In Chau Chee Sing & 166 Others v. R & F Development Sdn. Bhd. [2023] CLJU 2963, the High Court, and later upheld by the Court of Appeal on 30 March 2025, ruled that R&F Development Sdn. Bhd. breached its legal obligations by failing to deliver strata titles for the Princess Cove residential project within the required timelines. The case highlights the dual statutory and contractual duties imposed on developers to ensure that buyers receive their property titles according to the required timelines.
Statutory Duties under the Strata Titles Act 1985 (STA)
The STA imposes strict obligations on developers to apply for the subdivision of a building or land into parcels once units are sold or agreed to be sold. Section 8(2) specifies strict timelines, in which developers must apply within three months from key events, such as the issuance of the Certificate of Completion and Compliance (CCC) or the first sale, depending on the circumstances.
Amendments introduced by the Strata Titles (Amendment) Act 2013 further require developers to secure a Sijil Formula Unit Syer (SIFUS) and a Certificate of Proposed Strata Plan (CPSP) before applying for subdivision, as outlined in Sections 8A and 10(1)(h).
In this case, R&F Development’s failed to meet these statutory deadlines:
- Partial CCC for Blocks A1, A2, and A7 was issued on 25 October
- Full CCC for the entire development, including Blocks A3, A5, and A6 was issued on 8 November 2018.
- Under Section 8(2) of the STA, the developer was required to apply for the subdivision of the building within three months from the issuance of the relevant CCC. This application process includes obtaining the CPSP and other necessary approvals. However, the application was only submitted to the Department of Survey and Mapping (JUPEM) on 6 January 2020, with acknowledgment on 2 March 2020, resulting in a delay of approximately two years.
The court found this delay to be a clear breach of the statutory obligations under Section 8(2) of the STA.
Contractual Obligations under the Sales and Purchase Agreement (SPA)
Beyond statutory duties, R&F Development was bound by contractual terms outlined in Clause 11(1) of the SPA signed with the plaintiffs. This clause required the developer to “expeditiously as possible” apply for the subdivision of the building to obtain strata titles under the STA. The court interpreted this as a contractual promise to act promptly, reinforcing buyers’ reasonable expectation of prompt title issuance.
R&F Development argued that delays were due to additional approvals from the Johor Bahru City Council (MBJB) for a revised plan and amendments to the SIFUS following JUPEM’s advice. However, these were rejected by the court, ruling that such delays, particularly for commercial units, did not excuse the failure to issue residential strata titles promptly.
The court ruled that failure to act “expeditiously” constituted a breaching of its contractual duty to the plaintiffs under Clause 11(1) of the SPA.
Court’s Findings
On 5 December 2023, High Court ruled that R&F Development had breached both Section 8(2) of the STA and Clause 11(1) of the SPA. The court granted declarations confirming these breaches and awarded RM10,000 in costs to the plaintiffs. On 30 March 2025, the Court of Appeal upheld this decision, affirming the two-year delay as a significant violation of both statutory and contractual obligations.
The timeline of events further illustrates the breach:
- CPSP issued by JUPEM on 9 May 2022.
- Subdivision application was approved by the Johor Land Registry (PTG) on 6 December 2022.
- Registrable strata titles were only issued in June 2023, well beyond the deadlines mandated by law and the SPA.
This timeline underscores the extent of the delay, which the court found unacceptable under both statutory and contractual frameworks.
Implications for Developers
This case reinforces the non-negotiable nature of a developer’s legal obligations.
- Statutory Penalties: Under the STA, failure to meet statutory deadlines may attract penalties such as fines up to RM100,000 or imprisonment for up to three years, subject to enforcement by authorities like the Land Administrator or Strata Titles Board.
- Contractual Enforcement: Courts will strictly enforce SPAs and hold developers accountable for delays that undermine buyers’ rights.
Developers must prioritise timely issuance of strata titles to avoid legal consequences and maintain trust with buyers.
– By George Miranda, Joy Sam Jia Qian, Nurafiqah ‘Izzati –
This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.
