KURSUS AKTA PERUMAHAN

Module 4:
•HOUSING DEVELOPERS (HOUSING
DEVELOPMENT ACCOUNT) REGULATIONS, 1991

By AR Adrianta & AR Ridha

 INTRODUCTION

S1 – HOUSING DEVELOPERS ACCOUNT

CAME INTO FORCE ON THE OF 26
AUGUST 1991

AND IT IS AN EXTENSION OF PRINCIPLE

ACT SECTION 7A
 P1A EXEMPTION

These regulation shall not apply if at the

time of the contract sales,
The CF for the housing development has
been issued and certified true copy of
which has been forwarded to
purchaser.
 P2 Interpretation

“Housing developers account” means the

housing development account opened and
maintained under S7A of the principle act

S7A – License housing developer to open and

maintain housing developers account
i.Must open account with a bank or finance company
ii.1 phase/project : 1 account
iii. To deposit purchaser monies to the account
iv. HD controvene: penalty 250K-500K@3 years
imprisonment.
HD ACCOUNT CONTAINS 13
SECTIONS
 SECTIONS TO THE REGULATION

HD (ACCOUNT)
Regulation 1991

DEVELOPERS DUTY DEPOSIT OF MONIES WITHDRAWAL OF MONIES AUDIT

S3. DUTIES OF DEVELOPER S 4. DEPOSIT OF ALL S 7. PURPOSE OF WHICH S 12. AUDIT

RELATING TO THE MONIES BY PURCHASER MONIES IN HD. ACCOUNT .
ACCOUNT MAY BE WITHDRAWN S 12A. AUDITOR TO MAKE
S 4A. PURCHASER ANNUAL REPORT
S3A. DEPOSIT MADE BY FINANCIER TO PAY DIRECT S 8. CONDITION FOR
DEVELOPER TO THE ACCOUNT WITHDRAWAL OF MONIES S 12B. AUDITOR TO LODGE
REPORT TO CONTROLLER
S 5. DEPOSIT OF LOANS S9. WITHDRAWAL OF
SURPLUS MONIES S 12C. PENALTY
S 6 INTEREST OBTAINED
S 11. WITHDRAWAL OF ALL S13 SAVINGS
MONIES IN HD ACC.

S 11A. CONTROLLER MAY

USE MONEY IN THE HD.
ACCOUNT
 DEVELOPER’S DUTY

S 3. DUTIES OF DEVELOPERS RELATING TO THE ACCOUNT

(1) within 14 days after the issuance

of a housing
(2) Within 14 days inform
developers license, submit to the
purchaser financier the name and
controller a certificate
address of the bank in which the
From the bank or finance company
HD. account is opened and its
with whom the
account number.
HD. Account is opened, certifying that
such
account has been opened
 DEVELOPER OBLIGATION

S3A. DEPOSIT MADE BY DEVELOPER

DEVELOPER TO DEPOSIT 3% of Construction cost BY WAY OF

BANK BALANCE OF THE

CASH atau REQUIRED AMOUNT
GUARANTEE
AT ANY ONE TIME IN THE
HD. ACC.
 Deposit of monies to H.D Account.
S4. Deposit of all monies paid by purchaser.

License housing developer shall:

within 2 banking days after the payment is made

deposit forthwith into the Housing in cash, issue a statement to the purchaser that
Development Account all monies such payment has been credited to the Housing
whatsoever, in a housing development. Development Account

S 4A. Purchaser's financier to pay direct into the Account

Purchaser Financier shall:

within 21 working days

deposit directly any payment made into the Housing Development Account
with a statement to the
licensed housing developer & the purchaser that such payment has been made.
 DEPOSIT OF LOANS TO ACCOUNT

S5. Deposit of loans.

• A licensed housing developer shall deposit into the Housing Development

Account any loan obtained for the construction of housing accommodation in
a housing development.

S 6. Interest obtained.

