Sunday, June 30, 2013

Nusmetro targets RM1b lock-in sales

NUSMETRO Group is targeting RM1 billion worth of lock-in sales by the third quarter of this year.



Its managing director Thomas Chan said the targeted sales would be made through its four Arte series projects in Selangor, Kuala Lumpur and Penang.

He said the two ongoing projects in Selangor and Kuala Lumpur - Arte @Subang West and Arte @Kuchai Lama - are already sold out.

The latest introduction in the series, Arte S in Bukit Gambir here, has already sold 40 per cent of its 400 condominium units, Chan said, with another 30 per cent sales targeted within the month.

"We would have sold 70 per cent of the Arte S units here by next month ... and we managed to sell 40 per cent during Chinese New Year in February.

"We hope to reach the RM1 billion sales target. 

"I do not think many developers have managed to do so, unlike the big players like SP Setia," he said at the official launch of the Arte S project last Saturday.

Arte S, a project of about RM430 million in gross development value (GDV), is the property developer's first Arte series project in the nor-thern region. Construction is expected to begin next month and be completed by the end of 2016.

The project features two condominium towers of spiralling architectural lines; iconic indoor and outdoor pods that house a three-storey entertainment lounge; a garden with hanging cocoons; a gym; and a multi-layered pool.

The project is designed by Spark, the internationally-acclaimed London-based architecture and ur-ban design firm, which also designed Singapore's Clark Quay and the Shanghai Cruise Terminal in China.

Chan said Spark's design for Arte S has been shortlisted for the World Architecture Festival (WAF) 2013 in Singapore this October under the Future Projects Award.

"Spark has also worked on designing many other projects, but it chose Arte S to enter the competition at the world's largest architectural festival this year," he said.

Chan said Nusmetro did not previously develop projects in series until it introduced the Arte series two years ago.

"We never had that kind of branding but this is something we need to do to develop projects for a niche market," he said.

Projects in the Arte series, he explained, evolved around the art subject and sought to give a different definition to lifestyle living.

"When people look at the projects, and how they are designed externally and internally, what they think about them is subjective.

"However, our Arte series projects have received encouraging market endorsement," he said.

Nusmetro's fourth Arte project, named Arte+, is a mixed-development project with small-office home-office suites off Jalan Ampang in Kuala Lumpur.

Chan said the project will be officially launched to the public in November or December this year, after it is unveiled to the company's partners in September. - Business Times

Rehda: Engage industry players on future of DIBS

PETALING JAYA: Bank Negara should seek feedback from industry players and stakeholders before implementing any measures to curb or ban the developer interest bearing scheme (DIBS), said Real Estate and Housing Developers Association Malaysia (Rehda) president Datuk Seri Michael Yam. 

“I hope Bank Negara would engage us fairly quickly so we can tell them what the situation is really like,” said Yam, who opposes the curbing of DIBS. 

It was reported that Bank Negara is currently studying the risks posed by DIBS and there is a possibility that it may impose curbs on the scheme. 

Under DIBS, buyers only need to make the initial downpayment on the property they wish to buy, while the developers absorb the initial interest until the property is handed over to the buyer. 

Yam explained that DIBS was meant to assist people who are renting and wish to buy a home and those who are upgrading.

“Without DIBS, they would have to service two loans at the same time, or if they are renting, pay the rent and the loan, too,” he said. 

On DIBS allegedly being open to abuse, he said there were only isolated cases of such abuse. 

“I don’t believe developers will push prices up by 20% to 30% just because DIBS is part of the package. The banks do their own internal valuation and risk management, so they would be asking questions if they think developers are pushing the price up. 

“There are already measures put in place to mitigate some of the possible abuse,” he said. Yam argued that banks too participate in the DIBS scheme, which would have to be sanctioned by Bank Negara. 

“Banks are required to submit an invoice and inform the buyers how much interest he or she needs to pay. At all times, the buyer is aware of the amount of interest the developer is bearing. 

“The developers are prepared to do so because the interest cost during the construction phase is very minimal,” he said. 

