What is the purpose of Housing Development Act?

To provide for the control & licensing of the business housing development in West Malaysia and
related matters.

What is the purpose of Housing Development Account?

To regulate and control the monies transaction for housing development and to protect public
from developer taking advantage of collected money.

Description
-Ensure all monies is deposited to the H D account (Sec 4)
-Ensure purchasers loan is deposited to the H D Account (Sec 5)
-All interest deposit to H D account (sec 6)
-Ensure withdrawal of monies is in compliance with sec 7 & 8 of H D A
-Ensure withdrawal of monies is in compliance to sec 9 HDA

What is the role of the Ar under this regulations?

-Ar.certifies for the withdrawal of monies from H D account
-Ar certifies the amount to complete the work is deducted before developer withdraw surplus
money
-Ar certifies CMGD and support for withdrawal of surplus money

What are the purposes for withdrawing monies from HD Account?

•1. quit rent, taxes, assessment
•2 stamp duty
•3. legal fees
•4 insurance
•5. consultant fee, construction, earthwork, foundation,
•6. soil Investigation, building,external work, infrastructure, relocation of squatter
•7. Contribution fee: water, elec. Supply
•8. government charges
•9. Refund
•10. financing incl. interest
•11. Payment for the purchase of land
•12. administrative (eg. marketing)
Note :
•
item 1,2, 12 - payment made in favor of developer
•all other items - in favor of recipient.

What are the conditions for withdrawing surplus monies from HD Account?
•Obtain CCC
•Request by director and supported by the director of the housing development
•
Deduction of all cost as certified by architect to complete project
•
10% Centrum amount to above for contingencies and inflation
•All LAD claims have been settled

How would you advise the client/ developer if they wish to withdraw all monies from HDA
account or to close H D account?
Developer can only w'draw all monies fr. HDA accont when:
1. housing development has been completed,
2. solicitor for developer certifying:
• obligation of developer under SPA fulfill incl. Transfer of title,
•Houses completed with CCC/ CFO
What are the architect’s duties while certifying stage payment for Schedule G project?

•
Key clauses which confer the Architect with the power to act and the Architect’s role and
obligation.

• Clauses 4(2): The S & P Agreement states that a request for stage payment from the
developer shall be supported by a certificate signed by the Vendor’s Architect.
• It further states that every much certificate so signed shall be proof of the facts the works
referred to have been completed.

• The responsibility on the Architect is therefore heavy, as his certificate is conclusive proof
that the stage of work has been completed and the developer is entitled to collect his
stage payment.

• Thus the Architect has to satisfy himself that the works have been completed before
issuing the certificate for stage payment. He must not, under any circumstance, issue
these certificates prematurely.

• Clause 21(1) of the S & P Agreement which specifies the Manner of Delivery of
Vacant Possession also empowers the Architect to act.

• This clause places responsibility on the Architect for the issuance of the certificate
certifying completion of the said building.

• Great responsibility is placed on the Architect to discharge his professional duty by

exercising fair judgment on whether the construction of the said building has been duly
completed.

• The clause also requires the Certificate of Fitness to be applied for which is done by the
Architect as agent of the vendor. The Architect must note here that the application for the
CF may involve the works undertaken by the other consultants and other contractors and
proper coordination is necessary.

• The Architect should also not prematurely apply for the CF without properly checking that
all parties have completed their scope of works and that all the conditions of approval
have been complied with.

Key clauses which indirectly affect / involve the Architect.

Clauses 11 on Separate Document of Title / Transfer of Title
The Vendor is required to apply for the sub-division of the building to obtain the issue of a
separate strata to the said parcel under the Strata Title Act 1985. The Architect has to be familiar
with the provisions of this Act and periodically advise the Vendor when necessary of the
obligation. Also under Clause 9(b) of the Strata Title Act, the Architect is required to certify that
the parcel was constructed in accordance with the approved plans.

Clause 13 on Materials and Workmanship To Conform to Description

The building description is set out in the 4th Schedule and the plans approved by the authority
are to be included in the agreement under the 2nd Schedule. The Architect has to take note that
no changes or deviation are to be made without the consent in writing of the purchaser except as
may be required by the appropriate authority. If changes or deviation involve the substitution or
use of cheaper materials or omission of works, the purchaser is entitled to a corresponding
reduction in purchase price or damages.

Clause 14 on Restriction Against Variation by Purchaser

The Architect has to note that the Purchaser shall not carry out any variation to the building which
would involve the amendment of building plans until the CF is issued. The Architect is also to note
that for sub-divided building, even the renovation work is done after the issuance of CF but before
the issuance of strata title, there may be cases of complication arising as to preparation of
drawing and certificate of completion of the parcel according to the approved plan for the
issuance of strata title.

Clause 16 on Maintenance of Services

This clause provides that the purchases are liable to pay for service prior to the establishment of
the management corporation. The amount would be determined according to the provisional
share units assigned to the said parcel by the Architect. As such, the Architect is responsible to
assign the provisional share units according to the provisions of the Strata Title Act.
Clause on payment by purchasers on a fair and justifiable proportion of issuance premium and
outgoings, etc according to provisional share value assigned by the Architect.

