Kuching Property & Finance Consultancy

I am sharing this information to address many misinformation that the Developer will be managing a project forever. In reality, under the Strata Management Ordinance 2019, the Developer will eventually be required to hand over the management of the project to the Parcel Owners who are appointed as a committee at the end of the day.

In summary, Developers do not manage the project forever. Ultimately, the control and management of the project rests with the Parcel Owners, who will be appointed as part of the committee. A different scenario might happen if the Developer has a unit in the project and was elected by the Parcel Owner to hold certain post.

What happens when you buy an apartment/townhouse/condo or any strata titled properties? By the way, this is only a summary based on the Strata Management Ordinance 2019.

1) Developer Management Period (DMP)

Once the project (I refer as Project X just for example in this case) is approved with Occupation Permit (OP), the Developer will be managing the estate for 12 months. Within the 12 months of managing the project, the Developer must convene Annual General Meeting (AGM) for the formation of Joint Management Body (JMB).

The formation of the JMB will be delayed if the quorum during the AGM is not successfully met. The Developer will be required to call for another AGM for the formation of the JMB.

2) Joint Management Body (JMB)

Upon the successful formation of the JMB, the Developer is required to hand over the management of the project to the newly formed committees among the Parcel Owners, one month after the JMB was formed.

The committees include position such as Chairman, Secretary, Treasurer and Committee Members. The Developer will be automatically be elected as the Committee in this case, either to be elected as Chairman, Secretary or Treasurer depends on the outcome of the election during the AGM.

JMB is formed in conditions when the strata title of the project is not issued yet. Registered Property Manager can also be appointed to facilitate the management of the project.

3) Management Corporation (MC)

Once the individual strata title has been issued and successfully transferred to the Parcel Owners (fulfilled 25% of the share units transferred to the Parcel Owners from the Developer), the Developer is required to call for AGM for MC within the 1 month period after the fulfilment of this criteria.

The formation of JMB will be ceased 3 months after the Management Corporation (MC) is successfully setup. Registered Property Manager can also be appointed to facilitate the management of the project.

Credited to: Slide provided by Ministry of Housing Sarawak

Note:
Please take note that this is just a summary and only be taken as reference.

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We are going to share some insights relating to disputes that happen in strata properties (apartment/condo/townhouse) as well..

Due to the rising disputes in strata properties, we have being asked on the possible violations and breaches happening in an estate.

Stay tuned.. 😊

I have placed a booking deposit for a new property and how do I know if my project is approved or not? Here is a few questions that you can ask your marketeer/salesperson:

1) Is the Building Plan for the project approved?

2) Is the project approved with Advertising and Sales Permit and Developer License (APDL)?

3) When can I apply for the loan for my unit?

If you decide to proceed with signing of Sales and Purchase Agreement (SPA) of the unit, ensure that the proposed building plan matches the layout you were shown at the time of booking, as there may be differences in the final design.

Additionally, if there are any delays in the handover of the project, keep your Booking Receipt and other relevant documents. You may be able to claim Liquidated Ascertained Damages (LAD) based on the booking date rather than the Sales and Purchase Agreement (SPA) date, which might entitle you to an extra two years of LAD for landed properties and three years for strata properties.

For landed properties, a two-year LAD claim amounts to 6% of the selling price (calculated at 3% per annum). For strata properties, a three-year LAD claim amounts to 24% (calculated at 8% per annum).

However, to successfully claim LAD based on the booking date, your Statement of Claim and supporting documents are very important. These will determine whether you can secure the additional LAD amount based on the booking date from the Developer.

Fb: Kuching Property & Finance Consultancy

Kuching Property & Finance Consultancy Provide professional consultation services related to property & financial industry. We consult Landlord, Tenants, New Home Buyers/Owners & Consumers & provide Tribunal Disputes Services. We are registered under Fifty Eight Business Solutions (No.119467).

One of the clients went to us and had booked for a property from a Developer which was sold before the Building Plan and Advertising and Sales Permit and Developer's License.

After our engagement, we managed to claim back the deposit without any administration cost charged by the Developer. Even if the Booking Form is signed and Deposit is placed to a lawyer firm, also no problem..

Therefore, if you have placed booking deposit already for the new project and it is not yet approved, do consult us.

We provide this service for you.

Thank you.

Fb: Kuching Property & Finance Consultancy

Kuching Property & Finance Consultancy Provide professional consultation services related to property & financial industry. We consult Landlord, Tenants, New Home Buyers/Owners & Consumers & provide Tribunal Disputes Services. We are registered under Fifty Eight Business Solutions (No.119467).

Thanks for your support and help in referring our services.. 😊

Claiming of Liquidated Ascertained Damages (LAD) for late delivery of handing over of your property by Developer

Come across a case where a Developer offered a total Liquidated Ascertained Damages (LAD) for a property amounting to RM3, # # #.XX. The reason was due to the LAD exemptions due to the Covid 19 bill.

After the client shared us the evidence provided, I discovered that the exemption of the LAD was actually not entitled for so many days, and I assisted the client to calculate the entitlement of the LAD. The end result is the client can claim for LAD of RM13, # # #.XX.

