🇲🇾 11 years in Malaysian property · Every figure sourced and dated
Section 5 of 5

Pitfalls: what you can verify yourself

This section is different from the other four: they cover the rules, this one covers what you can go and check for yourself.

It also has more gaps than the others, and every one of them is marked. One of them — whether unpaid maintenance charges follow the property to a new owner — is precisely what a subsale buyer most wants to know, and I could not confirm it, so no answer is given.

Checking a developer: the official portals

What you are looking for Where
Private housing project and developer search teduh.kpkt.gov.my/perumahan-swasta
Sick (sakit) and abandoned (terbengkalai) project lists teduh.kpkt.gov.my/senarai-projek-sakit-terbengkalai
Developers issued with official warnings teduh.kpkt.gov.my/pelaporan-bermasalah
Complaints (SISPAA system) kpkt.spab.gov.my
Not verified, so left blank: What these searches actually display, I cannot verify. TEDUH is a JavaScript application that returns an empty body to any automated request — I can obtain the URLs but not read the result screens.

So this page tells you where to look and does not describe what fields come back, nor can it confirm how current the lists are. Open them in a browser and see for yourself.

One common misunderstanding worth heading off: HIMS (hims.kpkt.gov.my) is not a public register. It is the developer login for applying for licences, advertising permits and housing development accounts.

The official definitions of “sick” and “abandoned”

Category KPKT’s definition
Projek Sakit (sick) Progress lags the required schedule by more than 30%, or the sale and purchase agreement period has expired.
Projek Terbengkalai (abandoned) Not completed within the agreement period and no significant site activity for six continuous months; or a winding-up petition has been registered in the High Court; or a receiver and manager has been appointed; or the developer has admitted inability in writing — and the Minister has certified it abandoned under section 11(1)(c) of the Housing Development Act.
Sources disagree

KPKT’s own definitions page cites a repealed statute.

KPKT’s page says the winding-up petition limb rests on section 218 of the Companies Act 1966.
But the Companies Act 1966 was repealed and replaced by the Companies Act 2016. It is reproduced here as KPKT states it rather than silently corrected, because I do not know whether it is a drafting slip or settled administrative usage.

Buyers can request a confirmation letter: form BPPS for a sick project, form BPPT for an abandoned one.
Contacts: sick projects 03-8891 4200; abandoned projects 03-8891 4003.

Licence and advertising permit

The developer’s licence rests on section 5 of the Housing Development (Control and Licensing) Act 1966 and regulation 3 of the 1989 Regulations; the advertising and sale permit on regulation 5; the housing development account on section 7A and the 1991 Regulations.

Not verified, so left blank: I could not find any official public procedure for validating a specific licence or advertising permit number.

The only safe guidance: the licence number and permit number must appear on the advertising material and in the sale and purchase agreement — check they are actually printed there, cross-check against TEDUH, and put anything doubtful to the National Housing Department in writing.

Likewise, although the housing development account is a statutory obligation, I could find no public route for a buyer to inspect one. If someone tells you that you can check a developer’s HDA, ask them for the URL.

The Homebuyer Claims Tribunal: what it can and cannot do

It is widely treated as a general-purpose remedy. It is not, and the limits are tighter than most people expect.

Item Position
Jurisdiction Disputes between a buyer and a licensed developer arising from the sale and purchase agreement (section 16N(2), Act 118).
Monetary ceiling RM50,000 per claim. Above that, only if buyer and developer agree in writing.
The Strata Management Tribunal’s limit is RM250,000, but that is a different tribunal.
Deadlines (all 12 months) Late delivery and contractual claims: 12 months from the date the CCC was issued
Technical defects: 12 months from expiry of the defect liability period
Agreement terminated before CCC: 12 months from termination
Geography Peninsular Malaysia and Labuan only. Not Sabah, not Sarawak.
Subject matter Houses, including SOHO. Not commercial buildings.
Filing cost RM10 per form. Cash, bank draft or money order to “Akauntan Negara Malaysia-KPKT-T”. No personal cheques and no cash by post.
Lawyers Generally not permitted, except with the President’s leave where there is a complex question of law and severe financial hardship.
Foreign claimants Must produce the original passport at every hearing.
Timeline Client charter 100 working days; the award reaches the parties within 10 working days.

