Developer Vacant Possession Notice (Malaysia)
NOTICE OF VACANT POSSESSION
Housing Development (Control and Licensing) Act 1966 (Act 118)
Housing Development (Control and Licensing) Regulations 1989
FROM: [Developer Name] (SSM: [Developer SSM], HDL: [HDL Number])
Address: [Developer Address]
TO: [Purchaser Name] (IC: [Purchaser IC])
Address: [Purchaser Address]
NOTICE OF VACANT POSSESSION OF PROPERTY
Dear [Purchaser Name],
We refer to the Sale and Purchase Agreement dated [SPA Date] (the "SPA") for the purchase of the following property (the "Property"):
Property: [Property Address]
Development: [Development Name]
We are pleased to inform you that the Property has been duly completed and a Certificate of Completion and Compliance (CCC No. [CCC Number]) was issued by the Principal Submitting Person on [CCC Date] pursuant to Section 70A of the Street, Drainage and Building Act 1974 (Act 133).
VACANT POSSESSION of the Property is hereby offered to you with effect from [VP Date]. You are required to take vacant possession within fourteen (14) days of this Notice by attending at our office at:
[VP Office Address]
Please bring the original of this Notice and your MyKad for verification. The balance payment of [Balance Payable] is due and payable on or before taking vacant possession.
DEFECTS LIABILITY PERIOD
The Defects Liability Period (DLP) of twenty-four (24) months commences from the date of delivery of vacant possession and expires on [DLP Expiry]. Any defects, shrinkage, or faults due to defective workmanship or materials must be reported in writing to us within this period. We will rectify all reported defects within thirty (30) days of receipt of written notification in accordance with the Housing Development Regulations 1989.
Developer's Authorised Representative
________________
Signature
What Is a Developer Vacant Possession Notice (Malaysia)?
A Developer Vacant Possession Notice in Malaysia gives formal notice of the matter it concerns to the recipient.
The Housing Development (Control and Licensing) Act 1966 (Act 118) and the Housing Development (Control and Licensing) Regulations 1989 prescribe the statutory form of the SPA for housing developments in Peninsular Malaysia (Schedule G, H, I, or J depending on the property type). Under Schedule G (landed residential property) and Schedule H (high-rise residential property), the developer is contractually obliged to deliver vacant possession within 24 months from the date of the SPA for landed properties, or 36 months for high-rise properties. For properties sold under a Bumiputera-reserved scheme or government housing, different timelines may apply.
The vacant possession notice must be accompanied by a Certificate of Completion and Compliance (CCC) issued by a Principal Submitting Person (PSP, typically an architect or civil engineer) under Section 70A of the Street, Drainage and Building Act 1974 (Act 133). The CCC replaced the Certificate of Fitness for Occupation (CFO) in Malaysia in 2007 as the statutory document confirming that a building has been completed in accordance with the approved plans and is fit for occupation.
If the developer fails to deliver vacant possession within the contracted period, the purchaser is entitled to liquidated ascertained damages (LAD) under clause 22 of Schedule G or clause 25 of Schedule H of the Housing Development Regulations 1989 at the rate of 10% per annum on the purchase price for each day of delay. The Housing Controller (Pengawal Perumahan) under the Ministry of Housing and Local Government (KPKT) supervises compliance with statutory timelines and may penalise developers for late delivery.
The legal framework governing the Developer Vacant Possession 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 Vacant Possession 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 Vacant Possession Notice (Malaysia)?
A Developer Vacant Possession Notice in Malaysia is issued by the developer and received by the purchaser at the critical juncture when a new housing development reaches completion.
A Developer Vacant Possession Notice is required when a developer has obtained the Certificate of Completion and Compliance (CCC) under Section 70A of the Street, Drainage and Building Act 1974 (Act 133) and is ready to hand over the completed unit. The notice is the formal trigger for the purchaser to collect the keys and inspect the property.
A Developer Vacant Possession Notice is needed to commence the Defects Liability Period (DLP) — typically 24 months for residential properties under the Housing Development (Control and Licensing) Regulations 1989 — during which the developer is obliged to repair all defects, shrinkage, or other faults reported by the purchaser at no cost to the purchaser.
A Developer Vacant Possession Notice is required when a purchaser has fully paid the progressive payments under the standard SPA and the developer's Architect certifies that the building is ready for occupation. The notice must be in writing and sent by AR Registered Post to the purchaser's last known address under the SPA.
A Developer Vacant Possession Notice is needed to trigger the purchaser's obligation to pay the balance of the purchase price (typically 5% of the purchase price withheld as a retention sum or as a direct payment upon VP) and to execute the Memorandum of Transfer or Deed of Assignment.
A Developer Vacant Possession Notice is required in the context of a claim for Liquidated Ascertained Damages (LAD) — if the notice is issued late (beyond the contracted VP date), the notice date establishes the quantum of LAD owed to the purchaser under the statutory formula prescribed in the Housing Development Regulations 1989.
What to Include in Your Developer Vacant Possession Notice (Malaysia)
A complete Developer Vacant Possession Notice for Malaysia must contain the following essential elements to satisfy the requirements under the Housing Development (Control and Licensing) Act 1966 and the applicable Schedule SPA.
Developer identification: Full legal name, SSM company registration number, Housing Developer's Licence (HDL) number issued by KPKT, and registered address of the developer. The HDL must be current and valid at the time of vacant possession delivery.
