Amendment to the
Housing Developers (Control and Licensing)(Amendment) Act 2001, paved the way
for homebuyers to bring an action against developers in a Tribunal. It is
indeed a kind of relief for some homebuyers as they have the option to refer
their complaints to a Tribunal. A Tribunal is comparatively faster and cheaper
compare to actions brought to the normal process of court. Homebuyers
complaints referred to Tribunal need not necessarily be represented by
solicitors and do not have to go through the normal lengthy and complicated
process of court. However, it is prudent for homebuyers get advice from their
solicitors before referring their claim to the Tribunal. It is important for
homebuyers to determine at the initial stage of what are causes of actions
against a developer. Homebuyers may not be familiar with what type of actions
they could take against a developer and the probable amount they could claim in
each action.
Although it is relatively easier and faster for
homebuyers to get their claim settled in a Tribunal, there is a limitation to
claims in the Tribunal. A homebuyer can only claim up to RM25,000.00 in each
cause of action against a developer. So, although, a claim may be more than
RM25,000.00 a homebuyer taking his claim to a homebuyers Tribunal has to
relinquish his rights for the remaining amount. Once a homebuyer gets his claim
settled in a Tribunal he is prohibited to bring an action to any other
jurisdiction for the remaining amount he relinquish in Tribunal action. A homebuyer, nevertheless, may have several
causes of action against a developer. A homebuyer may have a claim on the
defect of the house, or the house built is not according to the plan of the
house in which another separate claim can be brought before the Tribunal. It
means a homebuyer may bring several separate claims against a developer at the
homebuyers Tribunal. For each claim a homebuyer may claim up to a limit of
RM25,000.00. In any event, homebuyers cannot split the claim. | There are several
points need to be taken cognisance of by homebuyers who
intend to bring any case before the Tribunal. It is pertinent to make sure that
all actions against a developer must be initiated not later than 12 months from
issuance of certificate of fitness for occupation or 12 months from the expiry
date of the defects liability period of 18 months. It is in this instance
homebuyers are advised to seek legal opinion to determine the limitation period
and to help them to take all the necessary steps and to prepare all
documentations in an orderly manner.
Homebuyers have to
bear in mind that once a claim is referred to a Tribunal, similar action cannot
be brought to any other jurisdiction such as civil court. The only exception
for them to be able to bring their claims before a civil court is in the event
their claims at a Tribunal is either withdrawn, abandoned or struck out by the
Tribunal. However, once the Tribunal makes an order on the amount, it cannot be
an excuse for homebuyers to seek higher amount in a civil court action.
Homebuyers are nevertheless, despite the
simplicity of referring their claims before a Tribunal, advised to seek opinion
from their solicitors to plan their claims in an orderly manner in order to
avoid missing important points in getting fair hearing for desired claim.
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