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 Covid19 and MCO effect on properties, Q&A Session on the effects

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DavidKool
post Apr 15 2020, 11:17 PM

On my way
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Joined: Jun 2012
QUOTE(TANMY13 @ Apr 15 2020, 09:21 AM)
Had purchased a property at January, then happened the lockdown. Dont have much update from the property and agent side.

Any guru know if continue like this to may or even longer, will it effect the completion? If delay, will it consider can get penalty?
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No guru would knows better than your developer or seek advise from your SPA lawyer.

If our Mco is continuing to May or even longer, it will impact the construction period but not necessary affect the completion (maybe yes or maybe no) because they follow by law, regulation or any Act by the Federal Government to pause all the construction works that beyond developer's control.

In the SPA, developer needs to complete the property within the schedule period, example 36 months.
If the MCO delayed 2 months and after that, the developer able to rush back all the backlog within remaining period or the other buffer of 34 months, there are no delay.

If there are delay, the developer have to apply the EOT from the Authority and surely the extension is granted due to sanction was happened during MCO, it's up to the government. If your SPA stated a clause of force majeure, then the developer has no liable to pay the LAD for the cause of late delivery by this clause.

You need to check when is your property commenced the construction even though you just bought in January. If the project launched, constructed and started to sell one year ago, the developer will construct according to this schedule to avoid any LAD or delay, or at least minimized it, so in a nutshell those who bought one year later may probably not affected by the completion date due to SPA date is also late.

 

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