KUALA LUMPUR – The Real Estate and Housing Developers’ Association (Rehda) Malaysia applauded the Federal Court’s decision yesterday regarding Prema Bonanza Sdn Bhd and Sri Damansara Sdn Bhd, which addressed and resolved uncertainties surrounding property delivery schedules.
Rehda Malaysia president Datuk Ho Hon Sang said the recent ruling provides a significant reprieve for the industry.
The ruling confirms that Regulation 11(3), which was found to be ultra vires in the Ang Ming Lee & Ors v the Housing and Local Government Ministry & Anor case in 2020, will not have a retroactive effect, thereby preventing possible negative impacts on the industry.
Another legal principle affirmed by the Federal Court, according to the statement, is the Second Actor Theory.
This principle holds that the second actor, who relied on the first actor’s actions even if they were unlawful, should not be penalised for executing the letter to grant an extension by the controller.
“As an association representing housing developers in Malaysia, we have continuously encouraged member and non-member developers to adhere to the law, both at the state and federal levels.
“These two developers have fulfilled their obligations according to the terms of the contract in the development of their respective projects, and the ruling today is a recognition of that.
“We would also like to reiterate that we are not in favour of unnecessary extension of time unless, for very valid reasons, developers must honour the terms in the contracted sales to deliver within the time allowed by the law.
“However, we are cognisant that despite our efforts, there may be a few developers who fail to comply with the rules and regulations properly, and we strongly urge them to change and undertake developments more responsibly.
“We need to ensure proper delivery of houses for the rakyat, as homebuyers will not be only victims should you fail to do so, but also the nation,” he added.
He also reiterated that Rehda will continue encouraging its members to uphold their role in nation-building by providing quality, affordable homes for the rakyat in a timely and sustainable manner.
Yesterday, the Federal Court rejected claims by home buyers seeking damages for late property delivery, aiming to prevent purchasers from unjustly enriching themselves.
The case involves buyers who purchased homes in 2012 with contracts stipulating a 54-month delivery period for their high-rise properties.
However, the Housing Development (Control and Licensing) Regulations 1989 mandate a delivery time of 24 months for landed homes and 36 months for strata properties.
The Controller of Housing, however, granted developer Prema Bonanza Sdn Bhd an extension of time.
On November 26, 2019, the Federal Court ruled in the case of Ang Ming Lee & Anor v the Housing and Local Government Ministry that the minister could not empower the Controller of Housing to grant developers extensions for property delivery. – July 27, 2024