HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966

LAWS OF MALAYSIA _______________ ONLINE VERSION OF UPDATED TEXT OF REPRINT _______________ Act 118 HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966 As at 2 March 2016 2 HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966 First enacted Revised … … … … … … … ... ... … ... Latest amendment made by Act A1415 which came into operation on … … … ... … 1966 (Act No. 38 of 1966) ... 1973 (Act 118 w.e.f. 16 August 1973) … 1 June 2015 PREVIOUS REPRINTS First Reprint Second Reprint Third Reprint Fourth Reprint … … … ... … … … ... … … … ... … … … ... … … … ... 1988 1995 2000 2006 3 LAWS OF MALAYSIA Act 118 HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and application 2. Saving and exemption 3. Interpretation 3A. Powers of the Minister to determine housing accomodation 4. Appointment of Controller, Deputy Controllers, Inspectors and other officers and servants PART II LICENSING OF HOUSING DEVELOPERS 5. Prohibition against housing development except by virtue of a licence and provisions relating to the grant of a licence 6. Conditions or restrictions for the grant of a licence 6A. Controller to keep deposit 6B . Controller may forfeit deposit PART III DUTIES OF A LICENSED HOUSING DEVELOPER 7. Duties of a licensed housing developer 7A. Licensed housing developer to open and maintain Housing Development Account 7B . Licensed housing developer for the purpose of sections 7, 8, 8A, 11 and 12 4 Laws of Malaysia ACT 118 Section 7C . Freezing of the Housing Development Account 8. Arrangement or agreement affecting the business of a licensed housing developer 8A. Statutory termination of sale and purchase agreements 9. Audit PART IV INVESTIGATION AND ENFORCEMENT 10. Investigation 10A. Powers of entry, search and seizure 10B. Search of person 10C. Obstruction to exercise of powers by an Inspector 10D. Requirement to provide translation 10E. Power to examine persons 10F. Specific persons in respect of whom powers of investigation may be exercised 10G. Assistance to police or other public officer 10H. Protection of informers 10I. Authority to act 10J. Limitation on the powers of an Inspector 10K. Penalty for obstruction and failure to provide translation PART V POWERS OF MINISTER 11. Powers of the Minister to give directions for the purpose of safeguarding the interests of purchasers 12. Powers of the Minister to give general directions 13. Revocation and suspension of a licence 13A. Controller to report the conduct of an architect or engineer 13B. Transfer or assignment of a licence 14. Opportunity of being heard to be afforded before revocation or suspension of a licence and in certain other cases 15. Individual not eligible to take part in management of the business of a licensed housing developer Housing Development (Control and Licensing) 5 Section 16. Right of appeal to the Minister by an aggrieved licensed housing developer against the decision of the Controller PART VI TRIBUNAL FOR HOMEBUYER CLAIMS 16A. Meaning of “homebuyer” 16B. Establishment of Tribunal for Homebuyer Claims 16C. Membership of Tribunal 16D. Temporary exercise of functions of Chairman 16E. Vacation of office 16F. Revocation of appointment 16G. Resignation 16H. Filling of vacancy 16I. Remuneration 16J. Secretary to Tribunal and other officers 16K. Sittings of Tribunal 16L. Commencement of proceedings 16M. Jurisdiction of Tribunal 16N. Limitation of jurisdiction 16O. Extension of jurisdiction by agreement 16P. Abandonment to bring claim within jurisdiction 16Q. Claims not to be split 16R. Exclusion of jurisdiction of court 16S. Notice of claim and hearing 16T. Negotiation for settlement 16U. Right to appear at hearings 16V. Proceedings to be public 16W. Evidence 16X. Tribunal may act in absence of party 16Y. Awards of the Tribunal 16Z. Reference to a Judge of the High Court on a question of law 16AA. Reasons for decision 16AB. Orders and settlement to be recorded in writing 6 Laws of Malaysia ACT 118 Section 16AC. Decisions of Tribunal to be final 16AD. Criminal penalty for failure to comply 16AE. Procedure where no provision is made 16AF. Want of form 16AG. Disposal of documents, etc. 16AH. Act or omission done in good faith 16AI. Regulations in respect of the Tribunal PART VII MISCELLANEOUS 17. Indemnity and protection against suit and proceedings 18. Offences relating to a licence under section 5 18A. Offences relating to abandonment of housing development by a licensed housing developer 19. Offences by a housing developer 20. Offences by a director of or a person connected with the business of a licensed housing developer in certain cases 21. Penalty for offences not otherwise provided for 22. Liability of director, manager and other officials for offences committed by companies and liability of a person for acts done by others 22A. Public servants and public officers 22B. Application of Public Authorities Protection Act 1948 22C. Right to initiate and maintain actions 22D. Assignment 22E. Release of moneys by a stakeholder 22F. Progress certification 23. Prosecution 23A. Power to compound 24. Powers to make regulations SCHEDULE 7 LAWS OF MALAYSIA Act 118 HOUSING DEVELOPMENT (CONTROL AND LICENSING) ACT 1966 An Act to provide for the control and licensing of the business of housing development in Peninsular Malaysia, the protection of the interest of purchasers and for matters connected therewith. [29 August 1969] PART I PRELIMINARY Short title and application 1. (1) This Act may be cited as the Housing Development (Control and Licensing) Act 1966.