Yew Huoi, How & Associates | Leading Malaysia Law Firm

Menu

PROPERTY LAW – EXTENSION – DELIVERY – VACANT POSSESSION – LIQUIDATED ASCERTAINED DAMAGES

I have purchased a unit of condominium and signed the Sales and Purchase Agreement (“SPA”) with the developer. The SPA states vacant possession (“VP”) will be delivered in 36 months.  However, the developer had obtained extension from the Controller of Housing (“the Controller”) to extend the period to 48 months. Following the extension, I am unable to claim liquidated ascertained damages because of the extension. Is the decision of Controller valid?

No. In the light of the decision of the Federal Court in Ang Ming Lee & Ors v Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Anor and other appeals [2020] 1 CLJ 162, the decision of the Controller is invalid.

Isn’t that Regulation 11(3) of the Housing Development (Control and Licensing) Regulations 1989 (“HDR 1989”) allows the Controller to waive or modify the terms in the SPA? Wouldn’t this include modifying the prescribed period for delivery of VP?

Regulation 11(3) of the HDR 1989 was pronounced by the Federal Court in Ang Ming Lee to be void. The Controller does not have power to extend the period for VP to be delivered.

Can the developer apply to the Minister of Urban Wellbeing, Housing and Local Government (“Minister”) for extension instead?

 Yes. The Federal Court in Ang Ming Lee held that “it is the Minister who is empowered to give directions and to take such other measures for purposes of safeguarding the interests of the purchasers and for carrying into effect the provisions of the Act”. The Act referred being the Housing Development (Control and Licensing) Act 1966 (“HDA 1966”). Hence, it is the Minister who should be deciding whether to give extension; NOT the Controller.

However, it must be kept in mind that the High Court has in another case in Alvin Leong Wai Kuan & Ors v Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Ors and other applications [2020] 6 CLJ 55 decided that HDR 1989 does not empower the Minister to extend the prescribed period for delivery of VP in statutory SPA (Schedules G and H). It follows that the decision by the Minister constitutes an illegality. Alvin Leong’s case is seen as an extension of Ang Ming Lee.

The point whether the Minister can make decision on extension of VP remains unsettled. Keeping in mind that the decision of the High Court can be reversed on appeal. It is worth noting that the Federal Court in Ang Ming Lee appears to suggest that the Minister can do so.

Case in point:
Ang Ming Lee & Ors v Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Anor and other appeals [2020] 1 CLJ 162 Federal Court, Putrajaya
Alvin Leong Wai Kuan & Ors v Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Ors and other applications [2020] 6 CLJ 55

Back to Latest Legal Updates

Recent Post

LEGAL UPDATES – THE SILENT CURVE: WHY MEDICAL PREMIUMS SUDDENLY SPIKE

Medical insurance premiums do not increase gradually. They rise exponentially. For many years, costs appear manageable, giving policyholders a false sense of stability. However, once the insured reaches their mid-60s, medical charges begin to accelerate sharply, and after age 70, they often outpace the premiums by several multiples.

This happens because medical insurance is funded from a finite pool of money – an investment “bucket” – while the medical rider functions like an engine that consumes more fuel as the insured ages. When the engine grows faster than the bucket can be replenished, depletion is inevitable. The result is sudden premium hikes, demands for top-ups, or policy lapse – not due to misconduct or missed payments, but due to the structural design of the product itself.

Read More »
8 February ,2026 No Comments

THE ‘COVER UNTIL 99’ MYTH – WHY INSURANCE AGENTS GET IT WRONG

Consumers must stop relying on what insurance agents say and start reading what insurance policies actually provide. ‘Medical cover until 99’ does not mean guaranteed coverage at an affordable premium. In reality, medical insurance charges rise exponentially after age 70, often making the policy mathematically unsustainable. By the time policyholders realise this, they are told to top up tens of thousands of ringgit or lose coverage altogether.

Read More »
8 February ,2026 No Comments

STRATA TITLES ACT – DEVELOPER MUST ACCOUNT FOR COMMON PROPERTY COMPENSATION: HIGH COURT IMPOSES CONSTRUCTIVE TRUST

In JMB Kelana Square v Perantara Properties Sdn Bhd & Ors [2025] 12 MLJ 51, the High Court held that a developer who received compensation for land compulsorily acquired for the LRT 3 project could not retain sums attributable to common property. Although the compensation was paid entirely to the developer as registered proprietor, the Court found that part of the acquired land constituted common property, and the developer therefore held RM6.05 million on constructive trust for the Joint Management Body. The decision affirms that JMBs have proprietary standing to recover compensation for common property and that courts will intervene to prevent unjust enrichment in strata developments.

Read More »
1 February ,2026 No Comments

UNFAIR DISMISSAL – MEDICAL LEAVE IS NOT MISCONDUCT: HIGH COURT UPHOLDS INDUSTRIAL COURT’S PROTECTION OF SICK EMPLOYEE

In Aerodarat Services Sdn Bhd v Lawerance Raj a/l Arrulsamy & Anor [2025] 11 MLJ 26, the High Court dismissed an employer’s judicial review and affirmed that prolonged medical leave does not, by itself, amount to misconduct justifying dismissal. The Court held that the employer failed to prove the critical element of intention not to return to work or unwillingness to perform contractual duties, despite high absenteeism caused by serious illness and surgery. The ruling reinforces that employers must distinguish between genuine illness and misconduct, and cannot rely on medical absence alone to terminate employment.

Read More »
1 February ,2026 No Comments

WILL AND PROBATE – COURT OF APPEAL INVALIDATES WILL OF 97-YEAR-OLD TESTATOR: CAPACITY, SUSPICION AND UNDUE INFLUENCE PROVED

In Kong Kin Lay & Ors v Kong Kin Siong & Ors [2025] 5 MLJ 891, the Court of Appeal set aside a will executed by a 97-year-old testator, holding that there was real doubt as to testamentary capacity, compounded by serious suspicious circumstances and undue influence by certain beneficiaries. The Court emphasised that while the “golden rule” is not a rule of law, failure to obtain medical confirmation of capacity where doubt exists is a grave omission. Credibility issues with the drafting solicitor, beneficiary involvement in the will’s preparation, and suppression of evidence led the Court to declare the will invalid and order intestacy.

Read More »
1 February ,2026 No Comments

NOT AN ‘AGREEMENT TO AGREE’: ENGLISH COURT OF APPEAL SAVES LONG-TERM SUPPLY CONTRACT DESPITE OPEN PRICE CLAUSE

In KSY Juice Blends UK Ltd v Citrosuco GmbH [2025] 2 Lloyd’s Rep 581, the UK Court of Appeal held that a long-term supply contract was not unenforceable merely because part of the price was stated as “open price to be fixed”. The Court implied a term that, in the absence of agreement, the price would be a reasonable or market price, noting that the product’s value could be objectively benchmarked against the market price of frozen concentrated orange juice. Emphasising that courts should preserve commercial bargains rather than destroy them, the decision confirms that section 8(2) of the Sale of Goods Act 1979 operates as a saving provision, not a bar to enforceability.

Read More »
1 February ,2026 No Comments
en_USEN
zh_TWZH ms_MYMY en_USEN
× Contact Us