How long is the defect liability period in Malaysia?

24 months from vacant possession for homes sold under the statutory SPA (Schedules G and H). The developer must repair notified defects within 30 days.

What if the developer ignores my defect complaint?

After 30 days, tell the developer the repair cost before starting work. If it still does not act within a further 30 days, you can do the repairs and recover the cost from the 5% stakeholder sum held by its lawyer, or file at the Tribunal for Homebuyer Claims.

Can I renovate before reporting defects?

You can, but report defects first. Renovation can hide or cause damage, and the developer can refuse to fix what your contractor changed.

Does the DLP apply to subsale homes?

No. The DLP is a developer obligation under the statutory SPA for new homes. On the subsale market, inspect before signing and agree the condition in the SPA.

Defect liability period in Malaysia: checks at handover and how to claim

Q: Does the DLP start when I collect the keys?

It starts at vacant possession. Under Schedule H, you are treated as having taken vacant possession 30 days after the developer's notice, even if you have not collected the keys.

The defect liability period (DLP) for a new home bought from a licensed developer in Malaysia is 24 months from the date you take vacant possession. During that time the developer must repair defects at its own cost within 30 days of your written notice. If it does not, you can repair them yourself and recover the cost from the 5% of the price held back by the developer's lawyer. Unresolved claims can go to the Tribunal for Homebuyer Claims.

Where the rules come from

Homes sold by licensed developers in Peninsular Malaysia use a statutory sale and purchase agreement under the Housing Development (Control and Licensing) Regulations 1989. Schedule G covers landed homes and Schedule H covers strata properties such as condos and apartments. These terms cannot be changed in the developer's favour. This guide follows the Schedule H wording, and the DLP terms in Schedule G are similar. Sabah and Sarawak have their own housing laws, so check your SPA if you are buying there.

When the 24 months start

The DLP starts when you take vacant possession. For a strata property, Schedule H says the developer can hand over vacant possession only when:

the certificate of completion and compliance (CCC) has been issued;
water and electricity supply is ready for connection;
you have paid all the instalments due; and
the keys are handed to you.

Watch the dates. Under Schedule H, you are treated as having taken vacant possession 30 days after the developer's notice to take possession, whether or not you have collected the keys. So the DLP clock can start before you inspect the unit.

If handover is late, Schedule H requires the developer to pay liquidated damages at 10% a year of the purchase price, calculated day by day. For strata homes, vacant possession is due within 36 months of the SPA date.

What the developer must fix

Schedule H covers defects, shrinkage or other faults in your unit, the building or the common property that appear within 24 months and are caused by defective workmanship or materials, or by building not according to the approved plans. The developer must repair them at its own cost within 30 days of receiving your written notice.

Wear and tear, damage you cause and anything you change in renovation are generally not covered. That is one reason to inspect and report before you renovate.

Step by step: making a claim

Inspect and record. Go through every room with the floor plan. Photograph each defect, mark its location and keep a dated list.
Notify in writing. Send the defect list to the developer through its official channel. Keep proof of delivery. A verbal complaint or WhatsApp message alone is weak evidence.
Copy the developer's lawyer. Serve a copy of the notice on the developer's solicitors, who hold the stakeholder sum. This lets the money be held until repairs are certified done.
Allow 30 days. The developer must repair within 30 days of receiving your notice. Do a joint inspection and sign off only what is fixed.
If nothing happens, tell the developer what the repair will cost before starting work. The developer then has a further 30 days to do the work itself.
Repair and recover. If it still does not act, you can carry out the repairs and claim the cost from the stakeholder sum. The developer's lawyers must pay within 30 days of your written demand. Keep invoices and receipts. Halim Hong & Quek notes a court decision requiring buyers to show repairs actually done and costs paid, not just quotations.

The 5% stakeholder sum

Under the statutory SPA, 5% of the purchase price is held by the developer's lawyer as stakeholder:

Portion	Released to the developer
2.5% of the price	8 months after vacant possession
2.5% of the price	24 months after vacant possession

If you have served a defect notice on the lawyer before a release date, that portion can be withheld until the developer's architect certifies the repairs are done. On a RM600,000 condo, the full 5% is RM30,000, a meaningful amount to keep in reserve.

Common property defects in condos

Defects in lifts, pools, car parks, roofs or corridors are common property issues. Under the Strata Management Act 2013, the developer pays a deposit to the Commissioner of Buildings (COB) at vacant possession for common property defects: at least 0.5% of the estimated construction cost or RM50,000, whichever is higher. Owners, the joint management body (JMB) or the management corporation (MC) can claim from it. Report common property defects to the JMB as well as the developer, because the JMB will usually coordinate the claim. Our condo checklist covers what to ask about the JMB.

Vacant possession checklist

Developers' own guides and building inspectors list the same problem areas:

Area	What to check
Floors	Hollow tiles (tap with a coin), cracked or uneven tiles, gaps in grout
Walls and ceilings	Cracks, water marks, uneven plaster or paint
Doors	Alignment, gaps, hinges, locks, every key
Windows and sliding doors	Glass, locks, rubber seals, water seepage after rain
Wet areas	Water pressure, leaks under sinks, floor traps draining, slope in showers
Electrical	Every power point and switch works, matches the SPA and plans
Balcony and yard	Drainage, railing height and fixing

Third-party defect inspection firms offer this service if you prefer a professional report. Whatever you choose, list defects before you start renovating.

The Tribunal for Homebuyer Claims

If the developer does not repair and the stakeholder sum is not enough, you can file at the Tribunal for Homebuyer Claims under the Ministry of Housing and Local Government (KPKT):

Claim limit: RM50,000 under section 16M of the Housing Development Act, as reported in April 2024. A proposal to raise it was under review then. Check the current limit with KPKT.
Fee: RM10, according to a 2022 practitioner guide.
Time limit: within 12 months of the CCC, the end of the DLP or the SPA's termination, whichever applies. After that, claims go to court.
Lawyers: generally not allowed. Each side presents its own case.

Larger claims, such as structural defects, go to the civil courts. Get legal advice before you decide.

Before you buy

The best protection is choosing a developer with a good handover record. On our site, developer track record is part of every score. Compare new projects on our new launches page, read Google reviews on property pages from our best condos ranking, and see projects by area on our map. Our cost of buying a home guide covers the fees around a purchase.

This guide explains the statutory SPA terms. It is not legal advice; check your own SPA with your lawyer.

General information only, not financial or legal advice. Check current rules with your bank, lawyer or the relevant authority before you commit.