The landmark decision by the Federal Court prohibiting the Government to give developers an extension of time to complete their projects would have major implications for the property development sector.
The National House Buyers Association (HBA), whose legal eagles acted for 104 house buyers on a pro bono basis, said the housing controller could no longer use Regulation 11(3) of the Housing Development (Control & Licensing) Regulations 1989.
Honorary secretary-general Datuk Chang Kim Loong said: “It is retrospective. This is a big sweep and will affect other such cases.”
“Regulation 11(3) is destroyed, ” Chang said.
For years, the HBA has been trying to help house buyers to claim late delivery charges, or liquidated ascertained damages (LAD). Between 2014 and July 2019, there were 678 applications for extensions of time, of which 523 were approved under Regulation 11(3).
The Real Estate and Housing Developers’ Association or Rehda president Datuk Soam Heng Choon said: “The decision made is specific to BHL Construction and the letter signed for the extension is not valid. This means BHL Construction lost the case and has to pay LAD.
“Let’s wait for the complete written judgment, ” Soam said.
