Court of appeals greenlights condo owners’ lawsuit revival against builder

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A legal battle over disputed parking spaces and alleged contract breaches will proceed to trial after Malaysia’s Court of Appeal overturned an earlier dismissal. The case involves nearly 100 condominium buyers who accuse developer TSI Domain Sdn Bhd of misleading sales practices and violating purchase agreements regarding common property rights.

The appellate court’s unanimous ruling revives the 2022 lawsuit filed by two groups of purchasers – 50 original buyers and 48 subsequent purchasers – who claim the developer unlawfully transferred parking spaces to TSI Property Management. These plaintiffs allege unauthorized building plan changes and the removal of security measures, while also contesting ownership of 115 parking spots designated as common property in initial sales brochures.

Legal arguments center on whether promotional materials constituted binding contract terms and whether residents have standing to claim the parking spaces. The developer maintains that Kuala Lumpur’s development regulations didn’t mandate resident parking provisions and that the management corporation’s separate lawsuit makes the purchasers’ case redundant. However, the three-judge panel found these defenses insufficient to justify dismissing the claims entirely.

With the trial now scheduled for September 2025, the case highlights ongoing tensions between Malaysian property developers and purchasers over common area rights. The concurrent proceedings involving the condominium’s management corporation add complexity to what promises to be a closely watched real estate dispute. The outcome could set important precedents for interpreting sales representations and common property rights in strata developments.

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