 for the purpose of safeguarding the interests of the purchasers of the licensed housing developer:

(a) direct the licensed housing developer in question to take such steps as he may consider necessary to rectify any matter or circumstance;

(b) direct that a person be appointed or himself appoint a person to advise the licensed housing developer in the conduct of hi

12 PART V POWERS OF MINISTER-12. Powers of the Minister to give general directions.

The Minister may give to a licensed housing developer such directions as he considers fit and proper for the purpose of ensuring compliance with this Act, and any such direction shall be made in writing and shall be binding on the licensed housing developer to whom the direction is made.


13 PART V POWERS OF MINISTER-13. Revocation and suspension of a licence.

If any licensed housing developer:

(a) is carrying on his business, in the opinion of the Controller, in a manner detrimental to the interest of the purchasers or to any member of the public;

(b) has insufficient assets to cover his liabilities;

(c) is contravening any of the provisions of this Act; or

(d) has ceased to carry on housing development in Peninsular Malaysia,

the Controller may subject to section 14 relating to the giving of opportunity of being heard revoke the licence issued to the licensed housing developer or suspend it for such period as the Controller may determine.


13A PART V POWERS OF MINISTER-13A. Controller to report the conduct of an architect or engineer.

Where the Controller is satisfied that the conduct of an architect or engineer of a housing developer has prejudiced the interest of the purchaser of the licensed housing developer, the Controller may report such conduct of the architect or engineer to his respective professional body.


13B PART V POWERS OF MINISTER-13B. Transfer or assignment of a licence.

No licence or any right to the licence issued to a housing developer under this Act shall be transferred or assigned and any such transfer or assignment shall be void.


14 PART V POWERS OF MINISTER-14. Opportunity of being heard to be afforded before revocation or suspension of a licence and in certain other cases.

Before revoking or suspending a licence under section 13 or before varying, cancelling or altering any conditions imposed on a licence or before imposing thereon any new or additional conditions under subsection 5(5), the Controller shall notify the housing developer who is affected by the action proposed to be taken by the Controller of the aforesaid proposed action and shall give the licensed housing developer an opportunity to submit reasons or an explanation why the aforesaid proposed action should not be carried out.


15 PART V POWERS OF MINISTER-15. Individual not eligible to take part in management of the business of a licensed housing developer.

(1) Without prejudice to anything contained in any written law relating to companies, cooperative societies, societies and partnerships, any person who acts or holds office of a director, manager or secretary of a licensed housing developer or a similar office or position shall cease to hold that office or position:

(a) if he becomes bankrupt or suspends payment or compounds with his creditors; or

(b) if he is convicted of an offence involving dishonesty or fraud.

(2) No person who has been a director of, or been directly concerned in the management of, the business of a licensed housing developer which has been wound up by a court shall, without the approval in writing of the Minister, act or continue to act as a director of, or be directly concerned in, the management of the business of any licensed housing developer.


16 PART V POWERS OF MINISTER-16. Right of appeal to the Minister by an aggrieved licensed housing developer against the decision of the Controller.

An applicant applying under subsection 5(3) or a licensed housing developer, as the case may be, who is aggrieved by the action or decision of the Controller:

(a) in refusing to grant a licence to him under section 5;

(b) in varying, altering or cancelling any conditions of his licence or imposing thereon any new or additional conditions under subsection 5(5);

(c) in refusing to give approval to an arrangement or agreement proposed to be entered into by a licensed housing developer under section 8, or in approving the same but subject to conditions being imposed thereon; or

(d) in revoking or suspending his licence under section 13,

may, within fourteen days after having been notified of the action or decision of the Controller appeal against that action or decision to the Minister; and the decision of the Minister made thereon shall be final and shal

16A PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16A. Meaning of "homebuyer".

For the purpose of this Part,   "homebuyer"  means a purchaser and includes a person who has subsequently purchased a housing accommodation from the first purchaser of the housing accommodation.


16B PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16B. Establishment of Tribunal for Homebuyer Claims.

A tribunal to be known as the "Tribunal for Homebuyer Claims" is established.


16C PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16C. Membership of Tribunal.

