When the Handover Notice Arrives, Check the Paperwork Before the Unit
Buying a new-build property off-plan in Malaysia and then receiving the developer’s handover notice is not just about inspecting the finish of the unit. Buyers also need to confirm the conditions attached to Vacant Possession (VP), what is payable at that stage, and when the Defect Liability Period (DLP) actually begins.
This article covers residential projects in Peninsular Malaysia that are regulated under the Housing Development (Control and Licensing) Act 1966 (HDA) and its related regulations, using the statutory Schedule G or Schedule H sale and purchase agreement (SPA) format. Other contract types, commercial property not covered by this regime, and projects in Sabah or Sarawak do not fall under the timelines described below.
Delivery Deadlines: Check the Contract Type, Then the Start Date
The standard delivery period under Schedule G is generally 24 months; under Schedule H it is generally 36 months. Schedule G applies to the sale of land and a building together, while Schedule H applies to a building or land intended to be subdivided into strata units, so the applicable period cannot be judged simply from whether the property looks like a landed house or an apartment.
The statutory contract sets out clauses for when the period starts and when delivery is due, but the actual calculation still depends on the applicable version of the contract, the arrangements under any valid approvals, and relevant case law. Where a booking fee was paid before the SPA was signed, case law may affect the start date, so the delivery deadline should not be calculated from the date on the formal SPA alone.
Where delivery is already overdue, Liquidated Ascertained Damages (LAD) is the agreed compensation for late delivery. The standard rate for VP delay is 10% per annum of the purchase price, calculated daily over the confirmed period of delay, not accumulated from the first day a payment was made. Buyers should keep the earliest payment record, the SPA, the handover notice, and any approval documents, and have a lawyer check them.
What to Check Around the Time of Handover
| Item | What to Check |
|---|---|
| VP notice and delivery conditions | Whether the notice was served as required by the contract and whether the delivery conditions have been met |
| CCC | Whether the applicable Certificate of Completion and Compliance has actually been obtained, not just a sales agent’s statement that the unit is complete |
| Utilities and access | Whether connections meet the contract’s requirements, and the process for setting up accounts and keys |
| Land title and transfer documents | Whether these are complete, and if not, whether there is an applicable approval and follow-up arrangement |
| Payments due | Checking progress payments, management-related charges, deposits, and payment deadlines item by item |
| Unit and fittings | Comparing against the contract’s plans, specifications, and included items, and recording the location and photos of any defects |
During the inspection, focus on water leaks, doors and windows, floor surfaces, drainage, and whether fittings work. For significant electrical or structural concerns, have a qualified professional check them.
The DLP Does Not Necessarily Start Only When You Move In
The standard terms applicable to Schedule G and Schedule H set a 24-month DLP, but the start date depends on when valid delivery occurred and the contract’s provisions on deemed receipt of VP. Delaying collection of keys or delaying moving in for a long period does not necessarily push the start date back.
Where a qualifying defect in workmanship, materials, or a deviation from the approved plans and specifications appears during the DLP, the developer must repair it within 30 days of receiving written notice. The notice should state the location, the condition, photographs, and the date of submission, and the buyer should keep proof that the developer received it.
If the first 30-day deadline passes without the repair being completed, the applicable standard terms set out a further procedure: the buyer must notify the developer of the estimated repair cost before carrying out the work themselves, and must give the developer another opportunity to act under the terms. A buyer should not assume that simply because “30 days have passed,” they can proceed with repairs on their own and automatically recover the cost afterward.
Final Payment and the Retention Sum: Know Who Is Holding What
Under the Schedule G/H payment schedule as amended in 2015, 5% of the purchase price is held by the developer’s solicitor as stakeholder at the VP stage, released in principle as 2.5% eight months after VP and a further 2.5% at 24 months after VP, each subject to conditions being met.
This retention sum is not something the buyer can hold back on their own initiative, to be paid only once every defect has been fixed. Where repair costs need to be deducted from the retention sum, the contract’s notice and claims procedures must be followed, and the buyer’s conveyancing lawyer should be contacted early.
Other progress payments that remain due should be checked against the contract and any valid payment notices. A defect in the unit does not, by itself, justify withholding all payments.
Claim Deadlines: Be Clear About What Is Being Claimed
The Tribunal for Homebuyer Claims (TTPR) generally handles claims within its jurisdiction of up to RM50,000; claims above that amount are subject to specific conditions for acceptance and are not decided on amount alone.
Claim deadlines need to be checked separately by type. Claims such as LAD generally need to be filed within 12 months of the CCC being issued; claims for technical defects generally need to be filed within 12 months of the DLP expiring; and claims relating to termination of the SPA before the CCC was issued are calculated from the date of termination. These different triggers should not be collapsed into “always use the earliest date,” and buyers should not wait until the DLP ends before starting to deal with every type of claim.
The DLP expiring does not necessarily rule out other civil remedies, but the applicable limitation period, start date, and liability need to be assessed separately. It should not be read as meaning every issue automatically gets another six years of protection.
Common Misunderstandings
“I haven’t collected the keys yet, so the DLP hasn’t started.”
The contract may contain provisions for deemed receipt of VP, so the notice service and delivery conditions should be checked first.
“The 5% retention sum can just be withheld by the buyer themselves.”
The retention sum under the standard payment schedule has a designated holder and designated purposes; the buyer cannot unilaterally turn it into a self-managed deduction.
“All claims should wait until the DLP ends and then be filed together.”
Different claims can have different deadlines, and in particular LAD claims and technical defect claims should not be treated as the same thing.
Deciding What to Do Next
Buyers waiting for handover should start by putting the SPA, payment records, and delivery dates into a timeline. Once the VP notice arrives, check the paperwork, the payment requests, and when the DLP starts, before arranging the inspection.
Buyers who have already found defects should issue written notice under the contract as soon as possible and follow up on the repair and re-inspection. Where the retention sum or a claim deadline is involved, a lawyer should confirm the procedure early, rather than relying only on verbal communication with repair staff.
Specific rights and claim deadlines need to be confirmed against the formal documents in each case.
Frequently Asked Questions
Q1: Does every new-build property have a 24-month DLP?
This cannot be generalized to all properties. The 24-month arrangement described in this article applies to the statutory HDA contract formats discussed here; other transactions depend on the applicable regime and contract.
Q2: If a problem is only found after handover, can it still be reported?
A qualifying defect can generally be reported under the applicable DLP terms, with written notice and photographs kept on file. Whether the developer is responsible still depends on the cause of the problem.
Q3: If the developer does not repair within 30 days, can the buyer repair it themselves?
The contract’s further procedures, such as notifying the estimated cost and giving the developer another opportunity to repair, should be completed first, before assessing self-repair and any recovery of costs.
Disclaimer
This article is general information about property handover and does not constitute legal or building-inspection professional advice. Standard timelines do not necessarily match the actual timeline for every project; the contract version, valid approvals, notices, and case law can all affect the outcome. Information verified as of October 6, 2026.
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Sources
- Housing Development (Control and Licensing) (Amendment) Regulations 2015, P.U. (A) 106: Schedule G/H and payment schedule (government gazette reprint)
- Malaysia Federal Court — summary of grounds of judgment, Re PJD Regency Sdn Bhd and Tribunal Tuntutan Pembeli Rumah & Anor and other appeals
- KPKT — TTPR FAQ: jurisdiction, claim amounts, and limitation periods
- KPKT — DLP guide: notes on VP receipt and deemed receipt (the pandemic extension provisions apply only to qualifying cases)
