Yew Huoi, How & Associates | Leading Malaysia Law Firm

Menu

PROPERTY LAW– DEVELOPERS – LATE DELIVERY OF HOUSES – HOUSE BUYERS – LIQUIDATED ASCERTAINED DAMAGES – LATE DELIVERY OF HOUSES

I went to a showroom and I’ve decided to purchase a house. They asked me to fill up a form and pay an amount of RM10,000. Is the collection legal?

No.

  • Regulation 11(2) Housing Development (Control & Licensing) Act 1989 (‘HDA 1989’): “Everyone, not just developers, is prohibited from collecting booking fees”.
  • The scope of prohibition is wide enough to include lawyers, estate agents and any third parties purportedly acting as stakeholders for the housing developer in respect of collection of the booking fees.
  • The first 10% of the purchase price is only payable immediately upon signing of sale and purchase agreement (‘SPA’).
  • When it comes to interpreting social legislation, the courts must give effect to the intention of Parliament and not the intention of parties.

What to do when a developer fails to deliver the property in accordance with the timeline provided in the SPA?

  • The vacant possession of the house must be delivered to the house buyer in accordance with the timeline provided in the SPA.
  • Developers are required to deliver the vacant possession of a landed home with an individual title within 24 months from the SPA date whereas for strata-titled properties such as condominiums, serviced apartments has to be delivered within 36 months.
  • Pursuant to Clause 24(1) of Schedule G of the Housing Development (Control and Licensing) Act 1966 (‘HDA 1966’), developer ought to pay liquidated ascertained damages (‘LAD’), which is late delivery payment to the house buyer for the period of delay.

How is LAD calculated?

  • Many people might think that the calculation for LAD to house buyers begins when the SPA is signed.
  • In recent case of Tribunal PJD Regency Sdn Bhd v Tribunal Tuntutan Pembeli Rumah @ Ng Chee Kuan, the Federal Court has decided that the LAD should be calculated from the date the booking fee is collected, not the date the SPA is signed.

Whether house developers can be exempted from paying LAD during MCO?

  • Section 35 of the Covid-19 Act 2020 provides that house buyers cannot claim from developers the LAD incurred during the period of 18.3.2020 – 31.8.2020.
  • Under section 35(2), the developer is allowed to seek for an extension up to 31.12.2020.

late delivery

Back to Latest Legal Updates

Sorotan Terkini

WHEN CARGO GOES ASTRAY: THE RISKS OF DELIVERING WITHOUT A BILL OF LADING

In a recent English Court of Appeal decision, the issue of misdelivery without the presentation of the original bill of lading was brought into focus. The court examined the shipowner’s delivery of cargo without presentation of the bill of lading and the subsequent endorsement to UniCredit Bank. Although a breach was found, the claim was dismissed on causation grounds, as the bank had knowledge of and implicitly authorized the delivery. This case emphasizes the crucial role of bill of lading in maritime transactions.

Read More »
7 Oktober ,2024 Tiada Ulasan

TORT — NEGLIGENCE — MEDICAL NEGLIGENCE — A MISSED LIFELINE: COURT HOLDS MEDICAL TEAM LIABLE FOR BRAIN DAMAGE IN HIGH-RISK PREGNANCY CASE

A recent High Court ruling involved a plaintiff who suffered severe brain damage after an emergency caesarean section at 33 weeks of pregnancy due to alleged medical negligence. The court examined whether the medical team breached their duty of care by failing to properly monitor the patient, resulting in oxygen deprivation and irreversible damage. The defendants, including doctors and nurses, were found liable for not acting on clear warning signs, leading to significant damages awarded to the plaintiff for her physical and mental disabilities.

Read More »
7 Oktober ,2024 Tiada Ulasan

NAVIGATING LIABILITY: THE UNSEAWORTHINESS OF THE FJORD WIND AND ITS LEGAL CONSEQUENCES

The Court of Appeal ruled in The Fjord Wind case that the vessel was unseaworthy at the time of departure from Rosario on 30.06.1990, due to known issues with the crankpin bearings that had not been adequately addressed. This unseaworthiness led to a main engine failure shortly after departure, necessitating the transhipment of cargo and incurring additional costs.

The court found the shipowners liable for damages, emphasizing their failure to exercise due diligence in maintaining the vessel’s seaworthiness. The ruling underscores the critical importance of thorough inspections and repairs in maritime operations, highlighting the legal responsibilities of shipowners to prevent unseaworthiness and related liabilities.

Read More »
7 Oktober ,2024 Tiada Ulasan

STRATA MANAGEMENT – COMMON PROPERTY CONUNDRUM: CENTRALIZED AC COSTS AND THE STRATA MANAGEMENT DEBATE

In a recent legal dispute, the classification of centralized air conditioning facilities (CACF) as common property has come under scrutiny. The Plaintiff, a parcel owner in Tower A of Menara UOA Bangsar, challenged the Management Body’s use of maintenance funds for the upkeep of CACF, which primarily benefits parcels in Tower B. The court is likely to dismiss the Plaintiff’s claim, reinforcing the principle that as long as CACF serves two or more occupiers, it is deemed common property, thus falling under the Management Body’s purview without requiring reimbursement from individual parcel owners.

Read More »
7 Oktober ,2024 Tiada Ulasan
ms_MYMY
en_USEN zh_TWZH ms_MYMY
× Hubungi Kami