Housing developers in Peninsular Malaysia are mainly governed by the Housing Development (Control & Licensing) Act 1966 and its related regulations and guidelines issued by state authorities from time to time.
The HDA 1966 plays a dual role whereby its provisions detail the licensing rules of housing developers and their associated duties and responsibilities which in turn serve to fundamentally protect purchasers of housing accommodation.
Since its implementation, the HDA 1966 has undergone a number of amendments in the effort to better regulate residential developers and tackle the many issues arising in the industry. To a great extent, each amendment has always resulted in stricter rules being imposed on developers and greater protection of purchasers. This is precisely, again, the impact of the latest amendment of HDA 1966;
The Housing Development (Control & Licensing) (Amendment) Act 2012 has recently come into force on 1st June 2015. Implementation of the HDA 2012 is supplemented by the Housing Development (Control and Licensing) Regulations 2015 which will come into effect on 1st July 2015. A relatively brief Act, HDA 2012 together with HDR 2015 has shifted certain salient aspects of housing development, as discussed in the following paragraphs;