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> Overdue Defect Notice & Witholding Stakeholder Sum, Sample Letters

aaronpang
post Mar 7 2007, 05:43 PM


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I'm posting this separately coz I feel it deserves a topic of its own.

Anyway I hope I got it right if anybody is more experienced in this matter can comment and advice I'd really appreciate it!

1) Find out who is your stake holder?

You should have a letter from the developer informing who your stakeholders are.

2) Write a notice to withhold releasing the 5% stakeholders sum to the developer...

I don't warranty this letter to be correct because honestly I've never had to write one of these yet:-

A) Sample letter to the stakeholders. <<<Replace Information In Bracket>>>

» Click to show Spoiler - click again to hide... «

3) Send a copy of this notice together to your stakeholder and developer.

Try to send to the stakeholder by registered mail or in person hand deliver it, also bring along extra copies and get the stakeholder lawyers to stamp, date and sign acknowledgment of receipt.

It's better if you send it in by hand rather than have our reliable post service "Hilang" such an important document.

Then attach a copy to your developer with a cover letter notifying the developer they're not getting any money unless they fix your defects or you will fix it yourself and deduct the repair cost from the stakeholders share. Include a quotation for the cost of repairs when you send it to the developer and CC your stakeholder.

You can get a formal quote from your friendly PCK contractor loitering around any new housing area or calling the phone number on banners hung in front of newly renovated homes. Heck I've received some very professional looking quotations even from those chinamen type contractor. Majulah IT! thumbup.gif

B) Sample notice letter to the developer. <<<Replace Information In Bracket>>>

» Click to show Spoiler - click again to hide... «


edit: Updated the with notice letter to the developer & minor corrections brows.gif

This post has been edited by aaronpang: Mar 9 2007, 03:00 PM
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adrianocy
post Mar 8 2007, 10:56 AM


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this should be pinned up
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billytong
post Mar 8 2007, 12:03 PM


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Here is something that I would like to add on.

1. State which clause under S&P of your house that the developer fail to meet.

2. State the exact date the developer have to complete his defect.

3. Under your IC number put H/P contact number for easier processing.

4. Always keep yourself 1 copy for each letter you send. (with sign acknowledgment of receipt)
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adrianocy
post Mar 8 2007, 02:08 PM


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i found another useful website here...

http://www.botanicowner.com/Investor.html
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aaronpang
post Mar 8 2007, 06:20 PM


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QUOTE(billytong @ Mar 8 2007, 12:03 PM)
Here is something that I would like to add on.

1. State which clause under S&P of your house that the developer fail to meet.

2. State the exact date the developer have to complete his defect.

3. Under your IC number put H/P contact number for easier processing.

4. Always keep yourself 1 copy for each letter you send. (with sign acknowledgment of receipt)
*
Good suggestions will do... thumbup.gif

QUOTE(adrianocy @ Mar 8 2007, 02:08 PM)
i found another useful website here...

http://www.botanicowner.com/Investor.html
*
That's a really good letter much more legal sounding and very threatening nod.gif ... I'll edit (plagiarise) to look more like that laugh.gif

This post has been edited by aaronpang: Mar 8 2007, 06:22 PM
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EDK
post Mar 11 2007, 08:23 PM


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Good info. Thanks!
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X-Zen
post Sep 12 2007, 06:26 PM


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Thanks aaronpang. I will pm mod to pin this up also

Housebuyer unite against those blood sucking unscrupulous developer rclxms.gif rclxm9.gif
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hackwire
post Sep 12 2007, 08:13 PM


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what is stakeholder ? sorry for being a noob here .
what happen if defect liability period is over but the workmanship problem like wall begins to crack and cement fell off from the wall, leaking etc..
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X-Zen
post Sep 12 2007, 08:23 PM


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QUOTE(hackwire @ Sep 12 2007, 08:13 PM)
what is stakeholder ? sorry for being a noob here .
what happen if defect liability period is over but  the workmanship problem like wall begins to crack and cement fell off from the wall, leaking etc..
*
stakeholder is a 3rd party which holds the last remaining 5% of the money payable to your developer.

correct me if i am wrong
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hackwire
post Sep 12 2007, 10:42 PM


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that should be the Bank ?
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aaronpang
post Sep 13 2007, 11:53 AM


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QUOTE(hackwire @ Sep 12 2007, 10:42 PM)
that should be the Bank ?
*
Its the lawyers, typically your S&P lawyers! If I'm not mistaken... tongue.gif

This post has been edited by aaronpang: Sep 13 2007, 11:53 AM
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b00n
post Sep 13 2007, 01:23 PM


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QUOTE(aaronpang @ Sep 13 2007, 11:53 AM)
Its the lawyers, typically your S&P lawyers! If I'm not mistaken...  tongue.gif
*

who can confirm that?....I thought it's the bank's lawyer....
The bank would issue the last check/payout but it's not directly debited into the developer's account. The lawyer would held on to it until the specific time frame is over.