The list of things the Tribunal expressly cannot hear is worth reading in full:

Abandoned projects, defamation, negligence, fraud by property agents, recovery of land, wills and intestacy, goodwill, trade secrets and intellectual property, landlord and tenant disputes, the conveyancing solicitor’s services, design faults by the developer’s consultants, and the validity of the CCC.

Note the first item and the third. Once a project is formally certified abandoned, the Tribunal is out. And fraud by a property agent is outside it too.

If an award is ignored: file four copies of a notice of non-compliance with six copies of the award; the Secretary sends it to the Magistrates’ Court. On the criminal side, non-compliance carries a fine of RM10,000 to RM50,000, or up to two years’ imprisonment, or both.

Source: KPKT, Tribunal Perumahan dan Pengurusan Strata, page updated 13 August 2025.

Late delivery damages: the arithmetic and the filing

KPKT’s own formula:

days of delay × house price × 10% ÷ 365

KPKT’s worked example: 100 × RM300,000 × 10% ÷ 365 = RM8,219.18.

Documents to file with Form 1: one copy of the sale and purchase agreement, one copy of the letter of delivery of vacant possession, one copy of the CCC, and one copy of any related documents.

Procedure: Form 1 in four copies, all signed or thumb-printed, plus one Borang Butiran TTPR, plus RM10. The Tribunal returns three sealed copies: for you, for the developer, and for your financier. Service on the developer and the bank must be proved at the first hearing.

The decision that sets the start date is in section 3: the Federal Court in PJD Regency (2021) held that time runs from the date the booking fee was paid, not the date of the agreement. Keep that receipt.

Not verified, so left blank: The formula above is quoted from KPKT’s FAQ, not from the statutory contract itself. I could not retrieve the text of Schedules G and H from KPKT’s site, which hosts only the 2012 and 2015 amending instruments rather than the principal 1989 Regulations. The rate and the start date that govern you are the ones in your own contract.

Guaranteed rental return: what I can and cannot tell you

Not verified, so left blank: On guaranteed rental return, I verified almost nothing.

Not found: any KPKT or National Housing Department circular or guideline on GRR; whether a GRR scheme can amount to a collective investment scheme requiring Securities Commission approval; any SC or Bank Negara statement on the subject; and any named Malaysian GRR failure.

So this section names no project and no developer, and does not tell you whether GRR is regulated. Absence of evidence is not evidence of absence — it only means I could not find it, and that is not a finding.

One thing can be established, though, and I think it matters more than any case study would:

The Tribunal’s jurisdiction is confined by section 16N(2) to disputes arising from the sale and purchase agreement with a licensed developer, and it hears no commercial buildings and no landlord and tenant disputes.

A guaranteed rental return is usually one of three things: a separate agreement sitting outside the SPA, an obligation of a management company rather than the developer, or attached to a unit on a commercial title.

All three fall outside the Tribunal. Which means that if the return stops, the fast, cheap RM10 route is not open to you. You are in the civil courts, against what may be a company with no assets.

So put these four questions before you sign, and get the answers in writing:

  1. Is the guarantee in the sale and purchase agreement itself, or in a separate document?
  2. Which legal entity owes the money? Is it the same company as the developer, and what is its paid-up capital?
  3. Where does the money come from? Is it already built into the price I am paying — that is, am I being handed back my own money?
  4. What is the land use category on this unit? If it is commercial, the Tribunal route was never open.

The Securities Commission’s Investor Alert List is worth a check: sc.com.my/investor-alert-list. The list states it “is not exhaustive”, so absence from it proves nothing. The old /regulation/investor-alert-list path now returns 404.

Subsale: arrears and strata paperwork

Two claims that are almost universally repeated and are both wrong:

Commonly said What the Act actually says
“Section 25 creates a statutory charge over the parcel” No. Section 25 of the Strata Management Act 2013 imposes a payment obligation on the parcel owner. It is not a charge over the parcel.
“Form 11 is the certificate of outstanding charges” No. Form 11 is the notice demanding payment under section 34(1). The certificate is Form 10 (JMB stage) or Form 19 (management corporation stage).

How to actually get the document you want:

Stage Provision Form Deadline
Developer management period / JMB Section 31 (a parcel owner or prospective purchaser may apply) Form 10 Within 21 days of application and the prescribed fee
Management corporation / subsidiary MC Section 73 (a proprietor or prospective proprietor may apply) Form 19 Within 21 days of application and the prescribed fee

Failing to issue it is an offence: regulations 19(2) and 30(2) — a fine of up to RM50,000, or up to three years’ imprisonment, or both.

