SIBU: The Kuching High Court’s decision on Liquidated Ascertained Damages (LAD) for late delivery of properties in Sarawak is considered fair for both developers and house buyers, says the state government.

       State Public Health, Housing and Local Government II Deputy Minister Michael Tiang said, as such, the issue should not be politicised.

       Tiang then slammed Sarawak DAP chairman Chong Chieng Jen for making completely baseless accusations on the matter.

       "Unfortunately, there are Opposition (politicians) who oppose just for the sake of opposing," he said in a statement on Monday (March 28).

       Tiang was referring to Chong, who called for a relevant amendment to the Sarawak Housing Development Ordinance regarding the late delivery penalty that favours developers over house purchasers.

       The Pelawan assemblyman, in a recent statement, welcomed the Kuching High Court’s decision that ruled the LAD for late delivery of properties in Sarawak only starts from the Sales & Purchase Agreement (SPA) stage, not from the date of booking.

       Tiang said the decision has come at the right time and has cleared the air of confusion among the developers and house purchasers in Sarawak.

       He said the High Court's decision clarified that the booking is not a commitment or a contract.

       Instead, it is only an option for the developers afforded to buyers who are interested in buying properties.

       He said he believed the court's decision protected the rights of both developers and buyers.

       “The rule is simple; if the buyer has paid the deposit to the developer and in any event, the loan application was not approved by the bank, the buyers could ask for a refund of the deposit for this reason.

       “And if the loan application was approved, the developer would proceed to ask the buyers to sign the Sales and Purchase Agreement and it would not take months as the Opposition has pointed out,” he said.