You said:
What happen if in a sale and purchase of a house the seller cause delay in the completion date
ChatGPT said:
If in a Sale and Purchase Agreement (SPA) for a house the seller causes delay in completing the transaction, what happens depends on the contract terms and the reason for the delay. Here’s a clear explanation (especially relevant in Malaysia):
1️⃣ If It’s a Subsale (Secondary Market Property)
The SPA will state:
Completion period (usually 3 months)
Extension period (usually 1 month with interest)
Late Payment Interest (LPI) rate
✅ If the Seller Delays (e.g., late signing documents, slow redemption, missing documents)
The buyer may:
🔹 Claim Interest (Late Delivery Compensation)
If the delay is caused by the seller, the buyer can claim:
Interest on the purchase price
Based on the rate stated in the SPA (commonly 8%–10% per annum)
🔹 Demand Specific Performance
The buyer can demand the seller complete the sale through legal action.
🔹 Terminate the SPA
If delay exceeds the agreed extension period and seller fails to remedy it, the buyer may:
Cancel the SPA
Claim refund of deposit
Claim damages (if applicable)
2️⃣ If It’s a Developer Property (Under Construction)
Under the Housing Development Act (HDA) in Malaysia:
Developers must:
Deliver vacant possession within the agreed period (e.g., 24 or 36 months depending on property type)
If delayed:
🔹 Buyer Entitled to LAD (Liquidated Ascertained Damages)
Usually 10% per annum
Calculated daily from due date until delivery
This is automatic compensation under the standard Schedule G/H SPA.
3️⃣ Common Reasons for Seller Delay
Delay in bank loan settlement/redemption
Incomplete documents
Title issues
Consent from state authority not obtained
Seller refuses to vacate
4️⃣ What Should You Do?
If you're the buyer:
Check the SPA completion clause
Ask your lawyer to issue a formal notice
Claim interest if delay is seller’s fault
Consider legal action if serious delay
If you're the seller:
Inform buyer immediately
Request extension (if allowed)
Avoid breach to prevent penalty or lawsuit
If you want, tell me:
Is this a subsale or developer unit?
How long is the delay?
Are you the buyer or seller?
I can explain your exact legal position more specifically.
You said:
I am the buyer of a subsale house. It was 4 months delay
ChatGPT said:
Alright — since you are the buyer and this is a subsale property in Malaysia, a 4-month delay is already very significant.
Most Malaysian SPAs for subsale follow the standard structure:
Completion period: 3 months
Extension period: 1 month (with interest)
After that: seller is in breach of contract
So at 4 months, the seller has normally exceeded even the extension period.
What the Law Says (Your Rights)
1️⃣ You can claim Late Completion Interest (from seller)
If the delay is caused by the seller (not bank, not lawyer, not you), the seller must compensate you.
Typical clause:
Seller shall pay interest on the purchase price calculated daily from expiry of completion period until actual completion.
Interest rate commonly: 8% – 10% per annum
Paid to: You (the buyer)
📌 This is NOT optional — it is contractual damages.
Example Calculation
Let’s say:
Purchase price: RM400,000
Interest rate: 8% p.a.
Delay: 4 months (≈120 days)
Interest per day =
RM400,000 × 8% ÷ 365 ≈ RM87.67/day
Compensation ≈
RM87.67 × 120 = RM10,520
(Your lawyer will calculate exact figure)
2️⃣ You may terminate the SPA
Because seller already breached beyond extension period, you may:
Cancel the SPA
Get full refund of deposit (usually 10%)
Claim damages (legal fees, valuation, loan processing, etc.)
This is called repudiatory breach.
But ⚠️ once you terminate, you cannot continue buying the house — so think carefully.
3️⃣ You may force completion (Specific Performance)
Most buyers choose this option:
You proceed with purchase AND
claim interest compensation from seller.
This is usually done via lawyer’s formal notice.
Important: Who Actually Caused the Delay?
You only can claim if delay caused by seller, such as:
✔ Late signing documents
✔ Title/consent problem
✔ Late redemption statement
✔ Seller bank slow because seller didn’t act
✔ Seller missing or uncooperative
You normally cannot claim if delay caused by:
✘ Your bank late release
✘ Your loan approval late
✘ Your lawyer slow
✘ Land office backlog (depends)
What You Should Do Now (Step-by-Step)
Ask your lawyer:
“Please confirm seller is in breach and calculate late completion interest.”
Lawyer issues Notice to Complete / Claim Interest
Decide:
Continue purchase + claim money (most common)
Or terminate SPA
Reality Tip
In Malaysia, many buyers recover RM5k – RM30k from seller for long delays — so don’t ignore it. The compensation is legally enforceable.
If you want, tell me:
What reason seller gave for delay?
I can help you judge whether you will win the claim (very important).
You said:
My lawyer said that i cannot claim anything even if the seller is wrong. I think she lie to me
ChatGPT said:
I understand why you feel uneasy — in a Malaysian subsale SPA, a seller delaying beyond the completion + extension period normally triggers contractual consequences.
