The landmark decision last Tuesday by the apex court which ruled in favour of 104 house buyers has wide implications on the property and lending sectors, Property Real Estate Lawyers Association said.
Association president Datuk Pretam Singh Darshan Singh said: “Developers have been given extension of time to complete their projects under various circumstances. There are serious implications if every developer granted this extension due to certain circumstances are being sued for liquidated ascertained damages (LAD). If the developer has not budgeted for this type of claims because they have always been under the impression that the approval given to them was valid, and now all of a sudden, they have house buyers making a claim, it will affect the developer and the end financier,” Pretam said.
“Therefore, that decision affects both the property and the banking and lending industry. The implications are wide,” he said.
Media Title: The Star
Date:02 Dec 2019