Developer Defects Liability Notice (Malaysia)
NOTICE OF DEFECTS — DEFECTS LIABILITY PERIOD
Housing Development (Control and Licensing) Act 1966 (Act 118)
Housing Development (Control and Licensing) Regulations 1989 — Schedule G / Schedule H
Date: [Notice Date]
TO: [Developer Name]
[Developer Address]
FROM: [Purchaser Name] (IC: [Purchaser IC])
Contact: [Purchaser Contact]
NOTICE OF DEFECTS REQUIRING RECTIFICATION
Dear Sir/Madam,
We refer to the Sale and Purchase Agreement [SPA Reference] for the above-named property situated at [Property Address] (the "Property").
Vacant possession of the Property was delivered to us on [VP Date]. The Defects Liability Period (DLP) of twenty-four (24) months runs until [DLP Expiry].
We hereby give formal notice, pursuant to the Housing Development (Control and Licensing) Regulations 1989 (Schedule G, Clause 14 / Schedule H, Clause 17), of the following defects, shrinkage, and faults that have manifested in the Property and are attributable to defective workmanship or materials:
SCHEDULE OF DEFECTS
[Defects List]
DEMAND FOR RECTIFICATION
You are hereby required to rectify all defects listed in the Schedule above within thirty (30) days of receipt of this Notice, being no later than [Rectification Deadline].
If you fail to rectify the defects within the prescribed period, we reserve the right to engage an independent contractor to carry out the rectification works and to recover the full cost thereof from you. We further reserve the right to file a claim with the Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah, TTPR) under Section 16N of the Housing Development (Control and Licensing) Act 1966 (Act 118) without further notice.
Purchaser
________________
Signature
What Is a Developer Defects Liability Notice (Malaysia)?
A Developer Defects Liability Notice in Malaysia gives formal notice of the matter it concerns to the recipient.
Under Clause 14 of Schedule G (for landed residential properties) and Clause 17 of Schedule H (for high-rise residential properties) of the Housing Development Regulations 1989, the developer is obligated to repair at its own cost, within 30 days of receiving a written notice from the purchaser, all defects, shrinkage, and faults due to defective workmanship, materials, or design that manifest during the 24-month Defects Liability Period commencing from the date of delivery of vacant possession.
A Defects Liability Notice sets out the specific defects observed by the purchaser with sufficient particularity — identifying the location, nature, and severity of each defect — to trigger the developer's contractual obligation to inspect and rectify. Common defects reported in Malaysian new housing include water seepage, hairline cracks in walls or ceilings, defective plumbing and drainage, faulty electrical fittings, uneven floor tiles, and doors or windows that do not close properly.
If the developer fails to rectify the reported defects within 30 days, the purchaser has the right under the standard SPA to engage an independent contractor to carry out the repair works at the developer's expense, and to recover the cost from the developer. The purchaser may also file a claim with the Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah, TTPR) established under Section 16N of the Housing Development (Control and Licensing) Act 1966 for claims not exceeding RM 50,000 without the need for legal representation.
For defects in common property of a strata development — such as a condominium or apartment block — the notice should be directed to both the developer (during the initial DLP before the Joint Management Body is constituted) and the Joint Management Body (JMB) or Management Corporation (MC) under the Strata Management Act 2013 (Act 757).
The legal framework governing the Developer Defects Liability Notice (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Developer Defects Liability Notice (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Land Code 1965 (Act 56) sets the foundational requirements.
When Do You Need a Developer Defects Liability Notice (Malaysia)?
A Developer Defects Liability Notice in Malaysia is needed whenever a purchaser of a newly completed property discovers defects during the 24-month Defects Liability Period following delivery of vacant possession.
A Defects Liability Notice is required when a purchaser discovers water seepage through walls, roofs, window frames, or bathroom floors in a newly handed over property. Seepage is the most common defect category reported in Malaysian new housing and is covered under the developer's DLP obligations under the Housing Development Regulations 1989.
A Defects Liability Notice is needed when structural defects such as cracks in walls, columns, beams, or floor slabs are observed during the DLP. Structural defects reported during the DLP must be repaired by the developer; latent structural defects discovered after the DLP may still be pursued under common law principles for a period of 6 years from discovery under the Limitation Act 1953 (Act 254).
A Defects Liability Notice is required when the Certificate of Completion and Compliance (CCC) issued by the Principal Submitting Person (PSP) is found to have been granted for a property that does not meet the building standards under the Street, Drainage and Building Act 1974 (Act 133) — such as insufficient fire compartmentalisation or missing fire escape provisions.
A Defects Liability Notice is needed to preserve the purchaser's contractual rights before the DLP expires. If a purchaser fails to give written notice of defects within the DLP, the right to demand developer-funded rectification under the standard SPA is extinguished.
A Defects Liability Notice is required as a prerequisite to filing a claim at the Tribunal for Homebuyer Claims (TTPR) for compensation or specific performance, as the TTPR requires evidence that the purchaser gave written notice to the developer and the developer failed to respond within the prescribed period.
What to Include in Your Developer Defects Liability Notice (Malaysia)
A complete Developer Defects Liability Notice for Malaysia must contain the following essential elements to be enforceable under the Housing Development (Control and Licensing) Act 1966 and the relevant SPA schedule.
Purchaser identification: Full name(s), MyKad number(s), and contact details of the purchaser(s), together with the SPA reference number and date. Both joint purchasers must sign the notice if the property is jointly owned.
Developer details: Full legal name, SSM company registration number, Housing Developer's Licence (HDL) number, and registered address of the developer. The notice must be addressed to the developer's official registered address and sent by AR Registered Post to create a documentary trail.
