INDUSTRY NEWS (23 JANUARY 2021)
LAD to be calculated from collection of ‘booking fee’ — Federal CourtLate delivery charges may be a thorny issue
By common practice, in Malaysia, developers have been collecting booking fees ranging from a few hundreds up to 5% of the property prices. However, the question is, in case of late delivery of vacant possession (VP), can the purchaser claim liquidated ascertained damages
The Federal Court ruling which requires property developers to calculate late delivery charges based on the date developers accept buyers’ booking fees is expected to impact the property development sector negatively. Known as Liquidated Ascertained Damages (LAD), the apex
Developers may not be in such a rush to collect booking fees in the future following a recent Federal Court ruling that not only is such a practice expressly prohibited by the law, but perhaps more crucially, that the calculation for late delivery of a house commences from the
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