Comments by minister encouraging for housebuyers
NST 21/04/2004

HOUSING and Local Government minister Datuk Seri Ong Ka Ting has said housing developers cannot escape paying late delivery fees to buyers unless the delay was caused by a national disaster or where the buyers agree to waive it.

This and other statements by the minister on April 11 are encouraging to buyers. The number of cases where the developer is not honouring his legal obligation to pay compensation to buyers for late delivery in accordance with the Sale and Purchase Agreement is on the increase, if media reports are accurate.

In my own case, we housebuyers, numbering about 400, are faced with a difficult situation. The developer abandoned the project four years ago, after collecting 80 per cent of the purchase price as progressive payments. Now he is willing to pay only a token sum as compensation which represents about five per cent of the total sum due to us.

The project is yet to be rehabilitated. Meanwhile, we buyers who are mainly from the lower middle-income group have to pay our monthly instalment to the bank together with the interest. Of course, the ministry has been trying to help, but the matter remains unresolved.

We would like to know what options we have to get our medium-cost apartments completed early without compromising too much on compensation.

S.R.N.
Petaling Jaya