RumahHQ Projects

Buying a new home from a developer (pemaju perumahan) is different from buying a used house from its owner. You usually pay in stages while the house is still being built, so the law gives you extra protection. This guide explains that protection in plain language, so you know what to check before you sign and what you are entitled to after you sign.

It covers landed homes (terrace, semi-detached and bungalow houses), which are what RumahHQ plans to build. Strata homes such as apartments use a different standard agreement with different periods.

Terms used on this page

• HDA: the Housing Development (Control and Licensing) Act 1966 [Act 118], the main law that controls housing developers in Peninsular Malaysia.
• SPA (sale and purchase agreement, perjanjian jual beli): the contract between you and the developer.
• Schedule G (Jadual G): the standard SPA form the law prescribes for landed homes that are sold before they are built.
• APDL (Permit Iklan dan Jualan, advertising and sales permit): the permit a developer needs before it can advertise or sell homes in a project.
• VP (vacant possession, milikan kosong): the day the developer hands you the keys to a finished home.
• CCC (Certificate of Completion and Compliance): the certificate that confirms the building was completed and complies with the approved plans.
• LAD (liquidated damages, ganti rugi jumlah tertentu): compensation the developer pays you if it hands over your home late.
• DLP (defect liability period, tempoh liabiliti kecacatan): the period after VP in which the developer must repair defects at its own cost.

1. The HDA framework (Act 118)

Act 118 and its regulations, the Housing Development (Control and Licensing) Regulations 1989, set the rules every licensed housing developer must follow. The Ministry of Housing and Local Government (KPKT), through the National Housing Department (Jabatan Perumahan Negara, JPN) and the Controller of Housing, licenses developers and enforces the rules.

The parts that matter most to you as a buyer:

• A developer licence. A company must hold a housing developer licence to carry out a housing development. Since the 2015 amendments, the licence must be renewed at least 14 days before it expires and must stay valid until a CCC is issued for every home in the project.
• An advertising and sales permit (APDL) for each project or phase, before any advertisement or sale.
• A standard SPA. For landed homes the developer must use Schedule G (sell then build) or Schedule I (build then sell, where you pay 10% when you sign and 90% at VP). The key terms of these forms are fixed by law.
• A Housing Development Account that holds the money buyers pay.
• No collection before the SPA. Regulation 11(2), as amended in 2015, says no person, including parties acting as stakeholders, may collect any payment by whatever name called except as prescribed by the contract of sale.
• Advertising limits. Since 2015, regulation 8(1A) says a developer's advertisement must not offer free legal fees, project monetary gains or rental income, claim a panoramic view, or state travelling time to popular destinations.

The 2015 amendments came into force on 1 July 2015. The updated standard SPAs apply to projects whose developer licence and advertising permit were issued on or after that date. Older projects may still use the earlier forms, so read the version in front of you.

2. The Schedule G SPA and the progressive payment schedule

Under Schedule G you do not pay the full price at once. You pay 10% when you sign, then instalments as each stage of construction is finished. Each payment notice from the developer must be supported by a certificate signed by the developer's architect or engineer in charge, and you have 30 days from receiving the notice to pay.

The developer does not have to build in the order of the table, but you pay according to the stages actually completed. If a later stage damages earlier work, the developer must repair it at its own cost before VP.

Other Schedule G terms worth knowing

3. The developer licence and the APDL: how to check them

The APDL is issued by the Controller for one development or one phase, based on the building plan approved by the local authority. A developer cannot apply for it without a valid developer licence. KPKT's guideline says the advertisement and the Malay-language brochure submitted with the application must show, among other things, the expected completion date and the minimum and maximum selling price of each type of home.

KPKT's TEDUH portal (teduh.kpkt.gov.my) and the TEDUH mobile app let the public check, before buying:

• the status of a developer's licence;
• the advertising and sales permit (APDL) of a project;
• project progress and status, including projects classified as delayed, sick or abandoned;
• approved selling prices;
• government approvals such as extensions of time (EOT);
• whether a document is genuine.

1. Get the numbers Note the developer licence number and APDL number from the advertisement, brochure or project page.
2. Search TEDUH Look up the developer and the project on the TEDUH portal or app.
3. Compare Check that the names, phase, validity dates and price range match what you were shown.
4. Check the status Look for delays, extensions of time or a sick or abandoned status.
5. Only then sign If anything does not match, stop and ask in writing before you sign anything.

On this website, a project page shows prices only when the project is launched and its developer licence and APDL details are complete. Until then you will see "Upcoming" and a registration of interest, never a price.