Therefore, please check thoroughly the total claimable amount of LAD before agreeing to the payment of LAD from the Developer. Between RM3, # # #.XX and RM13, # # #.XX is a total amount of RM10, # # #.XX, which is a substantial amount that will assist in repaying the clients mortgage repayment for at least close to 9 months if the monthly repayment is RM1,500.

Don't let your entitled cash just flew away.. Its all about hard earn money.

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Kuching Property & Finance Consultancy Provide professional consultation services related to property & financial industry. We consult Landlord, Tenants, New Home Buyers/Owners & Consumers & provide Tribunal Disputes Services. We are registered under Fifty Eight Business Solutions (No.119467).

Question:
I purchased an under-construction residential property from a developer under my company's name. Based on the terms specified in the Sales and Purchase Agreement (SPA), I am eligible to claim Liquidated Ascertained Damages (LAD). Can I bring this case to the Tribunal for Housing Purchasers Claims?

Answer:
No, if the property is registered under a company name, you are not eligible to file a claim for LAD through the Tribunal. The Tribunal is only available to individual purchasers.
Therefore, you will need to pursue other options to claim from the Developer, as the Tribunal is no longer applicable for your case.

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Kuching Property & Finance Consultancy Provide professional consultation services related to property & financial industry. We consult Landlord, Tenants, New Home Buyers/Owners & Consumers & provide Tribunal Disputes Services. We are registered under Fifty Eight Business Solutions (No.119467).

Soalan:-
Adakah kita sebagai pembeli rumah dari pemaju, boleh membuat tuntutan LAD (Liquidated Ascertained Damages) melalui Tribunal sebelum rumah siap dengan Occupation Permit (OP) sekiranya penyerahan kunci sudahpun lewat?

Jawapan:-
Ya, kita telah menemui kes di mana kes tuntutan pampasan LAD telah diluluskan oleh Tribunal dan pemaju juga telah membayar sebahagian besar amaun LAD yang telah dituntut oleh pembeli-pembeli rumah.

Namun, ianya telah mengugat keadaan kewangan pemaju dan menjurus kepada masalah projek sakit akibat tuntutan LAD yang besar. Perlu diingati pemaju masih memerlukan modal untuk menyiapkan kerja-kerja akhir dan deposit Road Maintenance Deposit adalah diperlukan selepas kelulusan Road and Drain Certificate diperolehi.

Sekiranya pemaju tidak mempunyai modal untuk deposit tersebut, pemaju tidak akan dapat terus kepada peringkat permohonan Occupation Permit (OP) dan ianya akan lebih merugikan pihak pembeli rumah dan merumitkan keadaan untuk pemaju menyiapkan rumah.

Jadi, pihak kita menyarankan para pembeli rumah untuk tidak membuat tuntutan dengan terlalu awal sebab ianya akan meningkatkan risiko tersebut. Buat tuntutan selepas pengambilan kunci dengan Occupation Permit (OP) untuk mengurangkan risiko dan ianya untuk kebaikan semua juga.

Customers who are facing inconsistencies or an unusual increase in billing charges may reach out by calling our Customer Care Centre hotline at 1-300-88-3111, emailing [email protected], chatting with our virtual agent CARINA, using the SEB cares app, or visiting the nearest Sarawak Energy Customer Service Counter.

Remember to have your Contract Account number ready so we can assist you promptly.

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Pelanggan yang menghadapi peningkatan jumlah bil yang ketara boleh menghubungi Pusat Khidmat Pelanggan kami di talian 1-300-88-3111, menghantar e-mel ke [email protected], berkomunikasi dengan ejen maya CARINA, menggunakan aplikasi SEB cares, atau mengunjungi Kaunter Khidmat Pelanggan Sarawak Energy yang terdekat.

Sila pastikan nombor Akaun Kontrak anda tersedia bagi memudahkan kami untuk membantu anda dengan kadar yang segera.

Many did asked on how to claim the Liquidated Ascertained Damages (LAD) based on the amount which is more than the eligible amount based on the Act, actually there is a way..

This is our commercial secret but this will definitely add extra funds into the purchasers pocket because it can pose a very big difference in the claim from Developer.

For cases of apartment, it can be an extra claim of 36 months and as for landed property, it can be another additional claim of 24 months. How much is the difference?

If the property is selling at RM350,000 for landed property, it can reach out to an additional amount of RM21,000 .. If it is a property for strata property, it can reach out to an additional amount of RM84,000 (Amount exclude LAD for common facilities completion).

For more information, can just let us know for free consultation. Thank you.

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Kuching Property & Finance Consultancy Provide professional consultation services related to property & financial industry. We consult Landlord, Tenants, New Home Buyers/Owners & Consumers & provide Tribunal Disputes Services. We are registered under Fifty Eight Business Solutions (No.119467).

The highest record for LAD (Liquidated Ascertained Damages) claim we have handled so far. Thanks for the client for the trust and thanks to the Developer for being cooperative..

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Tiang: Special taskforce to reduce number of ‘sick’ housing projects

We are also receiving feedbacks on certain 'sick residential projects'..

We hope that the Ministry of Housing Sarawak could look into this matter..

