Application and Licensing

Research & Resource

Application and Licensing

Disclaimer: The following regulations were extracted from the Housing Development (Control and Licensing) Act 1966.

INTERPRETATION
APPLICATION FOR A LICENSE
RENEWAL OF A HOUSING DEVELOPER’S LICENSE
ADVERTISEMENT AND SALE PERMIT
PARTICULARS TO BE INCLUDED IN ADVERTISEMENT
USE OF NAME OR EMBLEM FOR SITE
ADVERTISEMENT SHALL NOT CONTAIN CERTAIN DESCRIPTION
RENEWAL OF ADVERTISEMENT AND SALE PERMIT
PROPRIETOR TO BE A CONTRACT SALE
CONTRACT OF SALE

INTERPRETATION
In this Regulations may be cited as the Housing Development (Control and Licensing) Regulations 1989 and shall come into force on the 1st April 1989.

“Act” means the housing Development (Control and Licensing) Act 1966;

“advertisement” means any notification or intimation of housing development –
(a) published in any newspaper, journal or magazine, or in the form of a brochure or in any other form; or
(b) displayed on any hoarding, boarding, roof, wall, piling, fence, frame, signboard, plate, cloth, bar, pillar, post, wire-casting or other erection, structure or contrivance; or
(c) conveyed by means of films or communications; or
(d) conveyed by other means oral or written and whether of the same kind or not as set out in paragraphs (a) and (c);

“Appropriate Authority” means any authority for the time being authorized under any written law in force in West Malaysia to approve building plans, subdivision of land, subdivision of buildings, the issue of documents of title and to enforce building by-laws or regulations and includes any company licensed to provide water, electricity, telephone, sewerage services and other related services;

“charge” means charge as defined in section 5 of the Code;

“Code” means the National Land Code 1965;

“communication” means any communication, whether between persons and persons, things and things, in the form of sound, data, text, visual images, signals or any other form or any combination of those forms, and includes the Internet;

“film” includes –
(a) a cinematograph film;
(b) a videotape;
(c) a compact disk;
(d) a video compact disk;
(e) a digital video disc; and
(f) a record, howsoever made, of a sequence of visual images, which is a record capable of being used as a means of showing that sequence as a moving picture;

“contract of sale” means the Sale and Purchase Agreement prescribed under regulation 11;

“contract of sale for build then sale” means the Sale and Purchase Agreement for housing development as prescribed in Schedules I and J;

“land” means the land on which a licensed housing developer proposes to erect, or on which he is erecting, housing accommodation and includes the land appurtenant to the housing accommodation;

“parcel” has the same meaning assigned to it in the Strata Titles Act 1985;

“portion” means a subdivisional portion under Section 135 of the Code;

“proprietor” means a proprietor as defined in section 5 of the Code;

SECTION 3
APPLICATION FOR A LICENSE

(1) An applicant for a license under the provisions of section 5 (3) of the Act shall –

(a) submit his application in the form as may be determined by the Controller from time to time together with such documents as are specified in section 5 (3) of the Act; and

(b) supply such other relevant particulars or information as may be required by the Controller.

(1A) The fee payable upon every application for a license shall be fifty ringgit.

(2) Any misinterpretation of the particulars or information required under paragraph (1) of this regulation shall be an offence under these Regulations.

(3) The Controller may, in his discretion, grant a license with or without attaching any condition or conditions thereto or refuse to grant a license.

(4) The fee payable for a license under this regulation shall be one thousand ringgit per year or part of a year.

(5) A license shall be required in respect of each housing development and where a housing development is to be developed in phases, a license shall be required for each phase of such housing development.

(6) A license issued under this regulation shall be in the form as may be determined by the Controller from time to time.

SECTION 4
RENEWAL OF A HOUSING DEVELOPER’S LICENSE

(1) An application for the renewal of a housing developer’s license may be made not later than sixty (60) days before the date of expiry and the Controller may grant a renewal of the license with or without attaching conditions thereto or refuse to grant a renewal of such license.

(1A) The fee payable upon every application for the renewal of a license shall be fifty ringgit.

