feb 2oo8

pp9309/12/2008(020070)

towards sustainable development

Selangor Revises
Introduction

GACOS Development Guidelines

The Selangor Housing and Property Board has revised the guidelines for Gated and Guarded Community Schemes (GACOS) to incorporate relevant planning requirements for such developments. The revised guidelines came into effect in December 2007. This issue of REHDA Bulletin summarizes the revised guidelines for the benefit of members and readers.

Guidelines for Development of Gated Community Scheme under Section 6 (1A) Strata Titles Act 1985 (Act 318)
Gated Community as defined by the Selangor Housing and Property Board is a development that is demarcated with a physical structure that runs along the perimeter or boundary with controlled access to the general public.

Guidelines for Development of Guarded Concept (Guard House) Not Under Act 318
The Selangor Housing and Property Board in its Guidelines for Development of Gated Community Scheme (Guarded and Gated Community) defines Guarded as an enclave that is provided with security services with or without a guard house and has no physical barriers. The pre-requisites for development of Guarded Concept in Selangor are as summarized in the table below. requirement 1. Application for development detail Application to be made by residents association and developer (for new development) Existing housing scheme requires consent from at least 85% of the residents Only guard house allowed The size allowed is 6ft x 8ft or other sizes deemed suitable by the Local Authority The guard house should not obstruct traffic and is to be constructed on road shoulder Written approval from the PTD/Local Authority is needed Operation time allowed is from 12.00 pm to 6.00 am Should not block vehicles from entering that particular area Authorities have the right to enter at any time Perimeter fencing is strictly prohibited

1. Application
Applicants must state clearly that the planning approval applications are for gated community developments under Section 6 (1A) Strata Title Act 1985 (Act 318).

2. Size of Development
type of housing Detached/ Semi-Detached/ Cluster Terrace Mixed Housing Town House number of unit land area

24 160 48 240 48 240 48 480

3 acres (min) 20 acres (max) 3 acres (min) 10 acres (max) 3 acres (min) 10 acres (max) 3 acres (min) 10 acres (max)

3. Public Amenities
Developers must indicate GACOS parcels and public amenities (to be surrendered to the government) in each layout plan and precomputation plan. PBT, however, has the right to determine the size of development depending on circumstances. For 1 GACOS Parcel, the provision of playground/vacant area is 10% while the minimum area required for a community hall is 2,000 sq ft. Development exceeding 1 GACOS Parcel must provide integrated public amenities to be located outside of GACOS.

2. Guard house

3. Barrier

Parcel 1 (3 20 acres) Public Amenities: Mosque, School, Football field outside the Gated Area Parcel 3 (3 20 acres)

Parcel 2 (3 20 acres)

4. Fencing

Parcel 4 (3 20 acres)

continued on page 5

 | editorial / conference

Gated Communities

Boon or Bane?

contents
cover story
> Selangor Revises GACOS Development Guidelines 1&5 2

editorial
> Gated Communities Boon or Bane?

there has been some division in opinion amongst various quarters over the issue of gated and
guarded housing. Proponents for the concept argue that this is not only an innovative approach to residential development, but is also an idea borne out of necessity, given the high rate of crime, house break-ins especially, in our country. More and more house buyers are looking for peace of mind and insulation from unsolicited criminal elements. The necessity to protect themselves from criminal intrusion has prompted many residents to organize themselves to set up security patrols and barriers within their own neighborhoods, even though the legality of taking such action may come into question. It is not difficult to understand why gated and guarded housing projects are gaining popularity amongst Malaysian house buyers. Other quarters, however, have argued that gated and guarded residential communities should not be encouraged because they create elitism and separation. Their argument against this approach is that given our multi-ethnic and multi racial diversity, separating our communities by barricading them behind guarded enclaves would not help the cause or process of integration and social acceptance in our country. They view gated and guarded communities as a regressive move that will drive social divides even deeper. Both schools of thought have their merits and shortcomings. But with the reality of rising crime rates in urban townships and inadequate measures and resources provided by the authorities to deal with these literally life and death issues, proponents of gated and guarded housing can be excused for choosing practical solutions to protect their lives and property. Thus, developers will respond to house buyers preferences and build according to their needs, which in turn may catalyze the need for regulatory and legislative changes to be made to accommodate new ideas and innovations. At federal level, the Ministry of Natural Resources and Environment was very responsive to the changing needs of urban communities and amended the Strata Titles Act 1985 to cater for the emergence of gated and guarded communities in the country. However, some planners have been reported to be against the idea of gated housing for fear of breeding elite communities behind physical barriers. It would be interesting to see whether the respective state approving authorities will say aye or nay to gated and guarded housing schemes.n

