TRIBUNAL FOR HOMEBUYER CLAIMS MALAYSIA

By:

Bryan Lui (Co-Managing Partner) [bryanlui@luibhullar.com]

Harneshpal Karamjit Singh (Co-Managing Partner) [harnesh@luibhullar.com]

Chandni Anantha Krishnan (Partner) [chandni@luibhullar.com]

The Tribunal For Home Buyer’s Claim (Tribunal Tuntutan Pembeli Rumah) is an option to homebuyers to resolve their disputes on their respective properties. However, there are limitations to its practicability:-

1. Any claim arising out the Sale and Purchase agreement can only be brought within 12 months issuance of the certificate of completion and compliance which is usually accompanied by the notice of delivery of Vacant Possession.
   

2. It should be noted that any monetary claims such as Liquidated Ascertained Damages are limited to the quantum of RM 50,000.00.
   

3. There is no forum for enforcement in Tribunal even with a favourable decision which resulted in Court proceedings.
   

4. There are also no provisions within the ambit of the HDA 1966 to impart powers to the tribunal to enforce its decisions.

In many instances, our clients have obtained favourable decision in the Tribunal however as the opponent has refused or fulfil the decision of the Tribunal, we now represent them for enforcement proceedings in Court.

The considerations whether to pursue the claim in the Tribunal or the Courts would be:-

1. the quantum the claim;

2. the cost effectiveness of the claim;

3. the timing the homebuyers intend to pursue their respective claims; and

4. the opponent is also unlikely to fulfil the decision of Tribunal.

The homebuyers have 6 years from the time vacant possession was delivered to pursue for LAD Claims and depending on the quantum of the claim, the court system has unlimited monetary jurisdiction and has the powers to enforce its judgment.

Although some may argue that the tribunal is more cost saving and less judicial as compared to the courts, however realistically, most matter ends up in the court process due to an unfavourable Tribunal decision, either party to the decision can apply for a judicial review to the High Court.