12:00The papers on the table
Before you buy new,
read the rules.
When you buy a strata home from a developer in Kuala Lumpur, the law sets every step: when money may be collected, when the keys must be handed over, what is paid if they are late, and who repairs the defects. These guides set out the rules one by one, each with its statutory reference.
- 01Register interestNo payment, nothing binding, and no unit is held for you.
- 02Permit and official price listOnly once the developer holds its advertising and sales permit may its advertisements carry prices and the statutory particulars.
- 03Sign the SPAThe agreement follows the prescribed form. Before it is signed, no one may collect any payment, under any name.
- 04Pay by stagesFor a strata home, instalments follow the construction stages in the agreement’s Third Schedule.
- 05Vacant possessionWithin 36 months of the SPA date, with the Certificate of Completion and Compliance (CCC) and the strata title already issued.
- 06Defect liability period24 months from vacant possession; a defect must be repaired within 30 days of notice.
The short answer
In Peninsular Malaysia, Kuala Lumpur included, buying a new home from a developer is governed by the Housing Development (Control and Licensing) Act 1966 and its 1989 Regulations. The developer must hold a licence and an advertising and sales permit; the sale and purchase agreement (SPA) must follow the prescribed form (Schedule H for strata homes); and before it is signed, no one may collect any payment under any name. A strata home must be handed over within 36 months of the SPA date, with compensation of 10% of the price a year if it is late, and a 24-month defect liability period follows.
- Handover deadline
- 36months (strata homes)
- Late-delivery damages
- 10%of the price a year, calculated daily
- Defect liability period
- 24months
- Paid on signing
- 10%standard strata SPA
Compiled by Kevin LeeUpdated
Where do you start?
These pages explain the rules; they are not legal, tax or financial advice. For your own situation, ask a lawyer or the relevant authority.
Buying a new launch: interest to keys
From registering interest to the keys: the law behind each step
Open02Costs and stamp duty
Stamp duty, legal fees and the other one-off costs
Open03Read a floor plan
A room is not always a bedroom; built-up area is not garden area
Open04Facing and sun
How the sun moves at 3° north, and where the afternoon heat comes from
Open05Tenure, title and strata
Freehold and leasehold, title categories and strata management
OpenTalk
Something unclear?
Read the rules first. If questions remain, ask Kevin; for legal advice, see a lawyer.
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KEVIN LEE李明伟
13 years in real estateSenior Property AdvisorREN 14973
Affiliated agency: FLP REALTY SDN. BHD.
Ask me anything, directly. In English, Bahasa Malaysia or Chinese.
kevinlee.com.myMeet Kevin Lee and his teamName on REN tag LEE BENG WAI· REN 14973· FLP REALTY SDN. BHD. (estate agency reg. E (1) 1718; company no. 1193823-D; office tel. +603-7499 2575)· Mobile +6013-3398686