Under the Jurisdiction of Tribunal, Section 42(7)(a) and 42(7)(d) in the Housing Development (Control and Licensing) Ordinance, 2013, it stated that notice can be given to any financial institution or third party affected by the claim to be a party to the proceedings and the Tribunal can make award against the financial institution or the third party.

Cases of claiming Liquidated Ascertained Damages (LAD) from Developer can be very complicated sometimes.

As cases started to increase, experience also started to enhance to another level..

It also shows the reason why there are many dropped cases when purchasers are pursuing the cases by their own..

Question:-
Can a Purchaser of a Property actually claim for Liquidated Ascertained Damages (LAD) before the Occupation Permit (OP) is issued?

Answer:-
Yes, we received feedback from certain Purchasers on their claim that they have submitted to the Tribunal before the keys are handed over. Some were made in a very huge amount of claim, causing the Developer to failed in their cash flow before the Property can be even completed with OP.

As a result, the Purchasers are incurring loses which are worse and more than the total amount that they claimed for. We also received a feedback from the Purchaser who went to the Tribunal and made several confirmations on this issue, but we realized that the Purchaser was not informed about the possible risks of this to happen.

For us, we usually will advise the Purchasers to wait till OP is out and not to cause any disaster before the OP is out because the moment the Developer faces liquidation or winding up due to the tremendous amount of claim, the Purchaser will be at his losing end.

That is the reason why we never suggest LAD before the keys are handed over with OP to the Purchasers despite it could be approved by the Tribunal.

Lawyer accused of misapproprating RM1.5mil from property sales | New Straits Times AMPANG JAYA: A lawyer has been accused of misappropriating RM1.5 million in funds belonging to two clients for property transactions.

Thanks to the testimonial of the client.. 😊👍👍

Kepada penyewa rumah yang juga telah membeli rumah baru yang masih dalam pembinaan dan mengalami kelewatan dari pihak pemaju, anda boleh hubungi kami untuk mendapatkan maklumat lanjut mengenai cara pengiraan pampasan LAD (Liquidated Ascertained Damages) atau pampasan akibat kelewatan serahan kunci.

Kami juga menyediakan khidmat nasihat, termasuk tuntutan deposit daripada tuan rumah sekiranya deposit sewa tidak dipulangkan walaupun tiada tunggakan sewa, bil elektrik dan air telah diselesaikan, serta kontrak sewa tidak ditamatkan lebih awal.

Buat masa ini, kami hanya dapat membantu dalam kes yang melibatkan rumah sewa kosong tanpa sebarang perabot atau kelengkapan. Tuan/puan boleh pm kita sekiranya terdapat apa-apa pertanyaan.

Untuk maklumat lanjut, boleh pm kita. Sekian. Terima kasih. 😊

How the property investment works in a stagnant valuation condition:-

Assuming today you brought a property at RM450,000 and loan 90% which is RM405,000, whereby 10% is your downpayment. Loan rate assuming at 4.0% per annum. Monthly repayment is RM1,793.00 for 35 years.

10 years ahead, based on the mortgage calculator the loan outstanding is RM339,733.34. RM339,733.34 add with the downpayment placed is RM384,733.34.

Total monthly repayment for 10 years is RM1,793 x 120 months which is RM215,160. If the rental is RM1800, the total rental collection will be RM216,000, then the surplus at the end of the day is RM840 for 10 years, then it will be RM384,733.34 less RM840 which will be RM383.893.34. Assuming selling at the same price of RM450,000, the profit is RM66,106.66 as the monthly instalment is paid by the tenant. Rate of return would be 14.69% per annum.

Well, what if the opposite happens. The rental fell to RM1,500 due to too many units supply out for rental, the monthly deficit is RM1,793 less RM1,500 which is RM293 per month. RM293 made up to a total of RM35,160 at the end of 10 years. Hence, the total loan outstanding of RM384,733.34 need to add RM35,160 which made up the total of RM419,893.34. Therefore, the profit will be RM30,106.66. Rate of return would be 6.69% per annum.

Every RM100 deduction would affect the contributing to RM12,000 at the end of 10 years. A RM12,000 of RM45,000 is amounting to 26.6% equivalent to 2.66% per annum.

Not to forget, if this is a strata property, the calculation above have not included the cost of maintenance fee and sinking fund. Therefore, the reason why rental is part of the essential element to investment in property is due to this. While there will be many upcoming supplies in the next 3 years, the rental as of today might not be similar to the rental in the next 3 years due to competition. Not only rental, valuation depends on the market condition as well.

Like this kind of information, please like and follow our page as we continue to provide similar insights.

Types of price elements you need to know when investing in property.

1) Asking Price

Asking price might or might not match the market value. If you are buying above market value, means you need to fork out more downpayment to secure the unit as bank margin follows market value instead of asking price.

2) Market Value

Market value is determined by the licensed valuation company and is subjected to market conditions, property conditions as well as the nature of the property.

Property with negative factor would have certain impact on its valuation.

3) Perceived Value

A property having to match its market value does not really mean it is marketable when the seller is selling the property.

This is because the demand of the prospects in the market might have different perception on the property in terms of price although the market value matches.

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