World · Malaysia Bureau
PR1MA Owners Must Pay Compensation Once Settlement Amount Agreed
Affordable housing scheme PR1MA will no longer be held responsible for delays in property handovers once a settlement amount has been fully approved and paid. Property owners are now required to bear compensation costs related to such delays.
LSN Malaysia ·
PR1MA has clarified that its liability for delayed property handovers ceases upon full payment of an agreed settlement amount, shifting responsibility to unit owners moving forward.
The clarification marks a significant shift in the affordable housing developer's obligations, effectively limiting its liability exposure for late delivery issues. Under the new arrangement, once owners and PR1MA reach a settlement agreement and the compensation is paid in full, the developer's responsibility for any outstanding delays terminates.
This development is likely to impact thousands of PR1MA buyers nationwide who have been waiting for their units. The policy adjustment means owners will need to pursue alternative remedies should further delays occur after settlements are finalized and compensation received.
The directive underscores the importance of ensuring settlement agreements are comprehensive and clearly define timelines for completion. Property purchasers are advised to carefully review the terms of any settlement before authorizing full payment to PR1MA.
PR1MA, which was launched to provide affordable housing for middle-income Malaysians, has faced numerous complaints regarding delayed project completion over the past several years.