SIBU: The Kuching High Court’s decision on Liquidated Ascertained Damages (LAD) for late delivery of properties in Sarawak is considered fair to both developers and house buyers.
The issue should not be politicised, said Deputy Minister II for Public Health, Housing and Local Government Michael Tiang Ming Tee in a statement on Monday (March 28).
Tiang slammed Sarawak Democratic Action Party (DAP) chairman Chong Chieng Jen for what he deemed as baseless accusations.
Chong had called for a relevant amendment to the Sarawak Housing Development Ordinance regarding the late delivery penalty that favours developers over house purchasers.
In his recent statement, the Pelawan assemblyman welcomed Kuching High Court’s decision that ruled LAD for late delivery of properties in Sarawak only starts from the Sales & Purchase Agreement (SPA), not from the date of booking.
“The decision has come at the right time and has cleared the air of confusion among the developers and house purchasers in Sarawak,” he said.
Tiang mentioned that the High Court decision clarified that the booking was not a commitment or a contract.
“It is only an option for the developers to buyers interested in purchasing the properties.”
He believed the court’s decision protected the rights of both developers and buyers.
“The rule is simple; if the buyer has paid the deposit to the developer and in any event, the loan application was not approved by the bank, the buyers could ask for a refund of the deposit for this reason.
“And if the loan application was approved, the developer would proceed to ask the buyers to sign the Sales and Purchase Agreement and it would not take months as the politician has pointed out.”
