The landmark decision last Tuesday by the apex court which ruled in favour of 104 house buyers has wide implications on the property and lending sectors, Property Real Estate Lawyers Association said. Association president Datuk Pretam Singh Darshan Singh said: “Developers have been given extension of time to complete their projects under various circumstances. There are serious implications if every developer granted this extension due to certain circumstances are being sued for liquidated ascertained damages (LAD).
" If the developer has not budgeted for this type of claims because they have always been under the impression that the approval given to them was valid, and now all of a sudden, they have house buyers making a claim, it will affect the developer and the end financier, ” Pretam said.
“Therefore, that decision affects both the property and the banking and lending industry. The implications are wide, ” he said.
The next question to ask is whether last Tuesday’s decision has retrospective or prospective effect, he said. However, he conceded at either end, they may produce their own brands of injustice. Nonetheless, the four guidelines are important.
Between 2014 and July 2019, the ministry granted extensions to 523 out of 678 applications, or 77%. On a yearly basis, this works out to approvals in the high 70% range, with an 87% approval rate in 2014.
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