Defect Liability Period in Malaysia: 24 Months and How to Claim
Property Lab editorial teamPublished 10 min read
Key points
- In Malaysia, the defect liability period in the standard Schedule G and H contracts is 24 months from vacant possession, with repairs due within 30 days of notice.
- Under the 2015 Schedules G and H, a buyer whose defect is ignored sends a repair quote, waits 30 more days, then repairs and is repaid from the 5% stakeholder sum.
- As at October 2026, Malaysia's Tribunal for Homebuyer Claims hears defect claims up to RM50,000 for a RM10 fee, filed within 12 months after the DLP ends.
Contents
- How long is the defect liability period in Malaysia?
- What counts as a defect under Schedule G and H?
- Schedule G vs H vs I and J: what each contract says
- Where does the 5% stakeholder sum come in?
- How to claim defects during the DLP
- What to check during a defect inspection
- Defects in strata homes: your unit and the common property
- What about latent defects after the DLP ends?
- Filing at the Tribunal for Homebuyer Claims (TTPR)
- Frequently Asked Questions
- References
The defect liability period (DLP) in Malaysia is 24 months from the date you take vacant possession of a new home bought from a licensed developer. Under the standard sale and purchase agreement, the developer must repair any defect you report in writing within 30 days, at its own cost. If it fails, you can repair it and recover the cost, often from a 5% stakeholder sum held by its lawyer.
Send the developer a dated written defect list within the 24 months. If nothing is fixed in 30 days, send a repair quotation and allow another 30 days before hiring a contractor. Unresolved claims up to RM50,000 go to the Tribunal for Homebuyer Claims within 12 months after the DLP.
Key numbers (as at October 2026)
- DLP from vacant possession24 months
- Developer repair window30 days
- Stakeholder sum (G and H)5% of price
- Tribunal claim limitRM50,000
- Tribunal filing after DLP12 months
- Tribunal filing feeRM10
Also called: tempoh liabiliti kecacatan (DLP), tempoh tanggungan kecacatan, defects liability period, milikan kosong (vacant possession, VP), pemegang kepentingan (stakeholder), Tribunal Tuntutan Pembeli Rumah or TTPR (Tribunal for Homebuyer Claims).
How long is the defect liability period in Malaysia?
For new homes sold under the Housing Development Act in Peninsular Malaysia and Labuan, the defect liability period is 24 months after the date the buyer takes vacant possession, under clause 27 of Schedule G and clause 30 of Schedule H. The National Housing Department (JPN) FAQ confirms this.
You are treated as having taken vacant possession 30 days after the developer's notice, even if you never collect the keys (clause 26(3) of Schedule G, clause 27(3) of Schedule H). Our Vacant Possession in Malaysia guide explains handover in detail.
Older contracts differ: The Star reported the period rose from 18 to 24 months on 1 December 2007.
What counts as a defect under Schedule G and H?
Under the Malaysian standard SPA, a defect is any defect, shrinkage or other fault that appears within the 24 months and is caused by poor workmanship or materials, or by the home not being built to the approved plans and descriptions.
The tribunal FAQ on the KPKT website gives examples such as untidy paint, wavy walls, faulty materials and a house not built to the SPA plans. The tribunal cannot hear design faults by the developer's consultants, negligence claims, abandoned projects or disputes over the CCC.
Schedule G vs H vs I and J: what each contract says
All four standard housing contracts give the same 24-month period and 30-day repair window; they differ in what is covered and who repays your repair cost.
| Item | Schedule G | Schedule H | Schedules I, J |
|---|---|---|---|
| Home type | Landed | Strata | 10:90 sales |
| DLP clause | 27 | 30 | 27 (I), 30 (J) |
| Covers | The building | Unit + common property | As G / H |
| Repair time | 30 days | 30 days | 30 days |
| Stakeholder sum | 5% | 5% | None |
| Your repair cost | From stakeholder | From stakeholder | Developer repays |
From the Housing Development (Control and Licensing) (Amendment) Regulations 2015, in force from 1 July 2015, as published by JPN. Schedules I and J are build-then-sell contracts: 10% on signing, 90% after the vacant possession notice. There, the developer refunds your repair cost within 30 days of your written demand.
Where does the 5% stakeholder sum come in?
Under Schedules G and H, 5% of the purchase price is paid at vacant possession but held by the developer's lawyer as stakeholder, then released to the developer in two halves: at 8 months and at 24 months after vacant possession.
If you serve a copy of your defect notice on that lawyer before a release date, the lawyer must hold that half until the developer's architect certifies the defect is fixed (clause 27(3) of Schedule G, clause 30(3) of Schedule H).
