Buying New Property in Malaysia: From Booking to Keys, Defects & Strata Management
Buying new property from a developer in Malaysia is protected by the Housing Development Act (HDA): a statutory SPA, progress payments, late-delivery damages and a 24-month defect liability period. Every guide is laid out below in six stages — from checking the developer’s licence, booking and the loan, to construction, handover, inspection and maintenance fees.
Short answer
When you buy new property from a developer in Malaysia the contract is statutory: Schedule G for landed, Schedule H for strata under the Housing Development Act. You pay 10% on signing and the rest in construction stages. Delivery is 24 months (landed) or 36 months (strata), late delivery is compensated at 10% a year, and the defect liability period runs 24 months from handover.
Key numbers at a glance
| Contract | Schedule G (landed) / H (strata) — statutory, not negotiable |
|---|---|
| On signing | 10% of the purchase price |
| Delivery deadline | 24 months landed / 36 months strata |
| Late delivery (LAD) | 10% a year, counted from the booking-fee date |
| Defect liability | 24 months from vacant possession; 30 days to repair |
| Handover requires | CCC plus water and electricity; strata title for strata |
| Booking fee | Reg 11(2): no payment outside the SPA — there is no legal 3% cap |
| Claims | Tribunal for Homebuyer Claims, up to RM50,000, RM10 fee |
Six stages from booking to moving in
The key dates for new property are written into the statutory SPA: the SPA date, the delivery deadline and the start of the defect liability period. In each stage, start with the first guide and read on as needed.
Before you book
Understand property types and titles, then check the developer's licence and advertising permit (APDL) and work out your budget.
Booking & the home loan
Booking, applying for the bank loan, reading the letter of offer — plus EPF, interest rates and insurance that decide your instalment.
Signing the SPA
The SPA, the loan agreement, stamp duty and legal fees — understood clause by clause before you sign.
From SPA to keys
You pay on architect's certificates as construction progresses and the bank releases the loan in stages. Handover needs a CCC plus water and electricity, and late delivery can be claimed.
After you get the keys
Inspection, utilities, assessment and quit rent, renovation, renting out, refinancing, selling and inheritance.
Repairs & property management
The Strata Management Act, JMB/MC, maintenance fees and sinking fund, by-laws, common-property defects and leaks.
Ask Louis directly
Send me the project name and I will check the developer's licence, the advertising permit and the delivery deadline, then tell you which SPA clauses to watch.
I'll check the KPKT licence and advertising permit for any project you're considering, free.
Frequently asked questions
Do I have to pay a booking fee for new property in Malaysia?
There is no legal ‘3% booking fee cap’. Regulation 11(2) of the Housing Development (Control and Licensing) Regulations 1989 bars a developer from collecting any payment other than what the SPA prescribes, so a pre-SPA booking fee has no legal footing. It is still common in practice — get an official receipt and ask in writing how it is refunded if your loan is rejected. See booking a new property.
How much compensation can I claim for late delivery?
Under the statutory SPA, liquidated ascertained damages (LAD) are 10% of the purchase price a year. In PJD Regency (Federal Court, 2021) the court held that LAD runs from the date the booking fee was paid, not the SPA date. Worked examples are in the construction period and LAD.
How long does a developer have to deliver a new property?
24 months for landed property (Schedule G) and 36 months for strata property (Schedule H), counted from the SPA date. At vacant possession the building must have its Certificate of Completion and Compliance (CCC) with water and electricity ready; for strata (Schedule H) the strata title must also have been issued before the 17.5% VP payment falls due.
How long is the defect liability period for new property?
24 months from vacant possession. You notify the developer in writing, and the developer must repair within 30 days of the notice. The checklist and claim steps are in defect inspection and DLP.
Where can I complain about a developer?
File a claim with the Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah): up to RM50,000 (more if both sides agree in writing), a RM10 fee, within 12 months of the CCC, the end of the defect liability period or termination of the SPA. See the homebuyer tribunal.
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.
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.
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 check the KPKT licence and advertising permit for any project you're considering, free.
Louis Koh · 11 years in Malaysian property · +60 10-906 6685 · replies 9am–10pm MYT