Supplementary Agreement for Car park Lot

Water and electricity supply to the project has been connected.

Purchasers were required to sign a supplementary agreement for the car park allocated to them with legal fees of RM250.00 each.

The project is targeted for handover in October 2010. This is a delay of 13 months from the court sanctioned completion date.  Purchasers should rightfully be entitled to claim LAD (liquidated and ascertained damages) for late completion, at the rate stipulated in the original S&P.

With the supplementary agreement for the car park signed, the developer should arrange for strata title for the car park to facilitate future selling and buying by interested parties.  According to the lawyer for the car park supplementary agreement, Ricky Tan & Co., the developer is likely to arrange for this.

What are the advantages of having a separate strata title for the car park? The owner of the car park can sell it if he does not need it. Another unit owner who has more than one car can purchase this additional car park from the seller. The developer can also sell the spare lots or visitor’s lots to interested parties.

The disadvantages are additional legal fees and stamp duties for the strata title, repair and maintenance of your car park and also less free parking space for visitors and more money paid to developer for car park already allocated in the principal agreement.

So, this is a brilliant business idea to squeeze more money from the purchasers, right? We lose a bit but we should console ourselves that we are finally getting the unit we purchased. Some unscrupulous developers do not even revive the abandoned projects at all!

One item that is still outstanding is the individual electricity and water deposit payments to Tenaga Nasional and Syarikat Bekalan Air Selangor respectively. Most purchasers have already signed the utilities agreements. Do prepare some reserve cash for these deposits, which may be quite soon.