Developer ordered to pay for late delivery
KUCHING: Sarawak Housing Purchaser Claims Tribunal has ordered a developer to pay a total of RM36,670.31 in damages to the purchasers of two condominium units at Jalan Wan Alwi here yesterday.
Its president Dato Maznah Dasmi ordered the damages to be paid to the purchasers immediately, even though the developer had requested for a stay of execution pending a judicial review to be filed by them in the High Court.
“Stay (of execution) is up to the Court but I advised them to pay immediately and let the Court decide later on if they (owners) got to pay back. That should be decided by the Court during the judicial review,” she told a press conference after the tribunal proceeding at the Old State Legislative Assembly Complex here yesterday.
Also in the panel were Peter Lim Thiam Seng and Robert Elone Sireng.
According to Maznah, the two purchasers signed the Sales and Purchase Agreement to purchase the condominium in 2013, with the duration of construction works stipulated to be in 36 months.
However, she said the construction works was not completed as of Dec 1, last year when the Occupation Permit (OP)
Stay (of execution) is up to the Court but I advised them to pay immediately and let the Court decide later on if they (owners) got to pay back. That should be decided by the Court during the judicial review. Dato Maznah Dasmi, Sarawak Housing Purchaser Claims Tribunal president
was issued.
According to the developer, the delay in the construction of the condominium was mainly caused by the inclement weather and manpower problem. The architect of the project had given the contractor an extension of time ( EOT) but the purchasers were unaware of the EOT.
“The extension of time given ( by the architect) was in order but what is not in order is that the respondent did not inform the purchasers and therefore, the purchasers did not know there was an extension of time.
“The inclement weather caused the project to delay. What the architect said was right (on the climate change that led to inclement weather) but what the developer didn’t do is to inform the purchasers within seven days of such report so they know that there is going to be delay,” Maznah said.
In their filing with the tribunal, the first purchaser claimed RM25,540 while the second purchaser claimed RM28,757 for the delay in handing over of possession of the condominiums.
Maznah said the panel calculated the damages due to the purchasers in accordance to the Sales and Purchase Agreement which was 10 per cent per annum of the purchase price calculated daily.
“As for first purchaser, he purchased the condominium for RM454,739. So, 10 per cent of that is RM45,473.00 divide by 365 days and calculated for 152 days which comes to the amount of RM18,937. As for the second purchaser, also the same and her amount payable to her is RM17,733.31.”
As there was a claim during the proceeding from one of the purchasers that her lawyer did not explain the contract to her, Maznah said property purchasers should ensure that their rights, obligations and liabilities must be explained to them by their respective lawyers before signing any contract or agreement.
As to the developers, especially those who are handling big projects, she said there should be a proper plan with regards to manpower and timing to avoid any delay in their projects.
“You’re promising your purchasers to deliver their units within a certain time so you must comply with that. So, that is where I think it goes back to good planning. If you know its a massive project, then what you should do is really plan for it, including when to take the people from outside the country (to work) or purchase of materials etc. All these should be in the planning.”
As for joint inspection prior to the hand over of property, Maznah said the property purchasers should make sure that the developer’s technical people were present during the inspection.
“They should make sure their technical people are there all the time so that you can make a list on what are the defects which should be corrected immediately. That will save time on the defect liability if they do immediate rectification.”