Purchaser details: Full name(s), MyKad number(s), and address of the purchaser(s) as stated in the SPA. For joint purchasers, all names must be included.
Property identification: Full address, lot number, building name, floor level, unit number, and parcel number (if strata title applicable) of the completed property. The description must match the SPA.
CCC reference: The Certificate of Completion and Compliance (CCC) number, date of issuance, and the name of the Principal Submitting Person (PSP) who certified the completion. The CCC must be attached to or referenced in the notice.
Vacant possession date: The date on which the property is available for collection of keys and documents. Under the standard SPA (Schedule G/H), the purchaser has 14 days from the date of the notice to take vacant possession.
Documents for handover: A list of documents to be delivered at vacant possession, including the Memorandum of Transfer (Form 14A) or Deed of Assignment, insurance policy for the building, stamped SPA, and any warranty certificates for fittings and fixtures.
Defects Liability Period commencement: A statement that the Defects Liability Period (DLP) of 24 months commences from the date of delivery of vacant possession, and the procedure for submitting defect reports to the developer's customer service team.
Balance payment details: The amount of the final balance payment due on or before taking vacant possession, payment methods accepted, and the developer's bank account details for transfer.
Additional compliance elements for a Developer Vacant Possession 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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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Developer Vacant Possession Notice (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/real-estate/property/developer-vacant-possession-malaysia
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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 in Malaysia is 24 months from the date of delivery of vacant possession under the standard Sale and Purchase Agreement prescribed by the Housing Development (Control and Licensing) Regulations 1989. During the DLP, the developer is legally obliged under Clause 14 of Schedule G and Clause 17 of Schedule H to repair, at its own cost and within 30 days of notification, all defects, shrinkage, or other faults that are due to defective workmanship or materials. The purchaser must submit a written defect report to the developer specifying each defect. If the developer fails to repair within 30 days, the purchaser may engage a third party contractor to carry out the repairs and claim the cost from the developer. After expiry of the DLP, defect liability returns to ordinary common law principles and is governed by the Contracts Act 1950 (Act 136) — any remaining structural defects may still be pursued as latent defects up to 6 years under the Limitation Act 1953.
Under the Housing Development (Control and Licensing) Regulations 1989, a purchaser whose developer delivers vacant possession after the contracted delivery date is entitled to Liquidated Ascertained Damages (LAD) at the rate of 10% per annum on the purchase price, calculated from the day after the contracted delivery date to the actual date of delivery. For a property with a purchase price of RM 500,000 that is delivered 180 days late, the LAD would be RM 500,000 × 10% ÷ 365 × 180 = RM 24,658. The purchaser is not required to prove actual loss — LAD is a liquidated (pre-agreed) sum. The purchaser may claim LAD directly from the developer, set it off against any balance payable, or 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 up to RM 50,000, without the need for a lawyer.
A Certificate of Completion and Compliance (CCC) is the statutory certificate issued by a Principal Submitting Person (PSP) — an architect, civil and structural engineer, or mechanical and electrical engineer registered under the relevant professional boards — to certify that a building has been completed in accordance with the approved building plans and complies with all relevant laws and standards under the Street, Drainage and Building Act 1974 (Act 133). The CCC system was introduced in Malaysia on 12 April 2007 under the Street, Drainage and Building (Amendment) Act 2007, replacing the Certificate of Fitness for Occupation (CFO) which was previously issued by local authorities (Pihak Berkuasa Tempatan). Without a valid CCC, a developer cannot issue a vacant possession notice and a purchaser cannot legally occupy the property. A CCC that is found to have been fraudulently issued exposes the PSP to criminal liability under Section 70B of the Street, Drainage and Building Act 1974.
At vacant possession of a new property in Malaysia, the developer should deliver to the purchaser the following key documents: the original or certified copy of the Certificate of Completion and Compliance (CCC); the keys to the property and any access cards, fobs, or car sticker permits; the Memorandum of Transfer (Form 14A) if the strata or individual title has been issued, or a Deed of Assignment and Power of Attorney if the title is pending; the original title document (Geran or Hakmilik Strata) if available; a defects inspection checklist; warranty certificates for appliances, fittings, and systems installed by the developer; the insurance policy for the building (for stratified developments, arranged by the MC or developer); and the Joint Management Body (JMB) contact details and by-laws. Purchasers are strongly advised to conduct a thorough property inspection on the day of vacant possession and record all defects in writing using the developer's defects form before accepting keys.
A Housing Developer's Licence (HDL) is a mandatory licence issued by the Housing Controller under the Ministry of Housing and Local Government (KPKT) pursuant to Section 5 of the Housing Development (Control and Licensing) Act 1966 (Act 118) to any person carrying on a housing development in Malaysia. No developer may sell, advertise, or otherwise deal in housing accommodation in Peninsular Malaysia without a valid HDL. The HDL must be renewed annually and may be suspended or revoked by the Housing Controller for breach of the Act or the Housing Development (Control and Licensing) Regulations 1989. The HDL number must be stated on all advertisements, SPAs, and vacant possession notices issued by the developer. Purchasers should verify the validity of a developer's HDL through KPKT's HDA.Info portal before committing to a purchase, as transactions with unlicensed developers are not protected by the statutory SPA regime.
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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