conference
> REHDA Extraordinary Delegates Conference (EDC) 2

law insight
> Penal Sanctions for Not Completing Transfer of Ownership of Strata Titles 4

rehda institute
> Briefing on Housing Development (Control & Licensing)(Amendment) Act 2007 and Its Regulations 6 6

event
> REHDA Open House 2008

branch news
> Selangor Branch p MAPEX Klang 2008 6 7

rehda diary
> February 2008

editorial committee
chairman
Dato Michael KC Yam

members
Datuk Eddy Chen Ms Ng Kuai Heng Cik Rusnani Abd Rahman Cik Aslinda Mohd Noor

REHDA Extraordinary Delegates Conference (EDC)

the EDC was held on the 25 January 2008
at 4.30 pm at the Eastin Hotel, Petaling Jaya to seek approval for a revised budget for the construction of a new REHDA Headquarters building. Dato Jeffrey Ng who is the Chairman of the Building Committee presented the revised Building Plan and Budget to the delegates. n

rehda bulletin is published by

Real Estate & Housing Developers Association Malaysia No. 50G-3, 50H-3, 50I-3, Kelana Mall Jalan SS6/14, Kelana Jaya 47301 Petaling Jaya, Selangor Tel: 03-7803 2978 Fax: 03-7803 5285 03-7805 1206 E-mail: secretariat@rehda.com Website: www.rehda.com

Delegates at the EDC.

producer
Trix Sdn Bhd (267962-p) 77c, Jalan SS22/23, Damansara Jaya 47400 Petaling Jaya, Selangor Darul Ehsan Tel: 03-7729 5066 Fax: 03-7729 5077

Dato Jeffrey presenting the revised plan and budget.

printer
Pencetak Weng Fatt Sdn Bhd (19847-w) Lot 6, Lorong Kilang A, Off Jalan Kilang 46050 Petaling Jaya, Selangor Darul Ehsan Tel: 03-7783 9231 Fax: 03-7783 9250

 | law insight

Penal Sanctions for Not Completing Transfer of Ownership of Strata Titles

when a purchaser buys a flat or an
apartment or a condominium, he is buying a parcel of property in a building, which will be subdivided. Each parcel will then be issued with a separate strata title. Purchasers of such properties generally encounter two sets of nagging problems. The first problem is the time taken for strata titles to be issued by the appropriate authority. It is quite common for strata titles to be issued between a period of 7 to 12 years after the building has been completed and occupied by the purchasers. This delay can be attributed to the original proprietor of the lot to be subdivided or to the appropriate authority or to both. In most instances the original proprietor is also the developer. The original proprietor is the proprietor of the lot, commonly referred to as the master title, before the subdivision of the building. Purchasers of such properties will be happy to know that concrete steps have been taken by the government to address this problem. All over the country, one-stop centres are now in place to expedite the approval of property development, building plans, subdivision and the issue of strata titles. The aim of these one-stop centres is to ensure that strata titles are issued not later than 12 months from the date of submission of complete applications. Let us hope for the best. The second problem is that the time taken to complete the transfer of strata titles to parcel proprietors is also too long. Most original proprietors will refuse to execute and deliver the instrument of transfer until all outstanding maintenance charges for the parcel have been paid in full. Purchasers who have defaulted on their loans with their respective financiers will not bother to come forward and complete the transfers to their names, as their properties are already, or in the process of, being put up for sale by auction. Financiers of loans in default will generally not incur any expenditure until they have secured a successful bidder for the property. Cash purchasers or purchasers who are not in default on their loans will generally want to complete the transfer of strata titles, only when they have raised sufficient monies to pay the legal fees, stamp duties and registration fees required. against any original proprietor or any purchaser who fails to execute the transfer of strata titles when the strata titles has been issued. The original proprietor is now required to execute the transfer of strata titles to the parcel proprietors within 12 months from the date of issue of strata titles. If he fails to do so, he shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than rm1,000 and not more than rm10,000 per parcel. Any person or body appointed by a court, which must include the liquidator of the developer or the original proprietor, who fails to comply with this provision shall also be liable to be punished with a similar punishment. A purchaser is now required by law to execute and complete the documents of transfer of strata titles within 12 months from the date of notice of transfer of strata titles issued by the original proprietor or from the date of purchase of the parcel, whichever is later. Any purchaser who fails to do so, shall be guilty of the same offence mentioned above and shall, on conviction, be liable to a similar fine. Any delay in executing, completing and registering the transfer of strata titles into the name of purchasers, is detrimental to the interest of purchasers. Although the management corporation had come into existence when the book of strata register has been opened and the strata titles have been issued, the first annual general meeting of the management corporation cannot take place until at least a quarter of the aggregate share units have been registered in the name of the purchasers. This delay in convening this first annual general meeting of the management corporation will mean that parcel proprietors are unable to elect a council to exercise the powers and perform the duties of the management corporation.

