Defect Liability Period (DLP) in Malaysia: Defect Inspection Checklist & How to Claim from the Developer
The defect liability period in Malaysia is 24 months from vacant possession, and the developer must fix any defect within 30 days of your written notice; if it doesn’t, you can repair it yourself and recover the cost, including from the sum the developer’s lawyer holds as stakeholder. Below: a room-by-room inspection checklist, the letter sequence that works, and what to do after the DLP ends.
Short answer
The defect liability period in Malaysia is 24 months from vacant possession for homes sold under the HDA statutory SPAs, and the developer must repair within 30 days of your written notice (Schedule G clause 27, Schedule H clause 30). If it does not, you give notice of the repair cost and another 30 days, then repair and recover it, including from the stakeholder sums the developer’s solicitor holds.
Key numbers at a glance
| Length of the DLP | 24 months from vacant possession (VP) |
|---|---|
| Contract clauses | Schedule G cl.27 / Schedule H cl.30 (HDA 1966) |
| Developer's repair deadline | Within 30 days of your written notice |
| Stakeholder sums | 2.5% at 8 months after VP + 2.5% at 24 months, 5% in all |
| On a RM600,000 unit | RM15,000 + RM15,000 = RM30,000 held back |
| Not covered | Subsale homes; non-HDA products such as some SOHO/SOFO |
| Tribunal for Homebuyer Claims | Up to RM50,000, RM10 fee, within 12 months of the DLP |
| After the DLP | Contract claims generally 6 years (Limitation Act 1953) |
Key points in 30 seconds
- For new homes sold under the HDA statutory contracts (Schedules G, H, I, J), the DLP runs 24 months from vacant possession.
- The developer must repair within 30 days of receiving your written notice; the statutory contract cannot be varied to shorten this.
- If it doesn’t, you give notice of your repair costs and another 30 days, then repair and recover the cost, including from the stakeholder sums (5% in total under the current schedule).
- On a RM600,000 condo, the two 2.5% stakeholder sums add up to RM30,000, and that is your practical leverage.
- After the DLP you can still sue in contract (generally a 6-year limitation period), and the Tribunal for Homebuyer Claims takes claims up to RM50,000 filed within 12 months of the DLP ending.
What is the defect liability period in Malaysia?
The defect liability period (DLP) is a statutory term in the sale and purchase agreement prescribed under the Housing Development (Control and Licensing) Act 1966 (HDA, Act 118). If you buy a residential unit from a licensed developer, the SPA must follow the statutory form: Schedule G (landed, sell-then-build), Schedule H (strata, sell-then-build), or Schedules I and J for build-then-sell. For a clause-by-clause walk-through, see new property SPA Schedules G, H, I and J.
| Item | Rule | Where it comes from |
|---|---|---|
| Length | 24 months after vacant possession (VP) | Schedule G clause 27 / Schedule H clause 30 |
| Repair deadline | Within 30 days of receiving the buyer’s written notice | Same clauses |
| If the developer fails | Buyer may repair, recover the cost from the developer, and deduct it from sums held by the developer’s solicitor as stakeholder | Same clauses |
| Stakeholder sums | Under the current schedule: 2.5% released 8 months after VP + 2.5% released 24 months after VP | Third Schedule of G/H |
| Scope | Your unit; common-property defects in strata schemes are pursued by the JMB/MC | Schedule H |
The clock starts at vacant possession, not when you move in or finish renovating. If you sit on the VP notice, the DLP keeps running, so book your key collection early. What must be in place before VP (CCC, water and electricity) is covered in CCC and vacant possession.
How to prepare for a new house defect inspection
At key collection you normally receive keys, access cards and a defect form (sometimes called a joint inspection form). I tell clients to inspect twice: a quick walk-through on key day, then a thorough inspection with tools within the next week or two, followed by one consolidated defect list.
- Documents: the SPA, the VP notice, the floor plan and the developer’s specification / schedule of finishes
- Tools: measuring tape, spirit level, a tile-tapping rod (a coin works), a socket tester, torch, masking tape, and your phone for photos and video
- A bucket of water or a hose to test floor traps and the fall of bathroom and balcony floors
- Confirm water and electricity are connected (a VP condition under Schedules G and H) so you can test pressure, sockets and water-heater points
- Mark each defect with numbered tape and match the photo numbers to your list
- Ask how the developer accepts defect reports (portal, email or counter) and how it acknowledges receipt
For large units, or if you lack the time, a professional inspector is worth considering. iProperty quotes market fees of roughly RM500 to RM3,000 depending on size and report depth (market pricing, not a regulated fee). A clear report with photos makes it harder for the developer to wave defects away as “normal”.
The developer’s solicitor releases 2.5% at 8 months after VP and another 2.5% at 24 months, which is RM30,000 on a RM600,000 unit. If your written notice of unresolved defects does not reach the solicitors before those dates, the money goes to the developer and you are left with the tribunal (capped at RM50,000) or a civil suit.
