The Securities Commission Malaysia (SC) has released a new property crowdfunding framework, following revisions made to its Guidelines on Recognised Markets here today.
Eligibility criteria
Under the property crowdfunding scheme, at the initial phases, only eligible properties and homebuyers will be allowed to participate.
Some of the eligibility criteria of homebuyers are that the individual has to be Malaysian, at least 21 years old, and a first-time homebuyer.
During the technical briefing two days ago, SC’s spokesperson also noted that an individual is not eligible for this scheme if the individual had inherited a house from the person’s family.
An obligation of the homebuyer, under this scheme, is that the property must be occupied by the homebuyer at all times.
However, the homebuyer is permitted to rent out rooms in the property during the scheme’s tenure.
The financing limit for a property is up to 90% of the value of the property.
Notably, the eligible properties under this scheme are valued at not more than RM500,000 at point of primary offering.
They are completed residential properties located within Malaysia with valid certificate of completion and compliance and valid and effective legal title with no encumbrances attached.
As for the property crowdfunding (PCF) operator, the platform must be registered with a recognised market operator and have a minimum shareholders’ fund of RM10 million, of which RM5 million must be set aside and maintained in a segregated account at all times.
The RM5 million set aside shall only be used for the purpose of ensuring and facilitating the exit certainty.