Lawyers of the National House Buyers Association (HBA) have been granted the ‘leave of court’ to pursue the legal action against the Minister of Urban Wellbeing, Housing and Local Government (KPKT) and Controller of Housing (CH).
The lawyers, who have volunteered to represent buyers who have been denied rights to claim for the delay of a project in Kuala Lumpur, obtained the permission from the Appellate & Special Powers Division of the High Court to pursue Judicial Review proceedings against the decision of KPKT and CH on Palace Court, developed by BHL Construction Sdn Bhd.
According to HBA’s secretary-general Chang Kim Loong, the class action was commenced by 71 aggrieved buyers against the granting of the Extension of Time (EOT) by the CH, which has denied unit owners the rights for compensation in lieu of the delay in delivery of vacant possession.
He said that such fundamental rights and entitlement were taken away by the CH when the EOT was issued to the developer.
“The issue of ‘frequent’ granting of EOT has been a long-running point of contention, as it has been utilised to the benefit of developers on delayed housing projects on several occasions,” Chang said.
Property360 reported earlier that HBA filed two sets of cases and stand ready to aid the 120 affected house buyers.
Chang said that the granting of a 12-month EOT to the developer effectively extinguished purchasers’ rights to claim liquidated ascertained damages (LAD) for the same duration.
He noted that under Schedules G and H of the mandatory prescribed Sale & Purchase Agreement (SPA), developers are required to hand over vacant units to buyers within 24 months and 36 months, for landed properties and multi-storey stratified properties respectively, from the date of the SPA.
“Failing to do so, the developer would have to pay the buyers LAD amounting to 10 per cent per annum of the purchase price,” he said.