(1) The Tribunal shall consist of the following members:

(a) a Chairman and a Deputy Chairman to be appointed by the Minister from amongst members of the Judicial and Legal Service; and

(b) not less than five other members to be appointed by the Minister from amongst persons who are members of or who have held office in the Judicial and Legal Service or advocates and solicitors admitted and enrolled under the Legal Profession Act 1976 [Act 166] , the Advocates Ordinance of Sabah [Sabah Cap. 2] or the Advocates Ordinance of Sarawak [Sarawak Cap. 110] and who have not less than seven years' standing.

[Subs. by Act A1289: s.12]

(2) The members referred to in paragraph (1) (b) :

(a) shall hold office for a term not exceeding three years; and

(b) shall be eligible for reappointmen

16D PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16D. Temporary exercise of functions of Chairman.

Where the Chairman is for any reason unable to perform his functions or during any period of vacancy in the office of the Chairman, the Deputy Chairman shall perform the functions of the Chairman.


16E PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16E. Vacation of office.

The office of a member of the Tribunal shall become vacant:

(a) upon the death of the member;

(b) upon the member resigning from such office by giving three months' written notice to the Minister;

(c) upon the expiry of his term of office; or

(d) upon the member ceasing to be an advocate and solicitor under the Legal Profession Act 1976, the Advocates Ordinance of Sabah or the Advocates Ordinance of Sarawak.

[(d) Subs. by Act A1289: s.13]


16F PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16F. Revocation of appointment.

The Minister may revoke the appointment of a member of the Tribunal appointed under paragraph 16C(1) (b) :

(a) if his conduct, whether in connection with his duties as a member of the Tribunal or otherwise, has been such as to bring discredit to the Tribunal;

(b) if he has become incapable of properly carrying out his duties as a member of the Tribunal;

(c) if there has been proved against him, or he has been convicted on, a charge in respect of:

(i) an offence involving fraud, dishonesty or moral turpitude;

(ii) an offence under a law relating to corruption;

(iii) an offence under this Act; or

(iv) any other offence punishable with imprisonment for more than two years;

(d) if he is adjudicated a bankrupt;

(e) if he has been found or declared to be of unsound mind or has otherwise become inc

16G PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16G. Resignation.

A member of the Tribunal appointed under paragraph 16C(1) (b) may at any time resign his office by giving three months' written notice to the Minister.


16H PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16H. Filling of vacancy.

Where a member ceases to be a member of the Tribunal, the Minister may appoint another person to fill the vacancy.


16I PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16I. Remuneration.

(1) The members of the Tribunal appointed under paragraph 16C(1) (a) shall be paid such fixed allowances and other allowances as the Minister may determine.

(2) The members of the Tribunal appointed under paragraph 16C(1) (b) shall be paid:

(a) a daily sitting allowance during the sitting of the Tribunal; and

(b) such lodging, travelling and subsistence allowances,

as the Minister may determine.

(3) The remuneration provided for in subsections (1) and (2) shall be charged on the Consolidated Fund.


16J PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16J. Secretary to Tribunal and other officers.

(1) There shall be appointed a Secretary to the Tribunal and such number of officers as may be necessary for carrying out the functions of the Tribunal.

(2) The Chairman shall have general control of the officers of the Tribunal.

(3) For the purposes of this Act, the Secretary to the Tribunal shall be deemed to be an officer of the Tribunal.


16K PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16K. Sittings of Tribunal.

(1) The jurisdiction of the Tribunal shall be exercised by any of the following persons sitting alone:

(a) the Chairman of the Tribunal;

(b) the Deputy Chairman of the Tribunal; or

(c) any member of the Tribunal determined by the Chairman.

(2) The Tribunal may sit in one or more sittings on such day and at such time and place as the Chairman may determine.

(3) If the person presiding over any proceedings in respect of a claim dies or becomes incapacitated, or is for any other reason unable to complete or dispose of the proceedings, the claim shall be heard afresh by another member of the Tribunal, unless the parties agree that the claim be continued by another member of the Tribunal.

(4) Where the term of appointment of any member of the Tribunal under this section expires during the pendency of any proceedings in respect of a claim, the term of his ap

16L PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16L. Commencement of proceedings.

