Housing Developer License

Housing Developer License | Bestar

Housing Developer License

In Malaysia, a developer planning to construct and sell housing units requires a combined license known as the Advertising Permit and Developer's License (APDL). It essentially functions as both a development and sales permit.

Here's a breakdown of the APDL:

• Issuing Authority:

  
  

  • The Ministry of Housing and Local Government (KPKT) grants the Housing Developers Licence (HDL), a prerequisite for the APDL.

  • The local housing authority issues the Advertising Permit (AP) component of the APDL.

    
    

• Requirements:

  
  

  • The applicant company must be registered in Malaysia.

  • A minimum paid-up capital of RM2 million is necessary.

  • At least two directors must be Malaysian residents.

    
    

• Benefits:

  
  

  • Provides legal authorization for developing and selling housing properties.

  • Offers some buyer protection against unscrupulous developers.

For further information on the APDL application process or the relevant act, you can refer to these resources:

• Housing Development (Control and Licensing) Act 1966 (Act 118)

• Ministry of Housing and Local Government (KPKT) website

Application for a License

1. Application Requirements:

• Form Submission: Submit the application form prescribed in Schedule A.

• Required Documents: Provide the documents specified in section 5(3) of the Act.

• Additional Information: Supply any relevant particulars or information requested by the Controller.

2. Misrepresentation: Any false or misleading information provided in the application is considered an offense under these regulations.

3. License Grant or Refusal: The Controller has the discretion to:

• Grant a license with or without conditions.

• Refuse to grant a license.

4. License Requirement: A license is necessary for each housing development, including separate licenses for each phase of a multi-phase development.

5. License Form: The issued license will be in the form prescribed in Schedule B.

Advertisement and Sale Permit

1. Permit Requirement:

• No advertisement or sale can be made by a licensed housing developer without a permit from the Controller.

• All advertisements and sales must comply with the approved permit.

2. Application:

• Submit the application form prescribed in Schedule D.

• Provide:

  • A copy of the approved building plans.

  • Two copies of the proposed advertisement, including the brochure.

  • Any other relevant information required by the Controller.

3. Misrepresentation: False or misleading information in the application is an offense.

4. Permit Grant or Refusal:

• The Controller has the discretion to grant or refuse a permit with or without conditions.

• The issued permit will be in the form prescribed in Schedule E.

5. Permit Restrictions:

• A permit cannot be issued if:

  • The developer is not the land proprietor.

  • The land has a charge exceeding 50% of its market value and the lender is not a specified financial institution.

6. Multiple Permits:

• A separate permit is required for each housing development.

• Changes to the advertisement require prior approval from the Controller.

Particulars in Advertisements

1. Required Information:

• License and Permit Details:

  
  

  • Housing developer's license number and validity date.

  • Advertisement and sale permit number and validity date.

    
    

• Developer and Agent Information:

  
  

  • Name and address of the licensed housing developer and its authorized agent, power of attorney holder, or project management company (if applicable).

    
    

• Land Tenure and Encumbrances:

  
  

  • Tenure of the land (leasehold or freehold).

  • Expiry date of the lease (if leasehold).

  • Any encumbrances on the land.

    
    

• Housing Accommodation Details:

  
  

  • Description of the proposed housing accommodation.

  • Name of the housing development (if applicable).

  • Expected completion date.

  • Selling price of each type of unit.

  • Number of units available for each type.

  • Name of the Appropriate Authority approving the building plans and the reference number.

2. Brochure Requirement:

• A licensed housing developer must provide a free brochure to each purchaser containing the relevant information about the housing accommodation.

Fees

• The annual fee for a license is one thousand ringgit.

• The annual fee for a permit is five hundred ringgit.

How Bestar can Help

Bestar, a prominent corporate services provider in Malaysia, can assist you in obtaining your Housing Developer's Licence (HDL) which is a crucial part of the Advertising Permit and Developer's License (APDL) needed for developing and selling houses in Malaysia. Here's how Bestar can be helpful:

• Streamlined Process: Our team of experts can guide you through the entire HDL application process, saving you time and ensuring you meet all the requirements. This includes navigating steps like choosing a company name and adhering to regulations. Setting up a Property Development Company - Bestar

• Compliance Expertise: Bestar has the knowledge and experience to ensure your application adheres to the guidelines set forth by the Companies Commission of Malaysia (SSM) and the Housing Development (Control and Licensing) Act 1966 (Act 118).

• Additional Services: We can go beyond just the HDL and provide assistance with other aspects of setting up your property development company, such as drafting a company constitution that complies with Malaysian regulations.
  

Contact us for a quote on our HDL application assistance.

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