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 Collecting maintenance fees before VP, Q&A

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TStonyhawks20
post Jun 28 2024, 09:56 PM, updated 2y ago

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Hi all, been a while since I posted in Lowyat. I need advice on an issue I'm facing with a new condo I'm supposed to receive.

Might be easier to lay it out in a timeline. Please excuse the long post.

30 April 2024 - Condo developer supposedly sends out physical VP to my address, however I did not receive the letter as I was not present to receive the courier. Hence, I have no idea that the VP letter was sent out. (No notice or messages from courier company as well)
24 May 2024 - Condo developer sends an email informing me that the VP letter has been sent out, email has an attachment of the softcopy VP letter. According to the letter, progressive billing for my unit is dated on 30 April 2024, and advanced maintenance fee invoice dated is at 30 May 2024.
28 May 2024 - I reached out to banker to check whether my loan has been released to the developer (in order to collect our clearance letter and keys). Banker informed me that they have not received progressive billing from developer.
26 June 2024 - I reached out to developer to check whether the billing has been sent out to the bank. Apparently the sales person forgot to send it out on 30 April 2024, they just sent it out on this day, almost 2 month after they've sent out the VP.
28 June 2024 - Bank received billing and are releasing the money on this day.


So I've tried to reach out to the developer multiple times to defer/postpone our advanced maintenance fees as there were several delays due to errors from their side. But they still insist that I need to pay the 3-month maintenance fees dated from 30 May onwards.


In my SPA, in clause 27-2, it's stated that delivery of VP should include handing over of keys. While in clause 19-1, it's mentioned that the maintenance fees are charged only when I take possession of the VP.

user posted image

user posted image


So I'd like to ask whether it's still considered VP possession when the developer has not handed over the keys to me? And whether I can contest to defer the advance maintenance fees to a later date after I am offered the keys and clearance letter.

Appreciate any useful advice, thanks!
DragonReine
post Jun 29 2024, 08:36 AM

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Yes, considered VP.

Under your SPA per Housing Development Act, owner is deemed automatically taken VP 30 days after notice was sent by developer regardless of whether the process of VP was completed (keys taken etc.). Under the Manner of Delivery clause, it will be item (3). You received the email is considered a form of notice dy.

HDA also says purchaser is responsible to pay several months maintenance fees in advance from vacant possession. It's in SPA also, in the same clause as Payment of Charges etc.

This post has been edited by DragonReine: Jun 29 2024, 08:37 AM
TStonyhawks20
post Jun 29 2024, 10:00 AM

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QUOTE(DragonReine @ Jun 29 2024, 08:36 AM)
Yes, considered VP.

Under your SPA per Housing Development Act, owner is deemed automatically taken VP 30 days after notice was sent by developer regardless of whether the process of VP was completed (keys taken etc.). Under the Manner of Delivery clause, it will be item (3). You received the email is considered a form of notice dy.

HDA also says purchaser is responsible to pay several months maintenance fees in advance from vacant possession. It's in SPA also, in the same clause as Payment of Charges etc.
*
Hmm, so if developer purposely or unintentionally delays the billing to the bank to delay the collection of our keys, we can't do anything about it?
My billing was sent out to the bank almost 2 months after the VP letter was issued. By right it should be sent out on the same day.
DragonReine
post Jun 29 2024, 10:26 AM

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QUOTE(tonyhawks20 @ Jun 29 2024, 10:00 AM)
Hmm, so if developer purposely or unintentionally delays the billing to the bank to delay the collection of our keys, we can't do anything about it?
My billing was sent out to the bank almost 2 months after the VP letter was issued. By right it should be sent out on the same day.
*
The wording in HDA (which your SPA is based on) is quite specific:

QUOTE
Upon the expiry of X days from the date of a notice from the Vendor requesting the Purchaser to take possession of the said Parcel, whether or not the Purchaser has actually entered into possession or occupation of the said Parcel, the Purchaser shall be deemed to have taken delivery of vacant possession.


So as long as notice is given, even through the process of actually taking keys is not complete, you're deemed to have taken delivery of VP upon the expiry of that notice.
TStonyhawks20
post Jun 29 2024, 01:33 PM

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QUOTE(DragonReine @ Jun 29 2024, 10:26 AM)
The wording in HDA (which your SPA is based on) is quite specific:
So as long as notice is given, even through the process of actually taking keys is not complete, you're deemed to have taken delivery of VP upon the expiry of that notice.
*
Does it matter when the purchaser receives the notice? Or does the developer have a responsibility to ensure the notice is received on time?

Cause even though my VP notice is dated 30 April, I’ve only received the softcopy notice from developer on 28 May.
Because there was an issue with the courier, I had to go down to the developer’s office collect the hardcopy on 26 June.
DragonReine
post Jun 29 2024, 02:09 PM

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QUOTE(tonyhawks20 @ Jun 29 2024, 01:33 PM)
Does it matter when the purchaser receives the notice? Or does the developer have a responsibility to ensure the notice is received on time?

Cause even though my VP notice is dated 30 April, I’ve only received the softcopy notice from developer on 28 May.
Because there was an issue with the courier, I had to go down to the developer’s office collect the hardcopy on 26 June.
*
Yes and also yes. But because this is SPA/HDA related, direct talking to developer might not be enough to settle matters.

Get a lawyer (preferably your SPA lawyer) legal advice, and probably they will draft a nice letter requesting to adjust the maintenance fees advance payment, since you say that the developer side admitted that they failed to send the letter on time, and I assume you had proof that hardcopy was only collected late.

Developer more likely to listen if you do something through proper channel, especially if you have proof of their mishaps.

This post has been edited by DragonReine: Jun 29 2024, 02:10 PM
TStonyhawks20
post Jul 2 2024, 05:24 PM

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Follow up question:

Is there any property law that states a time limit of when developer must hand over the keys after VP?

From what I've found online, seems like developers can issue a VP notice and delay the handover of keys indefinitely, and it'll still be considered already under a purchaser's possession.
Correct me if I'm wrong!


My 24-month defect liability period has started since 30 May but I still don't have access to my unit to do any defect checks. And seems I'm not the only one, lots of other buyers facing the same delay. Not sure if this is the norm for most developers for Malaysian condos.



DragonReine
post Jul 3 2024, 12:29 PM

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QUOTE(tonyhawks20 @ Jul 2 2024, 05:24 PM)
Follow up question:

Is there any property law that states a time limit of when developer must hand over the keys after VP?

From what I've found online, seems like developers can issue a VP notice and delay the handover of keys indefinitely, and it'll still be considered already under a purchaser's possession.
Correct me if I'm wrong!
My 24-month defect liability period has started since 30 May but I still don't have access to my unit to do any defect checks. And seems I'm not the only one, lots of other buyers facing the same delay. Not sure if this is the norm for most developers for Malaysian condos.
*
The wording of SPA unfortunately usually does not specify "keys" within the needs for delivery of vacant possession, so as long as developer gave you a letter of notice that the parcel is ready for VP, it'll start count from there.

Unless developer can somehow cough up a reasonable explanation for key delays, however, you can seek legal advice on action to proceed how to get keys and access to your parcel.

 

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