vacant possession

In Malaysia, homebuyers are protected under the Housing Development (Control and Licensing) Act 1966, also known as the HDA. The HDA lists out the duties of a property developer selling units within a housing development. What happens when a developer does not adhere to the terms and conditions listed in the Sale and Purchase Agreement (SPA)? Or when the developer does not rectify defects properly within the defect liability period (DLP)?

In this article, we share a checklist for defect checks at new homes, based on the experience of a Malaysian homeowner checking for defects in his new home during the Defect Liability Period (DLP).

Many new home buyers are not aware that their interests are protected under the (HDA) Housing Development (Control and Licensing) Act 1966. Protections include defect liability period, management of strata title issues and safeguard against unscrupulous developers.

The Federal Court's decision has reaffirmed the long-held principle that purchasers of housing developments have 36 months from the date of delivery of vacant possession to bring a late delivery claim at the Housing Tribunal (12 months + 24 months defects liability period) as long as their claims arise from the SPA between the homebuyer and the housing developer.

HBA looks into a recent dispute over the delivery of vacant possession of properties - some homebuyers are shocked to find that their "completed properties" do not have running water and electricity. The developer claims that all that is required from them, as per the Housing Development (Control and Licensing) Act 1966 (HDA 1966) - is that they lay the necessary cables and make an application for internal connection to the related utility companies.

There has been some confusion over the Build then Sell system in the news recently - According to Housing & Local Government (KPKT) Minister Datuk Seri Reezal Merican Naina, only 4 property developers in Malaysia are able to carry out the BTS concept. HBA seeks to provide some clarification over the issue and urges developers to start incorporating BTS 10:90 as it can help solve present-day ailments afflicting the housing industry.