Illustration: on a RM500,000 home, RM25,000 is held and released as RM12,500 on each date; with VP on 15 January 2026, those dates are 15 September 2026 and 15 January 2028.
Copy the developer's lawyer on every defect notice, so the stakeholder money stays put until repairs are certified.
How to claim defects during the DLP
To claim a defect in Malaysia, give written notice, allow the developer two chances of 30 days each, and only then repair it yourself and claim the cost (clause 27(2) of Schedule G, 30(2) of Schedule H).
- Inspect and record: check every room soon after handover, before renovation, and photograph each defect with its location in one numbered list.
- Send written notice: deliver the list by hand or registered post (clause 29 of G, 32 of H); a registered letter counts as received 5 days after posting.
- Copy the developer's lawyer: serve the same notice on the solicitors holding the stakeholder sum, before each release date.
- Wait 30 days: the developer must repair and make good the defects at its own cost within 30 days of receiving your notice.
- Send your repair cost: if nothing is done, get a contractor's quotation and tell the developer the cost before any work starts. It then has another 30 days to do the repairs itself.
- Repair and claim: if the developer still fails, start the works soon and send a written demand with the amount; under G and H, its lawyer pays you from the stakeholder sum within 30 days.
- Escalate if needed: if you are not paid or the defects remain, file at the Tribunal for Homebuyer Claims within 12 months after the DLP ends.
The three 30-day periods add up to at least 90 days from your first notice to repayment, plus your own repair time. An EdgeProp guide citing JPN gives 14 days for the second chance; the gazetted 2015 Schedules G and H say 30 days, so follow your SPA.
What to check during a defect inspection
A defect inspection in Malaysia should cover every surface and fitting the developer supplied, ideally in daylight and again after rain, says EdgeProp's DLP guide:
- Walls and floors: cracks, damp patches, poor paint, hollow or uneven tiles.
- Doors and windows: alignment, locks, gaps and leaks.
- Wet areas: ponding, slow drains and leaks under basins.
- Electrical and balcony: dead sockets, loose railings, seepage at sliding doors.
Inspect before you renovate. EdgeProp warns that hacking tiles first lets the developer argue the original condition can no longer be checked, and that hiring a contractor before the cost notice can put your refund in dispute.
Defects in strata homes: your unit and the common property
For a condo or other strata home in Malaysia, the Schedule H DLP covers defects in your parcel, the building and the common property, within the same 24 months from your vacant possession.
Lawyer Chris Tan of Chur Associates told EdgeProp that owners report common property defects straight to the developer until the joint management body (JMB) or management corporation (MC) takes over, and can still raise them with the developer after that.
Section 17 of the Strata Management Act 2013 requires the JMB's first annual general meeting within 12 months after vacant possession of a parcel is delivered. Our Maintenance Fee vs Sinking Fund guide covers what the JMB collects.
What about latent defects after the DLP ends?
A latent defect is a hidden fault that appears after the 24-month DLP; in Malaysia the buyer may still go to the tribunal or the courts, within strict limits.
- Tribunal: JPN says a buyer can file at the TTPR for damage after the DLP, within KPKT's 12-month deadline.
- Court, general rule: under section 6 of the Limitation Act 1953, a claim in contract or tort must be brought within six years from the date the cause of action accrued.
- Court, hidden damage: section 6A, in force since 1 September 2019, allows a negligence claim within three years of discovering the damage, but no later than 15 years from when the cause of action accrued, say law firms Shearn Delamore and Wong & Partners.
Wong & Partners noted it is unclear how widely courts will apply section 6A, so see a lawyer.
Filing at the Tribunal for Homebuyer Claims (TTPR)
The Tribunal for Homebuyer Claims hears claims of up to RM50,000 arising from an SPA between a homebuyer and a housing developer, for homes in Peninsular Malaysia and the Federal Territory of Labuan only.
- Homes covered: houses, condos and SOHOs, not commercial buildings.
- Bigger claims: above RM50,000, a claim goes to the Sessions Court unless both sides agree in writing to use the tribunal.
- What to file: four copies of Borang 1, a Borang Butiran TTPR, and copies of the SPA, VP letter and CCC. Defect claims also need 3 copies each of a quotation, colour photos, your two notices and the technical claims list.
- Fee: RM10, in cash at the counter, or by bank draft or money order to "Akauntan Negara Malaysia-KPKT-T" by post. No personal cheques.
- Lawyers: not allowed, unless the tribunal agrees the law is complex and you would face serious financial hardship.
- Speed: the developer must file its defence within 14 days of receiving Borang 1; the client charter targets 100 working days per claim.