A homebuyer may lodge with the Tribunal a claim in the prescribed form together with the prescribed fee claiming for any loss suffered or any matter concerning his interests as a homebuyer under this Act.


16M PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16M. Jurisdiction of Tribunal.

(1) Subject to sections 16N and 16O, the Tribunal shall have jurisdiction to determine a claim lodged under section 16L where the total amount in respect of which an award of the Tribunal is sought does not exceed fifty thousand ringgit.

[Am. by Act A1289: s.14]

(2) Subject to subsection (1), a respondent to a claim may raise a debt or liquidated demand as:

(a) a defence; or

(b) a counterclaim.

(3) Where a respondent raises a debt or liquidated demand under subsection (2) and the debt or demand is proved the Tribunal shall:

(a) give effect to the defence; or

(b) hear and determine the counterclaim notwithstanding that the original claim is withdrawn, abandoned or struck out.

(4) Any claim lodged with the Tribunal may include loss or damage of a consequential nature.


16N PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16N. Limitation of jurisdiction.

(1) Except as expressly provided under this Act, the Tribunal shall have no jurisdiction in respect of any claim:

(a) for the recovery of land, or any estate or interest in land; and

(b) in which there is a dispute concerning:

(i) the entitlement of any person under a will or settlement, or on intestacy (including partial intestacy);

(ii) goodwill; or

[Am. Act A1415:s.6]

(iv) any trade secret or other intellectual property right.

(2) The jurisdiction of the Tribunal shall be limited to a claim that is based on a cause of action arising from the sale and purchase agreement entered into between the homebuyer and the licensed housing developer which is brought by a homebuyer not later than twelve months from:

(a) the date of issuance of the certificate of completion and complia

16O PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16O. Extension of jurisdiction by agreement.

(1) Notwithstanding that the amount or value of the subject matter claimed or in issue exceeds fifty thousand ringgit, the Tribunal shall have jurisdiction to hear and determine the claim if the parties have entered into an agreement in writing that the Tribunal shall have jurisdiction to hear and determine the claim.

[Am. by Act A1289: s.16]

(2) An agreement may be made under subsection (1):

(a) before a claim is lodged under section 16L; or

(b) where a claim has been lodged under section 16L, at any time before the Tribunal has recorded an agreed settlement in respect of the claim under subsection 16T(3) or has determined the claim under section 16Y, as the case may be.


16P PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16P. Abandonment to bring claim within jurisdiction.

(1) A claimant may abandon so much of a claim as exceeds fifty thousand ringgit in order to bring the claim within the jurisdiction of the Tribunal.

[Am. by Act A1289: s.17]

(2) Where a part of a claim has been abandoned under subsection (1), the Tribunal's record of an agreed settlement under subsection 16T(3) or the Tribunal's award under section 16Y, as the case may be, in relation to the claim shall operate to discharge the person:

(a) who is a party to that agreed settlement; or

(b) against whom the claim is brought and the subsequent award is made,

from liability in respect of the amount so abandoned.


16Q PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16Q. Claims not to be split.

Claims may not be split, nor more than one claim brought, in respect of the same matter against the same party for the purpose of bringing it within the jurisdiction of the Tribunal.


16R PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16R. Exclusion of jurisdiction of court.

(1) Where a claim is lodged with the Tribunal and the claim is within the Tribunal's jurisdiction, the issues in dispute in that claim, whether as shown in the initial claim or as emerging in the course of the hearing, shall not be the subject of proceedings between the same parties in any court unless:

(a) the proceedings before the court were commenced before the claim was lodged with the Tribunal; or

(b) the claim before the Tribunal is withdrawn, abandoned or struck out.

(2) Where paragraph (1) (a) applies, the issues in dispute in the claim to which those proceedings relate, whether as shown in the initial claim or emerging in the course of the hearing, shall not be the subject of proceedings between the same parties before the Tribunal unless the claim before the court is withdrawn, abandoned or struck out.


16S PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16S. Notice of claim and hearing.

Upon a claim being lodged under section 16L, the Secretary to the Tribunal shall give notice of the details of the day, time and place of hearing in the prescribed form to the claimant and the respondent.


16T PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16T. Negotiation for settlement.

