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Construction Process

Handover Inspection & Defect Liability Period Guide

Pasukan RumahHQ · Published 24 September 2026 · Updated 29 September 2026 · 13 min read

In brief

  • The 24-month defect liability period runs from VP; under clause 26(3), VP can take effect 30 days after the notice even if you delay collecting keys.
  • Report defects in writing under clause 29 and copy the developer's solicitor, so the retention is not released before the repair is certified.
  • If a defect is not repaired within 30 days, use clause 27(2) or file at the Tribunal within 12 months after the DLP ends.

Handover day is the day you have been waiting for. But it is also the day a very important period begins: the defect liability period, when the developer must repair defects in your home at its own cost. What you inspect, record and report in this period decides whether your rights are actually protected.

This guide explains how to carry out a complete handover inspection: the tools to bring, a room-by-room checklist, how to record and photograph defects, how to submit your defect list properly, what happens if the developer does not repair, and the Homebuyer Claims Tribunal route. It is based on the Schedule G SPA for landed homes. General information only, not legal/financial/tax advice.

Key terms

  • Schedule G SPA: the statutory sale and purchase agreement form for a landed home under the Housing Development (Control and Licensing) Regulations 1989.
  • VP: vacant possession, the handover of the home and keys to you.
  • CCC: Certificate of Completion and Compliance, which states the home is complete, safe and fit for occupation.
  • DLP: defect liability period.
  • Defect: a defect, shrinkage or other fault due to defective workmanship or materials, or the home not being built according to the approved plans and specifications.
  • Developer’s solicitor as stakeholder: the developer’s law firm, which holds 5% of the price after VP as security for the defect period.
  • Tribunal: the Homebuyer Claims Tribunal (Tribunal Tuntutan Pembeli Rumah) under KPKT, where buyers file claims against licensed developers.

Key dates set by the SPA

Key dates and periods in the Schedule G SPA and the Tribunal rules.
WhatPeriodSource
Conditions for VPCCC issued; water and electricity ready for connection; you have paid the amounts due; additional work (if any) completedClause 26(1)
Deemed VP30 days after the developer's notice to take possession is served, whether or not you move inClause 26(3)
DLP24 months after the date you take VPClause 27(1)
Repair by the developerWithin 30 days after the developer receives your written noticeClause 27(1)
Notice by registered postDeemed received on the expiry of 5 days from postingClause 29(1)(a)
5% retention held by the developer's solicitor2.5% released 8 months after VP, and 2.5% released 24 months after VPThird Schedule, item 5
Defect claim at the TribunalNo later than 12 months from the date the DLP endsTribunal FAQ, KPKT

Note clause 26(3). If you put off collecting the keys, the law still treats you as having taken VP 30 days after the notice. The DLP can start running from that date. So do not wait too long to inspect.

The overall flow: from notice to repair

  1. Notice to take VP The developer tells you the home is ready for handover once the CCC is issued and water and electricity are ready for connection.
  2. Handover inspection You inspect the home room by room, marking and photographing each defect.
  3. Written defect list You send a written notice to the developer, with a copy to the developer's solicitor.
  4. Repair within 30 days The developer repairs at its own cost within 30 days of receiving the notice.
  5. Check and close You inspect the repair and record that it is done.
  6. If not repaired You may use the clause 27(2) procedure or file a claim at the Tribunal.

What to bring

A good inspection does not need expensive tools. What matters is tools that help you see, test and record.

Recommended tools and what they are for.
ToolUse
Copy of the SPA, floor plan and specification (the SPA's Fourth Schedule)Compare what was promised with what was built
Phone with a cameraDated photos and videos of every defect
TorchShine along walls at a low angle to see uneven surfaces, and look into cabinets and ceilings
Coloured masking tapeMark each defect so the repair team can find it
Coin or rulerPlace beside a crack in the photo to show its size
Marble or small spirit levelTest whether floors are level
Plug-in socket testerTest every electrical socket
Small bucket or water bottlePour water into floor traps and watch it drain
Pen, notebook or checklist formRecord the number, location and description of each defect
Small step ladder (if allowed)Look safely at ceilings and high finishes

Bring a friend if you can. One inspects, the other writes. Go in daylight so there is enough light.

