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PP Land Law > Chapter 9 - Housing Developers > Flashcards

Chapter 9 - Housing Developers Flashcards

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1
Q

HOUSING DEVELOPERS

Overview

A

1) Developer
2) SPA
3) VP
4) Defects liability
5) Power of attorney
6) Assignment under HDA
7) JMB
8) Sale of commercial properties by developer
9) Strata titles

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2
Q

DEVELOPER

Overview

A

1) What is developer
2) Purpose of HDA
3) Duty of licensed developer

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3
Q

DEVELOPER

What is developer

A

S.3 HDA

  • Housing accommodation:
  • Housing development:
  • Housing developer:
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4
Q

DEVELOPER

Purpose of HDA

A

1) City Investment v Koperasi Serbaguna Ceupacs Tanggungan Bhd:

  • HDA is designed to protect the buyer;
  • Any attempt to contract outside HDA is an open defiance of HDA.

2) Example - PP v Annamaly a/l Narayanan:
- When the housing market collapsed & buyers seek for refund, the court ordered the developer to pay refund to the buyers.

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5
Q

DEVELOPER

Duties of licensed developer

A

1) S.5 - apply for license from Controller
2) S.7 - main duties
3) S.7A - open & maintain Housing Development Account
4) S.12 - powers of Minister to issue directions

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6
Q

SPA

Overview

A

1) Forms of SPA

2) Rights of termination

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7
Q

SPA

Forms of SPA

A
  • Standard SPA: schedule G & H

- Non-standard SPA: sub-sale property, drafted by solicitors

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8
Q

SPA

Rights of termination - overview

A

1) Statutory rights of termination

2) Doctrine of total failure of consideration

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9
Q

STATUTORY RIGHTS OF TERMINATION

The law

A

Right to terminate - S.8A:

  • Consent: must be sought;
  • End financier: must not withhold consent unnecessarily;
  • Right to terminate:
  • Refund:

Offence - S.18A:

-

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10
Q

DOCTRINE OF TOTAL FAILURE OF CONSIDERATION

The law

A

1) Part-performance is sufficient - Berjaya Times Square v M-Concept Sdn Bhd:

  • If there is part-performance, S.40 is not invoked & parties may not put an end to the contract.
  • In such a case, there is no total failure of consideration.

cf.
2) Part-performance of no value is valueless - Bungsar Hill Holdings v Damansara Realty Sdn Bhd:

  • There is total failure of consideration if the work completed is of little or no value at all;
  • There is a right to terminate in such a situation.
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11
Q

VACANT POSSESSION

Overview

A

1) Ready for occupation
2) Water & electricity
3) CF or CCC
4) Time & manner of delivery
5) Remedies for late delivery

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12
Q

VACANT POSSESSION

Ready for occupation

A

Limmewah Development Sdn Bhd v Dr. Jasbir Singh:

  • the basic of VP is that the premise is ready for occupation.
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13
Q

VACANT POSSESSION

Water & electricity

A

Salmah Sulaiman & Anor v Metroplex Development:

  • Additionally, the water & electricity supply is ready for CONNECTION in the said building.
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14
Q

VACANT POSSESSION

CF or CCC

A

Sykt Lian Hup (Liew Bros) Sdn Bhd v Chew Khong Chai:

  • CF or CCC is not a condition for the delivery of VP;
  • Application made for CF or CCC is sufficient.
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15
Q

VACANT POSSESSION

Time & manner

A
  • Schedule G: 24 months

- Schedule H: 36 months

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16
Q

VACANT POSSESSION

Remedies for late delivery - option 1

A

Terminate the contract & claim for damages - S.56(1) CA

17
Q

VACANT POSSESSION

Remedies for late delivery - option 2

A

Affirm the contract & claim for LAD:

1) LAD how calculated

  • GJH Avenue Sdn Bhd v Tribunal Tuntutan Pembeli Rumah
  • Kompobina Holding v Tribunal Tuntutan Pembeli Rumah

– LAD shall be calculated from the actual date the SPA is entered into.

