Registration of Interest, Booking Fee or SPA?

When you start looking for a new home from a developer, you will meet three things that sound alike but are very different in law: registration of interest, the booking fee and the sale and purchase agreement (SPA). Many buyers assume all three are part of the normal process. In fact, one is not binding at all, one is a contract tightly controlled by law, and the third is a payment that the current regulations prohibit.

This guide explains the difference between the three, what the law says about payments before the SPA, an important Federal Court decision from 2021, KPKT’s latest position in 2026, and what to do if you have already paid. General information only, not legal/financial/tax advice.

Key terms

• Act 118: the Housing Development (Control and Licensing) Act 1966, the main law controlling housing developers in Peninsular Malaysia.
• The 1989 Regulations: the Housing Development (Control and Licensing) Regulations 1989, made under Act 118.
• SPA: the sale and purchase agreement between you and the developer. For landed homes sold before they are built, its form is set out in Schedule G.
• Booking fee (yuran tempahan): a payment asked of a buyer before the SPA is signed, supposedly to “lock in” a unit.
• Stakeholder (pemegang amanah): a third party, such as a law firm or agent, holding money on someone else’s behalf.
• APDL: the advertising and sales permit (Permit Iklan dan Jualan) a developer must have before it advertises or sells homes.
• VP: vacant possession, the handover of the keys.
• LAD: liquidated damages the developer pays if VP is late.

Three things that are often confused

Registration of interest

Registration of interest is the earliest step. You tell the developer what type of home you want, where, and roughly what you can afford. It involves no price (because prices have not been approved yet), no specific unit and no payment. Its value to you is early information and, with some developers, an earlier check of your financing eligibility.

Booking fee

The booking fee is an old market practice: the buyer pays a sum before the SPA so that a unit is “held”. The problem is that this payment sits outside the standard SPA. No statutory term controls when it is refunded, how much can be deducted, or who holds it. That is why the law prohibits it.

SPA

The SPA is the point at which you actually buy. For a landed home sold before it is built, the developer must use the Schedule G form. Among other things, it sets a 10% payment immediately upon signing, stage payments according to certified progress, delivery of VP within 24 months from the date of the SPA, LAD at 10% a year of the purchase price if late, and a 24-month defect liability period after VP.

What the law says about booking fees before the SPA

Regulation 11(2) of the 1989 Regulations, as amended by the Housing Development (Control and Licensing) (Amendment) Regulations 2015, reads:

“No person including parties acting as stakeholders shall collect any payment by whatever name called except as prescribed by the contract of sale.”

Because the contract of sale (the Schedule G SPA) only provides for a first payment of 10% “immediately upon the signing of this Agreement”, any payment before the SPA falls outside what is allowed.

Key points about the 2015 amendment:

• The amending regulations were gazetted as P.U. (A) 106 on 1 June 2015 and came into force on 1 July 2015.
• Before the amendment, the prohibition applied only to developers. After it, stakeholders are bound too. This closed the gap for schemes where an agent or law firm collected money “on behalf of” the developer.
• The name does not matter. “Booking fee”, “earnest money”, “registration fee” or “commitment fee” are all caught by the same prohibition if collected before the SPA.

Historically, EdgeProp.my reports that the 1970 rules once allowed booking fees of up to 2.5% of the price, while the 1982 regulations limited collection to the 10% payment on signing the SPA. The 2015 amendment strengthened that prohibition.

Is there a time limit to sign the SPA after paying?

Because the current law does not allow payment before the SPA, there is no “legal” period for a developer to hold your money before the SPA. The safest approach is simple: do not pay anything until the SPA is signed. After you sign, if you need financing, Schedule G requires you to apply in writing for it within 30 days after receiving a stamped copy of the agreement.

The Federal Court decision: PJD Regency (2021)

In PJD Regency Sdn Bhd v Tribunal Tuntutan Pembeli Rumah & Anor and other appeals, decided on 19 January 2021, the Federal Court held that the period for calculating LAD starts from the date the buyer paid the booking fee or expressed a written intention to buy, not from the date of the SPA. The decision was made against the background of regulation 11(2), which prohibits collecting any payment before the SPA by whatever name called.

