SoFo and SoVo are gaining popularity in large urban cities in Malaysia

Government considers new law to protect mixed, commercial property buyers

The Edge reported today that the Malaysian government is considering a new law to protect buyers of mixed and commercial properties. 

The proposed Real Property Development Act will cover mixed developments, including retail and commercial properties, the Ministry of Housing and Local Government said in a statement over the weekend. Such properties are not covered under the current Housing Development (Control and Licensing) Act 1966, which is limited to residential developments.

“Due to the absence of legal protection, buyers affected by abandoned projects under these categories often find themselves with no legal avenue for recourse,” said its minister Encik Nga Kor Ming (picture, top).

The proposed law comes at a time when modern properties such as small-office-flexible-offices (SoFo) and small-office-versatile-offices (SoVo), both of which could also be used as residences, are gaining popularity in large urban cities. 

SoFo and SoVo properties are treated as commercial properties by law, and the new law is expected to expand the 1966 legislation, also known as Act 118, to also cover certain commercial developments. 

The proposed law also aims to streamline the process for both buyers and developers by incorporating a so-called Option to Purchase framework, Nga said.

The framework would allow the termination of sale and purchase agreements by buyers if they are dissatisfied with the progress of the development, “enhancing consumer rights protection and ensuring greater accountability in the industry”, he added.


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