New Act
Nowadays the situation may not be so bad, as with the coming into force of the new Building and Common Property (Maintenance and Management) Act 2007 (Act 663), the building and common property will be managed and maintained by a Joint Management Body (comprising the developer and all purchasers) until the council of the management corporation has been elected at its first annual general meeting. Act 663 has given purchasers an earlier opportunity to maintain and manage their common property.

Act 318 applies to all kinds of properties, whether housing accommodation or not. In respect of housing accommodation, even before the new section 40A of Act 318, there were already statutory provisions that govern the execution, completion and registration of the transfer of strata titles and provide penal sanctions for contravention. Regulation 11A (3) of the Housing Development (Control and Licensing) Regulations 1989 (the 1989 Regulations) specifically states that, a housing developer shall execute the instrument of transfer within 21 days from the date the strata title is issued and received by the housing developer from the appropriate authority, and thereafter forward the same to the purchaser who shall execute the instrument of transfer within 21 days from the receipt of the same from the housing developer. Any person who contravenes any of the provisions of the 1989 Regulations shall be guilty of an offence and shall be liable on conviction to a fine not exceeding rm5,000 or to a term of imprisonment not exceeding three years or to both. Further, any person who knowingly and willfully aids, abets, counsels, procures or commands the commission of an offence against any provisions of the 1989 Regulations shall be liable to be punished with a similar punishment. An interesting question that has yet to be answered, is whether a financier can be guilty of the offence in a case where the purchaser has failed to execute the instrument of transfer, and the financier willfully and knowingly refuses to execute the instrument of transfer on behalf of the purchaser under a power of attorney granted by the purchaser to the financier.n
Contributed by Andrew Wong First published in The Sun newspaper The writer is the Deputy Chairman of the Conveyancing Practice Committee, Bar Council, Malaysia www.malaysianbar.org.my Note: This column is brought to you by the Malaysian Bar Council for your information only. It does not constitute legal advice. You should, therefore, seek professional legal advice for your specific needs. Neither the Malaysian Bar nor REHDA Malaysia shall be liable to any reader who suffers losses as a result of relying on this column. Used with permission from Bar Council.

Liable to Fines
A new section 40A of the Strata Titles Act, 1985 (Act 318) provides for penal sanctions

cover story | 

,continued from page 1

4. Density
In accordance with requirements of the Selangor Planning Standards and Guidelines Manual. Requirements for access road for each Parcel Block is as listed below: I. Width of road reserve: 66ft II. Distance of guard house from public road: 66ft III. Visitors parking (inside Parcel area) A Gated Community must not have through road (jalan penyambungan). Collector road (jalan pengumpul) has to be in loop design, connected to the main access road (one access for ingress and egress).

5. Building Setback
Minimum access road width is 40ft. Front building setback maybe waived subject to provision of centralized parking area.

6. Drainage/Irrigation System
Areas with rivers or streams in proposed plan are not allowed for GACOS development.

7. Parking Area
type of housing Bunglow/ Semi-Detached/ Cluster/Zero Lot Terrace/Town House Mixed Housing Type: Low Cost Low Medium Medium and High parking area 10% for visitor 10% for visitor 1:1 + 10% 1:1 + 10% 1:2 + 10%

9. Number of Storey and Height (for strata development only)

The allowable maximum number of storeys for bungalow/semidetached/cluster/zero lot/terrace/town house is 4 levels from basement with maximum height of 18.5m (without lift).

