PETALING JAYA: The proposed Real Property Development Bill will expand protection beyond residential developments to include commercial projects, marking a significant and positive advancement for the property sector, says a housing law expert.
Wong Hua Siong, lecturer from Faculty of Law, Multimedia University Melaka, said housing laws have been designed to safeguard the interests of home buyers.
Under the current framework, the Housing Development Act (HDA) protects home buyers of residential properties only, making the proposed expansion especially meaningful.
“However, the new proposed Bill is no longer limited to residential developments but also covers commercial projects which brings good sight in the property field,” he said.
Key proposals being considered under the Bill include increasing and standardising penalties for serious and repeat offences, enhancing buyer protection regarding payment collection, quality standards and maintenance obligations and establishing clearer technical audit.
Wong said the implementation of the electronic sale and purchase agreement (eSPA) with secure digital identity verification (eKYC) offers a practical solution for parties who are unable to sign agreements in the presence of solicitors.
However, it also raises important legal questions whether parties fully understand the terms before executing the eSPA.
“Is attestation by solicitors, who prepare the documents, still necessary?
“And what safeguards exist for solicitors if the validity of the agreement or the signature is later disputed?” he asked.
In addition, Wong said the proposed automatic integration with the Inland Revenue Board’s (LHDN) eStamping system promises a faster, more secure, and tamper-proof process, reducing the risk of fraudulent transactions.
“However, it remains crucial that LHDN ensures its system is robust to manage high public demand,” he said.
Strata Owners Association Malaysia president Datuk Theng Book said while he would need more time to examine the full details of the Bill, he cautioned that requiring buyers to keep their own copies of the eSPA may be impractical and could expose them to a higher risk of fraudulent activities.
“My suggestion is to strengthen enforcement by appointing professional service providers as advisers,” he said.