• Any interest obtained in respect of matters referred to in regulation 4 and

regulation 5 shall be deposited into the Housing Development Account.
 WITHDRAWAL OF MONIES
S 7. Purposes for which monies in Housing Development Account may be withdrawn

(a) Payment of outgoings (b) Stamp duty on (e) Cost for

quit rent, charge, (i) soil investigations;
rates, caveat, (ii) earthworks;
(iii) foundation works;
taxes, debenture, (iv) building works;
assessments guarantee or (v) external works;
and other charges respect of the memorandum of deposit (vi) site and boundary survey for
housing development each lot;
(vii) infrastructure works;
(viii) relocation of squatters;
(c) Solicitor fee on (d) Payment for (viiia) works related to
charge, infrastructure instructed by the
-premium insurance
caveat, -Architects fee appropriate authorities;
debenture, -engineers fee
guarantee or -QS fee (f) water/electric contribution fee
memorandum of deposit of title -other consultants (m) administrative expenses
(marketing and advertising
expenses)
(nb) payment for LD
(nc) payment for defects during
DLP
 CONDITION OF WITHDRAWAL

S 8. Conditions for withdrawal of monies from Housing Development Account

withdrawal of such money is supported Every claim made by the licensed

by a certificate from the architect, housing developer from the Housing
engineer or quantity surveyor in Development Account, a copy of the
charge of the housing development notice of claim shall be submitted
concurrently to the Controller.
 WITHDRAWAL SURPLUS MONIES

S 9. Withdrawal of surplus monies from Housing Development Account.

After the issuance of a certificate of fitness for the housing development, the housing
developer may, with the approval of the Controller, withdraw any surplus monies in
the Housing Development Account after deducting

(a) the amount required to complete the (c) all claims on liquidated
housing development and s&p damages that have been
certified by the architect, engineer or settled
quantity surveyor in charge of the
housing development;

(b) ten per centum (10%) of

the amount referred to in
paragraph (a) for
contingencies and
inflation.
 WITHDRAWAL OF ALL MONIES

11. Withdrawal of all monies in Housing Development Account.

A licensed housing developer may, with the approval of the Controller, withdraw all monies remaining in the Housing
Development Account when

(b) the solicitor for the licensed

housing developer certified
(a) the housing development has that obligations of the
been completed licensed housing developer in
respect of transfer of title
under all the sale and
purchase agreements in that
housing development have
been fulfilled.
 CONTROLLERS RIGHTS

S11A. Controller may use money in the

Housing Development Account.

When the Controller is satisfied that the

development of a housing development is
detrimental to the interest of the purchasers,
Controller may use the monies in the H.D Account
of the development to ensure the completion of
the development.
 AUDIT

S12. AUDIT
Every auditor shall report to the Controller in his opinion the monies in the Housing Development
Account have been withdrawn in accordance with these Regulations.

S12A. Auditor to make annual report.

within 6 months after the close of the financial year of such developer, make an annual report
to the whether or each and every deposit and withdrawal recorded in the account are in
accordance with these Regulations;

12B. Auditor to lodge a report to the Controller.

An auditor shall immediately, if he found any fraudulent act or misappropriation of money in the
Housing Development Account, lodge a report to the Controller

12C. PENALTY
Any person contravenes any provision -liable to a fine not exceeding RM 5000 or imprisonment
for a term not exceeding 3 years or to both
IN CONCLUSION
UNDERSTAND THE PARTIES INVOLVE IN THE ACCOUNT
PROCESSES

S&P agreement
DEVELOPER PURCHASER
Arch progress cert

Loan
aggreement

OPEN H.D. PURCHASER

ACCOUNT FINANCIER
Release purchaser loan
WITH BANK To developer H.D account

Auditor

MHLG
Inspector
 SUMMARY OF H.D ACCOUNT
Sec Regulation Salient info
Definition For more than 4 housing intended to sell

1A Exemption For project obtain CF

3 Developer duty Submit account proof, name, address and account no

3A Developer obligation Deposit 200k- cash, BG or in acc.

4 Deposit of all monies paid by purchaser Money deposit to H.D. acc.
4A Purchaser's financier to pay direct into the Money deposit to H.D. acc.
Account
5 Deposit of loan Money deposit to H.D. acc.
6 Interest obtain Money deposit to H.D. acc.
7 Withdrawal of monies Follow regulation purposes
8 Condition of withdrawal Supported doc & professional cert.
9 Withdrawal of surplus monies CCC, balance to complete,10% inflation, LD settled

11 Withdrawal of all monies Project complete, Solicitor conform MOT

11A Controllers right Controller can use HD account monies to complete
work
12 Audit Developer audited account and auditor responsibility
 Any Questions???

