Housebuyers' rights: Builder turns gift into a huge burden
07/08/2007 NST By T.L.L., Muar

I BOUGHT a condominium and the sale and purchase agreement was signed with the developer in 1995. I took a housing loan to help me complete the purchase. At the time of signing the S&P agreement, I had paid 10 per cent as deposit and part payment of the purchase price. The agreement said the property would be completed within 36 months from the date of signing. To date, the project remains incomplete.

Three years ago, the developer asked me to sign a "recovery package" which served to revoke our rights to liquidated damages, revising earlier terms and conditions, etc But, I refused.

In breach of the provisions of the agreement, the developer had failed to hand over vacant possession of the property within the prescribed time. Also, the developer failed to service the agreed loan interest to the bank which resulted in: (i) my name being blacklisted in the banking world rendering me not credit-worthy; and (ii) I faced difficulty getting a car loan due to the blacklisting of my name.

The bank may need to restructure the loan by shortening the repayment period which will not be to my favour.

Twelve years have passed since the signing of the S&P agreement. As one of the aggrieved purchasers, I am aware of my rights to liquidated damages for late delivery of the property under the provisions of the agreement. The agreement among others includes a 15 per cent per annum rental return.

The property, initially meant as a gift from my husband, has become a liability and burden to me as he is no longer around. I am a single parent with school-going children.

I have written to the developer a proposal to forgo my rights as purchaser to liquidated damages under the agreement and to mutually terminate the agreement with the developer. However, there has been no reply.

On the other hand, the developer has recently contacted the bank for progressive payment as it has revived the project. Soon the bank will be coming after me for the loan repayment.

What can I do? Is there any government agency that can arbitrate such matters? I am sure many victims like myself are at a loss over what to do.