Princess Cove builder denies liability for strata title delay

Princess Cove builder denies liability for strata title delay

Existing laws do not require titles to be issued to purchasers within any specific period, says R&F Development Sdn Bhd.

The Princess Cove condominiums were developed by R&F Development Sdn Bhd, a subsidiary of R&F Properties, a leading developer in China.
JOHOR BAHRU:
The duty of issuing strata titles rests with the state lands and mines department (PTG), and a developer cannot be faulted for any delay, the builder of a luxury condominium project has said.

In its defence to a suit by condominium unit owners of the Princess Cove here, Chinese-owned developer R&F Development Sdn Bhd said its duty was limited to making the application for titles and securing the necessary approval.

“The issuance of strata titles is at the discretion of the PTG. We expect the titles to be issued in the second quarter of 2023.

“If at all there is any action needed to be taken, it must be against the PTG,” the developer said in its defence filed two weeks ago sighted by FMT.

R&F Development also claimed neither the Strata Titles Act 1985 (Act 318) nor the Strata Management Act 2013 (Act 757) specifies any time period within which strata titles must be issued to the purchasers.

The developer was replying to a statement of claim filed on behalf of 167 individuals, mostly foreigners, who are suing R&F Development for failing to deliver strata titles to the luxury units as promised in their sale and purchase agreements (SPAs).

Filed by solicitors Vin Sa & Ian on Feb 14, the suit claims the developer had failed to apply for subdivision of the building within six months of its completion, as required under Section 8 of the Strata Titles Act 1985.

The purchasers comprise individuals from Singapore (76), Malaysia (58), China (30), the US (two) and Indonesia (one). The condominiums were purchased at a cost of between RM900,000 and RM1.5 million each.

The developer is a subsidiary of R&F Properties, a leading developer in China.

Setting out in the defence statement a chronology of the various applications and approvals applied for and obtained, the developer said the certificate of completion and compliance (CCC) was issued by the local authorities in November 2018, and the units have been fit for occupation ever since.

However, it could not apply for the titles as amendments to the third-floor podium plan were submitted in January the following year. This was followed by an application to amend the mandatory Certificate of Share Unit Formula (Sifus) a few months later.

The issuance of Sifus by the PTG is one of the pre-conditions for the application of strata titles.

It said both applications received final approval in November 2019 which allowed R&F Development to submit the application for strata titles to the PTG in January 2020.

However, the PTG only approved the strata titles in December last year.

On the unit owners’ claim that they were not kept informed of the progress of the application, the developer said they were not bound by any law or regulation to do so.

Tea, Kelvin Kang and Co are defending R&F Development.

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