On the 16th December 2021, The Dewan Rakyat on Thursday passed the Temporary Measures for Reducing The Impact of Coronavirus Disease 2019 (Covid-19) (Amendment) Bill 2021 that seeks to provide more space and opportunities to individuals and companies affected during the pandemic in their recovery process.
A new Part XIA was introduced as additional modifications to housing development laws.
Here are 5 significant changes that will affect housing developers and purchasers.
1. Agreement and First Agreement
The term ‘agreement’ will refer to the Schedules G, H, I and J sale and purchase agreement under the Housing Development (Control and Licensing) Regulations 1989.
The term ‘first agreement’ means the first agreement entered into between a purchaser and developer for a housing accommodation in relation to a housing development.
The inclusion of the term ‘first agreement’ limits the reliefs to only the first purchase for that particular housing development. Subsequent purchases, and subsequent agreements, will not enjoy the relief measures.
2. Late Payment Charges
As per Clause 38B of the Bill, developers shall not impose any late payment charges for unpaid instalments between 1 January 2021 to 31 December 2021.
However it is to be noted that there is a requirement for the respective purchasers to show that their failure to pay is “due to measures prescribed, made or taken under the Prevention and Control of Infectious Diseases Act 1988 [Act 342] to control or prevent the spread of COVID-19“.
3. Extension of Delivery of Vacant Possession
Developers may apply to the Minister for any period from 1 January 2021 to 31 December 2021 to be excluded from the calculation of late delivery of vacant possession or completion of common facilities as per Clause 38C of the Bill.
If Minister is satisfied that the inability was due to the measures prescribed, made or taken under Act 342 to control or prevent the spread of COVID-19, the minister ‘may’ grant this exclusion.
Note that, the Minister shall not consider this application for exclusion if the time for delivery of vacant possession or completion of common facilities has expired.
This exclusion relief only applies to a first agreement entered into before 31 May 2021.
4. Taking of Vacant Possession
As per Clause 38D of the Bill, if the purchaser is unable to take vacant possession during 1 June 2021 to 31 October 2021 or any excluded period from clause 38C above due to the measures under Act 342, the purchaser shall not be deemed to have taken such vacant possession.
5. Exclusion of Calculation of Defect Liability Period
Clause 38E of the Bill states that the period of 1 June 2021 to 31 October 2021 shall also be excluded from the calculation of the defect liability period.
