RM10.56mil Princess Cove ruling puts developers on notice

The High Court in Johor Baru has ruled that condominium developer R&F Development Sdn Bhd must pay RM10.56 million in compensation to 84 purchasers, marking a significant development in contractual disputes between developers and buyers. The ruling came after the developer split the original first phase of the Princess Cove waterfront project into two, leading to buyers receiving their keys while other parts of the development remained unfinished.

The court determined that the original Phase One completion date of November 2018, rather than the October 2017 key handover, should dictate the compensation period, awarding liquidated ascertained damages (LAD) to the 84 successful claimants for delays involving their units and common facilities, as well as refunds for maintenance fees and other charges.

However, claims involving 39 other units were dismissed, as the purchasers had signed their sale and purchase agreements after the building plans were amended. Property expert Samuel Tan described the decision as a landmark in purchaser-developer disputes, highlighting that unilateral amendments made without explicit buyer consent are invalid, and that delivery obligations extend beyond handing over individual units, particularly in integrated developments.

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