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Defect Liability Period Malaysia: How to Claim Repairs From Your Developer

Edited by Teh Kim Guan, ACMA, CGMA · Updated 2026-06-24

When you collect the keys to a new home in Malaysia, the clock starts on a legal window that entitles you to free repairs: the Defect Liability Period (DLP). Under the Housing Development (Control and Licensing) Act 1966, your developer must fix any defects that appear within 24 months of vacant possession, at no cost to you.

This guide explains exactly what is covered, how to document and submit your defect list, what the developer is legally required to do, and how to escalate if they fail to act.


What is the Defect Liability Period?

The DLP is a statutory protection written into every standard sale and purchase agreement (SPA) for new residential properties sold by licensed housing developers. It is governed by the Housing Development (Control and Licensing) Regulations 1989, through the standard contracts in Schedule G (landed property) and Schedule H (strata property).

In plain terms: any defect, shrinkage, or fault that appears within 24 months after vacant possession must be repaired by the developer at its own cost, within 30 days of receiving your written notice.

Three numbers to remember:

  • 24 months: how long the DLP runs from the date of vacant possession
  • 30 days: how long the developer has to complete repairs after receiving your written notice
  • RM50,000: the maximum claim you can bring to the Homebuyers Tribunal if the developer ignores you

What the DLP covers

The DLP is broad. It applies to defects in workmanship, materials, and structural integrity that appear during the 24-month window.

Type of defectExamplesCovered under DLP?
Structural defectsCracks in beams, columns, slabs; roof leaks at structural junctionsYes
Workmanship defectsUneven tiles, poor plastering, misaligned doors, gaps in skirtingYes
Fitting and fixture defectsFaulty windows, leaking pipes, non-functioning electrical pointsYes
Water seepageWater ingress through walls, ceilings, or window framesYes
Defects you caused yourselfRenovation damage, unauthorised modificationsNo
Normal wear and tearPaint fading from sun exposure, scratched floors from useNo
Defects outside the 24-month windowFaults that first appear after the DLP endsNot covered by DLP, but possibly by contract or tort law (see below)

What about defects discovered after 24 months?

The DLP is not your only protection. Malaysian courts have held that the standard 6-year limitation period under the Limitation Act 1953 still applies to contractual claims. If a defect becomes visible after the DLP, you may still sue the developer in civil court within 6 years of the defect first manifesting. The DLP’s primary value is that it is fast, free, and does not require lawyers.


How to document your defects: the defect list

Your defect claim lives or dies on paperwork. A verbal complaint to the developer’s customer service team carries no legal weight. Here is the process:

Step 1: Walk through the property systematically

Do this as soon as you take vacant possession, and again before the DLP expires. Bring a notebook, camera, and torch. Check every room, ceiling, wall, floor, bathroom, electrical point, door, window, and external walls. Common Malaysian new-launch defects include hairline cracks, water seepage near windows, hollow tiles, misaligned doors, and paint blemishes.

Step 2: Prepare a written defect list

Write down each defect with location, description, date first observed, and a photograph reference number. There is no prescribed form. Many developers provide their own submission form; if yours does, use it and keep a copy of everything you submit.

Step 3: Submit by registered post or email with read receipt

Do not hand in the list informally. Send it by AR Registered Post or by email with a read receipt so you have dated proof of delivery. The 30-day rectification window starts from the date the developer receives your notice.

Step 4: Keep a repair log

After submission, record every site visit by the developer’s contractor: date, what was inspected, what work was done, and whether the repair was satisfactory. If a repair is poor quality, note it immediately and send a follow-up notice.


Developer obligations under the DLP

Once you submit a valid written notice, the developer must: acknowledge and inspect the defects within a reasonable period, complete all repairs within 30 days, and bear all costs for labour and materials. Repair costs cannot be passed to you in any form, including through the building’s management body.

If a defect requires more than 30 days to resolve, the developer should provide a revised timeline in writing. Silence and inaction justify escalation.


