Monday, November 29, 2010

Schedule G & H for SPA

Today I met one my my friend which is working under a reputable survey firm in town and he seems busy and headache with problem he's having on site. I sit down with him for a cuppa and he ask me on what kind of solution can be done on his site. He's having a problem that a row of houses doesn't built according to pre-comp plan, the entire row of houses shifted and resulting the backlane get wider while the main road is narrower from the result.
Hence, he ask me on the tolerance of the survey area which is allow in the guideline, in the survey guideline, there is a tolerance of 5 % of the area differences between the survey lot compare with the computed lot in pre-comp (Refer to item 4.13 in Pekeliling KPUP 6/2009). This brings me to the next item which is the Sales and Purchase Agreement (SPA), in the normal SPA under item (12) of Schedule G (new) there is a allowable tolerance of 2% of area differences in normal landed title.
While in the SPA under item (13) of Schedule H for Strata Development, there is a allowable tolerance of 3% for differences in the parcel area - (The latest amendment in 2007 is 2% instead of 3%). The reason I highlight Schedule H in this conversation just to differentiate the differences between a normal landed unit with a strata scheme development.
Back to my friend problem, he also need to face the problem of having not enough road width for handover to local authorities too.
The solutions ?
Redo the building fences to the appropriate location while maintaining the main building structure. Else he need to adjust the entire location of the boundary marks to be planted during survey works, but this is not a good solutions as there might not have enough spaces for them to shift the land while maintaining the road width.
Worst case senario, will be redo a new pre-comp plan with the existing building location and submit for a amendment plan to land office for endorsement. Once the new plan is endorsed, then continue with the title survey works. This application is not a simple task and take time to get approval as land office might not give approval too.

Back to the Housing Development Act (HDA), I just try to tie in the problem my friend is facing it and try to share some item under HDA with you. HDA is a very important thing to remember for the developer, without it you will be lost during the time for you to start to sell houses to purchaser. HDA had some amendment back in 2002 and the last in 2007 and 2008. While Schedule G and H is to complement the HDA for the preparation of SPA. In a normal landed development, Schedule G will be used and for strata development (Land parcel or parcel or combination of both), Schedule H will be used. For those who would like to read more about it, you can download the act and schedule below.
Just to highlight once more,area differences allowable is 2% for landed (Schedule G) and 3% for parcel or land parcel (Schedule H) - (The latest amendment in 2007 will be 2% instead of 3%). Don't forget about it & Happy reading !

Links to Housing Development Act (Control and Licensing) with amendment up to year 2006

Links to Housing Development Act (Control and Licensing) with amendment year 2007

Links to Housing Development Act (Control and Licensing) with amendment year 2008
Links to Schedule G (Old)

Links to Schedule H (Old) - (This item will need revision as I still finding the new 2% clause in the new Schedule H)

Please visit the link below for the latest Schedule G&H (2007)
From National House Buyer Association website
Links to Schedule G (New)

Links to Schedule H (New)


Anonymous said...

Just a question. If you reduce the areas of the lots in order to maintain the width of the access road, that means the areas of the housing lots no longer conform to the pre-comp plan. Is this acceptable to the land office?
Ideally, pre-comp plan and the architect's layout plan should be the same. So, if the setting-out is inaccurate, the architect is also going to have a hell of a time.
I recently had the not-so-happy experience of having a local council calling one of my archtect friend "penipu" because the setting-out is wrong and the architect was not aware of it. So much for being an S.O.

Anonymous said...

In order to reduce the lot area, you will need to add back the area to other place. More of a balancing act. It doesn't mean only reducing without addition.
A pre-comp plan is a pre-computation plan which means all the bearing and distance are temporary and not final. The value are derives from calculation not by survey.
Ideally the pre-comp plan and architect layout is the same. I agree. But how many architect will ask for a copy of pre-comp before they start design ? I have many cases that the architect start to design using layout plan from planner. It doesn't mean they are wrong. Just until the final stages, you need to redo your design in the pre-comp because of the better representation of the actual site area and boundary.
Being called as "penipu" is just an isolated case. Setting out plan had to be verified/certified by a licensed land surveyor and not a freelance or non-licensed land surveyor in order to have a "guarantee" of the work done on site. There are a lot of surveyor which is not "licensed" signed on plans.

Anonymous said...

Wow, if that happens, it's going to be hell. Once QTs are issued, a process of partial surrender needed and there's a risk of building built does not have the necessary set backs. Surveyors should have make sure in the precomp plan that there are enough reserves as stipulated in the layout. So, who to blame?

Anonymous said...

Dont get too excited with going to the partial surrender process.
Not all cases are that serious. I can safely say that the surveyor will have calculated the necessary setback and road width according to requirement in the layout.
The problem only exist only when the setting out doesn't tally with the pre-comp. The pre-comp itself is innocent, maybe human error during survey on site.

Anonymous said...

A Question:
Schedule G Clause 12 (2) stated that "The Vendor may only claim from the Purchaser any payment resulting from the adjustment up to a maximum which is equivalent to the value of 2% of the total area of the said Lot as shown in the final document of Title".
What happen if the said Lot is smaller? Any indemnity to Purchaser?

Leongdeikun said...

There are adjustment rate given in item 12(1) inside schedule G. Whenever there are differences between the area during signing of S&P and the final area in your title, you can claim (both way) between the vendor and purchaser with that rate.
Item 12(2) only further limits the amount claimable by the vendor at maximum 2%.
Purchaser always can claim if the area smaller than the S&P and there are no limits to this.

Anonymous said...

just a question. for a mixed development property, what Schedule should i use as a Developer. Schedule H or J. Thank You.

Leongdeikun said...

It doesn't matter what kind of development. The important question is, is it a strata development ?
If strata development then Schedule H
Non strata Schedule G

Unknown said...

What is the  Responsibilities of a Housing Developer under the sale and purchase agreement (S&P) (Schedule G&H) ?

Leongdeikun said...

Developer responsibility is to build the home according to the terms stated in the S&P (Schedule G & H). Please read before ask.