A delay

 

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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