Hi Ribbon,
I suggest you check with UEM land, rather than the lawyers. Better yet, go through the SNP agreement as this clause is quite clear and standard. The delay compensation clause is not subject to whether the installments starts or not. Here is what mine reads:
22. TIME FOR DELIVERY OF VACANT POSSESSION
(1) Vacant possession of the said building shall be delivered to the Purchaser in the manner stipulated in clause 23 within 24 calendar months from the date of the agreement.
(2) If the Vendor fails to deliver the vacant possession of the said Building in the manner stipulated in clause 23 within the time stipulated in subclause 1, the vendor shall be liable to pay the purchaser liquidated damages calculated from day to day at the rate of 10 percent per annum of the purchase price from the expiry date of the delivery of vacant possession in subclause (1) until the date the purchaser takes vacant possession of the said building. Such liquidated damages shall be paid by the vendor to the purchaser immediately upon the date the purchaser takes vacant possession of the said building.
My SNP agreement is for a different phase, but I believe they are standard. I read through the document in detail and there is no clause that prevents the developer to pay the above liquidated damages if the installments does not start. And by the way, these damages are not just meant to cover your interest loss, but also social implication of not having your house, etc.
Long story short, I don't see how the compensation will not be paid - unless the developer goes bankrupt of course.
Cheers,
IR
