REHDA Malaysia welcomes Federal Court’s ruling involving the delivery period of properties in Prema Bonanza Sdn Bhd and Sri Damansara Sdn Bhd case

• REHDA Malaysia president Datuk Ho Hon Sang: “We would also like to reiterate that we are not in favour of unnecessary extension of time unless for very valid reasons, developers must honour the terms in the contracted sales to deliver within the time allowed by the law."

KUALA LUMPUR (July 26): The Real Estate and Housing Developers’ Association (REHDA) Malaysia welcomed the Federal Court’s ruling on the cases involving Prema Bonanza Sdn Bhd and Sri Damansara Sdn Bhd on Friday, which removed the uncertainties in the determination of the delivery period of properties.

A press statement issued by REHDA Malaysia president Datuk Ho Hon Sang said the ruling is particularly a reprieve for the industry, as it is now established that the regulation 11(3) which was declared ultra vires in case of Ang Ming Lee & Ors vs Menteri Kesejahteraan Bandar, Perumahan dan Kerajaan Tempatan & Anor case in 2020 will not have retrospective effect, which otherwise would have been detrimental to the industry.

Another point of law which was affirmed by the Federal Court, the statement said, was that the Second Actor Theory applies, where the second actor who had relied on the first actor’s action albeit being unlawful — the execution of the letter to grant extension by the controller should not be penalised.

Ho said, “As an association representing housing developers in Malaysia, we have continuously encouraged member and non-member developers to adhere to the law, both at the State and Federal levels. These two developers have fulfilled their obligations, according to the terms of the contract in the development of their respective projects and the ruling today is a recognition of that.

“We would also like to reiterate that we are not in favour of unnecessary extension of time unless for very valid reasons, developers must honour the terms in the contracted sales to deliver within the time allowed by the law.

“However, we are cognisant that despite our efforts, there may be a few developers who fail to comply with the rules and regulations properly, and we strongly urge them to change and undertake developments more responsibly. We need to ensure proper delivery of houses for the rakyat, as homebuyers will not be only victims should you fail to do so, but also the nation,” he added.

Ho also reaffirmed his stand that REHDA will continue to encourage its members to uphold its nation-building role of providing quality, affordable homes for the rakyat in a timely and sustainable manner.

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