I'm posting this separately coz I feel it deserves a topic of its own.

Anyway I hope I got it right if anybody is more experienced in this matter can comment and advice I'd really appreciate it!

1) Find out who is your stake holder?

You should have a letter from the developer informing who your stakeholders are.

2) Write a notice to withhold releasing the 5% stakeholders sum to the developer...

I don't warranty this letter to be correct because honestly I've never had to write one of these yet:-

A) Sample letter to the stakeholders. <<<Replace Information In Bracket>>>


3) Send a copy of this notice together to your stakeholder and developer.

Try to send to the stakeholder by registered mail or in person hand deliver it, also bring along extra copies and get the stakeholder lawyers to stamp, date and sign acknowledgment of receipt.

It's better if you send it in by hand rather than have our reliable post service "Hilang" such an important document.

Then attach a copy to your developer with a cover letter notifying the developer they're not getting any money unless they fix your defects or you will fix it yourself and deduct the repair cost from the stakeholders share. Include a quotation for the cost of repairs when you send it to the developer and CC your stakeholder.

You can get a formal quote from your friendly PCK contractor loitering around any new housing area or calling the phone number on banners hung in front of newly renovated homes. Heck I've received some very professional looking quotations even from those chinamen type contractor. Majulah IT!

B) Sample notice letter to the developer. <<<Replace Information In Bracket>>>



edit: Updated the with notice letter to the developer & minor corrections

This post has been edited by aaronpang: Mar 9 2007, 03:00 PM

this should be pinned up

Here is something that I would like to add on.

1. State which clause under S&P of your house that the developer fail to meet.

2. State the exact date the developer have to complete his defect.

3. Under your IC number put H/P contact number for easier processing.

4. Always keep yourself 1 copy for each letter you send. (with sign acknowledgment of receipt)

i found another useful website here...

http://www.botanicowner.com/Investor.html

Good suggestions will do...



That's a really good letter much more legal sounding and very threatening ... I'll edit (plagiarise) to look more like that

This post has been edited by aaronpang: Mar 8 2007, 06:22 PM

Good info. Thanks!

Thanks aaronpang. I will pm mod to pin this up also

Housebuyer unite against those blood sucking unscrupulous developer

what is stakeholder ? sorry for being a noob here .
what happen if defect liability period is over but the workmanship problem like wall begins to crack and cement fell off from the wall, leaking etc..

stakeholder is a 3rd party which holds the last remaining 5% of the money payable to your developer.

correct me if i am wrong

that should be the Bank ?

Its the lawyers, typically your S&P lawyers! If I'm not mistaken...

This post has been edited by aaronpang: Sep 13 2007, 11:53 AM

who can confirm that?....I thought it's the bank's lawyer....
The bank would issue the last check/payout but it's not directly debited into the developer's account. The lawyer would held on to it until the specific time frame is over.

The bank Lawyer hold the last remaining 5%. If your S&P lawyer & the developer is separate entity then it will release to your S&P lawyer first before hand over to developer.
BTW bear in mind that some S&P lawyer couldn't care less about the last 5% & instruct bank to bank in directly to developer.

S&P doesn't involve the banks or their lawyers its an aggrement between you (the purchaser) and the developer (the vendor) therefore its typically your S&P lawyer... that holds the money in trust.

From my experience anyway the stakeholder was the S&P lawyer

I did some checking and this is what I've got from HBA

http://hba.org.my/HBA/Publication/guide_update.doc

And this is what's spelled out in the S&P

Building or in the common property have not been made good by the Vendor, the Purchaser shall be entitled to recover from the Vendor the cost of repairing and making good the same and the Purchaser may deduct such costs from any sum which has been held by the Vendor's solicitor as stakeholder for the Vendor and subject to subclause (2), the Vendor's solicitors shall release such costs from such sum to the Purchaser within fourteen (14) days after receipt by the Vendor's solicitors of the Purchaser's written demand.

Hope that helps!

thanks, because I forgot which document that I signed actually contained the "stakeholder withholding 5%" clause.

how long will the 3rd party (S&P lawyer) take to reimburse us back?

we need to pay our contractor first?

Check my earlier post:-

the Vendor's solicitors shall release such costs from such sum to the Purchaser within fourteen (14) days after receipt by the Vendor's solicitors of the Purchaser's written demand.



Yup you can pay your contractor first or make an arrangement with your contractor to remit payment after you're reimbursed. See lah how you nego with your contractor

Thanks bro,

I hate to go this path but the developer really slow

dear all,

just to update - finally the developer rectify back all after I write to their lawyer and bar council

thanks to all

Hi all,

Does this apply to you just gotten the key to your new house or it applies also to defect that pops up after,say, 2 years?

Please advise or point me to a post to get more information as I am in a very big issue now. The owner upstairs is not taking his responsibility to fix the water leaking issue at my apartment. This is *darn* frustrating.

Please help.

Thanks.