(1) The Tribunal shall, as regards every claim within its jurisdiction, assess whether, in all the circumstances, it is appropriate for the Tribunal to assist the parties to negotiate an agreed settlement in relation to the claim.

(2) Without limiting the generality of subsection (1), in making an assessment the Tribunal shall have regard to any factors that, in the opinion of the Tribunal, are likely to impair the ability of either or both of the parties to negotiate an agreed settlement.

(3) Where the parties reach an agreed settlement, the Tribunal shall approve and record the settlement and the settlement shall then take effect as if it were an award of the Tribunal.

(4) Where:

(a) it appears to the Tribunal that it would not be appropriate for it to assist the parties to negotiate an agreed settlement in relation to the claim; or

(b) the parties are unable to reach an agreed se

16U PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16U. Right to appear at hearings.

(1) At the hearing of a claim every party shall be entitled to attend and be heard.

(2) No party shall be represented by an advocate and solicitor at a hearing unless in the opinion of the Tribunal the matter in question involves complex issues of law and one party will suffer severe financial hardship if he is not represented by an advocate and solicitor; but if one party is subsequently allowed to be represented by an advocate and solicitor then the other party shall also be so entitled.

(3) Subject to subsection (2) but notwithstanding section 37 of the Legal Profession Act 1976 [Act 166] :

(a) a corporation or an unincorporated body of persons may be represented by a full-time paid employee of the corporation or body;

(b) a minor or any other person under a disability may be represented by his next friend or guardian ad litem .

(4) Where a party is

16V PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16V. Proceedings to be public.

All proceedings before the Tribunal shall be open to the public.


16W PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16W. Evidence.

(1) The Tribunal may:

(a) procure and receive all such evidence on oath or affirmation, whether written or oral, and examine all such persons as witnesses, as the Tribunal thinks necessary to procure, receive or examine;

(b) require the production before it of books, papers, documents, records and things;

(c) administer such oath, affirmation or statutory declaration as the case may require;

(d) seek and receive such other evidence and make such other inquiries as it thinks fit;

(e) summon the parties to the proceedings or any other person to attend before it to give evidence or to produce any document, records or other thing in his possession or otherwise to assist the Tribunal in its deliberations;

(f) receive expert evidence; and

(g) generally direct and do all such things as may be necessary or expedient for the expedi

16X PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16X. Tribunal may act in absence of party.

The Tribunal may hear and determine the claim before it notwithstanding the absence of any party to the proceedings if it is proved to the satisfaction of the Tribunal that a notice of the hearing has been duly served on the absent party.


16Y PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16Y. Awards of the Tribunal.

(1) The Tribunal shall make its award without delay and, where practicable, within sixty days from the first day the hearing before the Tribunal commences.

(2) An award of the Tribunal under subsection (1) may require one or more of the following:

(a) that a party to the proceedings pay money to any other party;

(b) that the price or other consideration paid by the homebuyer or any other person be refunded to the homebuyer or that person;

(c) that a party comply with the sale and purchase agreement;

(d) that money be awarded to compensate for any loss or damage suffered by the claimant;

(e) that the contract be varied or set aside, wholly or in part;

(f) that costs to or against any party be paid;

(g) that interest be paid on any sum or monetary award at a rate not exceeding eight per centum per annum, unless it ha

16Z PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16Z. Reference to a Judge of the High Court on a question of law.

(1) Before the Tribunal makes an award under section 16Y, it may, in its discretion, refer to a Judge of the High Court a question of law:

(a) which arose in the course of the proceedings;

(b) which, in the opinion of the Tribunal, is of sufficient importance to merit such reference; and

(c) the determination of which by the Tribunal raises, in the opinion of the Tribunal, sufficient doubt to merit such reference.

(2) If the Tribunal refers any question of law under subsection (1) for the decision of a Judge of the High Court, it shall make its award in conformity with such decision.

(3) A Federal Counsel authorized by the Attorney General for the purpose may appear on behalf of the Tribunal in any proceedings before a Judge of the High Court under this section.


16AA PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16AA. Reasons for decision.

The Tribunal shall in all proceedings give its reasons for its award in the proceedings.


16AB PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16AB. Orders and settlement to be recorded in writing.