Clause 25 on Defect Liability Period

This clause prescribe the defect liability period of 24 months after the handling over of vacant
possession. However, in a lot of instances, the defect liability period under the S & P Agreement
differs from those stipulated under the building contract. The Architect shall while preparing the
building contract, allow a longer defects liability period to cover the Developer’s obligation under
S & P Agreement.

What are the architect’s duties while certifying stage payment for schedule H/ non-housing
project?

•
Klausa 4 – Jadual Pembayaran

Tiap-tiap notis yang disebut dalam Jadual Ketiga meminta bayaran hendaklah disokong oleh
suatu perakuan yang ditandatangani oleh Arkitek mengesahkan bahagian kerja-kerja yang telah
disapkan mengikut peringkat kerja yang ditetapkan.

Klausa 11 – Seperate strata title document dan transfer of title

Penjual bertanggungjawab untuk memohon hakmilik strata. Arkitek perlu mengesahkan petak
dibina mengikut pelan-pelan yang telah diluluskan oleh pihak berkuasa seperti yang dinyatakan
dibawah klausa 9(b) Akta Hakmilik Strata.

Klausa 12 – Position and area of lot

Jika kedudukkan dan keluasan petak berbeza dengan dokumen hakmilik tetap. Arkitek hendaklah
menasihatkan penjual untuk memberi penyelarasan harga seperti yang dinyatakan dalam klausa
12 (2)

Klausa 13 – Material to comply to approve description

Arkitek hendaklah memastikan petak tersebut dibina mengikut keperihalan yang dinyatakan
dalam Jadual Keempat dan mengikut pelan-pelan yang diluluskan oleh PBT. Akitek juga perlu
menasihatkan penjual tiada perubahan bahan boleh dibuat tanpa izin bertulis daripada pembeli
kerana ianya boleh mengakibatkan kepada potongan harga.

Klausa 14 – Restriction of variation by purchaser

Arkitek perlu mengambil perhatian klausa 14(1), dimana menyatakan pembeli tidak boleh buat
pengubahan yang melibatkan pindaan kepada Pelan Bangunan yang dilulus tanpa mendapat izin
bertulis daripada Penjual sehingga Perakuan Siap dan Pematuhan yang berkenaan telah
dikeluarkan.

Klausa 18 – Payment of maintenance service

Selepasa pemilikan kosong petak diberikan, pembeli hendaklah membayar kos penyelenggaraan
mengikut jumlah unit syer yang telah ditetapkan oleh Juru Ukur Berlesen yang dilantik oleh
Pemaju untuk petak tersebut berdasarkan pelan yang disediakan oleh Arkitek.

Klausa 19 sinking fund

Selepasa pemilikan kosong petak diberikan, pembeli hendaklah membayar kos sinking fund 10%
dari bayaran kos penyelenggaraan.

Klausa 20 – Insurans
Pembeli hendaklah membayar sebahagian yang adil bersamaan dengan unit syer yang telah
ditetapkan oleh arkitek penjual bagi menginsurankan bangunan tersebut terhadap kerugian dan
kerosakan akibat kebakaran.

Klausa 22 – Connection in relation to water, electricity , gas and sanitary plumbing

Make sure all the above Is ready for connection

Klausa 23.- Pematuhan Undang-Undang Bertulis

Akitek Penjual hendaklah mematuhi peruntukkan-peruntukkan dan kehendak-kehendak undang-
undang bertulis yang sedang berkuatkuasa..
24 to consider all new rules, act and requitment and adapt to construction. Inform client
Klausa 25- Masa Untuk Penyerahan Pemilikan Kosong
Akitek Penjual hendaklah menyelaraskan penyerahan pemilikan kosong bersama-sama dengan
bangunan dan semua perkhidmatan dan kemudahan bersama.

Klausa 26(1) – Cara Penyerahan Pemilikan Kosong

Arkitek Penjual perlu memastikan pemilikan kosong petak tersebut bersedia untuk
penyambungan bekalan air dan elektrik, serta memperakui bahawa bangunan itu siap pembinaan
mengikut pelan-pelan yang diluluskan dan mematuhi kehendak-kehendak Pihak Berkuasa.

Klausa 26(2) – Penyerahan milikan kosong disokong oleh Arkitek Penjual bahawa suatu
perakuan siap dan pematuhan yang memperakui bahawa bangunan itu siap pembinaan
mengikut pelan-pelan yang diluluskan dan layak diduduki.

Klausa 29(3) – Tempoh Liabiliti Kecacatan

Arkitek Penjual hendaklah selepas (8) bulan dan (24) bulan selepas tempoh liabiliti kecacatan
memperakui bahawa kecacatan .......petak tersebut telah dibaiki dan diperbetulkan oleh Penjual.
Ini adalah seperti yang dinyatakan dalam butiran 5(a) dan 5(b) Jadual Ketiga – jadual
Pembayaran.