Disgrunted house buyers may
see happy ending
04/10/2003 Daily Express
Kota Kinabalu: Housebuyers of the abandoned Taman Inanam Laut Phase 2
housing project may see the end of woes if everything goes well as agreed
upon at a meeting here Thursday.
The meeting was held between six representatives of the housebuyers and
Local Government and Housing Minister Datuk Salleh Tun Said as well as the
Sabah Town and Housing Development Authority (LPPB). The Ministrys Deputy
Permanent Secretary, Jumahat Intang, and LPPB General Manager, PS Wong, also
attended the one-hour closed-door meeting at the Ministry office.
The good news is that the completion date for the housing project will be
Jan 31, 2004. Housebuyers can take possession of their houses with a
simultaneous issuance of the Certificate of Fitness for Occupation. Still,
whether their long-standing distress will finally be over depends on the
execution of a proposed supplementary agreement.
Lawyer Christina Liew, who represented the affected housebuyers, said all
parties concerned have agreed in principle to enter a supplementary
agreement to resolve the liquidated damages issue, waiver on deposits for
water and electricity meters, and warranty period.
However, the principal agreement signed between the housebuyers, LPPB and
the original contractor (who has since absconded) in the late nineties is
She said the supplementary agreement is to facilitate a settlement to
existing problems stemming from the abandoned housing project.
Earlier, the housebuyers had paid deposits to the original developer for
water and electricity meters with receipts. They need not pay any additional
expenses as LPPB will be responsible for the matter.
The proposed extension of the warranty period from six to 12 months in the
name of fairness to the housebuyers is subject to clearance from the
The unwarranted delay is a very unfortunate case but we have reached an
amicable solution, a compromise sort of situation. The major concern is
liquidated damages and what has been agreed upon is subject to finalisation
and clearance from LPPB, she told a press conference after the meeting.
Altogether 257 housebuyers are affected by the delay.
According to her, Salleh wants uniformity in laying the terms and conditions
in the supplementary agreement, which is expected to be signed on Oct 15,
barring any hitches.
It will be signed between two parties only - housebuyers and an authorised
representative from LPPB. We requested that no contractor be involved so as
not to complicate matters.
It was also agreed that a decision be made within one to two weeks, Liew
But first and foremost, Liew who is also Parti Keadilan Sabah Deputy
Chairperson will work out the quantum for liquidated damages for submission
to LPPB in accordance with the clause on breach of agreement.
She reiterated that the clause on Time of Completion in the original Sale
and Purchase Agreement states that the property should be completed by the
developer within 24 months from the date of the agreement.
In the event of failure to complete the property within the stipulated
period, the developer must pay to the purchaser liquidated damages to be
calculated from day to day at the rate of eight per cent per annum of the
purchase price, commencing immediately after the expiry of the 24-month
period to the date the developer submits his application for the Certificate
of Fitness for Occupation.
However, the actual compensation is yet to be decided by the authorities
concerned, based on our calculation. Asked on the possibility of housebuyers
being dissatisfied with the compensation, Liew said they could look into
Housebuyers who have yet to submit their original Sale and Purchase
Agreement are urged to do so to facilitate the signing of the supplementary
She made it clear that those who dont sign the second agreement face the
risk of not being paid compensation.
She can be reached at 088-247088 or 247452 (Office).
Meanwhile, Liew thanked Salleh and LPPB for their open-mindedness and
understanding of the housebuyers predicament. Spokesman of the housebuyers,
Hu Kwok Wai who also spoke urged all housebuyers concerned to sign the
supplementary agreement for their own good.
Those in outstation areas like Sandakan, Tawau and the Interior may contact
him at 019-8704846.