Developer told to pay RM11,800 for late delivery

01/11/2007 The Star

IPOH: A magistrate’s court here ordered a housing developer to pay RM11,800 to a housebuyer as compensation for the late delivery of his house in Sungai Siput.

Magistrate Radzilawatee Abdul Rahman also instructed Ipoh View Sdn Bhd to pay factory worker K. Davagee the sum with interests and costs.

On May 4, 2001, Davagee, 49, had signed a sale and purchase agreement with Ipoh View to buy a double-storey terrace house in Taman Makmur for RM81,000.

According to the agreement, Ipoh View was to deliver the house within 24 months or pay Davagee an annual interest of 10% on the purchase price.

In Davagee's statement of claim, he said that the house should have rightfully been delivered on or before May 3, 2003 but the certificate of fitness (CF) for the property was only issued on Oct 13, 2004.

On March 10, 2006, Davagee issued a notice of demand for RM11,800 to the developer for late delivery.

He subsequently sued Ipoh View when it failed to heed the demand later that same year.

In its statement of defence, Ipoh View said vacant possession had been delivered on June 9, 2004 according to the terms of the agreement.

It was only late by 386 days and not over 800 days as claimed by the plaintiff, it added.

Ipoh View further claimed that vacant possession should not be calculated from the date the CF was issued.