“Buying a house is such a big investment; smart consumers would and should check the prices of properties in  surrounding developments to see if the price they are paying is more or less the same.” 

As for allegations that DIBS helps to fuel speculation, Yam said speculation only happens in developments in prime locations with short supply. 

“Not everyone takes up DIBS, which is actually implemented by very few developers and offered in very few developments. Such developments tend to be higher end products in urban areas. The rising prices of properties are mostly caused by factors such as inflation, and higher cost of materials and land.” 

A spokesman from Mah Sing Group Bhd said before Bank Negara takes any move to impose curbs on DIBS, it should first take into consideration the industry feedback and current market conditions.  

“We cannot comment too much as there has been no announcement, but generally the lending environment is still conducive. Financing liquidity is still attractive, interest rates are still low due to the competitive mortgage space where banks are offering a BLR [base lending rate] of minus 2.4%, from BLR minus 2.1% to 2.2% a year ago.”

C H Williams Talhar & Wong Sdn Bhd’s managing director Foo Gee Jen, however, believes that some measures should be put in place where DIBS is concerned. 

“It doesn’t need to be a total ban but what I’d advocate is to educate the public on what DIBS is about and how it works,” he said. 

“There’s a perception that DIBS is a very easy payment scheme where the buyers just need to pay a downpayment of 5% to 10% and nothing else until their homes are completed. Most buyers are not aware that in terms of price, they are actually paying between 15% and 25% more with DIBS. 

“The interest cost has already been factored into the property price. DIBS makes it easier in the sense that there is breathing space of two to three years where the buyer doesn’t have to pay anything. DIBS also encourages speculation.”


This article first appeared in The Edge Financial Daily, on June 28, 2013.

Saturday, June 29, 2013

Penang Real Estate | Penang Property | Penang Properties: Miami Green Resort Condominium Wanted

Attention: Calling all owners of Miami Green Resort Condominium, Batu Ferringhi, Penang

Do you have any intention to sell your Miami Green Resort Condominium, Batu Ferringhi, Penang? If your answer is yes, please feel free to contact us to further discuss how we can work together for a win win corporation.

There is no obligation. Act now!

Penang Real Estate | Penang Property | Penang Properties: Miami Green Resort Condominium Wanted

Penang Real Estate | Penang Property | Penang Properties: Platino Condominium Wanted

Attention: Calling all owners of Plantino Condominium, Gelugor, Penang

Do you have any intention to sell your Plantino Condominium, Gelugor, Penang? If your answer is yes, please feel free to contact us to further discuss how we can work together for a win win corporation.

There is no obligation. Act now!

Penang Real Estate | Penang Property | Penang Properties: Platino Condominium Wanted