The Tribunal shall make or cause to be made a written record of the terms of:

(a) every agreed settlement reached by the parties under subsection 16T(3); and

(b) every award made by it under section 16Y.


16AC PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16AC. Decisions of Tribunal to be final.

(1) Every agreed settlement recorded by the Tribunal under subsection 16T(3) and every award made by the Tribunal under section 16Y:

(a) shall be final and binding on all parties to the proceedings; and

(b) shall be deemed to be an order of a Magistrate's Court or a Sessions Court, as the case may be, and be enforced accordingly by any party to the proceedings;

[Am. by Act A1289: s.19]

(2) For the purpose of paragraph (1) (b) , in cases where the award made by the Tribunal has not been complied with, the Secretary to the Tribunal shall send a copy of the award made by the Tribunal to the Magistrate's Court or the Sessions Court, as the case may be, having jurisdiction in the place to which the award relates or in the place where the award was made and the Court shall cause the copy to be recorded.

[Subs. by Act A1289: s.1

16AD PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16AD. Criminal penalty for failure to comply.

(1) Any person who fails to comply with an award made by the Tribunal within the period specified by the Tribunal commits an offence and shall on conviction be liable to a fine which shall not be less than ten thousand ringgit but which shall not exceed fifty thousand ringgit or to imprisonment for a term not exceeding two years or to both.

[Subs. by Act A1289: s.20]

(2) In the case of a continuing offence, the offender shall, in addition to the penalties under subsection (1), be liable to a fine not exceeding one thousand ringgit for each day or part of a day during which the offence continues after conviction.


16AE PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16AE. Procedure where no provision is made.

Subject to this Act and to any regulations, the Tribunal shall adopt such procedure as it thinks fit and proper.


16AF PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16AF. Want of form.

No proceedings of the Tribunal or award or other document of the Tribunal shall be set aside or quashed for want of form.


16AG PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16AG. Disposal of documents, etc .

(1) The Tribunal may, at the conclusion of the proceedings before it, order that any document, record, material or other property produced during the proceedings be delivered to the rightful owner or be disposed of in such manner as it thinks fit.

(2) Where no person has taken delivery of the document, record, material or other property referred to in subsection (1) after a period of six months, the ownership in the document, record, material or other property shall be deemed to have passed to and become vested in the Government.


16AH PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16AH. Act or omission done in good faith.

No action or suit shall be instituted or maintained in any court against:

(a) the Tribunal;

(b) a member of the Tribunal; or

(c) a person authorized to act for or on behalf of the Tribunal,

for any act or omission done in good faith in the performance of its or his functions and the exercise of its or his powers under this Act.


16AI PART VI TRIBUNAL FOR HOMEBUYER CLAIMS-16AI. Regulations in respect of the Tribunal.

(1) The Minister may make such regulations as may be necessary or expedient in respect of the Tribunal.

(2) Without prejudice to the generality of subsection (1), regulations may be made for:

(a) prescribing the responsibilities of members of the Tribunal;

(b) prescribing the procedure of the Tribunal;

(c) prescribing the forms to be used in proceedings under this Part;

(d) prescribing and imposing fees and providing for the manner for collecting and disbursing such fees;

(e) prescribing anything required to be prescribed under this Part.


17 PART VII MISCELLANEOUS-17. Indemnity and protection against suit and proceedings.

No action shall lie against the Government, the Minister, the Controller, Inspector or against any officer of the Government or any person acting under the direction of the Minister, the Controller or Inspector for damages in any civil court for anything bona fide done, ordered or omitted to be done pursuant to this Act; and all actions which may lawfully be brought in respect of anything done, ordered or omitted to be done pursuant to this Act shall be instituted within six months from the date of the act or omission complained of, and not afterwards.


18 PART VII MISCELLANEOUS-18. Offences relating to a licence under section 5.

Any housing developer who:

(a) in contravention of subsection 5(1) engages in, carries out, or undertakes housing development without having been duly licensed under that section;

(b) in contravention of subsection 5(2) assumes or uses in relation to his business or any part of his business the words "housing developer" or any of the derivatives or any other word indicating the carrying on of the business of housing development; or

(c) fails to comply with any of the conditions imposed on the licence granted under section 5,

shall be guilty of an offence and shall, on conviction, be liable to a fine which shall not be less than two hundred and fifty thousand ringgit but which shall not exceed five hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.

