Q: Dear StarProperty,
I have a query that I wish to post to National House Buyers' Association (HBA), I have recently purchased a condo from a developer where my financing amount is 70% of the selling price.
I paid the first 10% upon signing of the sale and purchase agreement (SPA) and as the construction has moved along, I expect to pay the remaining 20% progressively.
Recently the developer sent me a letter requesting for payment of 10% without any progress report which should be certified by an architect and requested for an immediate payment.
When I go through the SPA , the payment should be progressive based on a schedule of construction and there is a 14-day grace period upon receipt of the progressive payment letter from the developer to make payment.
I disagree with the request for the payment and have replied to the sales person who was serving me to check.
As this is not my first condo purchase , my experience is that developers always send an architect-certified progress report for stage payments.
I hope you can assist with my query.
CJ
A: Dear CJ,
It is a pre-requisite that any developer's request for progressive payment, save and except the deposit, must be supported by a certificate signed by its architect or engineer confirming that the stage work has been duly completed.
On the assumption that your sale & purchase agreement is in the format of Schedule H, this requirement is stated in Clause 4(2).
The period for payment is not 14 days (as stated by you) but 21 working days as can be seen from item 2 of the Third Schedule. Please read and understand the terms and conditions in the agreement for its full effects.
If you are still in doubts, you may visit us during our ‘Meet the Public Sessions’ that is held on Saturdays from 1pm – 5pm at our Secretariat. Our next opening is on July 27 2013. Our free service for nice people only!
The National House Buyers Association (HBA) advice centre is at 31, Level 3, Jalan Barat, Off Jalan Imbi, 55100, Kuala Lumpur.
Chang Kim Loong, honorary secretary-general of the National House Buyers Assocation
More info from 012-3345 676, 03-21422225, info@hba.org.my, www.hba.org.my.