Next …Topic refresher and past year exercise………

H.D.A ACCOUNT BASIC
QUESTIONS
 What is the purpose of Housing
Development Account?
Refer HD account sections:-

The main purpose is to regulate and control the monies transaction

for housing development & to protect public from developer taking
advantage of collected money.

Salient point

1. sec 4- To ensure monies is paid by purchaser and deposited to H.D.A account

2. Sec 5- To ensure purchaser loan is deposited in H.D.A account
3. sec 6- To ensure any interest obtain is deposited in H.D.A account
4. Sec 7 & 8- To ensure all withdrawal from account comply to regulation
5. Sec 9 - To ensure withdrawal of surplus money comply to the regulation.
6. Sec 11- To ensure withdrawal of all monies comply to the regulation
 MUST A DEVELOPER OPEN A DEVELOPERS
ACCOUNT FOR BUILT THEN SELL PROJECTS?

NO.

UNDER EXEMPTION 1A UNDER HD (ACCOUNT) REGULATION 2002,

DEVELOPER IS EXEMPTED TO OPEN THE SAID ABOVE ACCOUNT.

 Apakah tanggung jawab arkitek didalam
Akta Akaun Pemajuan Perumahan ?

Merujuk section 7,8 & 9:-

1. Sec 8(1) - Menyokong pengeluaran wang dari APP yg
bertanggungjwb keatas pemajuan perumahan yg mengatakan
bayaran kena dibuat bg tujuan tersebut.
2. Sec 9(a)-Ar memperaku amaun utk menyiapkan pemajuan dan
jualan dan belian dibwh SPA telah ditolak sebelum Pemaju
mengeluarkan apa2 wang lebihan dlm A.P.P
3. mengeluarkan perakuan siap baiki kecacatan utk menyokong
pengeluaran wang lebihan selepas tamat tempoh DLP.
 What are the purpose for withdrawing
monies from HD Account?
In accordance to sec 7 of H.D.A account, he developer can withdraw
money for the following reasons:
(e) Cost for
(a) Payment of outgoings (b) Stamp duty on (i) soil investigations;
(ii) earthworks;
quit rent, charge,
(iii) foundation works;
rates, caveat, (iv) building works;
taxes, debenture, (v) external works;
assessments guarantee or (vi) site and boundary survey for
and other charges respect of the memorandum of deposit each lot;
housing development (vii) infrastructure works;
(viii) relocation of squatters;
(viiia) works related to
(c) Solicitor fee on infrastructure instructed by the
(d) Payment for
charge, appropriate authorities;
-premium insurance
caveat, -Architects fee
debenture,
-engineers fee (f) water/electric contribution fee
guarantee or -QS fee (m) administrative expenses
memorandum of deposit of title (marketing and advertising
-other consultants
expenses)
(nb) payment for LD
(nc) payment for defects during
DLP
 Dalam sebuah projek perumahan, sebaik sahaja pemaju telah
menyerahkan rumah2 tersebut kpd para pembeli, pemaju telah
meminta anda menyediakan sijil bg tujuan mengeluarkan wang lebihan
(surplus monies) drp Akaun Pemajuan perumahan (Housing
Development Account). Terangkan bagaimana tindakan anda dlm
keadaan tersebut dengan memberikan sebab-sebabnya:-

Merujuk seksyen 9:-

Sebelum apa2 pengeluaran wang lebihan, sebagai seorang arkitek profesional,
saya perlu pastikan:-

1. CCC telah dikeluarkan

2. amaun utk siapkan pemajuan itu dan jualan dan belian dibwh SPA telah
ditolak
3. 10% dr amaun diatas bg kontingensi & inflasi telah ditolak
4. semua tuntutan LD telah ditolak

-Jika semua kondisi tidak dipatuhi, saya tidak akan mengesyorkan untuk
pengeluaran wang lebihan.
 How would you advise the client/ developer if they wish to
withdraw all monies from HDA account or to close HAD account?

In accordance to section 11:-

Developer can only withdraw all monies from HDA

account when:

1. housing development has been completed,

2. Developer solicitor certifying obligation of

developer under SPA is fulfilled incl. transfer of title