[Am. by Act A1289: s.21]


18A PART VII MISCELLANEOUS-18A. Offences relating to abandonment of housing development by a licensed housing developer.

(1) Any licensed housing developer who abandons or causes to be abandoned a housing development or any phase of a housing development which the licensed housing developer is engaged in, carries on, undertakes or causes to be undertaken shall be guilty of an offence and shall, on conviction, be liable to a fine which shall not be less than two hundred and fifty thousand ringgit but which shall not exceed five hundred thousand ringgit or to imprisonment for a term not exceeding three years or to both.

(2) For the purpose of this section, "abandons" means refuses to carry out or delays or suspends or ceases work continuously for a period of six months or more or beyond the stipulated period of completion as agreed under the sale and purchase agreement.

[18A. Ins. Act A1415:s.9]


19 PART VII MISCELLANEOUS-19. Offences by a housing developer.

Any housing developer who:

(a) in contravention of any of the provisions of section 7 fails to perform any of the duties imposed by that section;

(aa) enters into an arrangement or agreement in contravention of section 8 or fails to comply with any condition imposed pursuant to subsection (2) of that section;

(b) [Deleted by Act A1142] ;

(c) after the Minister has, pursuant to paragraph 11(1) (c) , directed a company to assume control of and carry on the business of the housing developer, in contravention of subsection 11(3) fails to submit his business to the control of that company or fails to provide the company with such facilities as the Controller may consider necessary for the purpose of carrying on the business of the licensed housing developer;

(cc) fails to comply with any direction given by the Minister under paragraph 11(1) (a

20 PART VII MISCELLANEOUS-20. Offences by a director of or a person connected with the business of a licensed housing developer in certain cases.

Any person who:

(a) in contravention of subsection 15(1) continues to act as or hold office of a director, manager or secretary of a licensed housing developer or any similar office or position in the employ of the licensed housing developer notwithstanding that he has become bankrupt or suspended payment to or compounded with his creditors or is convicted of an offence involving fraud or dishonesty; or

(b) in contravention of subsection 15(2) acts as or holds or continues to act as or hold office of a director or is directly concerned in the management of the business of any licensed housing developer without the approval in writing of the Minister after the business of that licensedhousing developer has been wound up by a court,

shall be guilty of an offence and shall, on conviction, be liable to imprisonment for a term which shall not be less than twelve months but which shall not

21 PART VII MISCELLANEOUS-21. Penalty for offences not otherwise provided for.

Any housing developer guilty of an offence against this Act for which no penalty is expressly provided shall, on conviction, be liable to a fine not exceeding two hundred and fifty thousand ringgit or to imprisonment for a term not exceeding three years or to both.

[Am. by Act A1289: s.24]


22 PART VII MISCELLANEOUS-22. Liability of director, manager and other officials for offences committed by companies and liability of a person for acts done by others.

(1) Where any offence against any provision of this Act has been committed by a housing developer, any person who at the time of the omission of the offence was a director, manager or secretary or holds any similar office or position or was an agent, clerk or servant of the housing developer shall be deemed to be guilty of that offence, unless he proves that the offence was committed without his consent or connivance and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances and shall, on conviction, be liable to imprisonment for a term which shall not be less than twelve months but which shall not exceed three years and shall also be liable to a fine which shall not be less than fifty thousand ringgit but shall not exceed two hundred and fifty thousand ringgit.

[Am. by Act A1289: s.2

22A PART VII MISCELLANEOUS-22A. Public servants and public officers.

The Controller, every Deputy Controller, every Inspector and all members and officers of the Tribunal shall be deemed to be public servants for the purposes of the Penal Code [Act 574] , and to be public officers for the purposes of the Criminal Procedure Code or any other written law which the Minister may from time to time prescribe.


22B PART VII MISCELLANEOUS-22B. Application of Public Authorities Protection Act 1948.

The Public Authorities Protection Act 1948 [Act 198] shall apply to any action, suit, prosecution or proceedings against the Minister, Controller, any Deputy Controller, any Inspector, the Tribunal or any member or officer of the Tribunal in respect of any act, neglect or default done or committed by him in such capacity.


