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Vacant Possession should come with flowing water and running electricity

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Vacant Possession should come with flowing water and running electricity

If you bought a new property and you are about to get the keys, then do note that when you take the keys, the property must already have water flowing and electricity running. Just bring a If this was not provided by the property developer, then the developer will be considered irresponsible. It is just not enough that the sub-stations are commissioned. Yes, buyers are protected by the Housing Development (Control and Licensing) Act 1966 (HDA 1966) for the Delivery of Vacant Possession (VP) Please do read many cases cited as below article.

Article in edgeprop.my Actual Supply of Water and Electricity must be available

In the recent case, Bandar Eco-Setia Sdn Bhd v.  Tribunal Tuntutan Pembeli Rumah & 2 Ors  [2020] 1 LNS 778 at the Shah Alam High Court, the issue on “ready for connection” was eloquently and articulately expressed by Justice Wong Kian Kheong. 

A literal interpretation of such relevant clauses was sufficient to convince the Court of Law that actual supply of water and electricity was an integral part of delivery of VP and therefore it is incumbent on the housing developer to ensure that these actual supplies are provided to the property. The presiding judge averred the following reasons for his decision:

“Simply put: It means when the purchasers entered the house upon delivery of vacant possession and turned on the lights it will be illuminated when he affixes a bulb to it. I cannot comprehend it to mean electricity supply only to a sub-station in the housing estate where the house is erected, be that terminal near or far”

       … Justice James Foong in Lew Yoke Leng & others v Sykt Kar King Sdn Bhd (2000) 4 CLJ 184

“It is not sufficient for the developer to just lay the pipes and cables for electricity and water to connect the building to the substation or water mains. The developer must ensure, at the time of delivery of vacant possession of the said building, that there is supply of water and electricity ready for tapping into the building” Please do read the long and comprehensive article here: Article in edgeprop.my

Switch it on… when you have the house keys for the first time

Frankly, property developers should just complete all the necessary. As a buyer, this is definitely I would expect since the developer would have gained tens of hundreds of millions depending on the gross development value of the development.

It’s win-win, right? Buyers are happy, tells everyone about the professional developer who completed everything and the developer gets goodwill and perhaps more buyers in the future. I am happy to read that buyers do have a right to flowing water and running electricity. How about you?

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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