The extension of time given to developers for delivery of houses is only applicable for housing projects that were supposed to be completed between March and December last year.
Housing and local government minister Zuraida Kamaruddin said for any delayed project that was supposed to be completed before March 2020, developers were 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 providing 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 in 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 Act 2020 which had been passed in the Dewan Rakyat in August last year.
Under this Act, developers are given temporary protection for delayed works due to the movement control order since March 18, 2020. This includes not being sued by buyers or banks for failing to complete their projects according to schedule. -FMT