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House buyers on receiving end
New Straits Times 04/05/2005
I REFER to your report "Developer told to pay housebuyers RM1.7m" (NST,
April 30).
House buyers always seem to get a poor deal from some developers. It is
stated very clearly in the Sale and Purchase Agreement that:
* Buyers are charged 10 per cent interest per year on a day-to-day basis if
they fail to pay their instalments within two weeks from the date of the
letter from the developer demanding payment;
* Developers are liable to pay liquidated charges at 10 per cent a year on
the purchase price on a daily basis if they fail to deliver vacant
possession within the period stated in the agreement.
If the buyers are late in making payment, they are inevitably charged
interest. If this is not paid, the developer will not hand over vacant
possession to them.
However, when vacant possession is delayed for any reason, developers almost
always resort to delaying tactics to avoid their obligation to pay.
This is the situation faced by me and other buyers of houses built by a
company in Selangor. Vacant possession was delayed by a year.The executive
in the Late Delivery Claims Department acknowledged that the company is
liable to pay liquidated charges. She even calculated the amount the company
has to pay to me. When I submitted my claim, this was the response I
received:
* The company will only pay half the amount if I am willing to accept it.
* The company will not acknowledge receipt of my claim or reply to it.
* If I am not willing to accept their offer, I can appeal to the Tribunal
for Homebuyer Claims.
Other aggrieved buyers I met at the company's office complained that even
when they had won their case, the company still employed delaying tactics in
settling their claims.
In such circumstances, what can buyers do to get errant developers to honour
their obligations?
What is the role of the lawyers who drew up the Sales and Purchase
Agreement? Isn't it their duty to advise their client to abide by the terms
of the agreement?
After all, they have received their fees and been paid by the homebuyer.
L.Y.K. Seremban
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