KUCHING: The Sarawak Housing and Real Estate Developers Association (Sheda) welcomed the Kuching High Court’s ruling in favour of RJ Realty Sdn Bhd on Thursday (March 24) with regard to the Sale and Purchase Agreement (SPA) signing.
Sheda president Augustine C H Wong said members were relieved with Judge Alexander Siew How Wai ruled that Liquidated Ascertained Damages (LAD) should be calculated from the signing of SPA.
“In Sarawak, the practice of giving and receiving booking fees enables purchasers to make informed decisions regarding property, without incurring heavy losses.
“The judge has recognised that the practice of accepting booking fees in Sarawak grants options to interested purchasers.
“Through the use of booking fees, purchasers are given the freedom to select their preferred units and to reserve their choice of property pending approval of housing loans.
“With a booking fee practice in place, purchasers will not need to worry about forfeiting a full 10 per cent deposit, in the event housing loans are not approved.”
Wong was further encouraged that Judge Siew distinguished the application of the Sarawak Housing Development (Control & Licensing) Ordinance 2013 from the Housing Development Act, which is applied in Peninsular Malaysia.
“Had the decisions of the Sarawak Housing Tribunal been allowed to stand, the impact would negatively affect the entire housing industry throughout Sarawak, to the detriment of genuine purchasers, who would bear the highest risk.”
Without the buffer timeframe provided by the practice of placing booking fees, purchasers would be required to sign their respective SPAs and immediately pay a non-refundable 10 per cent deposit to the developer, without knowing if their housing loans are approved.
