House buyer claims developer evading liability
25/06/2007 The Malay Mail

A NEW house owner is crying foul after a developer refused to pay him compensation for the late delivery of his house.

Nik Haidi Nik Mohamad said he bought a double-storey link house in Ampang on Aug 29, 2003, paying RM255,700 in cash to the developer.

The house was to be completed in 2005 and vacant possession delivered by Aug 29 that year. However, due to the delays, Nik Haidi only got the keys to the house last May 15.

Based on his calculations, Nik Haidi said the developers were late by 510 days in granting him vacant posession of his house.

This was contrary to the terms set in the sale and purchase agreement, which stated that the house would be deliverd to him within 24 months from the date of entering into the agreement, which was Aug 29, 2003.

Nik Haidi said when he approached the developer to claim damages for late delivery, his claims were not entertained.

The developer said they had no money, he said.

But strangely, Nik Haidi said his sister, Nik Hasmat, who bought a similar house in a neighbouring lot from the same developer, had already received a cheque as compensation for late delivery.

Nik Haidi felt that the developer is practising double standards in this case.

“When I asked them about my compensation, they told me that I could drag them to court if I wanted, but they would not be able to pay me because they had no money.”

Nik Haidi said that recently, his brother, Nik Hezrin, who bought the same type of house, was promised compensation by the developer but nothing was paid to his brother.

Nik Haidi said based on the liquidated ascertained damages clause in his contract, the developer is liable to pay him 10 per cent liquidated damages a year, whereby the amount is calculated on a daily rate to the value based on the purchase price.

Efforts to contact the developer proved futile.