Malaysian developer ordered to pay $2.6M over luxury condo delays
A Malaysian court has ordered the developer of a luxury condominium complex in Johor Bahru to pay RM10.56 million (US$2.6 million) in compensation to buyers, including Singaporeans, over delays in completing their homes and shared facilities.
A Malaysian developer, R&F Development, has been ordered to pay $2.6 million to 84 luxury condo buyers whose delayed deliveries have left them frustrated. The Johor Bahru High Court found R&F breached its sale agreements by splitting the project's original phase into two, leading to some units being handed over before shared facilities were completed. The court also ruled that the remaining 39 units' buyers must pay R&F RM10,000 in legal costs each.
The developer's lawyer, Josiah Tea, plans to challenge the decision. The court's decision underscores the importance of developers fulfilling their contractual obligations, as R&F only met the handover deadline in November 2018, while most buyers took possession in 2017. Compensation for the delays was calculated based on the later date of completion.
One successful claimant, Crystal Ng, expressed her dissatisfaction, stating that the property was in disarray when she received her keys in October 2017. The court ordered R&F to compensate buyers for both their homes and the delayed shared facilities, with compensation rates set at 10% annually of each property's purchase price and shared facilities' purchase price.
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