Wednesday, August 31, 2011

Construction Failure

I bought an apartment costing $137,980.00 in 2004 in Malaysia. However until 2011 the apartment have not being completed and handed over to me. This sound familiar to numbers of house buyer or Property purchaser. I consider this a bad investment, I wanted to dispose this property but I am Not sure whether I can gain back my capital. What I know is, certainly not, because it is uncompleted property.

The above scenario is a scenario of failing construction or to be more accurate, failure in project management by the developer. This developer fail to delivered the property in time, they failed to pay the penalty of late delivery of the purchaser. This had resulted to the purchaser file in the winding up process on this developer. Know the developer is a bankruptcy.

However, the question is, will the purchaser get their property back if the development was finance by the bank? If yes how? How about the remaining of the purchaser who do not do anything or take any legal practice on the developer? Is there anyone who know how in the case of Malaysia legal law. There are number of claimant on the property. First the financier of the development,Second the group that lodge the winding up, third, other parties that had given the financial means to help the developer run their day in day out business and the last but not least the purchaser that had not taken legal action on the developer but instead signing the deeds of settlement that allowed the developer to complete the development within 8 months from the date of signing, however until this being publish here the deed of settlement was not stamped with stamped duty.

In this scenario who's fault is this?. Is it The developer, The Consultants or the Kementerian Pembangunan Perumahan Negeri Sarawak, Malaysia and their agency( because they failed to monitor and taken positive action in preventing this issue from happening).