What Is APDL And Why Is It So Important?

The APDL is a developer license in Malaysia, and it ensures that they’re complying with rules around fair and legal practice. Time to find out why, and how, this piece of paper affects you as the homebuyer!

Why APDL so Important?

The APDL offers oversight for regulators, and protection for consumers. Property is a big-money industry, and one that’s important to both the economy, and the lives of individual citizens.

With the APDL process, the authorities and Government can track and monitor property developers, ensuring they’re complying with rules around fair and legal practice.

It also allows the Government to track things like property prices, which is extremely important to ensure affordable housing is continuously available for the rakyat.

From a consumer perspective, the oversight and monitoring of APDL means they’re protected from dodgy developers selling shady properties, providing a barrier against fraud and misleading information (think: false marketing) in the real estate industry.

Since all registered real estate developers require an APDL to sell units, it also means that in the event something does go wrong with a legitimate sale, a customer has all the necessary details of the developer.

And when things go from bad to worse, say the developer suddenly abandons the project halfway through, they can hold them to account in a court of law if needed.

Advertising Standards Under The APDL

So what’s allowed, and what isn’t, under the APDL rules? There are some clear standards that must be followed, with the regulation stipulating that certain key pieces of information must be included on the advertising:

  • Validity period
  • Project name
  • Land tenure
  • Projected completion date
  • Minimum and maximum price
  • Building plan number

There are also some things that property development companies can’t promise on an advert, under the rules of the APDL. A recent amendment introduced in July 2015 states that advertisements must not include:

  • Offer of free legal fees
  • Projected monetary return gains and rental income
  • Claim of panoramic views
  • Travelling time from to popular destinations
  • Any particular to which a housing developer cannot genuinely lay a proper claim

This property development license in Malaysia really is good news for customers! You don’t want to buy a high-rise property that promises the most breathtaking panoramic views, if the view is blocked by a newly built building next year, right?

How Do Developers Gain An APDL?

The Housing Development (Control and Licensing) Act 1966 sets out the application process for an APDL as such:

(2) An applicant for an advertisement and sale permit shall submit his application in the form as may be determined by the Controller from time to time and shall supply the following:
(a) a copy of the approved building plans;
(b) two copies of the proposed advertisement including the brochures containing particulars as prescribed under paragraph (1) of regulation 6 of these Regulations;
(ba) particulars containing selling price of every unit of housing accommodation in every housing development;
(c) such other relevant particulars or information as may be required by the Controller.

Basically you submit an application form with a copy of approved plans, alongside a couple of copies of your advert, to the Controller. The term ‘controller’, in this case, means the relevant local housing authority.

Developers pay RM50 for application for an APDL, then RM500 per year for the license. If the developer wishes to publish a new advert which differs from the original approved advert… you got it – they’ve got to apply again!

Source from PropertyGuru International (Malaysia) Sdn Bhd