24/05/2022
It is common that purchasers of housing development will visit the showroom and see the display model of the unit. More likely than not, the purchaser will decide to purchase based on the specification of the display model. What if the display model and unit described in the sale and purchase agreement is different? Can the purchaser file a complaint at the Tribunal for homebuyer claim against the Developer for unauthorized change of specification?
In the recent decision of Country Garden Danga Bay Sdn Bhd V Tribunal Tuntutan Pembeli Rumah & Anor, the Federal Court discussed the issue of the purchaser’s entitlement of the specification based on the display model and the jurisdiction of the Tribunal for Homebuyer Claims.
The decision of the Federal Court
1. The Purchaser claimed that he was given the wrong unit, namely a unit with an open balcony; when he in fact was entitled to a covered balcony. However, from the evidence, the Federal Court found that it was an undisputed fact that the specification for a covered balcony was not a term of the SPA. The Purchaser relied on the display model which he alleged carried units with a covered balcony which he identified as the type of unit he wanted to buy to the sales representative.
2. The award delivered by the Tribunal was against the provision of the SPA and also contradicted with the finding in the Technical Inspection Report. As the provision of covered balcony was not in the SPA and yet the Tribunal decided to allow the Purchaser’s claim.
3. The jurisdiction of the Tribunal is confined to the SPA. There has to be a SPA for a claim or complaint to be made under the Act.
4. The Tribunal had no jurisdiction over matters following outside the SPA in the form of collateral contracts, representations, or warranties.
5. The Federal Court opined that the Tribunal was wrong in taking into consideration the display model instead of the SPA.
6. The Federal Court was of the considered view that based on section 16 of the Act, the Tribunal did not have jurisdiction to entertain the Purchaser’s complaint on this covered balcony issue, which was not based on the SPA.
7. The Purchaser cannot be allowed to, on the one hand said that he got the wrong unit but on the other hand accepted delivery of vacant possession and renovated it.
8. The Federal Court is of the view that the Tribunal was wrong when it failed to appreciate that the Purchaser had affirmed the contract as it stood on its terms which did not have a term for a covered balcony, when the Purchaser accepted delivery and renovated the said unit.
Conclusion
9. The Federal Court unanimously allowed the Developer’s appeal with costs of RM30,000.00 and the Tribunal’s award that was tainted with illegality was set aside.
10. Purchaser ought to check the description of the property stated in the sale and purchase agreement before signing the same.
11. The Tribunal has no jurisdiction to entertain the claim based on misrepresentation, purchasers ought to know the nature of their claim before proceeding to the Tribunal.
The full article was featured in Nanyang Siang Pau which can been seen in the link below: -
南洋商报 Nanyang Siang Pau
买家声称他被错误地分配了单位,即一个开放式阳台的单位,但他实际上有权获得一个带遮盖阳台的单位。