Sheda welcomes court’s decision on giving, receiving booking fees

Augustine Wong Chung Ho

KUCHING (March 25): Sarawak Housing and Real Estate Developers Association (Sheda) welcomes the Kuching High Court’s decision on March 24 in favour of RJ Realty Sdn Bhd on the practice of giving and receiving booking fees.

Its president Augustine Wong Chung Ho said members were relieved that Judicial Commissioner Alexander Siew How Wai has ruled that the Liquidated Ascertained Damages (LAD) should be calculated from the signing of the Sale and Purchase Agreement (SPA).

“In Sarawak, the practice of giving and receiving booking fees enables purchasers to make informed decisions regarding property, without incurring heavy losses.

“In his wisdom, Siew recognises that the practice of accepting booking fees in Sarawak grants options to interested purchasers,” said Wong in a statement yesterday.

He added that through the use of booking fees, purchasers were given the freedom to select their preferred units and to reserve their choice of property pending approval of housing loans.

“With the booking fee practice in place, purchasers need not worry about forfeiting a full 10 per cent deposit, in the event of housing loans not approved,” he added.

Wong was further encouraged that Siew distinguished the application of Sarawak Housing Development (Control & Licensing) Ordinance 2013 from the Housing Development Act which is applied in Peninsular Malaysia.

“Had the decisions of the Sarawak Housing Tribunal been allowed to stand, the impact would negatively affect the entire housing industry in Sarawak to the detriment of genuine purchasers, who would bear the highest risk.

“Without the buffer timeframe provided by the practice of placing booking fees, purchasers would be required to sign their respective SPAs and immediately pay a non-refundable 10 per cent deposit to the developer, without knowing if their housing loans are approved,” said Wong.

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