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Interest charged on progressive payment ( Need an advise urgently)

New MessageInterest charged on progressive payment ( Need an advise urgently) (modified 0 times) desmond
I had bought a condominium last year. Recently, I had received a letter from the developer for collection of keys. Together with this letter is a debit note demanding for an interest charged for late progressive payment paid and a maintenance fees of 6 months deposit and 6 months advance.

I found this is quite a sum for me because I bought this property when it was half-way constructed, thus, the progressive payment is really a big sum. For the maintenance fees, I cannot make any argument as it was clearly stated in the Deed of Mutual Covenant. But for the late interest charged, I had found out one point. As well as I know, the end-financier will only release the 1st progressive payment when they received a letter of differential sum from the developer stating that the purchaser had already settled his part. The reason I point out this is because the developer only issued the letter of differential sum to the end-financier sometime in August. But the late interest charged was calculated from May ~ Sept. Thus, I sent a letter of appeal to the developer to request for a waive of interest for the period of May ~ August. But, the developer refused to reduce the interest and insisted that I got to pay the require amount before I can collect the keys. Beside, they also pointed out that my end-financier document was still not ready during that period. To me, I felt the developer is really irresponsible because they not only sent the letter of differential sum late beside they also never take the initiative to inform me regarding the progressive payment. Who know,maybe I can settle the progressive payment first. Can anyone tell me what to do as this case had been dragged for a month and I still not collect my keys.

21 Jun, 2001 18:02:30

New MessageRE:Interest charged on progressive payment (modified 0 times) Banker
I don't think you have a choice.
At which stage of development did you buy the property? What is the quantum of your loan in relation to the purchase price?
Standard S&Ps impose a time frame for payment of amounts due according to progress of construction. If you go in late, you cannot expect your banker, or the developer for that matter, to complete documentation at lightning speed. The buyer must settle the differential sum first. Then, until a reasonable time has elapsed for the bank to do the necessary, if any progressive payment becomes due, the S&P would require you to make such payments if the bank is not able to do so, otherwise you will have to pay a stipulated penalty.
I would suggest you pay up and collect your keys. The defects liability period runs whether or not you physically take vacant possession. The only way to play tit-for-tat with the developer is to make sure that your property is "perfect" to your satisfaction. Hit them hard for every bit of defect. Make sure every complaint is documented and acknowledged in black and white by the developer within the defects liability period. If any problem appears after the end of this defects liability period when it should not normally happen (e.g. water seeping through walls as in the case of my apartment), hit the developer below the belt with the law of latent defects. Latent defects is about defects which cannot possibly be noticed until a substantial time has elapsed or something has happened. An extreme case would be a house standing good for 5 years and then suddenly collapse, only for investigations to find inadequate steel reinforcement.
All the best to you.
13 Jul, 2001 18:08:12

New MessageRE:Interest charged on progressive payment (modified 0 times) Banker
I don't think you have a choice.
At which stage of development did you buy the property? What is the quantum of your loan in relation to the purchase price?
Standard S&Ps impose a time frame for payment of amounts due according to progress of construction. If you go in late, you cannot expect your banker, or the developer for that matter, to complete documentation at lightning speed. The buyer must settle the differential sum first. Then, until a reasonable time has elapsed for the bank to do the necessary, if any progressive payment becomes due, the S&P would require you to make such payments if the bank is not able to do so, otherwise you will have to pay a stipulated penalty.
I would suggest you pay up and collect your keys. The defects liability period runs whether or not you physically take vacant possession. The only way to play tit-for-tat with the developer is to make sure that your property is "perfect" to your satisfaction. Hit them hard for every bit of defect. Make sure every complaint is documented and acknowledged in black and white by the developer within the defects liability period. If any problem appears after the end of this defects liability period when it should not normally happen (e.g. water seeping through walls as in the case of my apartment), hit the developer below the belt with the law of latent defects. Latent defects is about defects which cannot possibly be noticed until a substantial time has elapsed or something has happened. An extreme case would be a house standing good for 5 years and then suddenly collapse, only for investigations to find inadequate steel reinforcement.
All the best to you.
13 Jul, 2001 18:08:52

New MessageRE:Interest charged on progressive payment (modified 0 times) Joyce
I have a quite similar problem like Desmond. But in my case, the delay is by the loan lawyer. I signed the letter offer of loan facility and S&P agreement in Dec 07. And all documents has been forward to the loan lawyer in Dec'07 also. I settled my differential sum in Feb'08 according to developer's invoice. However, the balance of progressive payment was only started to pay by the financial since May'08. According to the banker, they can't release the payment as the legal process by the loan lawyer is still pending. Therefore, it has resulted in a late payment interest charged by developer from the period of Feb to May. I need your advise, is this interest should be responsible by the lawyer?
23 Aug, 2008 10:04:19

New MessageRE:Interest charged on progressive payment ( Need an advise urgently (modified 0 times) awie
My problem is that bank didn't release full settlement to developer since they failed to provide copy of individual title. As a result I had paid progressive interest for 5 years and still nothing been done by developer namely Indah Jaya - Bandar Tasik Puteri Rawang(AP Land subsidiary).
I also received the 'Deed' thing issued by the lawyer namely Siti Haja Teh, Azreen & Khuan and given assurance to the bank that all required documentations were served (ticked in the letter inclusive of the individual title) and will be responsible. Regret when I referred back to them recently, they refused simply because there is new act that require the developer to issue the doc and ask me to refer to either developer & bank.
Don't you think the same standard answer will be acquired if you question them about responsibility? Their responsibility is just to prepare necessary 'legal' documentation thing and then charge you... pay them is your responsibility but do you think they have any obligation? You are wrong...They are always right..
01 Nov, 2008 23:18:48

New MessageRE:Interest charged on progressive payment (modified 0 times) Lawyer
Awie.. Your problem is due to the non issuance of title. You are still paying interest and not instalments as the loan has not been fully released. If u look at 3rd schedule of your SPA there's a portion that will only be release upon subdivision of building (for apartment) / upon issuance of title & execution of transfer (in case of landed property). You have to check with the developer whether they have done the subdivision. As lawyer we cant do anything much except to follow up the the developer whether they have done the sub division. Hope this help.
26 Feb, 2009 15:36:53


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