Datuk Chang Kim Loong of the National House Buyers Association (HBA) highlights the issue of exploitative private liquidators imposing exorbitant administrative fees on purchasers, particularly in cases where housing developers are in liquidation. He underscores the need for judicial oversight and regulation to rein in the conduct of these liquidators.
Chang references a recent landmark decision by the High Court in Penang, where Justice Dato’ Quay Chew Soon capped the liquidators' administrative fees at RM1,000 per unit in a case involving Marinox Sky Villas Condominium. The judge emphasized that liquidators must act reasonably and justify their remuneration based on fairness and reasonableness.
The court's decision reflects a growing recognition of the need to curb excessive fees charged by liquidators, which can impose financial burdens on purchasers already facing challenges due to developers in liquidation. Chang highlights previous court rulings that have intervened to modify excessive fees charged by liquidators, citing cases where the court deemed nominal fees to be fair and reasonable.
Chang also stresses the importance of regulations to govern the conduct of private liquidators, judicial managers, and receivers and managers. Despite assurances from the National Registration Department (JPN) regarding the formulation of new regulations, progress has been slow, leaving purchasers vulnerable to exploitation by irresponsible liquidators.
Chang calls for expedited action to enforce regulations that protect purchasers from exploitative practices by liquidators. He emphasizes the crucial role of liquidators in attempting to revive abandoned projects under Act 118 but suggests that further legislation may be needed to clarify their duties and powers.
Overall, Chang's commentary underscores the urgency of addressing the issue of excessive fees charged by private liquidators and the need for effective regulation to protect the rights of purchasers affected by housing developers in liquidation.