New doesn’t mean perfect


Complaint One
“I received the keys to our home and to our dismay, the property had many defects, ranging from minor problems to major misalignment of the walls and beams. The developer is rectifying the minor defects but is not willing to align' the walls or beams that have been placed improperly. How can I have the process for rectification expedited as we have paid in full and are still unable to occupy the house?”
Complaint Two
“The floor tiles in my apartment's living room are not properly fixed. When one walks over them, they give a certain hollow sound. There are at least 30 floor tiles with this problem. Also, the edges of the walls where the tiles meet were not properly done. I submitted a complaint form, but the developer has not done anything to rectify them. Now, it's been almost 12 months, and every time we call to ask about the repair work, they tell us they could not find the right colour tiles. We are told that the only alternative is for us to change all the tiles with the developer only bearing the cost of workmanship!”
OVER the years, the National House Buyers Association (HBA) has recorded thousands of complaints from house buyers who were not satisfied with the condition of their new homes or the way defects were rectified.
The complaints above are just two of them. Construction defects range from complex structural issues, which threaten the integrity of buildings, to simple items relating to aesthetics. After receiving the keys to their houses, the smile on the buyers' face soon fade when they are caught in a situation of getting the multiple defects in their homes rectified satisfactorily.
The new generation of house buyers expects their homes to be defect-free. The quality of houses, which although has improved over the past decade, has not kept pace with buyers' expectations in both design and finishes. There is also a lack of industry quality standards that are compatible with public interest and expectations which has resulted in many disputes over the rectification of defects as developers, contractors and house buyers have different expectations.
Defect Liability Clause
The pre-determined “Defect Liability Clause” in the sale and purchase agreement (SPA) states that the developer is required to repair and make good, at its own cost and expenses, any defects, shrinkage or other faults that become apparent within a period of 18 or 24 calendar months (whichever is applicable) after the delivery of vacant possession and which can be attributed to defective workmanship, materials or a failure to construct the property in accordance with the plan and description appended to the SPA within 30 days of having received written notice from the purchaser.
The second part of the clause states that the purchaser shall, at any time after the expiry of the 30-day notice, notify the developer of the cost of repairing and make good of the said defects by giving the developer a grace period of 14 days.
Essentially, the following is what a buyer has to do if he finds defects in his new home:
a) List all defects in writing; take pictures of them, if possible.
b) Make sure the developer receives the defects list either by registered post or by delivery by hand with acknowledgement of receipt.
If the developer is responsive, he will do rectification work 30 days from the date of receipt. The buyer should go through the list of defects with the developer to discuss the rectification work schedule. He must also be prepared to spend time or appoint someone to be around for the appointed contractors to do their work.
If the developer is unresponsive, get a detailed quotation from a reputable independent contractor for the cost of repairing and making good the defects. Give the developer a second notice and the stipulated 14-day grace period to do the rectification work. The buyer may recover the cost (any sum) of the repair from the developer's stakeholder lawyer after giving written notification to withhold release of the stakeholder sum the 5% of the purchase price as stated in the SPA.
Appoint a building inspector, where necessary
Although the law provides a 18- or 24-month warranty (whichever is applicable) for owners to refer defects to the developers, buyers do not know what to look out for as they don't have the expertise to suss out or foresee inconspicuous defects.
Many are unaware that getting building inspectors to inspect their homes can save them a lot of heartache at the end of the day. By getting these professionals to conduct defect checks, owners will be able to identify problems early and get them rectified before they escalate. They have the trained eye to identify faults disguised by cosmetic improvements, which may be missed by the laymen. Most architects and surveyors double up as building inspectors in Malaysia.
The inspectors, whose fees range from RM500 to RM3,000, will examine a property and submit a report, which includes recommendations for follow-up action. The awareness of the availability of such a service in the country is still low.
Typically, a thorough inspection should pinpoint:
> Structural cracking or deformities on walls, roofs and floors;
> Dampness leading to rotting or unsound structure;
> Damage to timber caused by fungal decay, wood borers, termites or by industrial chemicals;
> Defective plumbing and drainage systems; and
> Superficial repair work.
In addition, some building inspector may even estimate the cost of remedying defects found. Most of the time, their reports are submitted to the Tribunal for Home Buyer Claims when an aggrieved buyer makes a claim for monetary compensation and technical claims. Very often, building inspectors are summoned to the tribunal as an expert witness to challenge developer's rebuttals.
What next?
Besides the legal steps, buyers should band together. Contact neighbours who have similar difficulties in getting defects rectified. You may have more in common than you think. There is power in numbers, and you can share tasks to lighten the load. The main objective is to convince the developer that you are serious in getting the defects rectified properly.
The affected buyers can collectively lodge a complaint with the Enforcement Division of the National Housing Department, Urban Wellbeing, Housing and Local Government Ministry, with the view that it will intervene and subsequently convene a meeting with all the parties concerned. Details of the said Enforcement Division is as follows:
Pengarah
Bahagian Penguatkuasaan
Jabatan Perumahan Negara
Kementerian Perumahan dan Kerajaan Tempatan
Aras 30, No. 51, Persiaran Perdana
Presint 4, Pusat Pentadbiran Kerajaan Persekutuan
62100 Putrajaya
Tel No: 603-8891 4410
email: enforcement@kpkt.gov.my Remember that the quality of construction work in your neighbourhood will affect the property's resale value and possibly your safety. Filing a claim at the Tribunal for Home Buyer Claims
House buyers who are caught in a dispute with their housing developers over non-remedial of defects, shrinkage, defective workmanship or materials or other technical faults are at liberty to file their claims at the Tribunal for Home Buyer Claims (The Housing Tribunal).
The Housing Tribunal was set up as an alternative forum for house buyers to save them the cost and hassle of fighting with housing developers in the civil court. The filing fee is only RM10, no lawyer is required and hearings are normally fixed within a month.
The Housing Tribunal is empowered to hear disputes between house buyers and licensed housing developers but the claims must be filed within the time frames provided under section 16N of the Housing Development (Control & Licensing) Act 1966 (the HDA). Check out the link to the Urban Wellbeing, Housing and Local Government Ministry vis-vis Tribunal at:
http://www.kpkt.gov.my/kpkt_bi_2013/index.php/pages/view/370
Chang Kim Loong is the honorary secretary-general of the HBA (www.hba.org.my), a non-profit, non-governmental organisation (NGO) manned by volunteers. He is also an NGO councillor at the Subang Jaya Municipal Council. - The Star

