on 16 December 2021, the Dewan Rakyat of Parliament passed the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) (Amendment) Bill 2021. I will refer to this as the Covid-19 Amendment Bill or the Bill.
The Covid-19 Amendment Bill introduces a new Part XIA as additional modifications to housing development laws.
I wanted to touch on the 5 significant amendments that will affect housing developers and purchasers.
#1: Agreement and First Agreement
The term ‘agreement’ will refer to the Schedules G, H, I and J sale and purchase agreement under the Housing Development (Control and Licensing) Regulations 1989.
The term ‘first agreement’ means the first agreement entered into between a purchaser and developer for a housing accommodation in relation to a housing development.
It seems that the inclusion of the term ‘first agreement’ is to limit the reliefs to only the first purchase for that particular housing development. Subsequent purchases, and therefore subsequent agreements, will not enjoy the relief measures.
#2: Late Payment Charges – Developer Cannot Charge
Clause 38B of the Bill: The developer shall not impose any late payment charges for unpaid installments between 1 January 2021 to 31 December 2021.
However, there is a requirement to show failure to pay is “due to measures prescribed, made or taken under the Prevention and Control of Infectious Diseases Act 1988 [Act 342] to control or prevent the spread of COVID-19“.
This relief from late payment charges only applies to a first agreement entered into before 31 May 2021.
#3: Developer Can Apply for Extension of Delivery of Vacant Possession
Clause 38C of the Bill: The developer may apply to the Minister for any period from 1 January 2021 to 31 December 2021 to be excluded from the calculation of late delivery of vacant possession or completion of common facilities.
The Minister may grant this exclusion if Minister is satisfied that the inability was due to the measures prescribed, made or taken under Act 342 to control or prevent the spread of COVID-19. If the time for delivery of vacant possession or completion of common facilities has expired, the Minister shall not consider this application for exclusion.
This exclusion relief only applies to a first agreement entered into before 31 May 2021.
#4: Taking of Vacant Possession
Clause 38D of the Bill: If due to measures under Act 342, the purchaser is unable to take vacant possession during 1 June 2021 to 31 October 2021 or any excluded period from clause 38C above, the purchaser shall not be deemed to have taken such vacant possession.
This period of 1 June 2021 to 31 October 2021 was during the movement control restrictions during the full lockdown in 2021.
#5: Exclusion of Calculation of Defect Liability Period
Clause 38E of the Bill: The period of 1 June 2021 to 31 October 2021 shall also be excluded from the calculation of the defect liability period.