Progressive vs 10:90 payment system
< Back to Property Resources
Progressive vs 10:90 payment system
by National House Buyers Association
Posted Date: Mar 01, 2008
By: The National House Buyers Association (HBA)
With the inclusion of the two types of contract of sales forms – Schedules I and J of the Housing Development (Control & Licensing) Regulations 1989 (‘Housing Regulations) the government has allowed the 10:90 concept of housing delivery to run to parallel with the sell-then build (progressive payment) method. In this article we highlight the comparisons between the two payment concepts.



You can easily see where the 10:90 concept gets its name from. The progressive stages of construction are already contained in the Schedule for Payments under the progressive payment system. However, for the 10:90 concept, the developer still has the duty to periodicallyinform the purchaser on the progressive stages of the construction through Clause 4 of the regulated contract of sale.

Schedule of payments- 10:90 concept

(1)The purchase price shall be paid by the Purchaser to the Vendor by instalments at the time and in the manner as prescribed in the Third Schedule.

(2)The Vendor shall, at its own cost and expense, within fourteen (14) days upon the completion of each of the following stages issue a written notice to the Purchaser which shall be supported with a certificate signed by the Vendor’s architect or engineer in charge of the housing development and every such certificate so signed shall be proof of the fact that the work therein referred to have been completed:

(a) the substructure of the said Building, including its foundation;

(b) the superstructure of the said Building, including its structural framework, walls with door and window frames placed in position and the roofing, electrical wiring, plumbing (without fittings), gas piping (if any) and internal telephone trunking and cabling to the said Building; or

(c) the internal and external services of the said Building including the sewerage works, drains and roads serving the said Building and the internal and external finishes of the said Building including the wall finishes.


After decades of debates and discussions, the 10:90 concept, although termed ‘build-then-sell’ concept in the Housing Regulations, was finally made possible through the amended Housing Regulations on 1 December 2007 by the Minister of Housing & Local Government. The regulated contract of sales is for purchase for housing development units launched or under-construction. However, the 10:90 payment system as in Schedules I (Landed with Building) & J (Subdivisions)of the Housing Regulations is similar to the normal payment system of a completed property and as near as you can get.

In whatever payment system of a yet-to-be completed property, you are dependent on the developer to finish the job of completion. As construction takes times, it comes with potential pitfalls. These are:

  • the unit may not be ready for occupation by the time scheduled;
  • the development may end up not being built at all;
  • changes in value;
  • plan modification;
  • quality of construction
  • your circumstances (financial or health)  could change but you have already entered into a binding contract.

However, with the 10:90 payment system, the purchaser is not ‘locked in’ with a loan that has to be paid in the event the project is delayed beyond the scheduled completion date or worse still abandoned.

Now, that there is a choice of payments for new homes, potential buyers should not leave it to the developers to decide on whether a project comes under progressive payment or 10:90 concept. Look out for developers who offer such payment schemes to minimise your risk.The ball is now in the buyers’ court. So what should it be?

The National House Buyers Association (HBA) is a voluntary, non-governmental organization manned by unpaid volunteers. For more information, check out their website at
Latest News:

Related Categories: Loans and Financing

Tags: Loans and Financing (Malaysia)

Current Rating:
(0) (0)
Is this article helpful?


Back To Top