Curbs on DIBS may be negative for developers, but little effect on banks


THE potential move to impose curbs on the Developer Interest-Bearing Scheme (DIBS) by Bank Negara may be negative for some developers in the short term and has little effect on banks.
StarBiz had reported that Bank Negara was studying the risks arising from the DIBS, with a view of potentially imposing curbs on it.
Basically, if you purchase property from a developer who offers DIBS financing packages, then the developer would bear the interest for the loan during the construction period.
In other words, you don't have to pay anything to the bank until construction is complete. You only start paying the bank instalments after the property is fully constructed.
DIBS has become a popular and easy financing package offered in joint-promotional activities between banks and developers in recent years.
CIMB Investment Bank Bhd research head Terence Wong said if the move by the central bank were true, then it would be “negative” for developers in the short term, although not entirely unexpected, as speculation on such a move had already surfaced in May.
“Although such a policy would have a negative impact on speculative demand, we believe the impact on earnings would be muted, while creating a healthier property market led more by fundamentals,” he said, adding that he had heard whispers over the past few weeks on the possibility.
“We remain overweight' on the property sector, with Mah Sing Group Bhd as our top pick, and robust sales and earnings growth as sector catalysts. Any weakness in property stocks is an opportunity to accumulate, in our view,” Wong added. Industry players are still awaiting a formal announcement from the central bank, if any.
Mah Sing's group managing director and chief executive Tan Sri Leong Hoy Kum pointed out that there has been no announcement on interest-bearing schemes thus far.
However, he hopes that any implementation would take into consideration the industry's feedback and the current market condition.
In addition, Leong said the lending environment was generally still conducive, with financing liquidity still attractive and interest rates still low.
While Mah Sing offers DIBS packages for some of its projects, it does not offer the scheme for its industrial, commercial and landed residential projects. Hong Leong Investment Bank Research, meanwhile, believes that developers with a high concentration of high-end, high-rise developments such as Eastern & Oriental Bhd would be the most severely affected.
However, it reckoned that other major developers within its coverage would not be as badly affected, given their exposure to this policy shift would comprise less than 50% of their sales.
Kenanga Research analysts said there was market talk that Bank Negara might want to do without the easy financing packages as part of the property lending curb.
However, they say quick checks with developers under their coverage indicated that the developers were not extending this scheme to many projects at the moment, as banks were also discouraging developers from undertaking the scheme because of speculative activities.
“Notably, Hua Yang Bhd's and Crescendo Corp Bhd's projects do not use this scheme, so they would be least affected in terms of demand. So, in terms of fundamentals, it should not hurt demand too much, particularly for the bigger developers.
“It would affect stock sentiment in the short run, so do expect further sell-downs if the curb on DIBS materialises not even the high dividend-yielding ones would be spared,” they opined.
In the medium term, Kenanga Research does not expect prolonged sell-downs, as the Government was already talking about implementing the build-then-sell model, which would restrict future supply and lend strength to demand and larger players such as SP Setia Bhd, Mah Sing,IJM Land Bhd and UEM Sunrise Bhd.
“Currently, our sector is under review. Our existing call is overweight' and we are likely to maintain this, but with a more selective or buy-on-weakness stance. We are likely to continue promoting affordable developers like Hua Yang and Crescendo due to their resilient demand-based profile. We also like Johor-based developers like UEM Sunrise, as we believe there would be more positive news flows towards the year-end, for example, the Malaysia-Singapore Rapid Transit System, the listing of Iskandar Waterfront Holdings Sdn Bhd and more strategic tie-ups,” they added.
Concurrently, Maybank Investment Bank Research said assuming DIBS packages were banned, it estimates the worst-case scenario to be a marginal 0.7 percentage point to be shaved off its 2014 industry loans growth forecast of 10.5% to 9.8%.
“We believe domestic banks have been more tempered in their exposure to the mortgage segment, and channel checks point to limited exposure at this stage. We maintain our industry loan and earnings forecasts for the individual banks for now.
“We remain overweight' on the banking sector, with our buys' beingAMMB Holdings BhdRHB Capital BhdBIMB Holdings Bhd and Hong Leong Financial Group Bhd,” Maybank said.
It explained that general guidance was that such loans had made up 15%-20% of new mortgage loans over the past few years.
Thus, some dampening effect was to be expected.
“Nevertheless, we believe the impact is likely to be contained by the fact that the housing loan growth of the Big Six' banks has been measured and such loans account for less than 5% of total residential loans for the big banks.” - The Star