Room-by-room checklist

Use this checklist during the joint inspection and again on your own in the first weeks. Your home’s actual specification is in the SPA and the approved plans.

How to record and photograph defects

Good records make your report clear and hard to dispute.

Five steps to record defects: numbering, photos, video, a short description and one file
  1. Number each defect. For example, B1-03 for bedroom 1, third defect. Write the number on the masking tape next to the defect.
  2. Take two photos. One wide shot showing where it is in the room, and one close-up with a coin or ruler for scale.
  3. Record a video for defects that move or make a sound. For example a sticking door, a dripping tap or a toilet that keeps running.
  4. Write a short description. What, where, how big, when found. Example: "Diagonal crack about 30 cm above the main bedroom window, found 12 March."
  5. Keep everything in one file. One folder for photos, one list for all defects, and one place for letters, postal receipts and reference numbers.
Example defect list format to attach to your written notice.
No.LocationDescriptionPhotosDate foundStatus
LR-01Living room, left wallVertical hairline crack about 50 cmLR-01a, LR-01b12 MarchReported
BA-02Main bathroomWater pools in the corner and does not drain to the floor trapBA-02a, video12 MarchReported
B1-03Bedroom 1, windowWindow lock does not lockB1-03a12 MarchReported

How to submit your defect list within the DLP

Clause 27(1) says the developer must repair defects within 30 days of receiving written notice from you. So how you send the notice matters.

  • Write the notice. Include your name, unit number, address, the numbered defect list and photos. Sign and date it.
  • Send it under clause 29. Clause 29(1) says a notice must be in writing and is duly served if sent by registered post (deemed received on the expiry of 5 days from posting) or delivered by hand. Keep the postal receipt or a copy stamped as received.
  • Send a copy to the developer’s solicitor. Clause 27(3) says that if you serve a copy of your defect notice on the developer’s solicitor before the 8-month or 24-month point after VP, the solicitor must not release the relevant retention to the developer until it receives a certificate from the developer’s architect that the defect has been repaired.
  • Report as early as possible. The DLP covers only defects that become apparent within 24 months after VP. Do not wait until it is almost over.

At RumahHQ, you can report a defect to Aiman, our AI assistant, on WhatsApp, for a quick record and inspection. But to protect your rights under the SPA, also send a written notice under clause 29. See the Quality & Handover page for the full process.

Hypothetical example: VP deemed taken 30 days after the notice, and the repair deadline 30 days from receipt of the notice

Example: working out the key dates

Hypothetical dates, for illustration. Puan Aina receives a notice to take VP served on 1 February, but she only collects the keys on 20 March. Under clause 26(3), she is deemed to have taken VP 30 days after the notice was served, in early March, even though she has not collected the keys. The 24-month DLP runs from that VP date, so she cannot assume the DLP starts on 20 March.

On 25 March she sends a defect notice by registered post. The notice is deemed received 5 days later, on 30 March. The developer must repair within 30 days of that date, by 29 April at the latest. She also sends a copy to the developer's solicitor before the 8-month point, so the first 2.5% retention is not released before the repair is certified.

If the developer does not repair

You have two main routes. Both need complete records.

Route 1: repair it yourself and claim the cost (clause 27(2))

If a defect is not repaired within 30 days, clause 27(2) allows you to repair it yourself and recover the cost from the developer, including by deducting it from the retention held by the developer’s solicitor. The conditions are:

  1. After the 30 days have expired, tell the developer in writing the cost of the repair before the work starts.
  2. Give the developer the chance to do the work itself within 30 days from the date you notified it of your intention.
  3. If the developer still fails, start the work as soon as practicable.
  4. Send a written demand stating the cost to the developer’s solicitor. The solicitor must release that cost to you from the retention within 30 days after receiving your demand.

Example: using clause 27(2)

Hypothetical figures. Encik Rahman reports a leaking pipe under the kitchen sink. 30 days pass without a repair. He gets a plumber's quotation of RM800 and informs the developer in writing, giving it another 30 days to do the repair itself. The developer still does not come. Encik Rahman hires the plumber, keeps the invoice and before-and-after photos, then sends a written demand for RM800 to the developer's solicitor to be paid from the retention.