Ask Louis directly
Send me your defect list and photos and I'll tell you which items fall inside the DLP, how the notice letter should read, and who it has to go to.
I'll send you a free room-by-room inspection checklist and work out the two stakeholder sums and their due dates from your purchase price, ready to put in your calendar.
Defect inspection checklist, room by room
Floors, walls and ceilings
- Tap every tile for hollow sounds; look for cracks, chipped edges, lippage and uneven grout
- Walls: cracks, patchy paint, damp stains, mould; check corners with a spirit level
- Ceilings: water marks, cracks or sagging, especially under bathrooms and air-conditioner points
- Gaps between skirting, window sills, door frames and walls
Doors, windows and grilles
- Every door opens, closes and locks smoothly; hinges, stoppers and locksets are complete
- Windows and sliding doors lock tight and seals are intact; spray-test or check after rain for seepage
- Glass scratches or cracks; dents in aluminium frames
Bathrooms, kitchen and plumbing
- Run every tap and shower at full pressure and look for leaks
- Floor traps drain quickly and the floor falls toward them with no ponding
- WC flushes properly and is firmly fixed; no drips under basins and the kitchen sink
- Water-heater and hood points match the plans
Electrical
- Test each socket with a socket tester (earth, reversed live/neutral)
- All switches work, the DB box is labelled, and the RCCB/ELCB test button trips
- Air-conditioner, TV and data points match the specification in number and location
Extra checks for landed homes
- Roof leaks (recheck ceilings after rain) and clear gutters
- Settlement in the yard or porch, cracks in boundary walls
- Porch gradient and the location of sewer/inspection chamber covers
How to claim defects from the developer (and what if it ignores you)
The DLP clause works on written notice plus deadlines. Verbal complaints and WhatsApp groups are weak evidence, so keep a paper trail that proves receipt. The sequence below follows Schedule G clause 27 / Schedule H clause 30 as explained by law firms Kuek Ong and YHA:
- Letter 1: notice of defectsSend a numbered defect list with photos by registered post, by email with acknowledgement, or by hand against a stamped receipt. Note the date received.
- Wait 30 daysThe developer must repair within 30 days of receiving the notice. Check each item afterwards and photograph it; don’t sign a “all completed” sheet if items remain.
- Letter 2: notice of repair costsIf nothing happens, get a quotation from an independent contractor, tell the developer in writing that you intend to repair and at what cost, and give it another 30 days.
- Repair and keep recordsIf the deadline passes, carry out the repair and keep the quotation, invoice, receipt and before-and-after photos.
- Claim from the developer and the stakeholderDemand the cost from the developer and notify the developer’s solicitors in writing that a defect claim is outstanding. If your notice lands within the 8-month or 24-month window, the solicitors generally cannot release the retention until the architect certifies the defects are made good.
- Still unpaid: tribunal or courtFile with the Tribunal for Homebuyer Claims (up to RM50,000, RM10 fee) or take legal action.
| When | What to do |
|---|---|
| VP notice date | Book key collection promptly; the DLP runs from VP |
| 1-2 weeks after keys | Full inspection with tools; send the first written defect list |
| 30 days after notice | Developer’s repair deadline; re-check and photograph each item |
| Before month 8 after VP | Notify the developer’s solicitors of unresolved defects (first 2.5% retention falls due) |
| Around month 20 | Second full inspection after the rainy seasons |
| Before month 24 after VP | Last defect notices must be received (second 2.5% retention falls due) |
| Within 12 months after the DLP | File at the Tribunal for Homebuyer Claims if still unresolved |
Worked example: how much is held back?
Say you bought a RM600,000 strata unit under Schedule H. Under the current payment schedule the developer’s solicitor holds two sums after VP:
RM600,000 × 2.5% = RM15,000 (released 8 months after VP)
RM600,000 × 2.5% = RM15,000 (released 24 months after VP)
Total RM30,000. That is your leverage, so get unresolved defect notices to the solicitors before month 8 and month 24. The full schedule is in progressive payment schedule.
Common defects in new Malaysian homes (and what isn't one)
| Defect | Where it shows up | What to ask the developer for |
|---|---|---|
| Hollow tiles | Large living-room and corridor floors | List quantity and location; ask for relaying and matching tile batches |
| Wall cracks | Corners of openings, beam/brickwall joints | Separate hairline surface cracks from structural ones; ask for a written explanation for the latter |
| Water seepage | Window frames, bathroom walls, ceilings | Trace and fix the source, not just repaint |
| Poor drainage / ponding | Bathrooms, balconies, kitchen | Re-screed the fall or clear the pipe |
| Ill-fitting doors and windows | Aluminium windows, sliding doors | Adjust or replace seals and ironmongery |
| Electrical faults | Sockets, DB box | Inspection and repair by a licensed electrician |
Slight paint variation and fine shrinkage cracks are often called “within tolerance”. When you disagree, photos, measurements and an inspector’s report carry the argument. Leaks from the unit above, corridors and façades are common-property or inter-floor issues with a different procedure: see common property defects and water leakage.
Can you claim after the defect liability period ends?