Note that both sections say a prospective purchaser may apply. You do not have to own the parcel first; you can ask for this before you sign.

Not verified, so left blank: Do unpaid maintenance charges follow the property to a new owner?

I could not confirm this, so no answer is given. Sections 33 to 35 (JMB) and 77 to 79 (management corporation) were readable only at heading level; extraction of the Act broke off before the operative text, so I cannot say whether recovery reaches a subsequent purchaser.

This is probably the single most useful thing a subsale buyer could know, and I do not know it. Get your solicitor to advise on this point in writing — and whatever the answer, obtain the Form 10 or Form 19 first.

A free check you can run on the spot:

Section 6(5) of the Strata Management Act requires the schedule of parcels to be displayed at all times in a conspicuous position in every office and branch office of the developer, and at any place where a sale is conducted.

So ask to see it in the sales gallery. Section 6(1) goes further: no parcel may be sold at all until the schedule has been filed with the Commissioner of Buildings. Breach of section 6 carries a fine of up to RM500,000 or five years’ imprisonment.

A sales gallery that cannot produce it has told you something.

Not verified, so left blank: The cost, turnaround and contents of an official title search (carian rasmi), the consequences of unapproved renovations, and the section numbers governing private caveats are all omitted from this page.

The reason: the Attorney General’s Chambers legislation portals (lom.agc.gov.my, agc.gov.my) returned empty bodies on every path attempted, and the state e-Tanah portals were unreadable too. Better a blank than a section number quoted from memory. Put these to your conveyancing solicitor.

Choosing an area: start with where the developments actually are

I do not rank areas and I will not tell you which is the best buy. What I can give you is a checkable fact: where the developments tracked on this site actually sit. The distribution itself tells you where cross-border attention is concentrated.

State / area Developments tracked here Official status (only what is verifiable)
Johor (whole state) 92 The entire state falls within JS-SEZ.The JS-SEZ agreement was signed 7 January 2025; 3,588 km²; nine flagship zones.
 Johor Bahru city 29 Corresponds to Flagship A (Johor Bahru Waterfront).Flagship boundaries have not been published.
 Iskandar Puteri (incl. Medini) 13 Flagship B, business services and global services hub. IRDA is headquartered in Medini.
 Larkin / Ulu Tiram 4 / 5 Within Iskandar Malaysia and JS-SEZ.
 Danga Bay / Seri Alam / Tebrau / Permas Jaya / Bandar Dato Onn 3 / 3 / 3 / 4 / 3 As above.Whether any of these sits inside a flagship zone cannot currently be established by anyone — the boundaries are unpublished.
Kuala Lumpur 40 Federal Territory; nothing to do with Iskandar or JS-SEZ.
 KLCC / Bukit Jalil / Bangsar / Bukit Bintang 10 / 5 / 3 / 3
Selangor 31 Foreigners may buy strata only, with three zone-based price floors — see section 2.
 Petaling Jaya / Rawang / Puchong / Seri Kembangan 6 / 5 / 3 / 3
Penang 5 Island and mainland floors differ; and from August 2026 Penang has Malaysia’s first short-term rental by-laws — see section 4.
Sabah (Kota Kinabalu) 3 Sabah runs its own land law (Cap. 68); the National Land Code does not apply. Peninsular rules cannot be carried across.

Source: Counts are read from this site’s own development library when the page loads, not copied from a snapshot. Flagship names and area from the JS-SEZ official site and MIDA documents.

On the question “is my project inside a JS-SEZ flagship zone?”

The JS-SEZ official FAQ, item 9, states that the boundaries of the newly announced flagship zones “shall be shared later upon approvals by the Ministries”.

So as things stand, nobody can tell you whether Tebrau or Mount Austin falls inside Flagship A — including a developer’s sales staff. If “located in a JS-SEZ flagship zone” is being used as a selling point, ask to see the published boundary map.

Also keep two lettering schemes apart: Iskandar Malaysia’s 2006 zones A–E and JS-SEZ’s flagships A–I are not the same thing, and they are frequently conflated.

On districts, and what this page will not say

Not verified, so left blank: This page gives no drive times or road distances from any Johor Bahru district to the Singapore checkpoint.

No official road distance or journey time is published by IRDA, Johor Bahru City Council, the Johor state government, MRT Corp, Malaysia’s transport ministry, Singapore’s Land Transport Authority, or the JS-SEZ portal. A mapping app will produce a number, but it would not be an official one, and printing it would imply a verification that did not happen.

