On 13 December 2008, the developer for Lagoon Perdana called for a meeting with purchasers of Block 7. The developer briefed the purchasers on the problem faced by them in completing Block 7 (original plan was to build 18 floors, but now the purchasers were informed by the developer that they could only build up to 9 floors for safety reasons). A survey form was given to each purchaser present on the options available to them. Representatives from Kementerian Perumahan Dan Kerajaan Tempatan ("KPKT"), MPSJ and Mr Tony Chang of National House Buyers Association were also present. I invited Mr Tony Chang to share his views on the issue with the purchasers and I also raised a few legal concerns.
At the meeting (which was intended merely to conduct a survey among the purchasers of Block 7), the purchasers were informed by the developer of the followings:·
- should they decide to build Block 7, the size of the units including common properties will be in accordance to that stated in the Sale and Purchase Agreement;
- for purchasers who wish to get a refund for the units which will not be built, the refund would only be for the full purchase price and legal fees involved (no interest would be paid);
- difference in price units (for swapping of units) will be refunded back to the purchaser;
- time frame for the refund to be paid is still unknown (estimated to be about 3 to 5 months from the date of new agreement signed);
- the survey and proposed changes will be subject to approval by MPSJ on the amended plan.
Pursuant to the meeting, I have been chasing Kementerian Perumahan Dan Kerajaan Tempatan ("KPKT") to quickly hold a meeting with all parties involved including the bridging financier for discussion on this issue and also on the status of Blocks 1, 3 and 8. Earlier, we were told that Blocks 1 and 8 would be completed by December 2008 or January 2009. This meeting is also needed for the developer to brief all parties on the results obtained from the survey conducted on Block 7. I will only be able to provide more updates once the meeting is convened by KPKT as KPKT is monitoring the project.