* (2) (Omitted). (3) This Act shall apply only in Peninsular Malaysia. Saving and exemption 2. (1) (Deleted by Act A1142). (2) The Minister may by order published in the Gazette exempt any housing developer or housing accommodation from any or all of the provisions of this Act and such exemption may be granted for such duration as may be specified in the order, and may be made subject to such limitations, restrictions or conditions as the Minister may specify in the order. * NOTE—Where, on or after 1 December 2002, a reference is made in any written law to the “Housing Developers (Control and Licensing) Act 1966”, such reference shall be construed as a reference to the “Housing Development (Control and Licensing) Act 1966”–see section 5 Act A1142. 8 Laws of Malaysia ACT 118 (2A) The Minister may at any time by order published in the Gazette, revoke any exemption granted by him under subsection (2). (3) The provisions of this Act which relate to a company shall be construed as in addition or supplementary to, and not in derogation from, the provisions of any written law relating to companies. Interpretation 3. In this Act, unless the context otherwise requires— “bank” means any bank licensed under the Banking and Financial Institutions Act 1989 [Act 372] or under the Islamic Banking Act 1983 [Act 276]; “body of persons” means a group of persons, not being an incorporated body or group; “certificate of completion and compliance” means the certificate of completion and compliance given or granted under the Street, Drainage and Building Act 1974 [Act 133] and any by-laws made under that Act certifying that the housing accommodation has been completed and is safe and fit for occupation but does not include partial certificate of completion and compliance; “company” means any company incorporated, formed or registered under any written law for the time being in force in Malaysia relating to companies, and includes any body corporate established under any written law in force in Malaysia; “Controller” means the Controller of Housing appointed under section 4; “Deputy Controller” means the Deputy Controller of Housing appointed under section 4; “finance company” means any finance company licensed under the Banking and Financial Institutions Act 1989; “firm” means an unincorporated body of persons (whether consisting of individuals or of corporations or partly of individuals and partly of corporations) associated together for the purpose of carrying on business; Housing Development (Control and Licensing) 9 “housing accommodation” includes any building, tenement or messuage which is wholly or principally constructed, adapted or intended for human habitation or partly for human habitation and partly for business premises and such other type of accommodation as may be prescribed by the Minister from time to time to be a housing accommodation pursuant to section 3A; “housing developer” means any person, body of persons, company, firm or society (by whatever name described), who or which engages in or carries on or undertakes or causes to be undertaken a housing development, and in a case where the housing developer is under liquidation, includes a person or body appointed by a court of competent jurisdiction to be the provisional liquidator or liquidator for the housing developer; “housing development” means to develop or construct or cause to be constructed in any manner whatsoever more than four units of housing accommodation and includes the collection of moneys or the carrying on of any building operations for the purpose of erecting housing accommodation in, on, over or under any land; or the sale of more than four lots of land or building lots with the view of constructing more than four units of housing accommodation; “Housing Development Account” means an account opened and maintained by a licensed housing developer pursuant to section 7 A; “housing lot” means any piece of land surveyed or otherwise, to which a lot number has been assigned to it and which is subject to the category “building” in accordance with the National Land Code 1965 [Act 56 of 1965]; “Inspector” means an inspector appointed under section 4; “licence” means a licence granted under section 5; “licensed housing developer” means any housing developer licensed under section 5 to engage in or carry on or undertake a housing development and includes the holder of any power of attorney of such housing developer duly created under the Powers of Attorney Act 1949 [Act 424]; “local authority” includes any person or body of persons appointed or authorized under any written law to exercise and perform the powers and 10 Laws of Malaysia ACT 118 duties which are conferred and imposed on a local authority under any written law; “prescribed” means prescribed by regulations made under this Act, and where no mode is mentioned means prescribed from time to time by order published in the Gazette; “purchaser” means any person who purchases housing accommodation or who has any dealing with a licensed housing developer in respect of the acquisition of housing accommodation; “stakeholder” means any solicitor holding moneys as stakeholder for payment to a housing developer pursuant to sale and purchase agreements in respect of a housing development which the housing developer is engaged in, carries on or undertakes or causes to be undertaken; “Tribunal” means the Tribunal for Homebuyer Claims established under section 16B. Powers of the Minister to determine housing accommodation 3A. (1) The Minister may, from time to time, by order published in the Gazette, prescribe any type of accommodation to be a housing accommodation. (2) In the event of any doubt as to whether a housing accommodation falls within the meaning of this Act, the Minister’s decision shall be final and shall not be questioned in any court. Appointment of Controller, Deputy Controllers, Inspectors and other officers and servants 4. (1) For the purpose of this Act, the Minister may appoint a Controller of Housing and such number of Deputy Controllers of Housing, Inspectors of Housing and other officers and servants as the Minister may deem fit from amongst members of the public service. (2) The Controller and Deputy Controllers shall have and may exercise any