New Law Poses a Major Problem to Homebuyers

February 23, 2017

 

A new law allowing owners of apartments and condominiums to sell their units even if they still have outstanding payments to the building’s Joint Management Body (JMB) could pose a major problem to homebuyers, reported The Star.

This comes as the debt left by the sellers will be transferred to the house buyers.

“At present, the JMB’s consent is needed before a unit can change hands and all outstanding payments must first be completed,” said Tanjong MP Ng Wei Aik in highlighting the implications of the new act.

Under the Strata Titles (Amendment) Act 2016, owners are freed of this requirement, placing the burden on home buyers to ensure that the JMB debts have been paid before signing the sale and purchase agreement.

Meanwhile, owners who fail to pay the parcel rent or quit rent run the risk of having their units seized by state authorities.

Parcel or quit rent is calculated based on the unit’s size, including the parking lots allotted to it, said Ng.

Currently, quit rent of high-rise buildings is paid by the JMB, which is tasked with collecting the individual quit rent of owners.

Since the new law would affect thousands of high-rise property owners in Penang, Ng urged such owners to be familiar with the Act.

With effect on 1 January 2018, the new law will apply in Kuala Lumpur, Penang, Malacca and Selangor, reported Free Malaysia Today.

Image sourced from Iraphne R Childs

 

Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my

 

For more information on new homes, check out PropertyGuru’s New Property Launches and Project Reviews.

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