ASKING SEAN #042 | WHY THE DEVELOPER REFUSE TO SIGN THE SPA?

In this episode, we will address a question regarding developer not signing the SPA.  This audience has placed booking, got his loan and signed his part of the SPA. But the developer has held on to those documents for almost a year, refusing the sign the documents.   This may be due to a few reason, as mentioned the developer might want to buy more time for the delivery of the property. Stratafied buildings will require 36 months, and start date is in accordance to the SPA.   Another reason might be complications regarding the land. As Malaysia has changed 3 government within a short period of 3 years, a lot of arrangements between developers and the land office/government authorities will be messed up.  There are many requirements to fulfill when a land is to developed. It can be fulfilling low cost housing requirements, ISF (infrastructure fund), HDA account setup, bumi quota, fire safety requirement and many more.  Then when there is a change in government, these arrangements and agreements are often re-visited, which delays the entire development process again. Hence, the property market is heavily dependent on political stability of the country.