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vreis
post Sep 13 2007, 04:28 PM


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QUOTE(b00n @ Sep 13 2007, 01:23 PM)
who can confirm that?....I thought it's the bank's lawyer....
The bank would issue the last check/payout but it's not directly debited into the developer's account. The lawyer would held on to it until the specific time frame is over.
*
The bank Lawyer hold the last remaining 5%. If your S&P lawyer & the developer is separate entity then it will release to your S&P lawyer first before hand over to developer.
BTW bear in mind that some S&P lawyer couldn't care less about the last 5% & instruct bank to bank in directly to developer.
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aaronpang
post Sep 13 2007, 04:32 PM


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QUOTE(b00n @ Sep 13 2007, 01:23 PM)
who can confirm that?....I thought it's the bank's lawyer....
The bank would issue the last check/payout but it's not directly debited into the developer's account. The lawyer would held on to it until the specific time frame is over.
*
S&P doesn't involve the banks or their lawyers its an aggrement between you (the purchaser) and the developer (the vendor) therefore its typically your S&P lawyer... that holds the money in trust.

From my experience anyway the stakeholder was the S&P lawyer unsure.gif

I did some checking and this is what I've got from HBA

http://hba.org.my/HBA/Publication/guide_update.doc

And this is what's spelled out in the S&P

Building or in the common property have not been made good by the Vendor, the Purchaser shall be entitled to recover from the Vendor the cost of repairing and making good the same and the Purchaser may deduct such costs from any sum which has been held by the Vendor's solicitor as stakeholder for the Vendor and subject to subclause (2), the Vendor's solicitors shall release such costs from such sum to the Purchaser within fourteen (14) days after receipt by the Vendor's solicitors of the Purchaser's written demand.

Hope that helps!
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b00n
post Sep 13 2007, 04:58 PM


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thanks, because I forgot which document that I signed actually contained the "stakeholder withholding 5%" clause.
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X-Zen
post Dec 18 2007, 10:09 PM


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how long will the 3rd party (S&P lawyer) take to reimburse us back?

we need to pay our contractor first?
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aaronpang
post Dec 18 2007, 10:59 PM


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QUOTE(X-Zen @ Dec 18 2007, 10:09 PM)
how long will the 3rd party (S&P lawyer) take to reimburse us back?
*
Check my earlier post:-

the Vendor's solicitors shall release such costs from such sum to the Purchaser within fourteen (14) days after receipt by the Vendor's solicitors of the Purchaser's written demand.

QUOTE(X-Zen @ Dec 18 2007, 10:09 PM)
we need to pay our contractor first?
*
Yup you can pay your contractor first or make an arrangement with your contractor to remit payment after you're reimbursed. See lah how you nego with your contractor rolleyes.gif

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X-Zen
post Dec 24 2007, 10:31 AM


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QUOTE(aaronpang @ Dec 18 2007, 10:59 PM)
Check my earlier post:-

the Vendor's solicitors shall release such costs from such sum to the Purchaser within fourteen (14) days after receipt by the Vendor's solicitors of the Purchaser's written demand.
Yup you can pay your contractor first or make an arrangement with your contractor to remit payment after you're reimbursed. See lah how you nego with your contractor  rolleyes.gif
*
Thanks bro,

I hate to go this path but the developer really slow
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X-Zen
post Jul 9 2008, 04:25 PM


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QUOTE(X-Zen @ Dec 24 2007, 10:31 AM)
Thanks bro,

I hate to go this path but the developer really slow
*
dear all,

just to update - finally the developer rectify back all after I write to their lawyer and bar council

thanks to all


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cantdecide
post Jul 28 2009, 12:09 AM


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Hi all,

Does this apply to you just gotten the key to your new house or it applies also to defect that pops up after,say, 2 years?

Please advise or point me to a post to get more information as I am in a very big issue now. The owner upstairs is not taking his responsibility to fix the water leaking issue at my apartment. This is *darn* frustrating.

Please help.

