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Facing Housing Delays in Malaysia? Know Your Legal Rights

Facing Housing Delays in Malaysia? Know Your Legal Rights

Purchasing a new property is a major financial milestone. However, delays in receiving your keys—known legally as Vacant Possession (VP)—can cause severe financial stress. [1]
If your developer delivers your property late, Malaysian law protects you. However, you must make a critical legal choice. A landmark Court of Appeal case outlines exactly how you can proceed.
The Legal Precedent: Araprop Development Sdn Bhd v Leong Chee Kong
In the case of Araprop Development Sdn Bhd v Leong Chee Kong & Anor [2008], the Court of Appeal clarified the rules for housing delays. The court ruled that aggrieved buyers have a right to legal remedies, but they must choose one specific path.
You cannot claim two conflicting outcomes at the same time.
Your Two Legal Options Explained
When a developer breaches the timeline stated in your Sale and Purchase Agreement (SPA), you can choose one of the following paths:
  • Option 1: Terminate the Agreement. You cancel the contract due to the breach. You walk away from the property and seek a full refund of your payments.
  • Option 2: Claim Late Delivery Damages. You keep the property. You sue the developer for Liquidated Ascertained Damages (LAD) to compensate for the delay.
Why You Must Choose Wisely
The law states these remedies are mutually exclusive. You cannot do both.
For example, you cannot terminate the contract to get your money back, and simultaneously demand LAD payments for the delay. You must commit to a single course of action. Choosing the wrong path early on can jeopardize your entire legal claim.
How a Lawyer Helps You Decide
Every housing dispute is unique. Determining the best financial and legal route depends on your specific situation. A property lawyer will help you:
  • Calculate your exact LAD. Figure out the precise compensation the developer owes you.
  • Assess developer solvency. Ensure the developer has the financial means to refund you if you terminate.
  • Review your SPA. Identify strict deadlines and notice requirements you must follow.

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