The practical effect for buyers: if a developer collected a booking fee, the 24-month delivery period (for Schedule G) is counted earlier, and LAD can start earlier too. That is why the date and receipt of your payment matter.

KPKT’s position in 2026: a study of an Option to Purchase mechanism

On 8 May 2026, the Minister of Housing and Local Government, YB Nga Kor Ming, announced that KPKT is currently studying an Option to Purchase (OTP) clause under the proposed Real Property Development Bill. According to KPKT’s press release, the proposal would give buyers and developers flexibility to withdraw before the SPA is executed, reduce unnecessary financial and legal commitments at an early stage, and help developers assess real demand before construction progresses, with the aim of reducing sick, delayed and abandoned projects.

What you need to understand:

• It is still a study. KPKT’s statement gives no fee level, option period or refund terms. Until new law is passed and in force, regulation 11(2) still applies.
• Other parties’ proposals are not law. The National House Buyers Association (HBA) has proposed its own OTP framework, including a fee cap of about 1% of the price, a 30-day option period with no penalty, and a full refund within 14 days if the option is not exercised, according to an EdgeProp.my report on 14 May 2026. This is HBA’s proposal, not KPKT policy.
• Do not be swayed by headlines. If someone tells you booking fees are “now allowed”, ask for the gazetted law.

RumahHQ’s registration of interest: how it works

RumahHQ Development Sdn Bhd is a housing developer that uses a demand-first approach. RumahHQ’s registration of interest (Daftar Minat) is free, non-binding and not a reservation: no unit is reserved and no payment is charged. A project launches only when registrations from qualified buyers reach at least 1.5 times the number of homes. Sales information, including prices, is announced only after the advertising and sales permit is obtained.

1. 1. Register interest Free, non-binding, no unit reserved. You tell us the area, house type and affordability range.
2. 2. Pre-qualification If you ask, we help you understand your financing eligibility with LPPSA or a bank.
3. 3. Demand threshold The project waits until qualified registrations reach at least 1.5 times the number of homes.
4. 4. Launch After the developer licence and APDL are obtained, prices are announced and registered buyers hear first.
5. 5. SPA You choose a unit and sign the SPA. The first 10% payment is made now, not earlier.
6. 6. Stage payments The rest of the price is paid by certified construction stage, as in the Third Schedule of the Schedule G SPA.

This approach shares the aim KPKT describes: understanding real demand before construction, without asking buyers to pay anything before the SPA.

If your loan is rejected after you sign the SPA

This is one reason the SPA is safer than a booking fee. Schedule G says that if you fail to obtain financing because of income ineligibility and you give the developer proof, you are liable to pay only 1% of the purchase price, the agreement is terminated, and the developer must refund the balance you paid within 30 days of the termination.

If you have already paid a booking fee

1. Keep the official receipt. Make sure it shows the payer, the payee, the amount and the date. The date can affect how LAD is calculated.
2. Check who received the money. The developer, a law firm or an agent, and which account.
3. Check the developer and project on TEDUH. KPKT’s TEDUH portal and app show the developer licence status, the APDL, project status and approved selling prices.
4. Get every promise in writing, including when the SPA will be signed and the refund terms.
5. Know where to claim. KPKT’s Tribunal for Homebuyer Claims FAQ lists deposit refunds among the types of claims that can be filed, with a claim limit of RM50,000 and a filing fee of RM10. Check with the Tribunal or a lawyer whether your case qualifies.

Common mistakes

• Treating the booking fee as a “normal” and lawful practice.
• Paying into an agent’s or a third party’s personal account.
• Not keeping the receipt, when its date can decide your LAD rights.
• Treating registration of interest as a purchase, or the reverse, treating the SPA as a formality.
• Believing news about the OTP proposal as if it were already law.

Checklist before you pay anything

• The SPA in the Schedule G form (landed home) is ready to sign.
• The developer licence and APDL have been checked on TEDUH.
• The first payment is 10% on signing the SPA, paid to the officially stated account.
• Your financing eligibility has been checked.
• Your own lawyer has explained the SPA.

Next step

If you want to hear about RumahHQ projects without any payment or commitment, register interest and check your eligibility. To understand the whole process of buying from a developer, including the Schedule G payment schedule, LAD and the defect liability period, read the guide on the Projects page. For financing, see how to apply for LPPSA for a developer’s home.