What to do if the developer ignores you

Option 1: File a complaint with KPKT

You can lodge a complaint directly with the Ministry of Housing and Local Government (KPKT) via its online portal or by visiting the nearest KPKT state office. KPKT has enforcement powers under the Housing Development Act and can investigate licensed developers. This route is useful for systemic failures or developers with a pattern of non-compliance.

Option 2: File a claim at the Homebuyers Tribunal (TTPR)

The Tribunal Tuntutan Pembeli Rumah (TTPR), established under KPKT, is the fastest and most practical route for most homebuyers. Key facts:

  • Filing fee: RM10
  • Claim limit: up to RM50,000 per claim. If your genuine loss exceeds RM50,000, you must waive the excess or proceed in civil court instead
  • Decision timeline: the tribunal aims to issue decisions within 60 days
  • Lawyers not required: proceedings are designed to be accessible without legal representation
  • Where to file: in person or by post at any TTPR office. As of 2025, e-filing is not yet available

To file, you will need your SPA, the defect notice you sent to the developer (with proof of delivery), photographs of the defects, and any correspondence from the developer.

The tribunal’s award is binding. If the developer fails to comply with a tribunal order, you can enforce it in court.

Option 3: Civil court action

For claims above RM50,000, the Sessions Court or High Court is the avenue. This requires legal representation and is slower, but the 6-year limitation period gives you time to exhaust the tribunal route first.


DLP timeline at a glance

MilestoneTimeframe
DLP startsDate of vacant possession (key collection)
DLP ends24 months after vacant possession
Developer’s repair deadline30 days after receiving your written defect notice
Tribunal claim windowWhile the SPA-based contract is in force; practically, file before or shortly after DLP ends
Civil court limitation period6 years from the date the defect first manifested

Key takeaways

  • The Defect Liability Period is 24 months from vacant possession, guaranteed by law for all new properties sold under the Housing Development Act 1966.
  • You must submit a written defect notice to start the clock on the developer’s 30-day repair obligation. Verbal complaints do not count.
  • Document everything: written lists, photographs, and proof of delivery by registered post or email.
  • If the developer does not repair within 30 days, you can file a claim at the Homebuyers Tribunal (TTPR) for just RM10, with decisions typically issued within 60 days.
  • The tribunal handles claims up to RM50,000. For larger claims, civil court is the route.
  • Defects that appear after the DLP may still be claimable under contract law within 6 years of the defect appearing.
  • Read our guides on the full cost of buying property in Malaysia and strata maintenance fees to understand the other financial obligations that follow key collection.

Frequently asked questions

Does the DLP start from the SPA signing date or key collection? It starts from the date of vacant possession, which is when your developer formally hands you the keys and the property is ready for occupation. This is confirmed in writing, usually by a VP notice letter. The SPA signing date is irrelevant for DLP purposes.

What if I only discover a defect in month 23, and repairs are not finished before month 24? You are protected. What matters is that you submitted written notice of the defect before the DLP expired. As long as your notice was sent and received within the 24-month window, the developer remains obligated to complete the repair even if it runs past the DLP end date.

My developer says the defect was caused by my renovation. What can I do? The burden of proof is on the developer. Photographs taken at vacant possession, before any renovation, are your strongest counter-evidence. The Homebuyers Tribunal can appoint an independent inspector to assess the cause.

Can I claim hotel or rental costs while waiting for repairs? Not directly under the DLP clause, which covers repair costs only. However, if repair delays cause documented financial loss, you may include consequential damages in a tribunal claim with supporting receipts.

Does the DLP apply to subsale properties? No. The DLP under the Housing Development Act is a statutory right that applies only to purchases directly from a licensed developer via a Schedule G or H SPA. If you buy a resale unit from a previous owner, your recourse for defects is governed by the terms of your own sale and purchase agreement, which is a private contract without the same statutory protections.

KG
Reviewed by Teh Kim Guan, ACMA, CGMA

Malaysia-based chartered management accountant (ACMA, CGMA) and embedded executive who has worked across finance, operations, and product roles with Malaysian companies. Every WangWise guide is checked against official Malaysian sources. How we review · About the editor

Educational content only, not financial advice. Verify current figures with official sources.