Property description: Full address, lot number, unit number, floor level, building block, and development name of the defective property. The description must match the SPA to avoid any dispute about which property is subject to the notice.
Date of vacant possession: The date on which vacant possession was delivered by the developer, confirming that the DLP has commenced and that the reported defects fall within the 24-month DLP window.
Defect schedule: A detailed schedule listing each defect by location (e.g., Master Bedroom — ceiling, Kitchen — drainage), nature (e.g., water seepage, crack, broken fitting), and severity. Photographs should be taken and referenced in the schedule as attachments. The schedule is the core evidence document for any subsequent TTPR claim.
Rectification deadline: A statement demanding rectification within 30 days of the notice, referencing Clause 14 of Schedule G or Clause 17 of Schedule H of the Housing Development (Control and Licensing) Regulations 1989 as applicable.
Consequences of non-compliance: A clear statement that if the developer fails to rectify within 30 days, the purchaser will engage an independent contractor and recover the cost from the developer, and/or file a claim with the Tribunal for Homebuyer Claims (TTPR) under Section 16N of the Housing Development (Control and Licensing) Act 1966.
Additional compliance elements for a Developer Defects Liability Notice (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Forms Legal. (2026). Developer Defects Liability Notice (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/real-estate/property/developer-defects-liability-malaysia
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year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/real-estate/property/developer-defects-liability-malaysia}},
note = {Free legal document template. Based on National Land Code 1965 (Act 56)}
}Frequently Asked Questions
The Defects Liability Period (DLP) for newly purchased residential properties under the standard Sale and Purchase Agreement in Malaysia is 24 months from the date of delivery of vacant possession. This is prescribed under Clause 14 of Schedule G of the Housing Development (Control and Licensing) Regulations 1989 for landed residential properties, and Clause 17 of Schedule H for high-rise strata residential properties. The DLP applies to all properties sold by licensed housing developers under the Housing Development (Control and Licensing) Act 1966 (Act 118). Subsale properties (secondary market transactions not involving a licensed developer) and commercial properties do not automatically benefit from the same statutory DLP, though the parties may agree on a contractual defects liability period in the SPA. For structural defects that emerge after the DLP, the purchaser may still pursue claims under common law for latent defects within 6 years under the Limitation Act 1953 (Act 254).
The Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah, TTPR) was established under Section 16N of the Housing Development (Control and Licensing) Act 1966 (Act 118) and has jurisdiction to hear claims by purchasers against licensed housing developers. The TTPR can award remedies including: compensation for defects not rectified by the developer during the Defects Liability Period; Liquidated Ascertained Damages (LAD) for late delivery of vacant possession calculated at 10% per annum on the purchase price; specific performance orders requiring the developer to complete, rectify, or deliver documents; and orders for the return of deposits or payments in developer abandonment cases. The TTPR has a monetary jurisdiction of up to RM 50,000 per claim. For claims exceeding RM 50,000, the purchaser must file in the civil courts. TTPR proceedings are presided over by a legally qualified tribunal president, and claimants do not need a lawyer, making it an accessible remedy for homebuyers.
Under the standard Sale and Purchase Agreement prescribed by the Housing Development (Control and Licensing) Regulations 1989, a purchaser may not unilaterally withhold the final balance payment pending rectification of defects, as the SPA schedules prescribe specific progressive payment terms tied to construction milestones rather than defect rectification. However, where the developer demands the final payment simultaneously with delivery of vacant possession, the purchaser may negotiate with the developer to withhold a retention sum (typically 5% of the purchase price) pending satisfactory completion of defects rectification, though this requires the developer's agreement. A purchaser who withholds payment in breach of the SPA may be liable for late payment interest under the SPA. The appropriate remedy for unresolved defects is to pay any balance due and simultaneously submit a Defects Liability Notice demanding rectification, then file a TTPR claim if the developer does not comply within 30 days.
The Defects Liability Period under the Housing Development (Control and Licensing) Regulations 1989 covers defects, shrinkage, or other faults in the property that are attributable to defective workmanship, materials, or failure to build in accordance with the approved plans and specifications. Covered defects include: water seepage through walls, roofs, and wet area floors; hairline and structural cracks in walls, ceilings, columns, and beams; defective plumbing and drainage causing blockages or leaks; faulty electrical fittings and wiring; misaligned doors and windows that do not close or seal properly; defective or uneven floor tiles and ceramic work; and failure of mechanical systems (lifts, fire suppression, water pump) in strata developments. Normal wear and tear, damage caused by the purchaser's renovations or misuse, and aesthetic complaints about finishes that meet the approved specifications are not covered under the DLP. The developer's obligation is limited to defects reported during the 24-month period; defects that manifest after the DLP are the purchaser's responsibility unless they qualify as latent structural defects.
When a licensed housing developer in Malaysia abandons a project before delivering vacant possession — leaving purchasers with incomplete properties and outstanding loans — the Housing Controller under the Ministry of Housing and Local Government (KPKT) may invoke Section 11A of the Housing Development (Control and Licensing) Act 1966 to appoint a Rehabilitation Management Committee or a Receiver and Manager to rehabilitate the project. Purchasers of abandoned housing developments may also file claims with the Tribunal for Homebuyer Claims (TTPR) for refund of all payments made, Liquidated Ascertained Damages, and other relief. For projects insured under the National Housing Department (JPN) Developer Insurance Scheme, purchasers may make insurance claims. Purchasers should also notify their financing banks (regulated by Bank Negara Malaysia) immediately, as the bank's progress payment obligations may be suspended pending rehabilitation. The KPKT maintains a Register of Abandoned Housing Projects (Projek Perumahan Terbengkalai) which is publicly accessible.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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