Singapore takes further steps to cool property market


Singapore's central bank on Friday introduced rules to ensure that a property buyer's monthly payments do not exceed 60 percent of his income, a move aimed at cooling the housing market and ensuring investors are not caught out by a rise in interest rates.
"The TDSR (total debt servicing ratio) will apply to loans for the purchase of all types of property, loans secured on property, and the re-financing of all such loans," the Monetary Authority of Singapore (MAS) said in a statement.
The new requirement, which takes effect on Saturday, will also help strengthen credit underwriting practices by banks and encourage financial prudence among borrowers, MAS added.
Singapore has been trying to keep a lid on property prices due to low interest rates caused by quantitative easing adopted by Western central banks. The flush liquidity could reverse in coming months, however, amid signs that the U.S. Federal Reserve is preparing to slow down its bond buying programme.
The MAS is probably worried that in the environment of low-interest rates, people are overly gearing themselves up to pay for property," said Kenneth Ng, head of CIMB Research in Singapore.
Singapore's 10-year bond yield has risen by more than a percentage point since the start of the year to around 2.5 percent currently, from around 1.3 percent at the end of 2012, following the upward trend in U.S. yields.
But mortgage rates, which in the AAA-rated city-state are tied to short-term interest rates, have only edged up slightly, with the three-month interbank rate little changed from the start of the year at around 0.4 percent.
Barclays, in a recent report, said Singapore property prices were vulnerable to a sharp rate increase after three years of super-low interest rates when private home prices rose by around 60 percent.
Should mortgage rates rise by 200 basis points within a short period, private residential prices in the city-state could fall by up to a quarter, it said.
Singapore has rules regulating the maximum amount of money banks can lend based on the value of the property.
The new requirements, which tie the loan quantum to income levels, will make it harder for property buyers to avoid additional stamp duty on purchases of second homes since they cannot use a family member's name for subsequent purchases. - Reuters, June 28, 2013. 

Thursday, June 27, 2013

Penang Real Estate | Penang Property | Penang Properties: Land in Georgetown Wanted

Attention: Calling all land owners in Georgetown, Penang

Do you have any intention to sell your land in Georgetown, Penang? If your answer is yes, please feel free to contact us to further discuss how we can work together for a win win corporation.

There is no obligation. Act now!

