THE Federal Court ruling which requires property developers to calculate late delivery charges based on the date developers accept buyers’ booking fees is expected to impact the property development sector negatively.
Known as Liquidated Ascertained Damages (LAD), the apex court made three landmark rulings regarding late deliveries of properties between developers and house buyers.
>That late charges be calculated based on the date when booking fees were paid by the buyer and accepted by the developer.
> That late charges be calculated based on the sales and purchase agreement (SPA) and not the rebated/discounted lower amount.
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