The proposal to increase the claim limit of the Tribunal for Homebuyer Claims, also known as the Housing Tribunal, from RM50,000 to RM250,000 is being considered. While on the surface, this move may seem beneficial for house buyers, it could actually have negative consequences. The National House Buyers’ Association (HBA) cautions against this increase, citing potential drawbacks.
The Tribunal was established in 2002 to provide a fast, inexpensive, and straightforward means for aggrieved house buyers to seek compensation for issues such as late delivery or defective workmanship. However, the proposed increase in the monetary jurisdiction could lead to unforeseen challenges.
One concern is that developers may challenge Tribunal decisions through judicial review (JR), rendering the awards ineffective. Additionally, without legal representation allowed in the Tribunal, house buyers may be at a disadvantage in handling larger claims. Developers often employ in-house lawyers and experts, creating an uneven playing field.
The increase could also lead to delays and additional legal expenses for house buyers, as developers may pursue judicial review processes. Furthermore, it could undermine the purpose of the Tribunal if lawyers are allowed to represent parties, as house buyers might opt to file cases directly in court.
Comparisons to the Strata Management Tribunal (SMT), which has a similar jurisdictional limit, are deemed inappropriate by the HBA. The SMT deals with a broader range of issues beyond residential properties, including commercial developments and complex, high-cost items.
If an increase in the Tribunal's jurisdiction is deemed necessary, the HBA suggests aligning it with the monetary jurisdiction of the magistrates’ court, which is RM100,000. This would ensure consistency and avoid potential complications.
In conclusion, while the proposal to raise the Tribunal's claim limit may seem beneficial, the HBA warns of potential drawbacks that could undermine house buyers’ rights. Careful consideration and alignment with existing legal frameworks are essential to ensure fair and effective resolution of housing disputes.
