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Avoid Being Cheated by These BLACKLISTED Property Developers!

Updated 13 Jul 2018 – By Nisya Aziz


For a start, let’s state the obvious that property investment involves a lot of money and for some of us, it’s a once-in-a-lifetime opportunity. To be screwed over is not really an option - which is why it’s important to not get TOO EXCITED when we are promised the moon by the property developer. Be prudent as the company might be one of the BLACKLISTED property developers.

Read on if you’re in a midst of surveying for your dream house and want to avoid being cheated by them. We also have the solution just in case you ‘ter-bought’ a property from one of the developers mentioned in the blacklist.

 

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. Recently, the National Housing Department (JPN) has released an updated list of blacklisted property developers (as of June 2018) 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 license 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 the license and permit number on their pamphlet, brochure or at their sales gallery.

 

Here’s an excerpt from the list:

  1. AMPLE DEVELOPMENT SDN BHD
  2. ANDAMAN TIMOR SDN BHD
  3. ANGLO PROPERTIES SDN BHD
  4. ANJUNG PROPERTIES SDN BHD
  5. ANUGERAH DEVELOPMENT SDN BHD
  6. ARAS DIMENSI SDN. BHD
  7. ATLAW HOUSING SDN BHD
  8. BAGAN MASYUR SDN. BHD
  9. BANDAR AKADEMIA CORPORATION (M) SDN BHD
  10. BINALIF PROPERTY & DEVELOPMENT SDN BHD (HYRAX PROPERTIES & DEVELOPMENT SDN BHD)

Click here for the full list.

 

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 in a local daily, the government had registered 253 abandoned private housing projects in Peninsular Malaysia, with the highest number in Selangor (as of November 2017). However, 190 projects had been revived and completed between 2009 and October 2017.

 

Here’s an excerpt from the list:

  1. AGA DEVELOPMENT SDN BHD
  2. AKRAB PROPERTIES SDN BHD
  3. ANTARA VISTA SDN BHD
  4. ARAH CIPTA SDN BHD
  5. ARAS DIMENSI SDN BHD
  6. ARCH REALTY SDN BHD
  7. ASET NUSANTARA DEVELOPMENT SDN BHD
  8. ASIAN LION ENTERPRISE SDN BHD
  9. AUSTRAL DEVELOPMENT SDN BHD (MEXALAND SDN BHD)
  10. BACTRA PROPERTIES SDN BHD

Click here for the full list.

 

 

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 i.e. late delivery of vacant possession. This is great to protect your rights as a buyer. To know more about it, check out this article from EdgeProp.my.

 

Here’s an excerpt from the list:

  1. ABRA DEVELOPMENT SDN BHD
  2. ACTRAL FAIRWAY SDN BHD
  3. AJUMAS ENGINEERING SDN BHD
  4. ALUNAN OMBAK SDN BHD
  5. ANGEL PROPERTIES SDN BHD
  6. ANGKATAN MEWAH SDN BHD
  7. ANGLO VENTURES SDN BHD
  8. ANJUNG PROPERTIES SDN BHD
  9. ANTANUSA DEVELOPMENT SDN BHD
  10. ANTAP IKHLAS SDN BHD

Click here for the full list.

 

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:

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

 

Here's an excerpt from the list:

  1. ST MALS DEVELOPMENT (M) SDN BHD
  2. ACN HARTA DEVELOPMENT SDN BHD
  3. ACTICLAND SDN BHD
  4. AFAF TERNAMA GROUP SDN BHD
  5. AFFINITY HEIGHTS SDN BHD
  6. AHM LAND SDN BHD
  7. AJUMAS ENGINEERING SDN BHD
  8. AKIJAYA DEVELOPMENT SDN BHD
  9. AKTIF BUMIRAYA SDN BHD
  10. ALAM DAMAI DEVELOPMENT SDN BHD

Click here for the full list.


 

I Bought a Property From a Blacklisted Developer. What Should I do?

To answer this question, we called KPKT and the feedback wasn’t as helpful. The representative 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).

 

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 six months since they signed the contract. To make this happen, you need to acquire approvals from the Ministry and received written consent from the banks.

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

 

For the unlicensed developer:

According to the Housing and Local Government Deputy Minister Halimah Mohamed Sadique in a report, you can bring your complaints to 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.

Good luck!

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