Deputy Minister for Public Health, Housing and Local Government II Michael Tiang said Kuching High Court’s decision on Liquidated Ascertained Damages (LAD) for late delivery of properties in Sarawak is considered fair for both developers and house buyers.

He also said that this issue should not be politicised.

Tiang was referring to the comments by Sarawak Democratic Action Party (DAP) chairman Chong Chieng Jen who called for a relevant amendment to the Sarawak Housing Development Ordinance regarding the late delivery penalty that favours developers over house purchasers.

Tiang said that was a complete baseless accusations.

He also said that the ministry could listen to constructing suggestions in formulating policies.

Unfortunately, he said there are opposition who opposed just for the sake of opposing.

The Pelawan assemblyman in a recent statement welcomed Kuching High Court’s decision that ruled LAD for late delivery of properties in Sarawak only starts from Sales & Purchase Agreement (SPA), not from the date of booking.

Tiang said the decision has come at the right time and has cleared the air of confusion among the developers and house purchasers in Sarawak.

He said High Court decision clarified that the booking is not a commitment or a contract.

Instead, it is only an option for the developers to buyers that they are interested to buy the properties.

He believed court’s decision protect the rights of both developers and buyers.

“The rule is simple; if the buyer has paid the deposit to the developer and in any event, the loan application was not approved by the bank, the buyers could ask for a refund of the deposit for this reason.

“And if the loan application was approved, the developer would proceed to ask the buyers to sign the Sales and Purchase Agreement and it would not take months as the politician have pointed out,” he said.

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