REHDA Malaysia on May 13 backed a proposed Option to Purchase clause in the new Real Property Development Act, saying the change would give home buyers more flexibility and protection if their circumstances change. [1, 2, 3, 4, 5]
REHDA president Datuk Ho Hon Sang said the mechanism would let prospective buyers reconsider before signing a Sale and Purchase Agreement, while also giving developers a way to step away from a transaction if a project is no longer commercially or financially feasible. He said the clause was still not finalised and that many uncertainties remained. [1, 2, 3, 4, 5]
Ho said the OTP system could also help developers gauge genuine market interest before taking on binding commitments. He added that it may help address abandoned housing projects, an issue the ministry has said it wants to reduce through the planned bill. [1, 3, 4, 5]
In a separate statement, Housing and Local Government Minister Nga Kor Ming said the ministry is studying the OTP mechanism for inclusion in the housing bill to cut the risk of sick, delayed and abandoned housing projects. He said the ministry's special taskforce has revived more than 1,500 sick and abandoned housing projects since December 2022, with a gross development value exceeding RM140 billion and more than 176,000 homebuyers helped. [3]
Ho urged the ministry to keep consulting industry players, including REHDA, so the final clause and framework are clear, practical and fair. He said the government and industry still need to settle the details before the proposal can be finalised. [2, 3, 4, 5]