Penang Real Estate | Penang Property | Penang Properties: Land in Georgetown Wanted

Wednesday, June 26, 2013

Penang Real Estate | Penang Property | Penang Properties: E & O Seri Tanjung Pinang Super Semi Detached Wanted

Looking for Super Semi Dee House in E & O Seri Tanjung Pinang, Tanjung Tokong, Penang.

Anyone who wish to sell his, kindly contact us asap. For more information, click the following link.

Penang Real Estate | Penang Property | Penang Properties: E & O Seri Tanjung Pinang Super Semi Detached Wanted

Tuesday, June 25, 2013

Penang Real Estate | Penang Property | Penang Properties: Tanjung Tokong 2 Storey Semi Detached For Sale (2SD3)

Attention: Property Seekers,

Please do not miss this bargain & good condition semi detached home in Tanjung Tokong, Penang.

For more information, please click the following link:-

Penang Real Estate | Penang Property | Penang Properties: Tanjung Tokong 2 Storey Semi Detached For Sale (2SD3)

Penang Real Estate | Penang Property | Penang Properties: Hotel In Penang Wanted

Calling for Hotel owners in Penang!!!

We have ready buyer looking for Hotel in Penang. Therefore we urge hotel owners to contact us to further discuss on the subject on a basis of win win solution.


For serious sellers of Hotel in Penang, kindly contact us to further discuss on the sale of Hotel in Penang. On the other hand, if you know someone who is interested to sell his or her Hotel in Penang, you are also welcome to contact us. There is no obligation. Thank you in advance.


Penang Real Estate | Penang Property | Penang Properties: Hotel In Penang Wanted

Monday, June 24, 2013

Penang Real Estate | Penang Property | Penang Properties: Development Land around Tanjung Bungah & Tanjung Tokong Wanted

Attention: All bungalow lot owners in E & O Villa By The Sea, Seri Tanjung Pinang, Tanjung Tokong, Penang

Do you have any intention to sell your Bungalow lot in E & O Villa By The Sea, Seri Tanjung Pinang, Tanjung Tokong, Penang? If your answer is yes, please feel free to contact us to further discuss how we can work together for a win win corporation.

There is no obligation. Act now!

Penang Real Estate | Penang Property | Penang Properties: Development Land around Tanjung Bungah & Tanjung Tokong Wanted

Penang Real Estate | Penang Property | Penang Properties: Tanah Untuk Dijual / Beli / Sewa di Pulau Pinang

Tanah Untuk Dijual / Beli / Sewa di Pulau Pinang

Sesiapa yang berminat untuk menjual, membeli, menyewa Tanah di Pulau Pinang dialu-alukan untuk menghubungi saya dengan secepat mungkin. Selain daripada itu, banyak Rumah, Kilang, Kedai, Pangsapuri ada di sini untuk dijual, beli dan sewa. Dijamin perkhidmatan profesional akan diberikan. Terima Kasih.

Untuk maklumat lanjut tentang Tanah untuk Dijual, Beli dan Sewa di Pulau Pinang, klick di sini. Terima Kasih.

Klick disini untuk menghubungi Penang Property, Terima Kasih.

Penang Real Estate | Penang Property | Penang Properties: Tanah Untuk Dijual / Beli / Sewa di Pulau Pinang

Sunday, June 23, 2013

Penang Real Estate | Penang Property | Penang Properties: Development Land in Batu Maung Wanted

Attention: Calling all land owners around Batu Maung, Off Jalan Permatang Damar Laut, Penang

Do you have any intention to sell your land around Batu Maung, Off Jalan Permatang Damar Laut, Penang? If your answer is yes, please feel free to contact us to further discuss how we can work together for a win win corporation.

There is no obligation. Act now!

Penang Real Estate | Penang Property | Penang Properties: Development Land in Batu Maung Wanted

Penang Real Estate | Penang Property | Penang Properties: Development Land around Tanjung Bungah & Tanjung Tokong Wanted

Attention: Calling all land owners around Tanjung Bungah & Tanjung Tokong, Penang

Do you have any intention to sell your land around Tanjung Bungah & Tanjung Tokong, Penang? If your answer is yes, please feel free to contact us to further discuss how we can work together for a win win corporation.

