Occupation Permit (OP) and its significance.
OP or CCC (Certificate of Completion and Compliance) in West Malaysia, signifies the completion of construction and compliance to safety requirements for use. It is like a vehicle which has passed inspection and now is roadworthy.
Subsequently, it is also the stage where vacant possession can be handed over to owners. Simply put, the child has attended age of majority and thus stands on its own. In such interpretation, it may be engaged in all dealings and modifications as per owner’s personal preference.
The property can be sold as subsale or if unsold from the developer, can be sold as a new property with valuation. This part of valuation is required by Bank Negara to control risk on loan by banks as speculative selling might inflate the price at this stage.
At this stage, the progress payment in Sale and Purchase Agreement (SPA) is left with the last part, which is the issuance of Title. The completion is up to 97.5%, leaving the last 2.5% on issuance of Title. Most of the time, it will be years before the title (or strata title) is out from the land office for East Malaysia. Recent projects in West Malaysia is governed by Strata Titles Act 1985 (amended 2013) which is A1450, enforced (since Jun 2015). In this amendment, title issuance is together with vacant possession!
In case the owner wishes to sell the property at this stage, the owner pays the last 2.5% of the price in the SPA, and developer will consent to allow the subsale. Housing Development (Control and Licensing) Act, 1966 s.22D (amended 2015) has removed requirement on consent by developer in WMsia.
Furthermore, developer can no more charge a administration fee for processing this “consent” as it is their duty to allow dealings as long as the owner has fully paid the purchase price according to the SPA, HDA s22D(1).