Offices are in Putrajaya, Kuala Terengganu, Johor Bahru and Kepala Batas. Conventus Law says the buyer must have bought from the developer or the first purchaser, so subsale buyers should check with a lawyer. Our Subsale vs New Project guide compares the two routes.
Frequently Asked Questions
How long is the defect liability period in Malaysia?
Twenty-four calendar months from vacant possession, under all four standard developer contracts (Schedules G, H, I and J).
When does the defect liability period start?
On the day you take vacant possession, or 30 days after the developer's handover notice if you have not collected the keys.
How many days does the developer have to repair defects?
Thirty days from your written notice, then a second 30 days after you send a contractor's price.
Can I repair defects myself and claim the cost?
Yes, once both 30-day chances have passed; you are then repaid within 30 days of your written demand.
What happens to the 5% stakeholder sum?
The developer's solicitor releases half at 8 months and half at 24 months after handover, but holds it if you served a defect notice in time and the repair is not certified.
Does the DLP cover common areas in a condo?
Yes; under Schedule H the developer must also fix defects in the building and the common property.
What is the time limit to file at the Tribunal for Homebuyer Claims?
KPKT allows defect claims up to 12 months after the DLP in your SPA ends, capped at RM50,000 per claim.
Can I claim for latent defects after the DLP?
Possibly, at the tribunal or in court under the Limitation Act, but the limits are strict, so get legal advice early.
References
- Housing Development (Control and Licensing) (Amendment) Regulations 2015, Schedules G, H, I and J (gazette PDF, published by JPN)Used for the DLP clauses, the 30-day steps, the stakeholder sum and release dates, deemed vacant possession, service of notices and the 10:90 schedules.
- Jabatan Perumahan Negara: Soalan Lazim, PenguatkuasaanUsed for the 24 calendar months and filing at the TTPR after the DLP.
- KPKT: Soalan Lazim, Tribunal Tuntutan Pembeli RumahUsed for jurisdiction, homes covered, claim types and exclusions, the RM50,000 cap, the 12-month deadlines, documents, the RM10 fee and the 14-day defence period.
- KPKT: Permohonan Borang Tuntutan oleh Pembeli Rumah (Borang 1)Used for claims above RM50,000 and the rule on lawyers.
- KPKT: Senarai Semak Pemfailan Borang 1 TTPR (PDF)Used for the filing checklist for technical claims.
- KPKT: Mengenai Tribunal Perumahan dan Pengurusan StrataUsed for the tribunal's offices and its 100-working-day client charter.
- Limitation Act 1953, section 6 (LawPlayer)Used for the six-year limit on contract and tort claims.
- Shearn Delamore (via Conventus Law): Amendment to the law on latent damage (September 2019)Used for section 6A, the three-year and 15-year limits and the 1 September 2019 start.
- Wong & Partners (via Conventus Law): Limitation period for latent defects (August 2019)Used for the scope of section 6A and the open question on how courts will apply it.
- Strata Management Act 2013, section 17 (LawPlayer)Used for when a JMB must be established.
- EdgeProp: Tackling defects in common property before JMB formation (December 2022)Used for lawyers' views on common property defects, group claims and lifts.
- EdgeProp: Defect liability period and developer accountability (October 2026)Used for the inspection areas, renovation risk and common mistakes; its 14-day figure differs from the gazetted text.
- Conventus Law: A practical guide to filing a claim at the Homebuyer's Tribunal (September 2022)Used for who may file a claim.
- The Star via HBA: Housebuyers to enjoy 24 months' warranty (December 2007)Used for the change from 18 to 24 months.
Official pages and forms change, so check the JPN and KPKT tribunal pages for the latest wording, fees and filing channels before you act.
General information only, not legal advice. Your own SPA governs your rights; ask a lawyer before you start repairs you plan to claim, or before you file a claim.
Sources
- Housing Development (Control and Licensing) (Amendment) Regulations 2015 (Schedules G, H, I, J) — Jabatan Perumahan Negara (Attorney General's Chambers gazette)
- Soalan Lazim - Tribunal Tuntutan Pembeli Rumah — Kementerian Perumahan dan Kerajaan Tempatan (KPKT)
- Soalan Lazim (Penguatkuasaan) — Jabatan Perumahan Negara
- Senarai Semak Pemfailan Borang 1 TTPR — Kementerian Perumahan dan Kerajaan Tempatan (KPKT)
- Limitation Act 1953, section 6 — LawPlayer (Attorney General's Chambers text)
- Malaysia: Amendment to the law on latent damage — Shearn Delamore & Co (via Conventus Law)
General information only, not legal, tax or investment advice. Rules and rates change; check the official source linked below before you act.
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