There is no obligation. Act now!

Penang Real Estate | Penang Property | Penang Properties: Development Land around Tanjung Bungah & Tanjung Tokong Wanted

Penang Real Estate | Penang Property | Penang Properties: Palm or Nipah Court Wanted

Attention: Calling all owners of Palm or Nipah Court, Tanjung Tokong, Penang

Do you have any intention to sell your Palm or Nipah Court, Tanjung Tokong, Penang? If your answer is yes, please feel free to contact us to further discuss how we can work together for a win win corporation.

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Penang Real Estate | Penang Property | Penang Properties: Palm or Nipah Court Wanted

Penang Real Estate | Penang Property | Penang Properties: Tanjung Beach Condominium Wanted

Attention: Calling all owners of Tanjung Beach Condominium, Tanjung Bungah, Penang

Do you have any intention to sell your Tanjung Beach Condominium, Tanjung Bungah, Penang? If your answer is yes, please feel free to contact us to further discuss how we can work together for a win win corporation.

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Penang Real Estate | Penang Property | Penang Properties: Tanjung Beach Condominium Wanted

Save your home from being auctioned


Those who take bank loans should be more aware of the conditions that could lead to their houses being auctioned off. Borrowers must educate themselves on foreclosure procedures.
BACK in 2002, V. Jeya and her husband took a bank loan to renovate their home in Kedah.
Several months later, tragedy struck her husband passed away.
With four young daughters to care for, Jeya was grateful that the Mortgage Reducing Term Assurance (MRTA) he bought was sufficient to cover their home loan of RM30,440.
“The bank told me the insurance was enough to pay up the loan, and everything was settled,” says Jeya, 47, a systems executive. Or so she thought.
In 2011, when attempting to get another bank loan to buy a car, Jeya (who had by then moved to Klang) was told she had an outstanding amount of RM10,000 with the local bank.
“I asked them how this was possible, since the bank had confirmed that my loan was settled by the insurance in 2002.
“They said my oustanding loan was RM4,000 in 2002, but had now ballooned to RM10,000 with interest. The bank said they would investigate the matter. Interestingly, though, they didn't have any documents on my loan. I had to provide them with my copies,” she says.
Then in May 2012, she was informed by her tenant in Kulim that the house had been auctioned off.
“When I approached the bank in Kulim, they told me they had nothing to do with the auction, and suggested that I check with their headquarters (HQ). When I checked, I was told to file a report with Bank Negara, so I did,” she says.
A week later, the bank confirmed that her house had been auctioned off for RM56,000. They issued her a cheque for RM29,500, after deducting what was due them.
“Firstly, why did they auction my house? If I had owed them RM4,000, why didn't they say anything? I still lived there (in Kulim) for a whole year after my husband passed away. Why tell me only 10 years later?
“Secondly, where did the RM4,000 come from? They didn't have my loan documents, or even knew my husband had passed away in 2002 (even though I made the MRTA death claim with his death certificate), so clearly their system has not been updated. They say I owe them RM10,000, why are they taking RM26,500? I keep asking them these questions, but they have not replied,” says a frustrated Jeya.
Jeya is not alone in claiming that her home had been wrongly auctioned off.
National Consumer Complaints Centre (NCCC) deputy director, K. Ravin, says he received about 30 similar complaints last year. (The NCCC is still assisting Jeya with her case.)
“This year, I received another 14 complaints. The numbers are not huge, but it's significant because you're talking about some 44 people who claim they have lost their homes unfairly,” he says.
But how can he ascertain if all these complaints are genuine?
“We usually get an indication through the bank's reply. If they are not at fault, they will state their case very clearly, and reply promptly. If we find that there is indeed no case to be brought forward, all we can do is plead leniency on behalf of the complainant.
“But in many cases, the banks are not able to answer our queries, and they try to buy as much time as possible. Some even try to just brush us off by saying the matter has been settled with the complainant, when it has not... then we know that there may be a genuine problem there,” he says.
Association of Banks in Malaysia (ABM) executive director Chuah Mei Lin, however, says “it is highly unlikely that a borrower will face a situation of not knowing that his home is being auctioned, unless he has failed to keep the bank informed of his mailing address.”
She explains that the process of public auction or sale of a property (in the case of a property with a separate title) is governed by Sections 256 to 269 of the National Land Code.