(2) A licensed housing developer applying for the renewal of the housing developer’s license shall –

(a) submit the application in the form as may be determined by the Controller from time to time;

(b) give particulars of any change to the company;

(d) supply such other relevant particulars or information as may be required by the Controller

(3) The fee payable for the renewal of a license shall be one thousand ringgit per year or part of a year.

(4) Any misinterpretation of the particulars or information required under paragraph (2) of this regulation shall be an offence under these Regulations.

SECTION 5
ADVERTISEMENT AND SALE PERMIT

(1) No advertisement or sale shall be made by any licensed housing developer without an advertisement and sale permit having first been obtained from the Controller.

(1A) Any advertisement and sale shall be in accordance with the advertisement and sale permit as approved by the Controller.

(2) An applicant for an advertisement and sale permit shall submit his application in the form as may be determined by the Controller from time to time and shall supply the following:

(a) a copy of the approved building plans;

(b) two copies of the proposed advertisement including the brochures containing particulars as prescribed under paragraph (1) of regulation 6 of these Regulations;

(ba) particulars containing selling price of every unit of housing accommodation in every housing development;

(2A) The fee payable upon every application for an advertisement and sale permit shall be fifty ringgit.

(3) Any misleading statement, false representation or description of the particulars or information required under paragraph (2) of this regulation shall be an offence under these Regulations.

(4) The Controller may, in his direction, grant an advertisement and sale permit with or without attaching any condition or conditions thereto or refuse to grant a permit. An advertisement and sale permit issued under this regulation shall be in the form as may be determined by the Controller from time to time.

(5) No advertisement and sale permit shall be issued nor shall any advertisement or sale be made for any housing development in respect of which-

(a) the licensed housing developer is not the proprietor of the land upon which the housing development is proposed to be carried out:

Provided that this provision shall not apply if the proprietor of such land has executed an agreement with the licensed housing developer to the effect that-

(i) the proprietor agrees to the land for the purpose of the housing development concerned; and

(ii) the proprietor agrees to abide by the provisions of regulation 10 of these Regulations;

(b) the land upon which the housing development is proposed to be carried out is charged for an amount exceeding fifty per centum (50%) of the market value of the land (inclusive of annual interest on such amount) and such charge is to any person, body or persons, company, firm or society other than a bank which is in possession of a license issued under the Banking and Financial Institutions Act 1989, the Islamic Banking Act 1983, the Bank Simpanan Nasional Berhad Act 1997, the Bank Kerjasama Rakyat Malaysia Berhad Act 1978 or the Bank Pertanian Malaysia Act 1969.

(6) An advertisement and sale permit shall be required in respect of each housing development and any advertisement in relation to the same development, which differs from that for which the permit was first granted, maybe made but subject to such variation being submitted for the prior approval of the Controller.

(7) The fee payable for a permit under this regulation shall be five hundred ringgit per year or part of a year.

SECTION 6
PARTICULARS TO BE INCLUDED IN ADVERTISEMENT
(1) Any advertisement (other than those conveyed by means of broadcast sound receivers or through television receivers) made by any licensed housing developer shall include the following particulars:
(a) the housing developer’s license number and validity date;
(b) the advertisement and sale permit number and validity date;
(c) the name and address of the licensed housing developer and his authorized agent, power of attorney of project management company if any, as approved by the Controller;
(d) the tenure of the land, if the land is leasehold , its expiry date, restriction in interest and encumbrances, if any, to which the land is subject;
(e) the description of the proposed housing accommodation;
(ea) any parking lot which is an accessory parcel to the housing accommodation in a parcel and which does not form part of the common property of the accommodation;
(f) the name of the housing development, if any;
(g) the expected date of completion of the proposed housing development;
(h) the selling price of each type of housing accommodation;
(ha) where applicable, the minimum and maximum selling price of each type of housing accommodation;
(i) the number of units of each type available;
(j) the name of the Appropriate Authority approving the building plans and the reference number.

(2) A licensed housing developer shall issue a brochure in respect of the housing accommodation to each purchase free of charge.

SECTION 7
USE OF NAME OR EMBLEM FOR SITE
(1) Every licensed housing developer shall, before using any name or emblem to refer to a housing development, obtain the written permission of the Controller for such use.
(2) The Controller may in his discretion, grant permission for such use with or without attaching any condition or conditions thereto or refuse to grant permission for such use.

