Land and Housing Developers Lecture Notes Review

Flashcards covering key legal definitions, statutory provisions, and case law principles related to land and housing development regulation in Malaysia.

Housing Development (Control and Licensing) Act 1966

Commonly referred to as Act 118 or the HDA 1966, it is the principal legislation governing the regulation of housing developers in Peninsular Malaysia.

Housing Developer

Defined under Section 3 HDA 1966 as any person, body of persons, company, firm, or society who engages in or carries on a housing development, including a court-appointed liquidator if the developer is under liquidation.

Housing Development

The act of developing or constructing more than four units of housing accommodation, including building operations and the sale of land lots with the view of constructing such units.

Housing Accommodation

Includes any building, tenement, or messuage wholly or principally intended for human habitation, or a mix of human habitation and business premises.

Licensed Housing Developer

A developer who holds a license issued under Section 5 of the HDA 1966 to engage in housing development.

Purchaser

Defined under Section 3 HDA 1966 as any person who buys housing accommodation or has dealings with a licensed housing developer to acquire housing accommodation.

Stakeholder

A solicitor holding money for payment to a housing developer pursuant to a Sale and Purchase Agreement (SPA).

Certificate of Completion and Compliance (CCC)

A certificate granted under the Street, Drainage and Building Act 1974 certifying that a housing accommodation is completed, safe, and fit for occupation, excluding partial certificates.

Controller of Housing

An official appointed by the Minister from the public service for the purpose of the HDA 1966, along with Deputy Controllers and Inspectors.

Housing Development Account (HDA Account)

A mandatory account opened with a bank or finance company for each project or phase where a developer must deposit purchase monies, which are protected from creditors in the event of liquidation.

Abandonment of Projects

An offence under Section 18A HDA 1966 where a developer refuses, delays, or suspends work continuously for a period of $6$ months or more beyond the stipulated completion period.

Schedule G

The prescribed statutory Form of Sale and Purchase Agreement used for landed property with individual titles.

Schedule H

The prescribed statutory Form of Sale and Purchase Agreement used for housing accommodation in subdivided buildings (strata titles) or landed property under a Master Title.

Liquidated Ascertained Damages (LAD)

Compensation payable to purchasers for late delivery of vacant possession, calculated daily at a rate of $10\%$ per annum of the purchase price.

Section 8A HDA 1966

Provides purchasers a statutory right to unilaterally terminate an SPA if the developer delays work for $6$ months or more, subject to written consent from the financier and certification by the Controller.

Defect Liability Period

A period of $24$ months after the date the purchaser takes vacant possession, during which the developer must repair any defects or faulty workmanship at their own cost.

Latent Defect

A hidden defect that could not have been discovered by a reasonably thorough inspection before completion or sale.

Section 6A Limitation Act 1953

An amendment allowing actions for damages for negligence involving latent defects to be brought within $3$ years from the discovery date, up to a maximum of $15$ years from when the cause of action accrued.

Section 22D HDA 1966

Governs the absolute assignment of rights in a housing accommodation; it stipulates that the developer's consent is not required for such assignments for residential properties.

Joint Management Body (JMB)

A body comprising the developer and purchasers established within $12$ months of delivery of vacant possession to manage and maintain common property.

Management Corporation (MC)

A body established under the Strata Management Act 2013 to perform duties and manage a strata development once separate titles are issued.

Common Property

Areas in a development that are not part of any specific parcel and are enjoyed by two or more occupiers.

Accessory Parcel

A parcel used exclusively by a specific parcel proprietor, such as a designated car park space.

Discovery Rule

A legal principle where the limitation period for a claim begins on the date the damage could have first been discovered by reasonable diligence.