Thanks.
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ppldmc
post Sep 14 2009, 04:53 PM


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My developer is having the denial / indecisive attitude regarding my defect list complaints....one of the defect item about outdoor paint peeling off (actually it happens to the whole block of few 2-storey houses...), the developer keep dragging the issue....and even saying that it is 'CAME AS IT IS/PART OF THE DESIGN'....'YOU SEE WHAT YOU GET'....

Shouldn't outdoor paint peeling also part of normal defect that developer should fix??? Just wonder why todays developers quality getting bad to worse...and worst....

Should I have to go down this path....get the withholding stakeholder sum and get it repaint? (such a simple job for them....)
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howeijie
post Mar 3 2010, 11:52 PM


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I am having the same problem with Equine Property.


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aaronpang
post Mar 22 2010, 10:22 AM


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If it's after DLP or if the stakeholder funds have been released the above does not apply...

Anyway if it's the upstairs apartment leaking you'll have to complain to the Management Office of your apartment.

They will investigate and if the leak is due to the upstairs apartment then your upstairs neighbor will have to fix it. On the other hand if the leak is from a common pipe etc the management office is responsible.
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luvjim
post Jul 28 2010, 03:20 PM


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QUOTE(adrianocy @ Mar 8 2007, 02:08 PM)
i found another useful website here...

http://www.botanicowner.com/Investor.html
*
Thanks.

Very useful website to guide on write proper defects list and complaint letter.
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redwin
post Oct 12 2010, 10:06 PM


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Oops! Google Chrome could not find www.botanicowner.com

QUOTE(luvjim @ Jul 28 2010, 03:20 PM)
Thanks.

Very useful website to guide on write proper defects list and complaint letter.
*
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kok_pun
post Oct 14 2010, 12:28 PM


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my kuchai avenue takes 2 months to fix all the defects
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shihyao
post Nov 9 2010, 04:35 PM


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Can I claim 5% from stakeholder lawyer or developer if certain damage caused by developer during the rectification work. The rectification works involve: -

1. Break the plaster ceiling to fix water leaking at ceiling.
2. Hack the wall and replace missing air-cond copper hose.
3. Replace floor tiles at living room and bed rooms

My concern is how can I claim the developer if they spoil my plaster ceiling, furniture and make dirty on my wall?

I have research on internet and found no information. Hope you all may give me advise.

Thank you.
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mohag
post Nov 20 2010, 09:10 PM


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Good info here... getting my keys soon. Don't know what to expect yet...
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pgsiemkia
post Jan 7 2011, 02:53 PM


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QUOTE(shihyao @ Nov 9 2010, 04:35 PM)
Can I claim 5% from stakeholder lawyer or developer if certain damage caused by developer during the rectification work. The rectification works involve: -

1. Break the plaster ceiling to fix water leaking at ceiling.
2. Hack the wall and replace missing air-cond copper hose.
3. Replace floor tiles at living room and bed rooms

My concern is how can I claim the developer if they spoil my plaster ceiling, furniture and make dirty on my wall?

I have research on internet and found no information. Hope you all may give me advise.

Thank you.
*
Hello, the developer will have to repair the damage done during the defect rectification. They are bound by the clause whereby the 5% cannot be released until all defects are rectified. The lawyers holding the money is the S&P lawyers (who are acting for the developers), please do not go to the wrong lawyers..

The warranty period is 2 years and any more than that, you will need to show proof that the damage was caused by the developers themselves and not by tenants doing renovation. The law is a bit susah here (think Highland Towers) as the process can be very lengthy, so its best to spot the defects immediately but some are not so evident like properties built on landfill and mining pools or near slopes. shocking.gif doh.gif

Also not easy to claim the 5% from the lawyers as they are working for the developers (cos most developers pay the legal fees for you, I would be suspicious) so its better to ask them to repair it themselves and not allow the 5% to be released, a cc to the Bar council and the Housing Ministry, complaints department is a better bet. thumbup.gif

Also before you collect the key, make sure that the developer has a checklist or you can do one yourself and if not all is 100% marked off, then do not accept the key and ask them to rectify the problem. Any delays by the developers and they will have to pay a late delivery penalty, so you need to remind them..usually first time developers. The more experienced ones will have a proper checklist and a site clerk/supervisor to attend to you and not just a foreigner passing you the keys. rolleyes.gif

Reminder : Please change the front door lock or get a grill installed before you start any renovations/installation of lights and fan as the guy fixing the locks can never be trusted. whistling.gif

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Sophieb
post Apr 20 2011, 10:41 PM


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QUOTE(luvjim @ Jul 28 2010, 03:20 PM)
Thanks.

