[Updated 2024] Avoid These Blacklisted Property Developers in M’Sia!

Avoid Being Cheated by These BLACKLISTED Property Developers!

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*This article was first written by Nisya Aziz.The content and information on this article might be changed or updated periodically by Team Loanstreet without notice.

For a start, it’s obvious that property investment involves a lot of money and for many of us, it’s a once-in-a-lifetime opportunity. To be screwed over and scammed by blacklisted developers is the last thing any of us hoped for.

So, that’s why it’s important to not get too excited when property developers promise you castles in the air. Be prudent and alert! They might be amongst the blacklisted property developers.

If you’re in the process of searching for your dream house, then, this is your ultimate guide to avoid getting cheated by shady developers. And, just in case you ‘ter-bought’ a property from one of the developers mentioned in the blacklist, we also have the solution for you. So, keep on reading!

What's covered in this article?

Buying a House? Check the Property Developer’s Status

Before committing to such a big-ticket purchase, check if the developer has faced any problems in their projects. The National Housing Department (JPN) has released the latest list of blacklisted property developers (as of Mac 2024) based on the Housing Development (Control and Licensing) 1966 [Act 118].

This blacklist is divided into four categories as below.

1) Property Developers Without Licenses

FYI, a property developer needs to have a licence and permit before commencing the project development and selling it to the public. Failing to do so is an offence under the Housing Development (Control and Licensing) Act. Usually, the developer will display their licence and permit number on their pamphlet, brochure or at their sales gallery.

Here’s an excerpt from the list:

SPS Setia Sdn. Bhd.
Syahira Development Sdn. Bhd.
Sinar Fadzilat Sdn. Bhd. / Lurah Pantas Sdn. Bhd.
SL Works Force Development Sdn. Bhd.
Andaman Timor Sdn. Bhd.
Cosmic Master Sdn. Bhd.

Want to read the full list? Click here: List of Unlicensed Housing Developers (as of 31st Jan 2024)

2) Property Developers with Abandoned Projects

There are many reasons for a project to be abandoned. It could be because of inexperienced developers, poor marketing, and sales strategies, financial problems, challenging economic conditions, disputes between shareholders, mismanagement of the company and business affairs, or even lack of enforcement and monitoring by the authorities.

As reported by Berita Harian, a total of 79 private housing projects comprising 17,724 housing units and involving 11,824 buyers (worth RM5.57 billion) was confirmed to have been abandoned in Peninsular Malaysia in 2021 alone.

Here’s an excerpt from the list:

Coral Land Corporation Sdn.Bhd.
Haji Embong Sdn.Bhd.
Juta Permai (M) Sdn.Bhd
Luxstar Housing Development Sdn. Bhd
Rui Development Sdn. Bhd.

Want to read the full list? Click here: List of Property Developers with Abandoned Projects (as of 31st Jan 2024)

3) Property Developers That Didn’t Honour Tribunal for Homebuyer Claims (TTPR) Award

For those who are not aware, the Tribunal for Homebuyer Claims provides an easier, cheaper, and faster means of dispute resolution for home-related issues from the housing developers, for example, late delivery of vacant possession. This is great to protect your rights as a buyer. To know more about it, check out this FAQ from Kementerian Pembangunan Kerajaan Tempatan (KPKT).

Here’s an excerpt from the list:

ABRA DEVELOPMENT SDN BHD
BISTARI LAND SDN BHD( REDEZ PROPERTIES )
KS PROPERTY SDN BHD
MACVILLA SDN BHD
PERUDA DEVELOPMENT SDN BHD
THIRTY THREE DEVELOPMENT SDN BHD

Want to read the full list? Click here: Property Developers That Didn’t Honour Tribunal for Homebuyer Claims (TTPR) Award (as of 12th Jan 2024)

4) Property Developers Who Failed to Settle Compound Payment

Just to break it down for you, property developers will be compounded between RM5,000 to RM50,000 based on the offences made. These are divided into three main clusters as below:

Compounding of the offence of the licensed housing developer under sections 7 and 18 (c) of Act 118.
Compounding of Advertising and Sales Permits in compliance with regulation 5 (Housing Development (Control and Licensing) Regulations 1989.
Compounding of the management and maintenance offences of the Housing Development Account (HDA) under the Housing Development Regulations (1A), 5 (6), 6 Housing Development Account) 1991.

Here's an excerpt from the list:

AUSTRAL DEVELOPMENT SDN BHD
DINDING DEVELOPMENT SDN BHD
GLOTRACO SDN BH
KELLAND DEVELOPMENT SDN BHD
SKT CONSTRUCTION SDN BHD

Want to read the full list? Click here: Property Developers Who Failed to Settle Compound Payment (as of 8th March 2024)

"Oh no, I bought a property from a BLACKLISTED developer. What Should I do?"

We tried to get an answer on this from KPKT but the feedback wasn’t as helpful. They said that they weren't able to do anything, so we would need to talk to a lawyer and file a civil suit.

We couldn't just stop there! So we then engaged a real estate lawyer, Khairul Anuar Sharudin of Khairul, Suhaila & Hazlina to get a more thorough answer. Guess what? There is another way to approach this matter - you can cancel your sales and purchase agreement (SPA).

1) For the licensed developer:

Based on the amended Housing Development Act (Control and Licensing) 1996 [Act 118], house buyers can revoke their SPA if the housing project that they bought shows no progress within 6 months since they signed the contract. To make this happen, you need to acquire approvals from the Ministry and receive written consent from the banks.

Another thing you should know is that the financier should not unreasonably withhold permission to terminate the agreement. Once the process is settled, the licensed housing developer should refund your money within 30 days (interest-free).

2) For the unlicensed developer:

You can bring your complaints to the Housing and Strata Management Tribunal at the Housing Claims Tribunal including problems you face with the unlicensed developers, under the same Act.

Moral of the Story: Check First Before You Buy!

While there are many factors to consider when deciding when or where to purchase a house, the safest way is to start with an easy background check. As you can see, there are more than 100 blacklisted property developers.

It doesn’t matter if you encounter them at the mall or a property expo - double-check their credibility with KPKT, as well as their CTOS profile. As cliche as it may sound - prevention is better than cure.

That aside, if you’re looking for a home loan, head to our home loan comparison tool to see which bank fits your requirements. Or, if you want to check your full home loan eligibility report, then Loanstreet can help you too!

Good luck!

*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.

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