Developer only offer LAD compensation for unit, shall I accept?

In year 2013 Aug, while spending time with family in Queensbay, coincidently there is property fair there. One of the banner caught my eye, “Pay only RM5000 only” to own a luxury condo. After understand the project which is located at Bandar Perda, I booked a unit with only RM5000 down and pass it to my brother inlaw. He is a fresh graduate from University and good for him to own a property at young age.

The unit is Type A with 1508 sqft with RM388K (aft rebate 10% price).

The Promotion package is as below:

Price (after 10% rebate)  RM388,000.00

Total area = 1508 sqft

Booking =RM5,000.00

Effective PSF= RM257

Free all complete legal for SPA, Loan agreement & Stamp duties

After making the booking, I also recommended to another 3 friends and all of them bought it as well with slightly higher price. This is because they make the booking 1 month later.

The project only obtained the Vacant Possession in June 2017. Do you know how long the project being delayed if based on the booking time?

Yes, it is 10 months delayed.

When my brother in law when to collect the key, the developer only offer LAD on the unit only which has exclude the common facility and based on the Sales and Purchased agreement date. After spending time discuss with developer, still failed to claims the LAD for common facility.

Scenario 1:
Calculations of LAD based on booking date till VP date
Purchased Price = RM430 300
Booking Date = 31 Aug 2013
SPA Date : 14 April 2014
VP Date : 5 Jul 2017
To add 14 date after VP Date = 19 July 2017
No of days delayed based on Booking date = 323 days
LAD on the Unit = RM430 300 x 323/365 x 10%
= RM 38,078.60
LAD on the Common facility = RM430 300 x 323/365 x 10% x 20%
= RM 7615.72
Total LAD Claims = RM 45,694.32

Scenario 2:
Calculations of LAD based on SPA date till VP date (Plus 14 days)
Purchased Price = RM430 300
Booking Date = 31 Aug 2013
SPA Date : 14 April 2014
VP Date : 5 Jul 2017
To add 14 date after VP Date = 19 July 2017
No of days delayed based on SPA date = 97 days
LAD on the Unit = RM430 300 x 97/365 x 10%
= RM 11,435.37
LAD on the Common facility = RM430 300 x 97/365 x 10% x 20%
= RM 2287.07
Total LAD Claims = RM 13,722.44

Based on the above 2 scenarios calculations, you may make your judgement if you would like to accept the offer by the developer or file to Tribunal Perumahan to claim back your rightful amount.

6 comments

  1. Kelvin

    Hi,

    What if develop offer compensation of 60k for LAD? which is not sufficient. LAD should be about 120k.

    Can I go through tribunal to claim additional 50k? I will forgo 10k in my case.

      • Adrian

        Where the purchaser has paid the deposit or booking fee prior to the execution of the sale and purchase
        agreement, time commences from the date of the payment as held by the Supreme Court in the case of
        Faber Union Sdn Bhd v Chew Nyat Shong & Anor [1995] 2 MLJ 597. In this case, the booking fee or
        deposit was paid on 17th February 1984 but the sale and purchase agreement was only signed on 27th June
        1984. The Supreme Court referred to the case of Hoo See Sen & Anor v Public Bank Berhad [1988] 2 MLJ
        170 and held that the time started to run from the date the purchaser paid the booking fee. In other words,
        the developer is to deliver the vacant possession of the property within 24 months from the date of the sale
        and purchase agreement or the date of payment of the deposit, whichever is the earlier.

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