To reduce the impact of Covid-19 in respect to housing development projects, the Sarawak Government had gazetted the following Covid-19 laws which makes modifications to the relevant housing development laws[i]:-
- the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Ordinance, 2020;
- the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Housing Development (Control and Licensing) Regulations, 2021 (“Regulations“); and
- Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Housing Development (Control and Licensing) (Extension of Period) Notification, 2021 (“Notification“).
1. Late Payment Interest (Regulation 3 of the Regulations)
The period between 18th March 2020 and 17th March 2022 is excluded from the calculation of late payment interest by the purchaser in respect of any unpaid instalment during the said period.
However, for the period between 1st September 2020 to 31st December 2020, the purchaser will need to apply to the Minister of Local Government and Housing Sarawak (“Minister”) for an extension for this period.
2. Vacant Possession and Liquidated Damages (Regulation 4 of the Regulations)
The period between 18th March 2020 and 17th March 2022 is excluded from the calculation of the time for delivery of vacant possession of a housing accommodation to the purchaser. Similarly, for the period between 1st September 2020 to 31st December 2020, the developer will need to apply to the Minister for this period of extension of time.
For the mandatory excluded periods and the approved extended period, the developer is relieved from paying liquidated damages as the period of construction and delivery of vacant possession is extended for the duration of the excluded period.
3. Defects Liability Period (Regulation 5 of the Regulations)
The defect liability period (“DLP“) is the eighteen (18) months period commencing from the date the developer delivers vacant possession to its purchaser where the developer is obliged to take action to repair and make good of the defects due to defective workmanship upon notification by the purchaser.
The period between 18th March 2020 and 17th March 2022 is excluded from the calculation of the DLP.
As stated above, for the period between 1st September 2020 to 31st December 2020, a purchaser will need to apply to the Minister for such an extension.
4. Savings (Regulation 6 of the Regulations)
(1) Legal proceedings commenced
The Regulations stated above will not affect any legal proceedings which have been instituted, or any judgement or award obtained which are to recover late payment charges payable by the purchaser or liquidated damages payable by the developer or any other sum during the period from 18th March 2020 until the date of publication of the Covid-19 Regulations i.e. 18th January 2021.
(2) No refunds for monies already paid such as late payment charges or liquidated damages
Any late payment charges that has been paid by the purchaser or liquidated damages that has been paid by the developer before the date of publication of the Regulations i.e. 18th January 2021, are not refundable and shall be deemed to be validly paid.
In conclusion, the temporary relief measures provided by the above legislations sought to benefit both housing developers and purchasers in order to mitigate the problems brought about by the Covid-19 pandemic.
[i] the Housing Development (Control And Licensing) Ordinance, 2013 and the Housing Development (Control And Licensing) Regulations 2014
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