Very useful website to guide on write proper defects list and complaint letter.
*
Yep, nice website, thanks for the link.
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anjakan_putera
post Aug 2 2011, 02:11 AM


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I have some i question apprecite you guys can share your experiance.
1. Can I move in to my apartment eventhough the rectification work has not been start ( after 30 days from defect list been made). Assume developer still can repair eventhough we had move in.
2. Or is it adviseable if wait for another 14 days for developer to fix it.


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Oaks
post Dec 6 2011, 02:57 AM


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Hi! Guys, you have experiences for owner's internal individual unit. Usually the owner himself will be responsible to inspect and accept the defects in his own unit. What about the defects on the common areas such as car parks, corridors, lifts, gym, external facade wall, etc? What or who will inspect/ audit and push the dev to rectify the defects? (before the JMC is formed). After all, it affects every owner.

Sure, they will tai-chi that to the management and vice-versa. Which channel should we go to?

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RVP11
post May 16 2012, 10:07 PM


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hi all,

Sorry to interrupt you. does anybody know any developer firms are practicing build then sell (BTS) concept (not necessary all the housing projects, but some) in housing development? .it help in my final year project.

Thank you.

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DrTay
post Sep 9 2012, 12:56 AM


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Dear Legal Experts and Proerty Experts,

I have a major dilemma here that I hope you can help me. I bought a high end condominium in Feb 2011, and moved in Dec 2011. A week after that, my bathroom was flooded with sewage water that flown out from the shower drain in my bathroom. I am staying on the first floor. Because it was weekends, the developer didn't send in their plumbers to rectify it immediately. I had to than a few days of this shit and urine in my bathroom for 2days before they came in and cleared the waste. And upon investigation, they blamed it on the contractors above my units who might have thrown rubbish into the drain and caused the blockage. During that time when the plumber was checking the piping in my house, he kept mumbling that the developer used cheap labour and cheap materials that's why so any problems. I couldn't sleep well the few nights, i stayed in the unit regardless, cos i feared that the Waste would flow out of the bathroom and damag my bedroom.

I thought after they cleared the rubbish that had clogged the drain, everything will be fine. But after a few days, it happened again! Same shit problem! I wrote to the director of the developer, she replied it is normal fr the first floor unit to kena this problem. After they cleared the debris and changed the pipes, they said they won't promise it won't happen again.

I got phobia after that incidents. I did not dare to use the bathroom, cos I feel that it's so unhygienic and unhealthy to use a bathroom that was flooded with human waste. I did not even dare to sleep in the master bedroom because every time I hear water noise, I will freak out and worried that same shit problem happen again. So, I moved to a second bedroom and leave the master bedroom unused. Imagine how sad I was paying 790k, but I didn't use the master bedroom or the bathtub that I have been longing to use.

A few nights ago, which means 9months after, same shit happened again. But this time is worst. I came home and even before I reached my door, I smelled urine and shit, and I could see sewage water flowing out non stop from my house!

It flooded my house! It contaminated my whole house including the bed, wardrobe, electrical items, kitchen, timber floorings, and etc.

I called the person in charge on his cell, he said its 10:30pm, he can't do much, the plumber won't come, he asked me to wait until next day, but he couldn't promise what time of the day.

Damn it, my neighbors came and helped me, we alerted the security guards, and they informed the management. The maintenance team from the management team came and took a few hours, before they managed to help me to unclog the pipe below. Me and my neighbors had to sweep out the human waste out if my unit.

I called the bloody developer rep the next morning, she said nobody informed her of anything. I sent an email to them and the director two hours before I called. She said we can't check the mail because the secretary only has the access to the email, and that the director is not in the office.

After I scolded them, she finally sent the plumber in and took a look, but he didn't give me an definite answer or solution. The developer didn't reply me either since then. Not even regarding the denying fees that I had to fork out.

I am devastated. None of my friends can help me in the legal advice. The lawyer friends said they are not expert in this.

Please help me guys.

