Hello,

First time home buyer here.

I received an invoice from the developer for the interest chargeable on the late settlement for the first progressive claim by financier Maybank.

1. Am I liable for the interest charges for the late settlement from Maybank?
2. Do I have to pay for the interest charges separately or Maybank will settle it?

Yes liable

Seems unfair, no? I was not aware of the late settlement by Maybank.

Usually you be notified as well on the progress made / milestone achieved, so developer claiming progress payment (for residential project). Have you back track which point delay has come or causing this delay ?

I'm in a similar case as you (different bank), but because the late settlement was due to developer delay in MOT, hence funds was delayed from bank side. I'm able to waive off interest charges from the developer, so it depends on the reason for your side.

When the notice of payment is issued, a copy will normally be send to the buyer and you should follow up from there. If you leave it to the lawyer and bank to resolve it, then any delay will be under your account as the buyer.

The SnP is between buyer and developer and therefore the buyer is responsible for all payments until the completion of the construction. The bank is your appointed paying agent which has nothing to do with the developer .... the loan agreement is between borrower aka buyer and bank.

As a buyer, borrower, you must be proactive in all matters relating to your property. Do not leave it to others to resolve any problems and ultimately everything will goes back to the buyer.

This post has been edited by mini orchard: Sep 9 2021, 05:42 AM

Check with the bank and developer. See where / how it went wrong.

Then, "request" for a waiver if possible from the developer. I'd assume that you were sent a letter each time they ask for progressive payment right?

So when you receive the letters, do you normally check your bank account on the release? You would know when the sum increased. If there were any delays, the letter from the developer and your bank statement would reflect it too (based on the dates of the statement and the letter - a lot of things can be figured out).

This post has been edited by digitalz: Sep 9 2021, 10:54 AM