SECTION 8
ADVERTISEMENT SHALL NOT CONTAIN CERTAIN DESCRIPTION
(1) Any name in any language by which any site forming part of a housing development is proposed to be called or any emblem used in correction therewith shall not contain anything which suggests or is calculated to suggest:-

(a) the patronage of the Yang di-Pertuan Agong or of any member of his family;
(b) the patronage of the Head of State of any state in Malaysia or of any member of his family;
(c) any connection with –
(i) the Federal Government;
(ii) the Government of any State in Malaysia;
(iii) any City Council or Municipal Council or District Council;
(iv) any society or body established and incorporated by statute;
(v) any public building; or
(vi) any public place;
(d) any connection with the Government of any foreign country or with the United Nations; and
(e) any tribute to which the licensed housing developer cannot genuinely lay proper claim.

(2) This regulation shall be in addition to and shall not be in derogation of the provision of the Emblems and Names (Prevention of Improper Use) Act 1963.

SECTION 9
RENEWAL OF ADVERTISEMENT AND SALE PERMIT
(1) An application for the renewal of an advertisement and sale permit shall be made not later than sixty (60) days before the date of expiry in the form as may be determined by the Controller from time to time and shall provide:

(a) particulars of the housing development;
(b) two copies of the proposed advertisement; and
(c) any other relevant particulars or information as may be required by the Controller.

(1A) The fee payable upon every application for the renewal of an advertisement and sale permit shall be fifty ringgit.

(2) The Controller may, in his discretion, approve the renewal of an advertisement and sale permit with or without attaching any condition or conditions thereto or refuse to grant a renewal of such permit.

(3) The fee for the renewal of an advertisement and sale permit shall be five hundred ringgit per year or part of a year.

SECTION 10
PROPRIETOR TO BE A PARTY TO A CONTRACT OF SALE
No licensed housing developer who is not proprietor of the land upon which a housing development is carried out shall enter into any contract of sale of any housing accommodation in that housing development unless the proprietor of the land is also a party of sale and agrees to the sale of the land for the purposes specified in such contract of sale.

SECTION 11
CONTRACT OF SALE
(1) Every contract of sale for the sale and purchase of a housing accomodation together with the subdivisional portion of land appurtenant thereto shall be in the form prescribed in Schedule G and where the contract of sale is for sale and purchase of a housing accommodation in a subdivided building in the form of a parcel of a building or land intended for subdivision into parcels, as the case may be, it shall be in the form prescribed in Schedule H.

(1A) Notwithstanding paragraph (1), every contract of sale for build then sell for a housing accommodation together with the subdivisional portion of land appurtenant thereto shall be in the form prescribed in Schedule I and where the contract of sale for build then sell is for the sale and purchase of a housing accommodation in the form of a parcel of a building or land intended for subdivision into parcels, as the case may be, it shall be in the form prescribed in Schedule J.

(1B) Subregulation (1) and (1A) shall not apply if at the time of the execution of the contract of sale, the certificate of completion and compliance of the housing accommodation has been issued and a certified true copy of which has been forwarded to the purchaser.

(2) No housing developer shall collect any payment by whatever name called except as prescribed by the contract of sale.

(3) When the Controller is satisfied that owing to special circumstances or hardship or necessity compliance with any of the provisions in the contract of sale is impracticable or unnecessary, he may, by a certificate in writing, waive or modify such provisions:

Provided that no such waiver or notification shall be approved if such application is made after the expiry of the time stipulated for the handing over of vacant possession under the contract of sale or after the validity of any extension of time, if any, granted by the Controller.

(4) A purchaser’s solicitor shall be entitled to a complete set of the contract of sale including original and duplicate copies and all annexures required for the licensed housing developer to execute the contract of sale with the purchaser, free of charge subject to the undertaking of the purchaser’s solicitor to return the said documents intact in the event the contract of sale is not executed by the purchaser within fourteen (14) days from the date of receipt of such documents unless otherwise agreed by the licensed housing developer.

HOUSING DEVELOPER GUIDELINES

Guidelines for the application of Housing Developer’s Licence and Advertisement Permit from the Ministry of Housing and Local Government (Licensing and Advisory Division) – (all the guidelines in Bahasa Malaysia)