Sueing Condo Developer For Defects

[dhchye 0]

I recently received my key for an EC and I noticed major defects two weeks later; leakage of water inside wall, causing laminated flooring of two rooms, wardrobe and door frame to be damaged. The building service initially told me that they need 3 weeks to rectify, then after a month, they said that they need another month.

Does anyone has similar experience and what is your response?

Can I go to Small Claim Tribunals to claim back pro-rated equivalent of maintenance fee for my loss of use? Any similar cases?

Thanks for sharing

[GMC 12]

Maintenance fees is for common area....

What is there to sue ?

[Lauer 15]

I recently received my key for an EC and I noticed major defects two weeks later; leakage of water inside wall, causing laminated flooring of two rooms, wardrobe and door frame to be damaged. The building service initially told me that they need 3 weeks to rectify, then after a month, they said that they need another month.

Does anyone has similar experience and what is your response?

Can I go to Small Claim Tribunals to claim back pro-rated equivalent of maintenance fee for my loss of use? Any similar cases?

Thanks for sharing

I don't know if the handling of defects liability is the same for public condo, as for private condo? But the advice from URA is:

http://www.ura.gov.sg/lad/HBG/movingIn.htm

What is not too clear is (1) if you choose to engage your own renovation contractor to rectify the problem(s), does this act waive the developer's liability (2) what is the remedy to you if the rectification (by any one) is taking longer than what is deemed reasonable?

Consult your lawyer for the answers.

In my 2-cents view, there is no point being confrontational under the circumstance. Especially to the worker(s) tasked to remedy the defects. It is just the luck of the draw; it is frustrating to get a defective unit but get it over and fixed.

The maintenance you are paying contributed to the cost of maintaining the common property with a percentage goes to the building sinking fund. Not towards your unit.

Good luck!

[dhchye 0]

Hi Lauer,

I understand that maintenance is towards the common area, but the question is who should be paying and when should one start paying...when you first booked the unit (obviously not acceptable) or when you are able to move in as owner...

I think it's reasonable for owner of the property to pay and he should start paying when he is able to move into the property. For my case, I don't see the point of paying when I receive my key because my unit is unfit for occupation.

For example, will you pay road tax for a few months before receiving your car?

[Lauer 15]

Right.

So let say you took delivery of a new car and it turned out to be defective. Totally unsafe to be driven. Now, normally the car dealer would provide a replacement car while the defects are being fixed. The replacement car is the remedy; you could ask for more than an equivalent car, additional compensations etc but this is the negotiation.

There is no way LTA would reimburse to you the apportioned road tax paid, or the insurer a part of the premium paid, while the car is off the road. You would have to seek remedy of these from the car dealer.

The MCST, via a managing agent it has appointed, is tasked to collect the fees from all sub proprietors for the maintenance of the common property. The MCST is not a party in the dispute related to the unit's defects.

But you felt short-changed, and rightfully so since you are unable to enjoy the condo unit purchased. The approach is to claim the maintenance fees paid from the developer as long as the condo unit is under repair. You would have to put this (and other compensations such as rental of an apartment since you couldn't move in etc) in writing to the developer that you intend to claim the fees.

There are 3 parties involved in the situation; you the owner, the developer, and the building contractor. My suggestion is to work to get the developer on your side. The developer is also protected from defect liability, it would cost the developer zero to get the defects fixed by the contractor. Having said so, I have met project managers (of developers) who know nothing much of their jobs, who basically take 'instruction' from the contractor. Hopefully the project manager in your case is knowledgeable and responsible.

Cheers!

(And a video for the day, a detour from music.)

http://www.youtube.com/watch?v=JIWJEYB88XU&feature=youtube_gdata_player

Enjoy!

[GMC 12]

Hi Lauer,

I understand that maintenance is towards the common area, but the question is who should be paying and when should one start paying...when you first booked the unit (obviously not acceptable) or when you are able to move in as owner...

I think it's reasonable for owner of the property to pay and he should start paying when he is able to move into the property. For my case, I don't see the point of paying when I receive my key because my unit is unfit for occupation.

For example, will you pay road tax for a few months before receiving your car?

You start paying road tax the day seller registers your car, does not matter if you pick up the keys or not.

The maintenance fee contributes to the common area. you can still enjoy the Gym, Parking, Pool, Function Room, BBQ even your unit have defects. It is your choice to move in or not. So long the roof doesn't cave in, it is logically speaking "Worthy Condition".

and by the way, I believe your lawyers are holding the "15% Payment upon Certificate of Statutory Completion", so as to say, you are not paying the full price but yet you get to move in upon TOP.

If I were you, I won't niaw with developer over that few hundred bucks, knowing that the defects is "major", get it all rectified properly.