Route 2: the Homebuyer Claims Tribunal

The Tribunal is a cheaper and simpler forum than the courts. Key facts:

Homebuyer Claims Tribunal: key facts.
WhatDetailSource
Claim limitRM50,000 per claimTribunal FAQ, KPKT
Time limit: technical (defect) claimsNo later than 12 months from the date the DLP endsTribunal FAQ, KPKT
Time limit: LAD and other claimsNo later than 12 months from the date the CCC is issuedTribunal FAQ, KPKT
FormForm 1 (Statement of Claim), 4 copies, with supporting documentsTribunal FAQ, KPKT
FeeRM10, in cash, bank draft or money order payable to Akauntan Negara Malaysia-KPKT-T (personal cheques not accepted)Tribunal FAQ, KPKT
Who can be claimed againstA licensed housing developer, for claims based on the SPASection 16N(2), Act 118
LawyersNo party may be represented by a lawyer unless the Tribunal considers the matter involves complex issues of law and one party would suffer severe financial hardship; if one party is allowed, so is the otherSection 16U(2), Act 118 (2006 reprint)
Time to decideWithout delay and, where practicable, within 60 days from the first day of the hearingSection 16Y(1), Act 118 (2006 reprint)
If an award is not complied withFailing to comply with an award within the period specified is an offenceSection 16AD, Act 118

KPKT’s FAQ also says the Tribunal has no jurisdiction to investigate criminal offences for non-compliance with an award; that falls to the National Housing Department (Jabatan Perumahan Negara) and the criminal courts. So if a developer does not comply with an award, report it to the National Housing Department.

  1. Gather evidence Written notices, postal receipts, photos, quotations or invoices.
  2. Fill in Form 1 State the claim and amount, within the limit.
  3. File and pay the fee Submit 4 copies with supporting documents.
  4. Hearing Attend in person and explain your case with evidence.
  5. Award The Tribunal makes an award; report non-compliance to the National Housing Department.

Example: choosing the Tribunal route

Hypothetical figures and dates. The Lim family reports cracks and a roof leak in writing during the DLP. The developer repairs only part of it. After the DLP ends, they get a quotation of RM6,500 for the remaining work. That is below the RM50,000 limit, and they are still within 12 months after the DLP ended. They fill in Form 1, attach the notices, postal receipts, numbered photos and the quotation, pay the RM10 fee and file the claim.

Common mistakes

  • Delaying key collection and assuming the DLP has not started. Clause 26(3) can make VP take effect 30 days after the notice.
  • Reporting only verbally or by message. Your rights under clause 27 depend on written notice.
  • Not sending a copy to the developer’s solicitor. Without it, the retention may be released at the 8-month or 24-month point.
  • Renovating before defects are reported. This makes it harder to prove the original condition at handover.
  • Repairing yourself without following clause 27(2). Give notice of the cost and an extra 30 days first.
  • Missing the Tribunal deadline. Defect claims must be filed within 12 months after the DLP ends.
  • Not keeping records. Photos, dates, receipts and reference numbers are your evidence.

Quick checklist

Next step

Read the Quality & Handover page for RumahHQ’s handover checklist and how to report defects to Aiman. To understand the payments before handover, read construction stages and the payment schedule, and for the certificate that must exist before VP, read what is a CCC. If you are looking for a home, Register Interest for upcoming RumahHQ projects. It is free and non-binding. Common questions are answered in the FAQ.

Questions

How long is the defect liability period for a landed home?

Under clause 27(1) of the Schedule G SPA, the defect liability period is 24 months after the date you take vacant possession.

How long does the developer have to repair a reported defect?

Clause 27(1) requires the developer to repair the defect at its own cost within 30 days of receiving your written notice.

If I have not collected the keys, when does the defect period start?

Clause 26(3) says you are deemed to have taken vacant possession 30 days after the developer's notice is served, whether or not you have moved in. That date matters for the defect period.

What is the maximum claim at the Homebuyer Claims Tribunal?

According to KPKT's FAQ, the maximum is RM50,000 per claim, and the filing fee is RM10.

What is the deadline to file a defect claim at the Tribunal?

According to KPKT's FAQ, technical claims must be filed no later than 12 months from the date the defect liability period ends.

Sources

(3)

Register your interest, free and non-binding, or ask Aiman on WhatsApp.