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Condo owner allowed to void agreement
NST 10/1/2000

Kuala Lumpur, Tues. – The High Court has allowed a condominium owner to avoid a sale and purchase agreement he entered into with a bank because and purchase agreement he entered into with a bank because the project developer had not obtained the necessary permits and licences.

In a written judgment dated Jan 5, judge Datuk Dr R.K. Nathan dismissed with costs Arab-Malaysian Finance Bhd’s applications to foreclose Chan Sai Mee’s condominium at the Venice Hill Condominium and Golf Resort in Ulu Langat after Chan defaulted in instalment payments.

Chan had argued that the sale and purchase agreement entered into between the bank and developer Venice Hill Resort Living Sdn Bhd was illegal because the latter has not obtained the Advertising and Sales Permit issued by the Housing and Local Government Ministry.

Chan had also exhibited a letter dated Nov 21 last year from the Kajang Municipal Council stating that the building plans for the property had not been approved because the developer had not paid a fine imposed by the council.

He also said that the certificate of fitness for his unit was still pending at the time.

He claimed that since the sale and purchase agreement was illegal, the loan agreement which was dependent on it was also illegal and void.

In finding Chan’s argument valid, Nathan said he should not be penalized for rising his avoidance only when the bank move to foreclose.

Counsel Robin Lim acted for the bank while counsel Jenny Lee and Chris Chan represented Chan.


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