Frequently Asked Questions (FAQ) – Retention Sum of PR1MA Home

 

No. Question Answer
1. What is retention sum? Retention sum or ‘wang taruhan’ in Malay is defined as money amounting to 5% from the house’s purchase price, held by the lawyer as a stakeholder.
2. What is the purpose of the retention sum? The purpose of the retention sum is to ensure that the Developer repairs any damage that may occur to the purchaser’s house (‘Parcel’).
3. How long is the defect liability period? The defect liability period is 24 months, commencing from the date of handing over the keys (‘delivery of vacant possession’).
4. When will the retention sum be released to the Developer? The retention sum will be released in stages to the Developer-

  1. The first 2.5% will be released after 8 months from the date of handing over the keys.
  2. The remaining 2.5% will be released after the expiration of the defect liability period of 24 months.
5. What type of damage may occur during the defect liability period? Damage such as cracks in the walls, floorboards or tiles, unused fixtures such as electrical connections, light switches or water pipes and many more.
6. How to identify the damage in the purchaser’s house after receiving the keys? Purchasers can identify such damage in the house by using a measuring tape, notepads and a marker tape to record the result of observations on the condition of the house.
7. What is the next step after the purchaser has identified the damage?

 

The next step is, the purchaser must record each damage or defect on the defect claim form that has been provided by the Developer after handing over the keys to the purchaser and attach together a photo of the damages to be submitted to the Developer.
8. What if further damage occurs after the purchaser has already sent the defect claim form to the Developer? The following are the steps that can be taken by the purchaser to report damage that occurred after the defect claim form has been submitted to the Developer-

(a) Purchasers can mark the areas that are damaged or defected by using marker tape and photographed the same so to make it as a proof,

(b) Next, the purchaser can report the damage by emailing the Developer at info@pr1ma.my and cc to MONCO at admin@monco.my 

(c)  If there is no response from the Developer after 30 days of the report being made then the purchaser can repair such damage himself.

(d) However, before the purchaser begins to repair the damage, the purchaser must notify the Developer that the purchaser intends to repair such damage, together with the estimated cost via email.

(e)  The purchaser must wait for 14 days from the date of notification by email in paragraph (d) before initiating the repair.  This is to provide the Developer an opportunity to act and repair the damage.

(f)   Should there be no response from the developer after that 14 days period, as per paragraph (e) above,  then the purchaser can carry out the process of repairing the damage and subsequently recover the cost of the repairs from the Developer.

9. What happens if the purchaser has done renovations to the house during the defect liability period? House renovations may contribute to damages to the house.  Therefore, if the purchaser makes any renovations within the defect liability period, the Developer shall not be responsible and accordingly shall not be liable for the cost of repairing the damage to the house.

 

Referring to the Rules and Regulations in the Seventh Schedule of the Sale and Purchase Agreement (SPA), item 2.6 provides that it is one of the conditions in the SPA that the purchaser may not make any renovation works on the house without obtaining prior written consent from the Developer.

 

Prepared by,

Nurhidayah binti Rahim

Messrs. Misyail Othman & Co

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