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The date you pay your booking fee is the start date for late delivery compensation

The date you pay your booking fee is the start date for late delivery compensation.

The High Court in Malaysia recently confirmed this rule in a 2026 case called Sinerjuta Sdn Bhd v. Tribunal Tuntutan Pembeli Rumah [19]. This decision is a major win for home buyers who face long delays from housing developers.
Why This Case Matters to You
  • Bigger Payouts: You get more money because the clock starts ticking earlier.
  • No Developer Tricks: Developers cannot shift dates to avoid penalties.
  • Protects Buyers: The law protects your rights as a consumer.
The Core Dispute
A housing developer tried to argue that the 36-month countdown for handing over keys should start only when the official Sale and Purchase Agreement (SPA) is signed. They claimed the booking fee was just a temporary step.
The High Court rejected the developer's arguments. The judge ruled that a binding contract is made the exact moment you pay the booking fee. The formal SPA document is just a final detail.
What this Means for Corporate Clients and Litigants
If you are a property buyer dealing with a delayed project, you have strong legal backing to claim Liquidated Ascertained Damages (LAD) from the day you paid your deposit. Developers must follow this rule even if the booking receipt was issued by a third party or if the names changed slightly later on.

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