10. Fencing/Wall
The maximum height allowed is 9ft with 33% opening/visibility from outside. Example 33% opening/visibility

(refer JPBD Planning Manual)

Purchase and ownership of residence unit must include parking lot amenities in accordance with approval of Planning Approval and Building Approval. 9 feet

8. Roads
The road hierarchy, as determined by the Local Council is standards as follows: 1. Main Road 2. Collector Road 3. Local Road The internal road size is 40 ft which comprises 24ft for vehicle passage, 8ft each for pedestrian (both ways) and drain and utilities (both ways). The road width according to development area is allocated as follows: width of road (ft) 4050 4050 5066 4050 5066 4050 100132 5066 4050 development area (acre) 15 510 1020 2050 33% opening/visibility 9 feet

11. Important Notes

It is proposed that SIA Report is prepared in accordance with S.21A(1A), Town and Country Planning Act 1976; The State Authority may specify that the development proposal report submitted under subsection (1) in respect of certain categories of development shall include an analysis of the social implications of the development for the area which is the subject of the application for planning permission Other requirements are subject to the Selangor Planning Standards and Guidelines Manual or Local Plans.

50100 and above

Published with permission from Lembaga Perumahan dan Hartanah Selangor. Editors Note: REHDA Selangor is submitting feedback to further improve this guideline for consideration of the Selangor State Authority.

 | rehda institute / event / branch news

Briefing on Housing Development

(Control & Licensing) (Amendment) Act 2007 and Its Regulations
the Housing Development (Control &
Licensing) (Amendment) Regulations 2007 were gazetted on 1 December 2007. These Regulations brought all provisions into conformity under the parent Act, Housing Development (Control & Licensing) Act 1966, which was gazetted on 12 April 2007. The Regulations saw the introduction of the new Schedule I and J, catering for the Build-then-Sell 10:90 concept, defect liability period being extended to 24 months, to name a few. Further to the Amended Regulations being gazetted, a series of briefings were conducted in various states in Peninsular Malaysia to brief and update members and relevant industry stakeholders on the amendments and its implications on the property and housing industry. The briefings kick started in the Klang Valley on 15 January 2008, which was officiated by the Minister of Housing & Local Government, YB Dato Seri Ong Ka Ting, who also delivered the Keynote Address. Conducted by partners of M/S Zaid Ibrahim & Co, the briefings were also held in Penang, Johor Bahru, Ipoh, Kuantan and Seremban. The Gazette of the Amended Regulations, including the new Schedules G, H, I and J, are available for downloading from our website at www.rehda.com. Alternatively, printed copies are available for sale from the Percetakan Nasional Malaysia Bhd, located at Jalan Chan Sow Lin, Kuala Lumpur. n
A lucky draw winner receiving a hamper from the Organising Chairman, Mr Teh Boon Ghee and REHDA Deputy President, Dato Micheal Yam.

REHDA President, Mr Ng Seing Liong, JP (2nd from left) and REHDA EXCO Member, Dato Eddy Choong (1st from right) with some of the invited guests.

Rehda Open House 008

rehda Malaysia, jointly with REHDA Selangor and REHDA
Wilayah Persekutuan (Kuala Lumpur) held its Open House on 25 January 2008 at the Eastin Hotel, Petaling Jaya. REHDA Open House is an annual gathering which provides a platform for guests and members to mingle and interact freely with their industry counterparts, in a casual setting. The event was attended by more than 200 guests including government officials, representatives from fraternal organisations, members of the press and REHDA members. The evening dinner was liven up by noteworthy karaoke performances by a few sporting attendees including REHDA President, Mr Ng Seng Liong and the Organising Chairman, Mr Teh Boon Ghee. Not everyone leave the Eastin Hotel empty-handed that evening as 70 hampers were presented to lucky draw winners, members of the media as well as those who sportingly took to the stage to entertain their fellow attendees. n

Guests at the Open House.

Branch News Rehda Selangor

MAPEX Klang 2008

the MAPEX Klang 2008,
which aimed to promote properties in Klang and Shah Alam was held successfully from 22 24 February 2008 at Klang Parade, Jalan Meru, Klang. About 1,419 units of properties valued at about rm817 million were offered for sale during the exposition. n

The Minister of Housing and Local Government, YB Dato Seri Ong Ka Ting, delivering his Keynote Address while together on the stage were Datuk Eddy Chen, Chairman, REHDA Institute Board of Trustee (left) and Mr Ng Seing Liong, JP, REHDA President.

