Delayed 10 Years and under Liquidation Now

Diane Foo Eu LynnFebruary 8, 2017


The increasing number of abandoned properties are aggravating, especially to the buyers who have large stakes in it.

Two weeks ago, PropertyGuru received an email from a victim who discovered that his property was already completed, but is under Liquidation. Reaching out to PropertyGuru for what his next step should be, PropertyGuru reached out to their legal partners.

Below is the issue that Adam* is facing, and the lawyer’s reply to his plight.


Credits for the legal answer goes to Vivian Teoh Wan Loon (Advocate & Solicitor- Messrs Mak, Ng, Shao & Kee). For more information or legal assistance, call her at 016-966 3208 or email


Dear PropertyGuru,

I’d like to consult you on a housing matter after I read an article written by PropertyGuru, ‘ Victims of Abandoned Housing Project Seek Help’.

My sister bought a house named LESTARI PUCHONG approximately more than 10 years ago, of which the cost of the house was about RM45K at that time. We have called up the developer several times as the project was delayed, and were informed that the project is still in progress but will be completed late. We also noticed that the developer was changed many times as well.

I recently called the developer again to inquire the development’s status and was informed that the house is completed but is now under liquidation. What does that mean? How can we solve this liquidation problem? Please advise us.



Dear Adam*,


1) The completion in the Project for your sister’s property has been delayed more than 10 years.
2) After 10 years, the Property is completed however the Developer has been wound up and the Property is currently being managed by Liquidator. How can your sister can get back her property if the Developer is in Liquidation?

Our Legal Advice:

For the First Issue:

Your sister shall refer to the Principal Sale and Purchase Agreement (Schedule H/G) that your sister entered last time with the Developer to check the Completion Date of the Construction which will be mentioned in the Clause Title “Time for Delivery of Vacant Possession”.

Your sister may calculate out the total days delay by Developer (in Liquidation) from the expiry of the Completion Date till to date. Based on the Schedule H/G, the Developer shall pay to the Purchaser (your sister) the liquidated damages calculated from day to day at the rate of 10% per centum per annum of the Purchase Price from the expiry period of completion until the date your sister takes vacant possession of the Property.

If your sister would like to try to claim any damages not withstanding that the Developer has been wound up, your sister may try to lodge a complaint and claim in the prescribed form together with the prescribed claiming from Liquidator for any loss and liquidated damages that she suffered or any matter concerning her interests as a homebuyer based on Clauses 16L, 16M, 16N, 16O & 16P “Abandonment to bring claim within Jurisdiction”.

Your sister may log in to this website to check the details in lodging the complaint and claim to the housing ministry tribunal:

Your sister may also directly visit TPPS for more details if she wishes to:

Tribunal Perumahan Dan Pengurusan Strata (TPPS)
Aras 3, No. 51, Presint 4, Persiaran Perdana, 62100 Putrajaya.
Tel : +(6)03-8891 3284 (Hotline)
 Fax : +(6)03-8891 4755
Email :

In view the Developer has been wound up, your sister might be able to make a claim from Liquidator only, not from Developer. If there is a case to be heard, the Awards will be granted (if any) in favour of your sister but it is always subject to the discretion and jurisdiction of Tribunal whether Liquidator is bound to pay any damages or not. Your sister may try but the chances to get the Awards may be low in view that the Developer has been wound up.

For the Second Issue:

A liquidator is an officer appointed by the High Court or the Creditors of the Company (Developer) to realise all available assets of the Company (Developer), and distribute the proceeds received from assets realisation after deducting cost of liquidation and any remaining surplus to remaining contributories and to Creditors whose Proof of Debts have been admitted. The liquidator is empowered to act on all matters on behalf of the Company (Developer). In the case of abandoned project(s), Liquidator will undertake to revive the project subject to availability of funding.

In view the Property has been completed. Your sister shall get the contact of the Liquidator in arranging the collection of vacant possession (keys) and Access Cards (if any) of the Property from the Liquidator.

Please also remember to get from the Liquidator a copy each of the Certificate of Completion and Compliance, Master Title in respect of the Property, the latest duly paid Master quit rent receipt and Master assessment receipt of the Property for your sister’s record. Please also confirm with them if there is any allocated Accessory Parcel (i.e: car park) for that unit parcel that your sister bought.

The Liquidator might request some documents from your sister for verification as your sister is the home buyer for that particular parcel unit before delivering the Property to your sister.

Aside from that, your sister may also contact her previous Sale and Purchase Agreement [“SPA”] Lawyer who acted for the Developer (in Liquidation) to get more info of the latest status of the Project and to clarify the Liquidator details. The SPA lawyer details will be stated in the Sale and Purchase Agreement entered between the Developer and your sister.


*Names have been changed to protect privacy


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WPTZ Community
Aug 31, 2018
Did the sister (buyer) have to pay any professional fee to liquidator for verifying the ownership document prior to release of MOT?
Jan Olijdam
Feb 09, 2017
legally this is all correct. nevertheless the practical value for the buyer is zero! a project going from hand to hand among different developers for 10 years has no liquidity to honor any claims. if there was a down payment you can also write it off. these circumstances are normal in Malaysia as there is hardly any legal protection for real estate buyers, especially in larger projects. partly the buyer do not take necessary precautions when signing a contract. practically nobody does proper legal research what they are signing and only, like this case, after 10 years they wake up. needless to say it is all too late. developers are not social institutes who look after your housing needs but commercial organizations who want your money and off load all risks of the project on the buyers. when realizing your bad legal situation if something goes wrong you might implement an old wisdom: never buy anything what you can not see! this can help you and keeps you out of a lot of trouble.

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