“The process and procedure for an auction or sale is very strict, and the borrower's rights are taken very seriously. It has to be demonstrated to the court that every step has been fully complied with on the part of the bank, starting from the service of the default notice.
“The application for an Order for Sale takes at least six months. The auction of the property itself, following from the Order for Sale, will generally take another six to nine months,” Chuah says.
Lawyer Raymond Mah explains that the procedure in foreclosure proceedings is fairly straightforward. (Refer to chart.)
“The court will only grant an Order for Sale once it is satisfied that the legal documents have been duly served on the borrower, to ensure that the borrower is notified of the foreclosure proceedings prior to the auction,” he says.
However, he adds that the service clauses in the charge document usually state that “the service of any notice and/or legal process may be delivered personally or given by any prepaid registered or ordinary post sent to the address for service of the parties as specified in the charge document, and such legal process shall be deemed to have been duly served after the expiration of [x] days from the date it is posted, and if delivered personally, on the day it was delivered”.
“The caveat here is that the borrower has been notified contractually. Whether the borrower was actually notified, meaning whether he was in fact informed of the auction, is a different matter altogether. For example, there could be cases where people think they've updated the bank with a new address, but the new address was never effectively recorded,” he says.
It is precisely for such reasons that Mah encourages borrowers to write to the bank to inform them of a change of address.
“It's best to put it in black and white,” he says.
He adds that where a property has no individual title (with the loan made by way of Deed of Assignment), and there is a default on the loan, then the auction would be a private one.
“The bank can exercise its right by the Deed of Assignment to a private auction, because the borrower would have assigned his rights to the bank, and the bank is in control of the property in the event of a default.
“In such a case, there is no need for the bank to apply for an Order for Sale. The auction would be held in the auctioneer's office, and not in court,” he explains.
Mah says that there is “very little that can be done once an auction is complete”, but a situation may still be salvaged if the auction is not yet conducted.
“If the order for sale has been granted, but an auction has not been conducted yet, the opportunity still exists for the borrower to negotiate with the bank. The borrower should go straight to the bank, and if an agreement can be reached, the auction can be called off. Usually if you can get the bank to agree, you're home free,” he says.
Mah adds that if a borrower feels that the allegation of default or any part of the foreclosure process is unfair, he should seek legal advice as soon as possible, especially before the auction is complete.
In the event a borrower runs into financial difficulty, Chuah says he or she can negotiate with the bank although a deferral of payment would be unlikely.
“A reduction of the instalment payment, with the extension of the period of the loan, is a more likely scenario. In fact, borrowers are always encouraged to consult their bankers early when warning signs of inability to pay surface.
“Banks will try and assist in the most reasonable way on a case-to-case basis, and take time to understand their customer's individual circumstances and find the best possible way to help their customer manage their financial obligations. Borrowers can also approach ABM to see if there is room for us to intercede (via the ABMConnect helpline 1-300-88-9980),” she says.
But prevention is always better than cure, and Mah shares a few key points for potential borrowers to take note of, before putting their signature down on a bank loan.
“Firstly, consider the loan repayment amount, and the period to be paid. Secondly, find out the consequences of late payment what is the interest imposed on the principal sum, and how long of a delay before the bank enforces its charge,” Mah says.
Ravin concludes: “My advice to people is always this read the agreement. If you don't understand it, get someone else to read it and explain it to you. Even if it takes a long time, don't bow under pressure to sign it fast. If you find something you don't agree with in the agreement, dispute it.
“The contract is not final until you sign it.” - The Star

Saturday, June 22, 2013

Penang Real Estate | Penang Property | Penang Properties: Development Land in Balik Pulau Wanted

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Penang Real Estate | Penang Property | Penang Properties: Development Land in Balik Pulau Wanted