But your lawyer may still be correct depending on the wording of your SPA and the true cause of delay.
Let’s go through this carefully.
First: The Key Principle
In Malaysian conveyancing, the buyer can only claim late completion interest if the delay is legally attributable to the seller.
Not every delay = seller liability.
Many SPAs contain protective clauses for the seller.
Situations Where You CANNOT Claim (very common)
Your lawyer is likely relying on one of these:
1️⃣ Delay caused by Seller’s Bank (Redemption Bank Delay)
Example:
Seller bank slow issuing redemption statement
Bank slow discharge charge
Most SPAs state:
Seller not liable for delay caused by bank / authority / circumstances beyond control
Courts in Malaysia often treat this as not seller’s fault
→ So no compensation payable
2️⃣ Land Office / Consent Delay
For leasehold property requiring state consent:
State authority late
Land Office backlog
Usually protected under SPA clause:
Delay beyond vendor’s control
You cannot claim interest.
3️⃣ Your Bank Paid Late
Even if indirectly:
bank documentation defect
banker requested correction
loan agreement late stamping
Legally → buyer side delay.
4️⃣ “Stakeholder Release” Clause
Many SPAs say completion only occurs after:
valid redemption statement + undertaking received
If that arrives late → completion date automatically shifts.
So technically: no breach happened
When You DEFINITELY CAN Claim
You can claim if seller personally caused delay:
✔ Seller refused to sign
✔ Seller missing
✔ Seller didn’t apply consent
✔ Seller changed lawyer repeatedly
✔ Seller refused vacant possession
✔ Seller late settle quit rent / assessment
✔ Seller breach undertaking
Why Your Lawyer Said No Claim
Your lawyer cannot lie easily because:
They are regulated by the Malaysian Bar and giving wrong advice risks disciplinary action.
More likely:
👉 The SPA clause protects the seller
👉 The delay legally classified as “not seller’s default”
Very frustrating — but common in Malaysian property transactions.
What You Should Do NOW (Important)
Ask your lawyer these 3 specific questions:
“What exact SPA clause prevents my claim?”
“Who legally caused the delay — seller or third party?”
“If I sue, will I lose?”
A genuine lawyer will show you the clause number.
If You Still Suspect Something Wrong
You can:
Option A — Ask for written legal opinion
Request email explanation (lawyers become very precise in writing)
Option B — Get second opinion
Send SPA to another conveyancing lawyer
(cost: usually RM200–RM500)
Honest Reality
Many buyers think:
“Seller late = I get compensation”
But in Malaysian subsale:
👉 Only default delay gives compensation
👉 Administrative delay gives nothing
If you want, upload or type the delay reason the seller gave you (exact wording).
I can usually tell within seconds whether you actually have a case or not.
You said:
She said the seller delay in giving redemption statements for 2 months
ChatGPT said:
Ah — this detail is very important.
Seller delayed giving redemption statement for 2 months
This is usually NOT protected by the normal “beyond control” clause.
Because:
Bank preparing redemption statement → bank’s responsibility
But requesting it early → seller’s responsibility
If seller only applied late, Malaysian conveyancing practice treats it as seller’s default.
So your lawyer saying you cannot claim anything at all is a red flag — unless your SPA has a very unusual clause.
Why This Matters Legally
In a subsale transaction:
The seller must do these within the completion period:
Request redemption statement from bank
Provide undertaking
Allow purchaser’s bank to release loan
If seller waits 2 months before requesting →
The whole transaction cannot proceed.
👉 This is called failure to give good title within completion period
Courts normally consider this vendor-caused delay, not bank delay.
Simple Logic Used by Courts
Late bank processing = not seller fault
Late application to bank = seller fault
Your case fits the second category.
What You Are Normally Entitled To
After 3 + 1 month:
You can claim late completion interest from seller.
Typical clause wording:
If Vendor fails to complete within completion period, Vendor shall pay interest to Purchaser calculated daily…
Your 2-month redemption delay likely pushed completion beyond contractual time.
So compensation should exist.
Why Some Lawyers Avoid Claiming
This happens a lot in Malaysia:
They want smooth completion
Seller lawyer is their regular partner
Claim creates dispute
More paperwork
No extra fee for them
So they just say:
cannot claim
Not necessarily corruption — sometimes convenience.
What You Should Do (Very Important)
Send this message to your lawyer 👇
Message
Hi, I would like written clarification.
Since the seller only requested the redemption statement after 2 months, please confirm why this is not considered vendor default under the SPA and why late completion interest cannot be claimed. Kindly quote the specific SPA clause.
This forces a legal answer, not opinion.
If She Still Refuses
Then you should get a second opinion from another conveyancing lawyer.
(They only need SPA + chronology)
If they confirm claim valid → your current lawyer must follow your instruction.
My Professional View (based on Malaysian practice)
From what you described:
👉 High chance you actually can claim interest
But final answer depends on exact SPA wording.
If you want, you can type the SPA clause about completion here (or upload photo).
I’ll interpret it for you — that’s the only thing that decides this case.
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