PETALING JAYA: The proposed “Option to Purchase” (OTP) clause under a new housing law could give homebuyers greater flexibility, says the Real Estate and Housing Developers’ Association Malaysia (Rehda).
Rehda president Datuk Ho Hon Sang said the mechanism, prior to the signing of a sale and purchase agreement, would allow prospective buyers to reconsider a purchase if their financial or personal circumstances change.
“While the mechanism has yet to be finalised and there are still many uncertainties about the clause, in principle, the OTP mechanism is beneficial in protecting those who intend to purchase a specific residential unit.
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“At the same time, it provides them with an opportunity to reconsider their purchase decision should their circumstances change,” he said in a statement yesterday.
Ho said the proposed mechanism could also help developers assess genuine market demand before entering into binding commitments or commencing construction works.
He added that developers would have the flexibility to withdraw from projects that may no longer be commercially or financially viable before an agreement is signed.
It was reported that Housing and Local Government Minister Nga Kor Ming had proposed the OTP clause under the proposed Real Property Development Bill, which is expected to replace the Housing Development (Control and Licensing) Act 1966.
Ho said industry players hoped the ministry would continue engaging stakeholders in refining the framework and implementation details of the mechanism.
“The clause, however, must be clear, practical and fair in safeguarding the interests of both purchasers and developers,” he added.
He further said the proposal could potentially help address longstanding concerns.
