Liquidated Damages Claim
Category : Buying Property in Malaysia Location : Selangor
I had some queries regarding the Liquidated Damages Claim. Please assist to advise.
I purchased a 3 storey house in year 2014.
According to the SNP agreement, I am supposed to receive my house 24months from the SNP agreement date which is 24 June 2014.
However, I had only received the "Notice of delivery of vacant possession dated 30th June 2016" on 12 July 2016.
Furthermore, I was informed by Developer that my house is NOT ready for handover yet as it was still ON_HOLD by Developer QAQC team due to several defects that need to be rectified. After several telephone follow-up and emails,then I finally received a memo to get my new house keys only on 08 August 2016.
According to the SNP agreement, since vendor failed to deliver the vacant possession of the said building within 24 calendar months from the agreement date, vendor shall be liable to pay to purchaser liquidated damages from the expiry date of the delivery of vacant possession.
This should be a liquidated damages claim as i need to begin serving the bank loan and yet i also need to incurred spending cost for my current staying place.
My argument is as below :
Expiry date of the delivery of vacant possession by vendor to purchaser : 24th June 2016
Date Purchaser take vacant possession of the said building (received the "the delivery of vacant possession by vendor shall be supported by a certificate of completion and compliance certifying that the said building is safe and fit for occupation and includes the HANDLING OVER OF THE KEYS of the said building to the purchaser", Pursuant to Clause 23 (2), the Sale and Purchase Agreement): 08th August 2016
Days Over: 45 days
Liquidated Damages claim: 10% X RM902,000.00 / 365 x 45 = RM11,120.55
However, Developer only agreed that the Liquidated Damages calculated to be paid amounting to RM5,189.59 which is 10% X RM902,000.00 / 365 x 21
Please advise whether I had the change to claim back the full Liquidated Damages Claim instead of Developer's offer of RM5,189.59 Thanks.
Khoo Lim Kiat
, 8/21/2016 3:16:47 PM