Developers reluctant to pay the premium cannot begin work, avoid the ownership issue

PUCHONG, 21 Dec: The Selangor government is introducing a new policy for developers or landowners to pay the land premium in advance before being allowed to start work to protect the interests of purchasers of a project in the state.

The Chief Minister of Selangor, Mohamed Azmin Ali, said that the irresponsibility of developers who refuse to pay the land premium for higher profitability makes it hard for buyers of a unit in a given project to obtain the ownership for the house or their respective commercial units.

“We have made this decision to adopt a new policy where the developer of the landlord would not be allowed to start ground work on the site until they settle the premium payment on the land.


“This includes settling the payment of ditch contributions or other payments to avoid them from becoming abandoned projects that cause problems to buyers,” he said during the Coral Land Corporation Sdn Bhd Project 5A Form Presentation Ceremony and the Lestari Perdana Development, Puchong Perdana, Ownership Letter Presentation today.

Mohamed Azmin said that the ownership document of a property is very important to prove ownership because all purchase and sale transactions, transfer of ownership due to death or foreclosure by a financial institution cannot be done by the owner and is registered according to the provisions under the National Land Code, as experienced by the residents of Lestari Perdana following the lack of such documentation.

“For the record, the issuing of individual ownership for the Lestari Perdana development was delayed for almost 10 year although the building was completed and used,” he said.


Touching on the issue of the Lestari Perdana property rights, Mohamed Azmin said that the state government managed to resolve the ownership problems for buyers of the terraced houses in Zone 6, 7 and 9, starting from 2008.

Touching further of the issue of the Lestari Perdana property rights, Mohamed Azmin informed that 215 buyers, or 65 percent, of 334 people managed to obtain individual ownership for their respective property after submitting an application to the Petaling District Land Office and paying the premium of RM1,000, in addition to other payments in getting the property rights prepared.

Meanwhile, the remaining 119 people (35%) have still not submitted an application to the Petaling District Land Office to process the issuing of their property rights.

“However, a notice has been sent to them to submit the application,” he said.

The state government also solved the problems of 301 buyers of a two-storey shop lot in Zone 3, 3B and Zone 19B to obtain their individual property rights through direct ownership to the buyers by only charging a premium of three percent from the original purchase and sale agreement with the developer.


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