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Developers must pay compensation for delayed projects before Covid-19

February 19th, 2021 Leave a comment

minister-zuraidaThe exemption for the extension of time (EOT) as stipulated in the Covid-19 Act (Act 829) involving the Housing Development (Control and Licensing) Act 1966 is only applicable for housing projects that were supposed to be completed between March and December last year.

Housing and Local Government Minister Datuk Zuraida Kamaruddin said for any delayed projects which were supposed to be completed before March 2020, developers are still required to pay compensation or the liquidated ascertained damages to buyers.

“We provide this exemption for Covid-19 from March until December 2020. Only for that period. Other than that, they have to pay compensation.

“However, for delayed projects this year, we can consider [to provide an exemption] but they must have solid reasons. The consideration is only up to March 2021,” she said at a news conference after handing over the keys to house buyers of Taman Seri Molek Perdana Phase 1 and PPR Taman Perling, Johor here today.

Zuraida was commenting on whether the exemption for compensation payments allocated under Act 829 is also applicable to housing projects which were supposed to be completed before the Covid-19 pandemic hit the country.

The Covid-19 Act involving the Housing Development (Control and Licensing) Act 1966 is part of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (COVID-19) Act 2020 passed in Dewan Rakyat in August last year.

Under this act, developers are given temporary protection for delayed works due to the movement control order (MCO) since March 18, 2020, including that they cannot be sued by buyers or banks for failing to complete their projects according to schedule.

Source: EdgeProp.my

 

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  1. jack
    February 22nd, 2021 at 18:05 | #1

    Covid-19 relief bill has just been gazetted last year, stating that developer doesn’t need to pay for period that covered MCO-CMCO.

    Don’t just say only, if she really means it then she has to make sure the law agrees with her statement as well.

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