News: Number Of Approved EOT Applications For Project Completions Increase

Nov 7, 2019

The number of property developers given an extension of time (EOT) to finish a property project that could not be given to buyers on the schedule this year and last year, has increased. 

The Local Government and Housing Ministry revealed that from January to July, 75.4% of EOTs applied for by property developers were approved. In comparison, 78.15% of such applications were approved in 2018, while only 67.8% were allowed in 2017.

“In principle, the EOT is only considered for developers whose projects do not have any buyers. People have a right to decide whether or not to buy developments which have a long construction period,” said the ministry in response to a query posed by Selayang’s MP William Leong in the Dewan Rakyat.

Read here: What is a notice of vacant possession and how can this benefit me? 

An EOT is given to developers if, for some reasons, they cannot complete a development project on time, reported The Star.

It is given to developers based on various factors including instructions to meet requirements such as the Integrated Water Supply Scheme or limitations or instructions by the local authorities regarding working hours on the development site.

The factors also consider the project and the locality or the feelings of people within the area.

EOTs are also granted if the building’s height exceeds 30 storeys, has a basement or podium and the construction site requires extra foundation works to ensure the property’s strength.

“If they are granted an EOT after the sale and purchase agreement has been signed, this is unfair to house-buyers. Another factor is an EOT being given before the S&P is signed,” said Datuk Chang Kim Loong, honorary secretary-general for the National House Buyers Association.

“We think these reasons by the government are flimsy reasons to grant an extension. Some of these limitations such as the restriction on construction time have been there all these years. I feel some of it does not tantamount to a reason for an EOT.”

 

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Leena .
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