Visitors getting more information from one of the exhibitors.

diary | 

February 2008

date

events

date events

Jabatan Perumahan Negara Mesyuarat Penyediaan Deraf Akhir Garis Panduan Di Bawah Akta Bangunan dan Harta Bersama 2007 (Akta 663). Attended by Mr Cheah Wing Choong and Pn Aslinda Mohd Noor. CIDB Mesyuarat Jawatankuasa Pembangunan Kontraktor No. 1/2008. Attended by En Wan Hashimi Albakri. MBAM Open House 2008. Attended by Mr Ng Seing Liong, JP. Taman Equine Open House 2008. Attended by Mr Ng Seing Liong, JP.

26

CIDB Working Group 6 (WG 6) Committee Meeting. Attended by Mr Tiah Oon Ling. Meeting to discuss the Production of REHDA Bulletin. Attended by Ms Ng Kuai Heng, Pn Rusnani Abdul Rahman, Ms Jessie Ting, Mr Soon Teck Giap, Ms Karen Seow and Pn Aslinda Mohd Noor. MHLG Mesyuarat bagi Membincangkan Pengeluaran Surat Pengesahan Status Projek Perumahan. Attended by Mr Ng Lip Chong and Pn Rusnani Abdul Rahman.

12 15

27

17

Dinner hosted by Datuk Susan Wong Siew Guen, Honorary-Secretary of SHAREDA. Attended by Mr Ng Seing Liong, JP, Dato Jeffrey Ng Tiong Lip, Tn Hj Muztaza Mohamad and Ms Ng Kuai Heng. Meeting to discuss Malaysia Property Incorporated. Attended by Mr Ng Seing Liong, JP, Dato Jeffrey Ng Tiong Lip, Tn Hj Muztaza Mohamad and Ms Ng Kuai Heng. SPAN Pembekalan dan Penggunaan Barangan Serta Bahan dalam Perkhidmatan Bekalan Air dan Pembetungan. Attended by Mr Ng Lip Chong, Mr Ricque Liew Yin Chew, Mr Tiah Oon Ling and Ms Yee Chew Ping.

Clients Consultant Meeting (CCM). Attended by Dato Jeffrey Ng Tiong Lip, Mr Ricque Liew Yin Chew, Mr Tiah Toh Twin, Dato Chan Sau Lai, Ms Ng Kuai Heng and Mr Liew Kek Min. Building Materials Distributors Association Malaysia New Year Gathering. Attended by Mr Ng Seing Liong, JP.

18

28

MITI Mesyuarat bagi Membincangan Isu Liberalisasi Lesen Import (AP) bagi Tower Cranes. Attended by Ms Yee Chew Ping. Meeting on Golf Tournament. Attended by Mr Anthony Cho Tian Han, Mr Vincent Khoo, Ms Jessie Ting, Ms Karen Seow and Ms Marina Sern. Meeting with China-Spore Suzhou Development Company (CSSD). Attended by Mr Ng Seing Liong, JP, Mr Tiah Toh Twin, Mr Ng Boon Chan, Mr Woo Chee Khoon, Ms Ng Kuai Heng, Ms Jessie Ting and Ms Marina Sern.

19 20

Meeting on MAPEX. Attended by Mr Teh Boon Ghee, Ms Ng Kuai Heng, Ms Jessie Ting, Mr Soon Teck Giap and Ms Karen Seow. NPC Focus Group Meeting to Discuss the Revised Draft Guidelines on Registering Property. Attended by Mr Ricque Liew Yin Chew. MHLG Mesyuarat Membincangkan Special Purpose Vehicle (SPV) Sebagai Agen Pelaksana untuk Memulihkan Projek Perumahan Terbengkalai. Attended by Mr Ng Seing Liong, JP.

29

MITI Mesyuarat Berhubung Bekalan Steel Bar dan Simen di Pasaran Tempatan. Attended by Mr Ricque Liew Yin Chew.

25

SIRIM Technical Committee Meeting on Bricks & Blocks and Meeting of Working Group on Bricks & Blocks. Attended by Mr Tiah Toh Twin. AAPH Meeting. Attended by Datuk Eddy Chen Lok Loi, Mr Lawrence Chan Kek Tong, Mr T. Mahesan, Mr Lee Li Shan, Prof. Dato Zainuddin, Mr Yap Woon Yeow, Ms Ng Kuai Heng and Ms Karen Seow.