Defect Liability in Malaysia: What Homebuyers Need to Know and How to Take Legal Action
- Messrs Lui & Bhullar
- 3 days ago
- 4 min read
BY MESSRS LUI BHULLAR
Defect Liability in Malaysia: What Homebuyers Need to Know and How to Take Legal Action
Buying a home is one of the biggest investments you'll ever make. But what happens when your dream home is handed over with leaks, cracks, or electrical issues? Under the Housing Development Act 1966 (HDA) and Housing Development (Control and Licensing) Regulations 1989 (HDR), you have legal rights as a homebuyer—especially when it comes to defect liability.
This article explains everything Malaysian homebuyers need to know about defective property claims, and how a home buyer lawyer or HDA lawyer in Malaysia can help you pursue compensation or rectification.
🧱 What is Defect Liability?
The defect liability period (DLP) is a 24-month period after the delivery of vacant possession during which developers are legally obligated to rectify any construction defects in the property.
📌 Common Defects Reported by Homebuyers:
Water seepage or leakage
Wall cracks or hollow tiles
Faulty plumbing or wiring
Damaged windows or doors
Uneven flooring or wall finishes
✉️ Sample Letter to Developer for Defect Rectification
If you identify defects during the DLP, it is crucial to notify the developer in writing. Below is a template you can use to ensure legal compliance and proper documentation.
📝 Sample Defect Notification Letter
To:
[Developer’s Company Name]
[Developer’s Address]
Date: [DD/MM/YYYY]
Subject: Notice of Defects and Request for Rectification Under Clause (Usually Clause 30) of SPA
Dear Sir/Madam,
I am the purchaser of [Property Address], purchased under Sale and Purchase Agreement dated [Insert Date], governed by Schedule G/H of the Housing Development (Control and Licensing) Regulations 1989.
Upon taking vacant possession on [Insert Date], I have discovered the following defects in the property listed in the Defect Inspection Report attached herein. (Attach the Defect Inspection Report as Appendix A to this letter)
I hereby request that you rectify these defects within thirty (30) days from the date of this notice, as provided under the defect liability clause of the SPA and the Housing Development Act 1966.
Kindly acknowledge receipt of this letter.
Please be advised that if the defects are not rectified within the stipulated time, I reserve the right to engage a third-party contractor and seek reimbursement accordingly.
Yours faithfully,
[Your Signature]
[Your Full Name]
[Property Name/Phase/Unit]
PSA: (Please ensure that you obtain the acknowledgment stamp/chop (indicating the date and time you have delivered the letter) from the developer or its representative, as such prepare 2 copies of the letter. 1 to serve as a notice, the other as your acknowledgement copy.)
📜 Your Legal Rights Under the HDA
Under the standard Schedule G or H Sale and Purchase Agreement (SPA) governed by the HDA:
Developers must repair all reported defects within 30 days of receiving notice.
If they fail to do so, the buyer is allowed to:
Appoint a contractor to fix the issue
Claim reasonable costs from the developer
✅ This is where a SPA dispute lawyer Malaysia or property lawyer Malaysia becomes crucial—especially if the developer is unresponsive or the repairs are poorly done.
🛡️ Legal Remedies for Unresolved Defects
If the developer ignores your defect notice or fails to make proper rectifications, you have several legal avenues:
1. File a Complaint with the Housing Tribunal
Ideal for claims under RM50,000
Fast and cost-effective
You can represent yourself, or hire a housing tribunal lawyer Malaysia
2. Initiate Legal Action in Civil Court
Best for claims exceeding RM50,000
Allows broader remedies including damages and injunctions
Must be represented by a qualified HDA lawyer in Malaysia
🤝 Why Hire a Home Buyer Lawyer?
Navigating legal procedures and developer negotiations can be overwhelming. A professional home buyer lawyer Malaysia will:
Review and interpret your SPA
Draft a formal defect notice
Represent you in Housing Tribunal or court
Help you quantify and recover repair costs
Ensure your rights under the defect liability clause are fully enforced
⚠️ What If the Property is Not Covered Under the HDA?
Not all properties are governed by the HDA—especially:
Commercial-titled units like SOHO, SOFO, SOVO
Completed units sold via subsale
In such cases, your recourse depends on:
The wording of your SPA
General contract law
Evidence of developer negligence
🧾 A skilled real estate lawyer Malaysia or SPA dispute lawyer Malaysia can advise you on whether to proceed with civil litigation.
📍 Common Client Scenarios We Handle
At our firm, we frequently represent homebuyers facing issues such as:
Unresolved wall and ceiling leaks
Non-functional fittings post-handover
Dangerous electrical wiring posing safety risks
Developers refusing to acknowledge or respond to defect claims
Our team includes:
Property lawyer in Kuala Lumpur
Housing dispute lawyer in Selangor
LAD claim lawyer in Malaysia
Defect liability lawyer in Malaysia
HDA lawyer in Johor Bahru
Home buyer lawyer in Penang
✅ Quick Tips for Homebuyers
Inspect your unit thoroughly upon vacant possession
Submit defect complaints in writing immediately
Keep photos, receipts, and a log of communication
Seek legal advice early—don’t wait until the DLP ends
📞 Need Help? Contact a Defect Liability Lawyer Today
If your developer is ignoring your complaints or offering substandard repairs, don’t face it alone. Engage a professional home buyer lawyer or defect liability lawyer Malaysia to safeguard your investment.
👉 Get a free consultation with our experienced team and take legal action with confidence.
📞 Contact Messrs Lui & Bhullar today for a Free consultation.
📧 Email: general@luibhullar.com
📞 WhatsApp: +60143000970 / +60143000960