News: Property Lawyer: Buyers Of Collapsed Condo Should Be Allowed To Opt Out

Feb 17, 2020

Property lawyer Salkukhairi Abd Sukor said condominium buyers of the collapsed Taman Desa project must be given the choice to opt-out of their purchase agreement or proceed with the purchase. 

It can be recalled that part of the sixth floor of the said project collapsed while the swimming pool was under construction on Friday, 14 February 2020.

Salkukhairi opined that the standard sales and purchase agreements have no automatic cancellation provision in case a building under construction collapses, reported Free Malaysia Today.

But if the project developer agrees to allow a buyer to cancel, both parties must execute a termination and settlement agreement.

“Such an agreement will detail the rights of the buyers, including the return of payments made and their rights to compensation and so on,” he explained.

Read here: What Are The Legal Steps A Homeowner Can Take If The Property Was Destroyed?

He also urged the government to intervene so that the buyers’ rights will be protected.

“Building safety cannot be taken lightly and the developer and authorities must look at this seriously,” added Salkukhairi, who also serves as deputy president of the NGO, K-Literasi.

Buyers who wished to proceed with their purchase must also be given a detailed explanation and be assured that the building will be safe to reside in the future.

Meanwhile, Housing and Local Government Minister Zuraida Kamaruddin noted that the sales license of the developer was suspended until investigations are finished.

A stop-work order was also issued to the contractor of the 37-storey condominium.

In this regard, Salkukhairi suggested that banks should likewise suspend loan repayments by buyers, considering the suspension of the sales license.


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Keith Ng
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Prestige Realty
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