I had received a comment from Keng Hui: “What can one do if the developer fails to deliver the house?
In Malaysia, the housing development is regulated and controlled by the Housing Development (Control & Licensing Act) 1966 Amended on Dec 1, 2002.
One of the developer’s duties is to build and deliver the houses to the purchasers within 24 months from the date of signing the Sales & Purchase Agreement, failing which the developer has to indemnify the purchasers for the late delivery of houses at the rate of 10% per annum of the purchase price.
For claim less than RM25, 000.00, the purchaser can file the claim at the Tribunal for House Buyer Claims not less than 12 months from the date the default by the developer.
In the leading case of SEA Housing Sdn Bhd vs. Lee Poh Choo [1982](2MLJ31) where the judgment was in favor of the purchaser. The legal proposition for this case is “The main purpose of the Act is to protect the purchasers.
Interestingly, the developer relied on the excuse that the delay was caused by the acute shortage of building materials, which at that time was a public knowledge.
The High Court trial judge held that the Act was passed by the Parliament to protect the interest of the purchasers. The developer’s appeal to the Federal Court (highest Court in Malaysia) was dismissed.
posted by projectmanager @ 8:57 AM
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