After some years of construction, an important developer has seen its land lease concession terminated by the government, leaving the promised buyers with less than nothing. On the same day that the court decision was disclosed, the Macau Government presented a solution to those persons who may have sunk their lifetime’s savings into the referred development in addition to borrowing money from one of Macau’s banks.
The à la Macau solution of the government may be a bad solution and reveals, somehow, bad conscience. But at least it is a solution. In the future, if, for instance, a developer goes bankrupt will the government present the same solution? The government may be opening a Pandora’s Box which may cause serious problems in the future.
On the other hand, the referred developer keeps postponing a solution to those who were promised that a unit would be constructed and delivered in due course. The developer should turn to his conscience and start indemnifying the aggrieved persons under the legal terms, which are crystal clear: double the down payment plus interest.
Leaving the courts to decide upon the terms of compensation of the promissory buyers is not the path to follow. Of course, concomitantly, in theory, the developer may seek compensation from the government. Well, as mentioned, it is in theory because it have already declared in the past that no compensation would be sought from the government.
It seems it has changed its mind.
But such change of mind should not be to the detriment of the unfortunate promissory buyers who have already suffered patrimonial damages.
In addition – and despite the fact I understand the position of some members of the Legislative Assembly criticising the developer – it is almost a La Palisse truth that some of them were the real source of this problem when approving the land law without understanding that there were pending situations caused by government inertia.
*Lawyer and regular contributor to MNA
