PETALING JAYA: The government should consider introducing a law or formal guideline requiring sellers and agents to disclose material non-financial risks in subsale property transactions, says the Federation of Malaysian Consumers Associations (Fomca).
Its CEO, Saravanan Thambirajah, said such risks include harassment, gang activity, violent incidents or other safety concerns that could influence a buyer’s decision.
“At present, buyers are not specifically protected by any law requiring sellers or agents to disclose non-financial risks such as harassment, gang activity, intimidation, criminal use of the property or other safety-related issues linked to the property or its surrounding environment.
“Given that safety, security and peace of mind are material considerations for any homebuyer, there should be a requirement for mandatory disclosure of non-financial risks that could reasonably influence a buyer’s purchasing decision.”
Saravanan said Fomca and the National Consumer Complaints Centre regularly receive complaints from buyers who discover safety or social issues only after completing a property purchase.
“Consumers often approach us after learning that their property was previously linked to criminal activity, violent incidents or persistent neighbourhood disturbances after moving in.
“While these cases involve criminal matters that fall under police jurisdiction, they highlight a recurring concern about the lack of upfront disclosure and the serious impact on consumers’ sense of safety and quality of life.”
One of the biggest challenges for buyers, Saravanan added, is the absence of a formal mechanism to verify a property’s safety or social history before purchase.
“There is no mandatory disclosure requirement, no publicly accessible database linking crime or safety incidents to specific properties and limited transparency at the neighbourhood level. Information involving intimidation, gang activity or harassment is typically within the domain of law enforcement and not easily accessible to the public,” he said, adding that social stigma and fear often prevent neighbours from sharing information.
In the current regulatory environment, prospective buyers must rely on informal measures to protect themselves.
Saravanan advised observing the property and surrounding area at different times, engaging with neighbours and conducting online searches for news reports related to the property or locality.
He said buyers can also consult independent property professionals familiar with the area and even make enquiries with the police, though access to information may be limited due to privacy and investigative restrictions.
“While these steps can help, they are not a substitute for proper disclosure requirements. Consumers should not be expected to uncover hidden risks on their own.”
