PETALING JAYA: Imagine purchasing your dream home, only to suffer financial loss at the hands of developers who abandon or delay the project.
Premila Pauline, 55, told theSun the first property she and her husband bought was delayed for four years before they received the keys.
“We bought a small apartment in Kampung Melayu Subang, that cost us about RM94,000 in 1996, hoping to raise our three children there and not have to pay rent anymore,” she said.
Unfortunately, the developer delayed the project.
When Premila sought an explanation, she was told that the project had to be paused because the company was having financial issues and could not continue.
“We had to file a court case against the developer for compensation. They promised to pay us RM7,000 out of RM14,000, that was in accordance with the Sale and Purchase Agreement that we signed. However, we were only paid a measly RM1,200 in the end.
“Each time we asked them about the rest of the money, they would send us away with different excuses.”
Premila and her husband encountered the same predicament when they decided to purchase their second home, a landed property in Kampung Lombong, Jenjarom.
“The house cost RM150,000 and it took us six years before we could call it our home,” she said, adding that they had financial difficulties throughout the journey to own their homes.
“We were paying the banks a progressive interest for both houses while juggling rent to keep a roof over our heads and paying for household expenditures. As parents to two kindergarten-going children and a premature newborn, there were additional costs that we did not plan on having,” she said.
“Rental was an extra RM1,000. We felt helpless and frustrated with the situation.”
Another house buyer, who wanted to be known only as Bernard, 51, went through a similar ordeal.
“I had to pay progressive interest to the bank due to the prolonged period of construction of the housing development. It started with a small amount but eventually, the cost increased and I still had no idea when I would get my property.
“I was paying an additional RM300 a month for the progressive interest, which at the end would not benefit me. It frustrated me daily,” he said.
When Bernard asked to be compensated by the developer, he received a similar response as in Premila’s first case.
“The developer blatantly and nonchalantly told me that they could not pay me because they didn’t have the money. Eventually, a counter offer was made but I never got the compensation,” he said.
“As a house buyer, what is the automatic defence that I have to guarantee that I will get the property in the timeframe that was promised? With all the approvals given by the government to the developer, why can’t buyers demand compensation from the developers and why isn’t the government backing us in our struggle?”
He added that the property he purchased in Subang was bought mainly by those in lower income groups who could not afford a lawyer or take time from their daily lives to deal with such issues.
“Knowing that most developers take advantage of this, why isn’t there a system that allows house buyers to lodge a complaint against errant developers that would allow the government to act on the issue?
“If developers continue to avoid compensation, then the government should compel them to pay the buyer and threaten to shut their business down if they refuse to comply,” he said.