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Case Review: Banking
Summary of some of the decisions made by the Mediators on some of the complaints received by FMB.
This summary is for information only and should not be used for other purpose. [Previous]………[Next]
SALE BY TENDER (Reference no : 6(11)-153)
Bank BD advertised properties for sale by tender in the local newspaper in Kota Kinabalu Sabah. The tender was on a "AS IS WHERE IS" basis and the each of the listed property carried the reserve price. The Tenderor must purchase the tender documents from the bank and submit it before the closing date stipulated. Mr. & Mrs. W responded by submitting tender documents together with the 2% deposit amounting to RM9,000/-. They were the successful tenderors. The tenderors thereafter visited the property and found the property was not in "tenantable condition and good repair". The tenderors wrote to BD Bank requesting that tender be given to next bidder and refund their deposit of RM9,000/-.
BD Bank was only agreeable if the tenderors could find a replacement buyer. The tenderors were only able to do so using the services of an estate agent. The tenderos asked BD Bank to pay the estate agent's fees which was refused. Hence the tenderors were left with no recourse but to refer the matter for mediation.
At the Mediation it came to light that the Tender Documents consisted of :-
(i) Tender Package.
(ii) Brief Particulars of the Property which set out conditions of the tender.
The Owner i.e. BD Bank covenanted. "At all times to maintain and keep in tenantable conditions and good repair the building/s erected on the said land" and further covenanted that the property is sold on an "as is where is" basis free from encumberances. The property will to be sold with or without vacant possession and will not be liable for loss, damage, defect or vandalism that may occur before or after the tender exercise.
It came to light, from the photographs and statements that the property had been infested with terminates and had become structurally unsound. With mediation, the bank agreed to review the property in the light of its covenants. The parties thereafter came to an amicable settlement with the bank refunding 75% of the deposit i.e. RM6,750.
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