HBA: Potential en-bloc sale under proposed Urban Renewal Act unconstitutional
Difference perspective presented by Housing Buyers Association (HBA)
The aim of en-bloc sale (as per Budget 2024) is to help redevelopment / rejuvenation. However, I have to agree that if I am the one who does not want to sell but I fall under the minority, then I will not be happy with the outcome which is to follow what the majority says. I think the main reason is because when I bought the property a long time ago, it was not made clear to me that some day, I may be forced to sell if the majority would like to sell. Let’s note the points put forward by Datuk Chang Kim Loong, founder and Honorary Secretary-General for HBA.
The full original article is here in edgeprop.my Some salient points from Datuk Chang Kim Loong representing National House Buyers Association.
No rightful homeowner should be disadvantaged in any scheme in the name of redevelopment, rejuvenation or revitalisation when there are plenty of reasons such a move is unnecessary.
HBA strongly opposes any setting of a “consent threshold”, save and except 100% participation. HBA’s stand is that any redevelopment, rejuvenation or renewal plan must receive the consent of all because every owner is important.
Does the Government not realise the implications and far-reaching damage the proposed law would have on Article 13 and the principles of indefeasibility of title as enshrined in the National Land Code (NLC) that we are all bound by? The Government seems to be under the mistaken belief that it can circumvent all these legal principles and take away a rightful property owner’s right to refuse by simply enacting a redevelopment law and impose the might of developers on homeowners. We hope the Government is not being swayed by the whispers of mercenary developers whom the Government often refers to as economic drivers.
We can certainly enact a law for the greater good of the public, but the MADANI Government must ensure, towards this end, the soon-to-be-tabled “redevelopment law” is not another guise for the impugned “en-bloc strata (forced) sale” proposal that was put forth by commercial developers more than 10 years ago, which was to accord them the right to “confiscate” land from owners for profit and not for any novel purpose of rejuvenation or benefits to owners.
The aim, as perceived by HBA, is forceful acquisition of land eyed by developers for profitable returns. A law that facilitates en-bloc sale only enforces the might of the majority, with profit margin being the main purpose. It ignores the objections of those who do not want to dispose of their properties as it operates based on the majority rule. The full original article is here in edgeprop.my
What happens if I am part of the majority then?
Actually, if I own a property and I need to sell my unit and the buyer (developer) is willing to pay me 50 percent above the current market price, I would want to sell my unit. Sometimes, when the unit is old, the price may already reached the ceiling. The potential for the property is that the location is in a prime neighbourhood. This represents an opportunity for the owners to also get a good price while for the developer, they may have a plan which will enable them to build and get profits too.
Without a legislation which is fair to all sides, then the owners who want to sell will also not be able to object to the minority’s wish which is not to sell. Many times, legislation is needed. However, the enforcement part will have to be looked at thoroughly too. Let’s see how this will pan out. I do not have a property where I am the majority who wants to sell or in the minority of objecting to any potential sale. However, if the buyer gives me a bad deal, there’s nothing to talk. It’s a simple, NO SELL.
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