4. Housing Development Account protection

Under the Housing Development (Housing Development Account) Regulations 1991, a licensed developer must pay all money received from buyers into a Housing Development Account for that project. Payments made by your financier are also paid into this account.

Money can only be withdrawn for purposes the regulations list, such as land costs, construction and infrastructure works, professional fees and related charges, and each withdrawal must be supported by the required certification. A surplus can only be taken out near the end of the project with the Controller's approval, after keeping back enough to complete the project. The purpose is simple: your money goes into building your project, not into another venture.

In practice this means you should pay only into the account stated in the developer's payment notice or your SPA, never into a personal account or a third party's account.

5. Delivery within 24 months and liquidated damages (LAD)

Under Schedule G, vacant possession of a landed home must be delivered within 24 months from the date of the SPA. VP can only be given when the CCC has been issued, water and electricity are ready for connection, and you have paid the amounts due. If you do not collect the keys within 30 days of the developer's notice, you are treated as having taken VP.

If the developer is late, it must pay you LAD calculated day to day at 10% a year of the purchase price, from the end of the 24 months until the day you take VP. The developer should pay it right after it gives you the notice to take possession. If it does not, you may deduct the LAD from any instalment you still owe. Your right to claim LAD arises on the date you take VP.

6. The 24-month defect liability period (DLP)

Any defect, shrinkage or other fault that appears within 24 months after VP and is caused by defective workmanship or materials, or by the house not being built to the approved plans and description, must be repaired by the developer at its own cost within 30 days of receiving your written notice.

• If the developer does not repair it within 30 days, you may tell the developer the repair cost and give it another 30 days. If it still does not act, you may carry out the repair yourself and recover the cost from the 5% stakeholder sum held by the developer's solicitor.
• If you send the developer's solicitor a copy of your defect notice before the 8-month or 24-month release date, the solicitor must not release that part of the stakeholder sum until the developer's architect certifies the defect has been repaired.

Keep every defect notice in writing, with dated photos, and send a copy to the developer's solicitor.

7. The Tribunal for Homebuyer Claims

The Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah, TTPR) under Act 118 is a cheaper and faster alternative to court for buyers in Peninsular Malaysia and Labuan. It hears claims about residential homes bought from a developer, such as LAD for late delivery, defects, refunds and other breaches of the SPA, up to the claim limit set under the law. A larger claim needs the written agreement of both parties.

The Tribunal aims to decide within 60 days. Parties generally represent themselves, and lawyers are allowed only where complex issues of law are involved. An award is final and binding, and failing to comply with it is an offence.

8. Project statuses on this website and what each means

9. The whole journey on one timeline

1. Before launch Land, planning permission and building plan approval. For RumahHQ, registration of interest and eligibility checks happen here.
2. Launch The developer has a valid licence and an APDL for the project or phase. Prices are published.
3. Choose a unit and sign the SPA You pay 10% on signing. The 24-month VP clock under Schedule G starts from the SPA date.
4. Construction You or your financier pay each stage within 30 days of a certified notice. Up to 75% of the price is paid during construction.
5. CCC and VP Keys are handed over with water and electricity ready for connection. LAD applies if VP is late.
6. Defect liability period 24 months from VP. The stakeholder sum is released in two parts, at 8 and 24 months.
7. After the DLP You have 12 months after the DLP ends to take a defect claim to the Tribunal.

10. Common mistakes to avoid

• Paying any sum before the SPA is signed. The regulations do not allow anyone to collect it.
• Signing an SPA that is not in the Schedule G (or Schedule I) form for a landed home, or not reading which version it is.
• Trusting advertising promises that the regulations do not allow, such as free legal fees or projected rental income.
• Not checking the licence and APDL on TEDUH, or not matching the phase and validity dates.
• Paying into an account other than the one in the payment notice or SPA.
• Raising defects by phone only, without a written notice and a copy to the developer's solicitor.
• Missing the 12-month Tribunal deadlines.

11. Checklist before you sign an SPA

• Developer licence valid, checked on TEDUH.
• APDL valid for this exact project or phase.
• SPA is the Schedule G (or Schedule I) form for a landed home.
• Payment schedule matches the Third Schedule percentages.
• Eligibility checked with LPPSA or your bank, and proof kept if financing is rejected.
• The Housing Development Account details in writing.
• Your own lawyer has explained the SPA to you.

More reading: what registration of interest is and what happens after it, financing options and how we handle quality and handover.