22C PART VII MISCELLANEOUS-22C. Right to initiate and maintain actions.

Notwithstanding anything contained in any written law or any rule of law, agreement, assignment or charge lawfully entered into between a homebuyer as defined in section 16A and his financier, a homebuyer shall be entitled on his own volition and in his own name to initiate, commence, institute and maintain in any court or tribunal any action, suit or proceeding against a housing developer or any other person in respect of any matter arising out of the sale and purchase agreement entered into between the homebuyer and the housing developer provided the homebuyer's financier under a deed of absolute assignment is notified in writing either before or within fourteen days after the action, suit or proceeding against the housing developer has been filed before any court or tribunal.

[Subs. by Act A1289: s.26]


22D PART VII MISCELLANEOUS-22D. Assignment.

(1) For the avoidance of any doubt, an absolute assignment in writing, under the hand of the assignor of the housing accommodation, not purporting to be by way of charge only, of the proprietary right or interest in the housing accommodation and the legal chose in action in the sale and purchase agreement in respect of a housing accommodation, of which express notice in writing has been given to the housing developer by the assignor in the manner set out in subsection (2) shall be deemed to have been effectual in law to pass and transfer the proprietary right, interest, chose in action and all legal and other remedies for the same to the assignee, from the date of the receipt of such notice by the housing developer, and the concurrence of the housing developer shall not be required.

(2) Subject to subsection (8), every notice of assignment given to the housing developer pursuant to subsection (1) shall be delivered by the assignor or his solici

22E PART VII MISCELLANEOUS-22E. Release of moneys by a stakeholder.

(1) Any stakeholder who releases any money to a housing developer or to any other person knowing that such an act is contrary to the provisions of the sale and purchase agreement shall be guilty of an offence and shall, on conviction, be liable to a fine which shall not be less than ten thousand ringgit but which shall not exceed one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.

(2) Any person who knowingly and wilfully aids, abets, counsels, procures or commands the commission of an offence against subsection (1) shall be liable to be punished with the punishment provided for the offence.

[Ins. by Act A1289: s.27]


22F PART VII MISCELLANEOUS-22F. Progress certification.

(1) Any architect or engineer, as the case may be, who issues a progress certification knowing that the works therein referred to have not been completed in accordance with the provisions of the sale and purchase agreement shall be guilty of an offence and shall, on conviction, be liable to a fine which shall not be less than ten thousand ringgit but which shall not exceed one hundred thousand ringgit or to imprisonment for a term not exceeding five years or to both.

(2) Any person who knowingly and willfully aids, abets, counsels, procures or commands the commission of an offence under subsection (1) shall be liable to be punished with the punishment provided for the offence.

[Ins. by Act A1289: s.27]


23 PART VII MISCELLANEOUS-23. Prosecution.

No prosecution for any offence under this Act shall be instituted save by or under the direction of or with the consent of the Public Prosecutor.



23A PART VII MISCELLANEOUS-23A. Power to compound.

(1) The Controller may compound any offence against this Act or any regulations made under this Act which has been prescribed under paragraph 24(2)(i) to be a compoundable offence by collecting from the person reasonably suspected of having committed the offence a sum of money not exceeding the maximum fine prescribed for that offence.

(2) Where an offence has been compounded under subsection (1), no prosecution shall thereafter be instituted in respect of the compounded offence.

(3) Any moneys paid to the Controller under this section shall be paid into and form part of the Consolidated Fund.


24 PART VII MISCELLANEOUS-24. Powers to make regulations.

(1) Subject to this section, the Minister may make regulations for the purpose of carrying into effect the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, the regulations may:

(a) regulate the advertisements of a licensed housing developer;

(b) regulate the use of names of housing estates developed by a licensed housing developer;

(c) prescribe the form of contracts which shall be used by a licensed housing developer, his agent, nominee or purchaser both as a condition of the grant of a licence under this Act or otherwise;

(d) regulate payments (under whatever name these may be described) which may be made by a purchaser either before, during or after the construction or completion of the house, flat or other accommodation for which that purchaser is required to make the payments, including the amount of the

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