Housing and Local Government Minister Nga Kor Ming.
KUALA LUMPUR: Under the government’s new Build-Then-Sell (BTS) property purchase mechanism, developers will require buyers to pay a 10 per cent advance of the purchase price, with the remaining 90 per cent payable only after the property is completed, issued a Certificate of Completion and Compliance (CCC), and delivered with vacant possession.
Housing and Local Government Minister Nga Kor Ming said the model is already provided for under existing laws.
“For the implementation of this method, the Housing Development (Control and Licensing) Act 1966 and its Regulations provide Schedule I and Schedule J, which set out the sale and purchase agreements for housing projects developed under the BTS 10:90 concept,” he said.
Nga said that adopting the BTS model requires developers to have strong financial capacity.
“Therefore, the government currently encourages only developers who are financially capable and prepared to adopt this model voluntarily, as the risks involved could otherwise burden buyers and other parties,” he said.
To promote wider adoption, he said, the government has introduced several incentives at both federal and state levels, including priority in obtaining planning approvals.
“Developers who adopt the BTS 10:90 scheme are also exempted from paying the housing development account deposit,” Nga said, adding that the move is part of efforts to curb the number of abandoned projects that leave buyers empty-handed.
He was responding to Pang Hok Liong (PH–Labis) during question time in the Dewan Rakyat today.
source: https://www.nst.com.my/
