Alex intends to purchase a double-storey shop house. When requested for the number of developer license, the developer’s salesperson informed that the double-storey shop house is a commercial property. Hence, the sale and purchase agreement is not governed under the Housing Development (Control and Licensing) Act 1966 (“HDA“).
Alex is confused, as he read in a home-buying forum that all developers must obtain a developer license for their development projects.
Despite, developers are not required to obtain developer license under HDA:
- for development projects purely for commercial or industrial use; and
- for development projects intended for human habitation but the entire project is constructing not more than 4 units of property.
In Alex’s case, for a double-storey shop house which is intended partly for human habitation and partly for business premises, if the developer is constructing more than 4 units of the said shop houses within the same development, the developer is governed by HDA of which developer’s license must be obtained.
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