KUCHING, March 27: There must be relevant amendments to the Sarawak Housing Development Ordinance regarding the late delivery penalty of houses that favours developers over house purchasers.
This was the view of Sarawak Democratic Action Party (DAP) chairman Chong Chieng Jen when he said the law in Peninsular Malaysia is to protect and further enhance the interests of purchasers against developers while that in Sarawak states otherwise.
On March 24, the Kuching High Court ruled that the Peninsular Malaysia practice of running Liquidated Ascertained Damages (LAD) for late delivery of houses and apartments from the booking date is unapplicable Sarawak and Sabah.
In other words, the Kuching High Court held that under the Sarawak Ordinance, the time for delivery of houses should only start on the date of the Sale and Purchase Agreement (SPA) and not the booking date.
Chong viewed this decision as less favourable to the house purchasers than the similar provisions in Peninsular Malaysia.
“We all know that Sarawak is different from West Malaysia. However, such difference and autonomy should not be used to the detriment of the ordinary Sarawakians and help the exploitation by the rich.
“At times, the payment of booking fees and the date of the SPA can be months apart, the provisions in the Sarawak law will give developers a loophole to circumvent the 24-month period to complete and deliver the houses, thus compromising the protection given to house purchasers,” he said in a statement today.
Chong thus urged for immediate action by the Sarawak government to amend the law to be on par with that in Peninsular Malaysia as it governs the benefits of house purchasers.
“We in DAP, therefore, urge that there be amendments made to the relevant part of the Sarawak Housing Development Ordinance and its standard SPA so that ordinary house purchasers be given the same benefits and protection, if not better, as our counterparts in Peninsular Malaysia,” he added. — DayakDaily