  • Recent: PJD Regency Sdn Bhd v Tribunal Tuntutan Pembeli Rumah (FC) - LAD claim should be calculated from the date the booking fees are paid/payment of deposit/not from the date of SPA literally.
    2) Limitation period to claim for LAD
  • 12 months from:
  • – date of issuance of CCC
  • – expiry date of the defects liability
  • – date of termination of SPA
18
Q

DEFECTS LIABILITY

the law

A

Ding Cha Hee v Tan Wan Eng & Hong Kok Cheong:

  • major defects of the work has not been proved to the satisfaction of the court.
  • the minor defect proved cannot be a good reason for termination.
19
Q

CHARGES

the law

A

Lai Soon Cheong v Kien Loong Housing Development Sdn Bhd:

  • There is no law which provides that before a chargee can accept a charge on lands, the said chargee must ensure that no sale of the subdivided lots has yet been carried out or that no sale and purchase agreement has been executed by the chargor.
20
Q

ASSIGNMENT UNDER HDA

Overview

A

1) Conditions for assignment
2) Notice to developer
3) Right to initiate or maintain action
4) Agreement vs assignment
5) Enforcement of assignment
6) Information from developer

21
Q

ASSIGNMENT UNDER HDA

Overview

A

1) Conditions for assignment
2) Notice to developer
3) Right to initiate or maintain action
4) Agreement vs assignment
5) Enforcement of assignment
6) Information from developer

22
Q

ASSIGNMENT UNDER HDA

Conditions for assignment

A

S.22D:

  • writing:
  • notice:
  • date of effect:
23
Q

ASSIGNMENT UNDER HDA

Notice to developer

A

S.22D(2):

  • by whom:
  • when:
  • together with:
24
Q

ASSIGNMENT UNDER HDA

Right to initiate or maintain action

A

S.22C:

  • what matters:
  • notification:
25
Q

ASSIGNMENT UNDER HDA

Assignment vs agreement

A

Tan Yan Long v Newacres Sdn Bhd:

  • the agreement entered between P & metroplex is a loan agreement as opposed to assignment;
  • P therefore has the right & locus to maintain action.
26
Q

ASSIGNMENT UNDER HDA

Enforcement of assignment

A

Damai Freight Sdn Bhd v Affin Bank Bhd:

  • lender may proceed to sell the property under the assignment w/o need to create charge under NLC & obtain OFS from the court.
27
Q

ASSIGNMENT UNDER HDA

Information from developer

A

S.22D(4):

  • what:
  • to whom:
  • fees:
28
Q

JMB

overview

A

1) what
2) duties
3) powers
4) application

29
Q

JMB

what

A

S.17 SMA:

  • a body corporate having perpetual succession & a common seal.
  • comprises of developers and purchasers;
  • responsible for maintenance & management of the building.
30
Q

JMB

duties

A

S.21(1) SMA

31
Q

JMB

powers

A

S.21(2) SMA

32
Q

JMB

application

A

Innab Salil & Ors v Verve Suites Mont Kiara:

  • whether can prohibit short-term rental: yes
  • whether it is in violation of Strata Management Act: no, as long as the short-rentals amount to licenses & not tenancies.
33
Q

SALES OF COMMERCIAL PROPERTIES BY DEVELOPER

The law 101

A

1) Developer’s consent
2) Administration fees
3) Nature of commercial properties:

  • not protected by HDA;
  • defects liability 12 months;
  • T&C under SPA is stated by developer.
34
Q

STRATA TITLES

duty of developer

A

Sor Kok Wah & Others v Draland Sdn Bhd:

  • To make application for issuance of strata titles ;
  • Developer is bound by the statutory requirement to make the application;
  • Breach: liable to compensate the house buyer in respect of any damages arising from not having the strata title.

PP Land Law (14 decks)

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