Yes, though it gets harder. As VCC Law summarises the case law, the DLP clause is an extra remedy and does not remove your right to sue in contract, which generally carries a 6-year limitation period under the Limitation Act 1953. Latent defects, the ones you could not have spotted at handover, can also be pursued in a civil claim, but you will need an expert report and a lawyer.
| Route | Best for | Key points |
|---|---|---|
| DLP clause + stakeholder sums | Defects found within 24 months | Fastest and cheapest; written notice and deadlines matter most |
| Tribunal for Homebuyer Claims | Claims up to RM50,000 | RM10 fee, no lawyer needed; file within 12 months of the CCC, the end of the DLP or termination |
| Civil court | Larger or latent-defect claims | Generally 6 years in contract; needs lawyers and experts |
The tribunal process is covered in Tribunal for Homebuyer Claims. Building-wide problems such as façade leaks or lifts should be driven by the JMB or MC; see JMB, MC and COB explained.
Related questions
Does a leak from the unit above count as my defect?
The DLP clause covers defects inside your own parcel. Water coming from the unit above is inter-floor leakage, and façades, corridors and lifts are common property, which the JMB or MC pursues with the developer under a different procedure and different deadlines. A water stain on your own ceiling still needs written notice to the developer inside the 24 months. See common property defects and leakage.
The developer wants me to sign an “all completed” form first. Should I?
No. Signing it confirms every item was made good, which makes anything left undone far harder to chase. Re-check each item, photograph it, sign only against the ones actually fixed, mark the rest “not completed” with the date, and follow up with a letter listing the items still running their 30 days. Keep the registered post slip, email acknowledgement or stamped receipt every time.
What if the developer says hollow tiles are within tolerance?
Hollow tiles are one of the most common defects. Number each affected tile, mark its location, count them, ask for relaying, and check that replacement tiles come from a matching colour batch. Slight paint variation and fine shrinkage cracks are often called acceptable; when you disagree, photos, measurements and an inspector’s report carry the argument. iProperty quotes inspection fees of about RM500 to RM3,000.
Do subsale homes come with a defect liability period?
No. The 24-month DLP is a term of the HDA statutory contract and applies only to new homes bought from a licensed developer. Subsale properties are sold as is, so the inspection has to happen before you sign, and condition and arrears must be written into the offer and the SPA. What to check is set out in subsale due diligence.
Frequently asked questions
How long is the defect liability period in Malaysia?
For residential units sold under the HDA statutory SPAs, the DLP is 24 months from vacant possession (Schedule G clause 27, Schedule H clause 30). The developer must repair defects within 30 days of receiving written notice. Subsale purchases and non-HDA commercial products are not covered by this statutory clause.
What can I do if the developer doesn't repair defects within 30 days?
Get a contractor’s quotation, give the developer written notice of the intended repair and cost, and allow another 30 days. After that you may repair it yourself, recover the cost from the developer, and ask the developer’s solicitors to pay it from the stakeholder sums. If that fails, file at the Tribunal for Homebuyer Claims (up to RM50,000).
Do I need a professional home inspector for a new house?
No, it is optional. With a spirit level, tile-tapping rod, socket tester and a bucket of water you can find most defects yourself. For large units, or if you are short of time, a professional report is more persuasive. iProperty quotes market fees of about RM500 to RM3,000 depending on size and scope.
Can I renovate during the defect liability period?
Nothing in the law stops you, but it invites disputes: the developer may refuse to fix anything the renovation touched. Submit your defect list, let the first repairs finish and photograph them before starting. You also need management approval for strata units, or a council permit for many landed works.
Does the DLP start from key collection or from the VP notice?
The DLP runs from vacant possession. Delaying key collection after the developer’s VP notice generally won’t push the start date back; check the wording of your SPA. The simplest protection is to collect your keys soon after the notice, inspect within a week or two, and send your first written defect list early.
Can I still claim for defects after the DLP expires?
Yes. Courts have held that the DLP clause does not take away your contractual right to sue, which generally has a 6-year limitation period, and latent defects can be pursued in a civil claim. Tribunal claims must be filed within 12 months of the DLP ending and are capped at RM50,000.
Sources & verification
- Kuek, Ong & Associates — Defect Liability Period for Residential Units (Schedule G cl.27 / Schedule H cl.30)
- Yew Huoi, How & Associates — Real Estate, Defect Liability and Rectification
- VCC Law — Liability of a Developer after the Defect Liability Period
- The Edge Malaysia — Understanding defect liability period and latent defects
- iProperty — How to make sure your home defects are fixed during the DLP
- KPKT — Tribunal for Homebuyer Claims
- REHDA Melaka — Schedule G (statutory SPA form)
Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.
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Louis Koh
11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文
I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.
Stuck on this step? Ask me directly
Send me your situation — new or subsale, budget, state, and where you are in the process — and I will tell you what to do next and what to watch for.
I'll send you a free room-by-room inspection checklist and work out the two stakeholder sums and their due dates from your purchase price, ready to put in your calendar.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT