Johor Bahru High Court orders R&F to pay S$2.6M for delayed condo handover
The Johor Bahru High Court has ordered developer R&F Development to compensate buyers of 84 units at R&F Princess Cove for late delivery of homes and shared facilities. The court found the developer breached sale agreements by splitting the project's first phase into two separate phases, delaying co
The Johor Bahru High Court has ordered developer R&F Development to pay compensation totalling S$2.6 million to purchasers of 84 units at the R&F Princess Cove luxury waterfront development, property news platform Stacked reported. The court ruled that the developer breached its sale and purchase agreements by splitting the project's original first phase into two separate phases, causing some buyers to receive keys before shared facilities were completed.
Compensation for the units was calculated at 10 per cent annually of each property's purchase price. For shared facilities, it was calculated at 10 per cent annually of one-fifth of the purchase price. The court rejected claims concerning another 39 units and ordered those buyers to pay R&F RM10,000 in legal costs per unit. Lawyers involved in the case said these purchasers signed their agreements after the developer revised the building plans.
R&F's lawyer Josiah Tea told Channel News Asia that the developer plans to appeal. The purchasers' lawyer and a property observer said the ruling highlights the importance of developers meeting their contractual commitments and offers lessons for prospective buyers in Johor Bahru, the capital city of Johor, located at the southern tip of the Malay Peninsula directly bordering Singapore.
R&F Princess Cove is a large waterfront residential and commercial development in central Johor Bahru, next to the Johor-Singapore Causeway. Built by China's R&F Group, the project markets its proximity to Singapore as a major attraction, with a 650-meter covered pedestrian bridge linking it directly to Johor Bahru's Customs, Immigration and Quarantine complex.
Although buyers took possession of their units in 2017, R&F was deemed to have met its handover obligations only in November 2018. Among the successful claimants was Crystal Ng, a 49-year-old Singaporean who has since sold her family's unit, saying the experience left 'a sour taste'. 'When we received keys to the unit (in October 2017), the whole area was very messy and full of construction debris. Even the access route to our block was still obstructed ... there was a fence erected on the road,' said Ng, who is semi-retired.
