0 [083.2018] HOMEBUYERS HAVE RIGHT TO BE HEARD BEFORE DEVELEOPERS ARE GIVEN AN EXTENSION OF TIME TO COMPLETE A PROJECT.

[083.2018]
HOMEBUYERS HAVE RIGHT TO BE HEARD BEFORE DEVELEOPERS ARE GIVEN AN EXTENSION OF TIME TO COMPLETE A PROJECT.

PETALING JAYA (March 30): The Ministry of Urban Wellbeing, Housing and Local Government must give homebuyers the right to be heard before developers are given an extension of time (EOT) to complete a project, the Court of Appeal ruled today.

The landmark decision will have far-reaching consequences for homebuyers whose properties are delivered late — as at April 3, 2017, the ministry had issued 304 EOTs to developers, without specifying the number of homes that fall under the affected projects, reported Malaysiakini.

“We are happy with the landmark decision by the Court of Appeal. The decision is a victory to all house buyers. It is in line with our mission of protecting the interest of house buyers. This is a matter of public interest,” National House Buyers Association (HBA) secretary-general Chang Kim Loong told EdgeProp.my.

“We brought this up because the Minister [of Urban Wellbeing, Housing and Local Government] had been led by the developers, who shared their alleged hardship, and request for EOTs on the threat of alleged possible abandoning of the project due to financial difficulties. Financial difficulties, if any, are a business risk. If you run into losses, do not pass the buck onto homebuyers."

The case was brought by 104 homebuyers against the Ministry of Urban Wellbeing, Housing and Local Government and developer BHL Construction Sdn Bhd.

This decision is the latest in a three-year legal battle by the 104 house buyers, who were represented by 12 lawyers with Datuk Andy Wong as lead counsel, who undertook the case pro bono.

The buyers filed the judicial review application on July 2016, challenging Regulation 11(3) and also the EOT issued on Nov 17, 2015.

Malaysiakini reported that a three-member panel unanimously ruled that homebuyers must be consulted before the developer applies for an EOT.

Court of Appeal rules that homebuyers must be heard before extension of time is applied

2018-03-30 17:01:33 The landmark decision will have far-reaching consequences for homebuyers whose properties are delivered late.

EDGEPROP.MY