SIBU: The recent Kuching High Court decision that Liquidated Ascertained Damages (LAD) for the late delivery of properties in Sarawak only starts from the Sales & Purchase Agreement is welcomed, says Michael Tiang (pic) .

       The state Deputy Minister of Public Health, Housing and Local Government II said that the previous Federal Court decision was of much concern to developers and house purchasers in Sarawak.

       “The High Court decision rightly interprets the Sarawak ordinance that the relevant provisions on the subject matter are not the same as the laws in Peninsular Malaysia,” he said in a statement on Thursday (March 24).

       The Pelawan assemblyman said the Federal Court in West Malaysia had ruled that the LAD starts when the house or apartment buyers paid the booking fee.

       He added that the High Court decision clarified that the booking is not a commitment or a contract, saying that it is only an option for the developers to buyers that they are interested in buying the property.

       “The real contract starts when the buyers sign the sales and purchase agreement,” he said.

       On Thursday (March 23), the Kuching High Court ruled that the Federal Court’s decision on the PJD Regency Sdn Bhd case is not applicable to Sabah and Sarawak.

       In the decision, the High Court ruled that while the previous case was decided under the Federal

       Housing Development (Control and Licensing) Act 1966 and Regulations, it is not applicable in Sarawak.

       He said though there are similarities in the wording, the Sarawak Housing Development (Control & Licensing) Ordinance 2013 are not on the same subject matter with the Federal Housing Act.