COLUMNIST
Journey of the EOTs thru’ Court of Law
By YBhg Datuk Chang Kim Loong
A T
the stroke of a pen, monies
payable to a group of aggrieved
house buyers are taken away by
the Controller of Housing (Housing
Controller).
We are talking about a group
of house buyers who had suffered
losses due to a delay in completion of
their homes by their developer and
the very ministry that is supposed
to protect them ‘signed away’ their
rights and remedies. We are talking
about such rights and remedies being
taken away from them for the benefit
of the very culprit developer who
caused them the loss and suffering.
What is happening to the
Housing Ministry? The ministry many
an aggrieved house buyer turns to in
times of developer defiance of the law,
the ministry house buyers rely on for
protection and for all the desperately
needed interventions and assistance
when a housing project is delayed
or abandoned? Does the Housing
Controller know the ramification
and repercussion of his action and
inaction?
Under the terms of the sale &
purchase agreement (SPA) between
a housing developer and the house
buyer, the developer has to complete
and hand over the house within 24
months (for landed properties) or 36
months (for stratified properties). If
the developer fails to deliver within
this period, the developer has to
compensate the house buyer by
paying liquidated damages (LAD)
of 10% per annum on the purchase
price for late delivery.
Extension of time (EOT)
What does it mean when an
‘extension of time’ (EOT) for delivery
of vacant possession is given by the
Housing Controller?
Effectively it means breaking
the developer’s contract and delay in
completing construction is excused
and the house buyers cannot claim
compensation for late delivery.
Rights and protection given by
Parliament is extinguished by the
Housing Controller with a stroke
of his pen: that is what it means.
The developer who committed the
breach stands to benefit hundreds of
thousands or even millions of ringgit
at the pain and suffering of the house
buyers, that is what it means.
I had on numerous occasions
highlighted the issues to the Housing
EOT means breaking the developer’s contract and delay in
completing construction is excused and the house buyers
cannot claim compensation for late delivery.
Ministry and have even in 2015 published articles in the media
about such unjust unilateral granting of EOTs to housing developers
at the detriment of house buyers but it seems have gone to deaf ears.
Housing Development Regulation 11(3)
had to be ‘quashed’
What is the section of the law that was invoked against house buyers?
Regulation 11(3) of the Housing Development (Control & Licensing)
Regulations 1989 (HDReg) reads:
“Where the Controller is satisfied that owing to special
circumstances or hardship or necessity compliance with
any of the provisions in the contract of sale is impracticable
or unnecessary, he may, by a certificate in writing waive or
modify such provisions: Provided that no such waiver or
modification shall be approved if such application is made
after the expiry of the time stipulated for the handing over
of vacant possession under the contract of sale or after
the validity of any extension of time, if any, granted by the
Controller.”
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