In April 2011, Chai bought an office suite, within a mix-used strata development, from ABC Development Sdn Bhd (“Developer”). As of June 2014, the Developer has not deliver vacant possession of the office suite to Chai.
Chai remembers it is provided under the law that Developer must deliver vacant possession of strata property to purchaser within 3 years from the date of sale and purchase agreement.
Upon contact, the Developer advised that vacant possession of the office suite will be delivered within 48 months from the date of the sale and purchase agreement. Chai is not satisfied with the answer and wishes to issue legal letter to demand for vacant possession.
However, only strata property for housing accommodation or residential purpose is governed under the Housing Development (Control and Licensing) Act 1966 (“HDA”). Whereas, sale and purchase of commercial property, in this case the office suite, is not regulated by HDA; and the sale and purchase transaction shall be governed by the contractual documentations entered between the purchaser and the developer.
Therefore, it is advisable for Chai to read through the sale and purchase agreement to determine Developer’s obligation in delivering the vacant possession of the office suite before taking any action thereof.
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