The High Court has invalidated the 12-month extension granted by the Housing Controller to BHL Construction Sdn Bhd to complete its Sri Istana Condominium project in Old Klang Road, reported The Malay Mail Online.
This comes after 71 condominium buyers filed a case against the Housing Controller and the Ministry of Urban Well-Being, Housing and Local Government.
In allowing the judicial review of the case, High Court (Appellate and Special Powers) Judge Justice Hanipah Farikullah said it is not within the power of the Housing Controller to grant extension of time to developers that cannot deliver vacant possession of the housing units on contracted dates.
In fact, regulations enabling the Controller to modify the sales contract’s terms were beyond its powers under the Housing Development, Control and Licensing Act.
With this, the developer will now have to pay the buyers “liquidated damages for late delivery of vacant possession of the condominium units,” Datuk Wong Kok Leong, the buyer’s lead counsel, was quoted as saying by The Star.
He described the decision as a landmark judgment as many developers seek extension to complete their projects.
“This is a victory for all house buyers. With this ruling, the housing developer can’t just go to the Housing Controller for an extension of time to complete the project in order to avoid paying liquidated damages to house buyers,” said Wong.
He revealed that house buyers can claim 10 percent of the acquisition price annually for delays under the liquidated damages clauses.
Radin Ghazali, Content Writer at PropertyGuru, edited this story. To contact her about this or other stories email radin@propertyguru.com.my
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