Daily Industry News Update (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

LAD definition made clear

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

Date of booking fees deemed as start of late delivery charges will force developers to review their sales plan

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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