Not to mention, it's has been 3weeks that they ignored my complain about the water leaking in my second bedroom wall, even after I threatened to bring this issue to public. I wrote almost 10emails but none was replied.
Please help me.
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nookie188
post Sep 9 2012, 06:07 PM


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[quote=DrTay,Sep 9 2012, 12:56 AM]
Dear Legal Experts and Proerty Experts,

......

unquote

oops - i posted a reply in another section..

anyway, your answer is right here! smile.gif inform the lawyer /stakeholder in writing to hold back the 5% and this will force the developer to do something about
your problem as this 5% is NOT a small sum...all the best and do come back and let us know the outcome..
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DE.si.MON
post Sep 19 2012, 11:54 AM


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anyone know if the last payment 5% will only release to developer after 18month or after VP? Still within the warranty period. Warranty period start on VP date?
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jack2
post Oct 2 2012, 09:05 PM


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If the defect notice has overdue and past 2 years whereby developer has no responsibility on any further defect, if there is water leaking from toilet and affected downstair owner, who should be responsible for the repair cost?
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alex_cyw1985
post Oct 2 2012, 09:08 PM


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warranty over.

you, management and another owner should sit down and discuss to fix it.
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jack2
post Oct 2 2012, 09:12 PM


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QUOTE(alex_cyw1985 @ Oct 2 2012, 09:08 PM)
warranty over.

you, management and another owner should sit down and discuss to fix it.
*
Really?

My friend kena this whereby his downstair owner said if my friend didn't repair, he will ask lawyer to issue demand letter for the repair.

This post has been edited by jack2: Oct 2 2012, 09:13 PM
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JingeBeLLLL
post Nov 22 2012, 04:13 PM


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Hello! I'm having an issue with my housing developer.
I've submitted my first defect checklist to them and they took about 3 months to settle all matters before I decided to make claims from the stakeholders.

Thought I can proceed with my renovation as I couldn't afford to wait anymore and yet other major problems popped out. Filed complain 3 weeks ago and no rectification has been done yet to date.

This is still within the DLA period. What other measures can I take? I have to start renovating, am planning to move in by the end of this year. ANY SIFUS HERE PLEASE ADVISE ME. icon_question.gif icon_question.gif
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llcoolj
post Mar 6 2013, 10:31 AM


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That is normal trick by developers...
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koinibler
post Mar 6 2013, 11:24 PM


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It seem that there's more question than answer in this thread.
But I still post my problem/dilemma here and press my luck somebody can enlighten me.

I already received a letter for "Delivery of Vacant Possession" dated Dec 17, 2012. Also stated here must VP in 14 days, else after that not liable to any loss or damage. Call the developer to make an appointment, but the developer said that my financier still not settles all outstanding sum. Only settle all can only can collect key. Also mention that must wait call from them to pickup the key only then make appointment.

So, the 'Delivery of VP' letter here is already contradict.

On Feb 27, 2013 my financier already release all the sum payment.

Does this mean that my warranty of 2 month ++ already lapse from the 18 month? icon_question.gif

First timer here...
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Mspot
post Mar 7 2013, 04:49 PM


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Hi guys,

Would appreciate some advice on this frustrating situation that I'm facing. Bought a new property, and had a number of defects. Its has been almost 6 months since I reported the defects but the developer still have not completed most of them, despite numerous calls and emails.

Apart from from threatening them with an ultimate dateline, and there after I fix the defects and claim it from them, is there other alternatives? I'm concerning that doing this will open up a new can of worms, where they will no longer be responsible for other defects after that, and also that they delay the reimbursement of the claims indefinitely.

Will sending official letters to the developer and cc to the housing ministry and other authorities help to keep the developer on their toes?

Really appreciate your advise as I have ran out of ideas.

I posted this on another topic but no reply sad.gif. Please help.
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Maylam
post Aug 20 2013, 10:11 PM


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I bought a property from SSF developer, and many defects from water leaks, crack walls, under ground pipe leaks. I have also been chasing for the defects to be fixed. Now coming up 24 months and defective leaks have come back. Chasing them at the mo but their attitude now it has been fixed previously and anything else is outside of warranty. What else can I do? The defects have not been permanently fixed due to poor quality methods used and it is reasonable to chase them to rectify permanently.

The SSF staff have really bad attitude once you have paid and bought the property they will ignore your emails and phone calls. When at times they do pickup the phone they will try and wriggle out from their responsibility either by delaying or saying contact their lawyers . This kind of developer really give the Malaysia property industry a really bad name. Are they trying to cheat the customers by building poor quality houses and sell them at luxury prices?

This is the worst experience I have ever had buying property and I warn anyone who is considering buying from SSF. One word, DON'T!

Any ideas what else can I do? vmad.gif
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Maylam
post Dec 30 2013, 09:29 PM


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The developer have fixed the defects, but after 3-6 months the water leaking come back again, at the same area. Fixed again, then come back again. Now developer ignore the defects complain, and said the warranty is over. The leaking cost the water bill RM 1300, I claim the developer , but they just ignore, not reply my email , not answer my call etc....
I really angry with this SSF developer, please advice how could I make I complain to housing board, and any suggestion ? Please advice.
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