S&P pact often not honoured
The Star 05/05/2005
HOUSEBUYERS always seem to get a poor deal from errant developers.
It is stated very clearly in the sale and purchase agreement that:
BUYERS are charged 10% interest per year on a daily basis if they fail to
pay their instalments within two weeks of the date of the letter from the
developer demanding payment; and
DEVELOPERS are liable to pay liquidated charges at 10% per year on the
purchase price on a daily basis if they fail to deliver vacant possession
within the period stated in the same 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, the developers
will almost always resort to delaying tactics in honouring their
obligation to pay.
This is the situation I face together with other buyers of houses built by
a public-listed company.
Vacant possession was delayed by one year.
The executive in the late delivery claims department admits that the
company is liable to pay liquidated charges.
She even calculated the amount that the company has to pay to me.
When I submitted my claim, I was told that:
THE company will only pay half of the amount if I am willing to accept it;
THE company will not acknowledge receipt of my claim or reply to it; and
IF I am not willing to accept the offer, I can appeal to the Tribunal for
Homebuyer Claims.
However, the 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.
Under such circumstances, what can helpless housebuyers do to get errant
developers to honour their obligations?
What is the role of the lawyers who draw up the sale 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 invariably these fees are
paid by the housebuyers.
DISAPPOINTED HOMEBUYER,
Seremban.
(via e-mail) |
