Late delivery charges may be a thorny issue


According to Chief Justice Tengku Maimun Tuan Mat, (pic) people, including developers, are prohibited from collecting booking fees under Regulation 11(2) of the Housing Developers (Control and Licensing) Regulations 1989.

PETALING JAYA: The decision by the Federal Court on late delivery charges paid by developers to house buyers could be an issue for property developers, according to Maybank IB Research.

On Tuesday, Jan 19, the apex court ruled that developers must pay Liquidated Ascertained Damages (LAD), or late payment charges, based on the booking date instead on the formalisation date of the sales and purchase agreement (SPA).

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