For the same reason, malls, schools, hospitals and bus routes are not listed district by district — I could not verify them individually against official sources.

The one cross-border figure that is official and checked is the RTS:

Item Official figure
Target start of service 31 December 2026MRT Corp press release, 21 January 2026, reporting the station façade steel works complete and the project “ahead of schedule”.
Length About 4 km — 2.7 km in Malaysia, 1.3 km in Singapore
Stations Bukit Chagar and Woodlands North. Two.
Journey time 6 minutesThat is a train running time to Woodlands North station. It excludes immigration and it is not a time to the Singapore checkpoint.
Capacity 10,000 passengers per hour per direction; about 40,000 a day at opening
Immigration Malaysian and Singaporean clearance facilities are in the same building; clearance is completed once at the departure station
Not verified, so left blank: The current construction progress figure for the RTS could not be verified for 2026. The last percentage published on MRT Corp’s media page is 77.61%, dated 11 June 2024. Whether the dynamic testing scheduled for May 2026 began is also unconfirmed.

And the opening date here is only Malaysia’s stated position — Singapore’s LTA and transport ministry pages were unreadable, so this page does not say that “both governments” target 31 December 2026.

Source: MRT Corp, RTS Link, page last modified 28 November 2024; MRT Corp press releases of 21 January 2026 and 28 July 2025.

The verified development and area material is on RTS Link property and the Johor Bahru guide.

The abbreviations you will meet on the paperwork

Only the ones that genuinely appear on documents during a purchase. The full list is in the property glossary.

Abbreviation Full term What it means for you
SPA Sale and Purchase Agreement Buying from a licensed developer, the form is statutory: Schedule G for landed, Schedule H for strata. Establish which one you are signing — the delivery deadlines are 12 months apart.
APDL Advertising and Sale Permit
Iklan dan Jualan
Regulation 5 of the 1989 Regulations. The approved price band on the permit is what decides foreign-buyer eligibility — it is how the verdicts for 131 developments on this site were worked out.
VP Vacant Possession 24 months on Schedule G, 36 months on Schedule H, from the date of the agreement. Late delivery is compensated at 10% per annum of the price, day to day.
DLP Defect Liability Period 24 months from vacant possession. The developer must repair within 30 days of written notice. The Tribunal deadline for technical claims is 12 months from expiry of the DLP.
CCC Certificate of Completion and Compliance Replaced the old CF. The 12-month deadline for a late-delivery claim runs from the date the CCC was issued.
RPGT Real Property Gains Tax Charged on disposal. A foreigner still pays 10% from year six onwards and never reaches 0%. The buyer must retain 7% and remit it to the Revenue.
JMB / MC Joint Management Body / Management Corporation The strata management layer. Their powers differ: a JMB’s additional by-laws reach only common property, a management corporation’s reach the building. For an arrears certificate it is Form 10 at JMB stage and Form 19 once there is a management corporation.
COB Commissioner of Buildings Additional by-laws must be filed with the COB within 30 days. That filing is the document to ask for if you need to know whether short-term letting is permitted in a building.
GDV Gross Development Value Industry usage, not a statutory term. The projected total sales value of a whole project. It measures the size of the development and says nothing about your unit’s value or return — worth noticing when it is used as a selling point.
NLA Net Lettable Area Industry usage, not a statutory term. Common in commercial property: the area that can actually be let after common space is excluded. It is not the same concept as a residential built-up area, so do not compare the two.
Not verified, so left blank: eSPA is left off the table because I could not find an official definition for it. It is used in the market to describe an electronically executed sale and purchase process, but I found no formal definition or statutory standing for the term in KPKT material or any legislation.

If a developer asks you to go through an “eSPA” process, ask three questions directly: is this the statutory Schedule G or H? Has any clause been altered? And what form does the executed original take?

What this page cannot do

Everything above is the general rule. General rules do not decide your unit. Tenure, state, price and developer have to be read together before there is an answer, and all four have to be checked one at a time.

One more thing worth saying plainly: I am not a lawyer and I am not a tax adviser. This section collects the official material, dates it and cites it so you know which questions to ask. Before you sign anything, have your own solicitor confirm it against your contract.

If you want a specific development checked, WhatsApp me or send an email.

Louis Koh · 11 years in Malaysian property

Pitfalls: what you can verify yourselfLouis Koh · 11 years in Malaysian property

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