What is a Defect Liability Period and What Are Developers Actually Obligated to Fix?

The defect liability period in Malaysia gives new-property buyers a limited window to report qualifying defects to the developer for rectification. This guide explains what DLP normally covers, what buyers should document and when professional advice is needed.

Introduction

You've just received the keys to your new home. Within weeks, you notice hairline cracks in the walls, a leaking bathroom, and a door that won't close properly. Who pays for these repairs — you or the developer?

Under Malaysian law, the developer is obligated to repair genuine defects during the Defect Liability Period (DLP). But the scope of what qualifies, how to claim, and what happens if the developer ignores you is something most homebuyers don't find out until they are already in a dispute.

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The Legal Basis

The Defect Liability Period is governed by the Housing Development (Control and Licensing) Act 1966 (HDA 1966) and the standard Sale and Purchase Agreements (SPAs) prescribed under the Housing Development (Control and Licensing) Regulations 1989.

The prescribed SPA — which all licensed housing developers in Malaysia must use for residential properties — includes standard DLP provisions that cannot be contractually reduced.

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How Long Is the DLP?

24 months from the date of Vacant Possession (VP) — the date you receive your keys and sign the VP acknowledgment form.

This is the statutory minimum for all residential properties covered by the HDA 1966. Some developers may offer a longer DLP as a marketing feature, but 24 months is the legal floor.

Important: The 24-month clock starts from VP, not from when you move in or when you discover a defect.

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What the Developer Is Obligated to Fix

The DLP covers defects in workmanship, quality of materials, and structural integrity attributable to the developer's construction.

Common covered defects include:

• Cracks in walls, floors, or ceilings (structural or surface)
• Roof leaks
• Water seepage through external walls or windows
• Plumbing defects (leaking pipes, inadequate water pressure from building infrastructure)
• Electrical faults in the developer's installed works
• Non-functioning fixtures supplied by the developer (doors, windows, built-in fittings)
• Common area defects (lifts, corridors, car parks, external façade)
• Tiling defects (uneven, hollow, or cracked tiles that were present at VP)

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What the Developer Is NOT Obligated to Fix

This is where disputes commonly arise. Developers are generally not responsible for:

• Wear and tear after VP (normal use and aging)
• Damage caused by the owner (alterations, renovation works, misuse)
• Defects in items the owner installed (owner-supplied fittings, added fixtures)
• Cosmetic imperfections below a reasonable threshold (minor paint variations, minor grout discolouration)
• Defects in common areas under the Joint Management Body (JMB) after the JMB takes over — though the developer remains liable for structural defects beyond the DLP in some cases

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How to Make a Defect Claim

Step 1: Conduct a thorough inspection at VP

Do not sign the VP acknowledgment without doing a full inspection. Use a defect checklist — or engage a property inspector if you are not confident doing it yourself. Mark all defects on the VP inspection form before signing.

Step 2: Submit a written defect notice

During the DLP, submit defect notifications in writing to the developer. Do not rely on verbal complaints or WhatsApp messages alone — request a formal acknowledgment.

Use the developer's prescribed defect form if provided, or write a letter stating the unit number, defect description, and date noticed.

Step 3: Give the developer reasonable time to rectify

The prescribed SPA requires the developer to rectify defects within 30 days of receiving your written notification (or such longer period as is reasonably required in the circumstances).

Step 4: Inspect rectification works

Do not accept rectification without re-inspecting. If the repair is inadequate or the defect recurs, re-notify in writing within the DLP.

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What If the Developer Ignores You?

If the developer fails to rectify within the required period, you have several options:

1. Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah — TTPR) This is the fastest and most accessible route. The Tribunal handles claims up to RM 50,000 and operates without the formality of court proceedings. Filing fee is RM 100–200. Decisions are enforceable.

2. Civil Court For claims exceeding RM 50,000 or for complex disputes, civil proceedings may be necessary. Engage a property litigation solicitor.

3. Ministry of Housing (KPKT) KPKT can investigate and take enforcement action against licensed developers who breach their statutory obligations. Lodge a complaint via the e-Aduan portal.

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DLP for Strata Properties

For strata developments (condominiums, serviced apartments), there are two parallel DLP obligations:

• Individual unit defects: The developer's obligation to each purchaser for their unit — 24 months from VP.
• Common area defects: The developer's obligation to the JMB for common areas — also 24 months from VP, or from the date the JMB takes over common areas (whichever applies).

Ensure your JMB actively conducts and documents common area inspections during the DLP window.

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For Agents Representing New Development Buyers

Your obligation to your buyer client does not end at the signing of the SPA. A professional agent:

• Explains the DLP timeline at VP
• Recommends the buyer conduct a thorough inspection with a defects checklist before signing the VP acknowledgment
• Flags any known common defects in the development (from other buyers or public complaints)
• Points buyers to the Tribunal if the developer is unresponsive

This is especially important in co-broking transactions where you represent the buyer — your duty of care is to them, not the developer.

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Published on PropPlace.my — Malaysia's co-broking property marketplace for industrial, commercial, and land transactions.

Related home buyer guides

Defect liability checks fit into the wider residential property buying guide, especially when comparing sub-sale and new launch property or checking vacant possession and CCC.