Tuesday, October 23, 2012

Property purchased but get conned

SHAH ALAM: Five property agents have conned at least 400 people into buying non-existent houses priced between RM150,000 and RM280,000.

Some of the victims were eventually declared bankrupt by the banks for not settling any of their payment.

Apparently, they had paid about 10% deposit to the property agents and signed the agreement without the presence of lawyers.

Selangor police chief Deputy Comm Datuk Tun Hisan Tun Hamzah said the victims had booked the houses during a property fair in Kuala Lumpur in 2006.

After waiting for almost six years, he said 138 victims decided to file a report against the agents.

“A check showed that the supposed projects in Meru, Klang and Banting do not exist at the mentioned location,” he said yesterday.

The victims had approached the Muslim Consumers Association of Malaysia (PPIM) before lodging reports at eight district police headquarters in Selangor on Sunday.

Police are also investigating the possibility of involvement of parties from local banks suspected of collaborating with the so-called agents.

DCP Tun Hisan said they had identified six banks that had approved loans for the non-existent projects.

“We are investigating if there is any element of forgery,” he said.

http://thestar.com.my/news/story.asp?file=/2012/10/23/nation/12213069&sec=nation


I'm wondering how this could happen in Malaysia continously. This make people able to con house buyers so easily. Previously when I purchased my home, my lawyer and bank lawyer will investigate the propery validity before I able to get approval for the mortage.
It is impossible to get approval of bank loan for non-existent property as the banks' lawyer suppose to investigate the property paperwork before the loan able to approve. Should banks and govt do something this issue by doing more transparency on property developers' latest property development publicly. From this news, seem local banks also not trustworthy and in the end, banks and the property developers are not affected and the victims always the house buyers. Why the protection and consumer rights in Malaysia so damn weak?

However consumers should not be greed and just book property in rush before checking on the property developers' background, financial health, previous property developed and the quality after built. It is not easy to find these information, however it is best to ask around, drive to the previous property done by them, search for any complaints by the house owners and digs as much information of the property developer as much as possible.

Of course, there are many directors do close and re-open another new property company after they created a bad name, or get blacklisted, or run away in the middle of development, and etc...

  • Always find a good trustful lawyer you are comfortable with. Don't simply get a lawyer due to cheap fee offered, unless you know the lawyer well.
  • Never rely solely what property developer promise you. Stick to your ground and always investigate on the property developer's financial and reputation.
  • Nothing come free to you. Dont dream, wake up.
  • Ask whether location of the property going to develop and drive to the place to survey it. Dont try to imagine virtually.