Homebuyers’ Rights under the HDA 1966 and HDR 1989: LAD, Defects, Misrepresentation & More

BY Messrs Lui & Bhullar

Homebuyers’ Rights under the HDA 1966 and HDR 1989: What Every Property Buyer in Malaysia Should Know

For many Malaysians, buying a home is a major life milestone. However, delays, construction defects, false promises by developers, and safety issues at the property can cause significant distress. The Housing Development (Control and Licensing) Act 1966 (HDA) and the Housing Development Regulations 1989 (HDR) were enacted to protect homebuyers and regulate housing developers in Malaysia.

Whether you are dealing with late delivery, defects, misrepresentation, or unsafe conditions, this article outlines your full legal rights—and how an experienced HDA lawyer in Malaysia can help.

🧾 Overview of the HDA 1966 and HDR 1989

The HDA 1966 ensures that housing developers comply with licensing requirements and consumer protection rules. The HDR 1989 sets out the format and terms of the standard Sale and Purchase Agreements (SPAs) under Schedule G (landed) and Schedule H (stratified) housing projects.

Key protections include:

• Delivery deadlines

• Liquidated Ascertained Damages (LAD) for delay

• Defect liability period

• Standardized clauses

• Tribunal for Homebuyer Claims

⚖️ Your Legal Rights as a Homebuyer in Malaysia

1. 🕒 Right to Timely Delivery or Claim LAD

Under the SPA:

• Landed homes: must be delivered within 24 months

• Stratified properties: within 36 months

If the developer fails to deliver on time, you are entitled to LAD (Liquidated Ascertained Damages)—10% per annum of the purchase price—calculated daily.

You may file a claim through:

• The Housing Tribunal (for claims under RM50,000)

• Civil litigation (for larger or complex claims)

✅ Talk to a lawyer for late delivery house disputes.

2. 🛠️ Right to Rectification of Defects

Under Clause 30 of the standard SPA, developers are obligated to:

• Rectify defects reported within 24 months from the date of vacant possession.

• Respond to a written complaint, defect inspection report and complete rectification within 30 days.

Defects may include:

• Cracks in walls or ceilings

• Uneven flooring or poor workmanship

• Faulty wiring or plumbing

• Water leakage or mold

If the developer fails to repair, buyers can:

• Appoint a contractor to fix it; and

• Claim the cost from the developer.

✅ Consult a property lawyer in Malaysia if the developer ignores your defect notice.

3. ❌ Right to Sue for Misrepresentation by the Developer

Under Section 18 of the Contracts Act 1950 and HDA consumer protection principles, developers may be liable for false or misleading statements made during:

• Sales launches

• Brochures or advertisements

• Verbal promises by sales agents

Examples include:

• Promising facilities (e.g., gym, pool) that were not built

• Falsely stating the project completion date

• Misrepresenting the built-up size or land title status

Homebuyers have the right to:

• Rescind the agreement, or

• Claim compensation for misrepresentation

✅ Engage an HDA litigation lawyer to pursue civil remedies for misrepresentation.

4. 🚧 Right to Safe and Habitable Property (Occupational Safety)

The HDA 1966, when read together with the Occupational Safety and Health Act 1994, implies a duty to deliver homes that are:

• Structurally safe

• Compliant with building codes

• Equipped with valid Certificate of Completion and Compliance (CCC) (Which can be challenged if accompanied by valid reasons)

Common safety issues include:

• Unstable balconies or railings

• Unsafe lifts or fire exits in strata units

• Incomplete or non-functional electrical systems

If your property poses a safety hazard, you may:

• Lodge a complaint with the Ministry of Local Government Development (KPKT)

• Seek a court order for rectification or damages

✅ Our real estate lawyers in Malaysia advise homebuyers facing unsafe property issues.

🏛️ Tribunal for Homebuyer Claims (TTPR)

Also known as the Housing Tribunal Malaysia, this is a low-cost, fast-track forum for resolving housing disputes.

Key features:

• Jurisdiction up to RM50,000

• Decisions are binding

• Lawyers are optional, but recommended for complex claims

Common tribunal claims:

• LAD for late delivery

• Refund of booking fees

• Failure to rectify defects

• Non-delivery of promised facilities

✅ Our Housing Tribunal Malaysia lawyers can help prepare your claim and appear on your behalf.

📍 Where We Serve

We assist clients in:

• Kuala Lumpur – property disputes and SPA reviews

• Selangor – LAD claim lawyer for landed and strata units

• Penang – housing dispute lawyer for defect claims

• Johor Bahru – Housing Tribunal representation

• Nationwide – virtual consultations and legal advice for homebuyers

✅ Why Choose Us?

• ✔️ Experience in HDA litigation and Housing Tribunal claims

• ✔️ Transparent pricing and efficient case handling

• ✔️ In-depth knowledge of housing law, defects, and SPA disputes

• ✔️ Personalized service for homebuyers

📞 Talk to a Property Lawyer Today

Are you a homebuyer dealing with:

• Late handover?

• Construction defects?

• Developer misrepresentation?

• Safety concerns?

You may be entitled to LAD, compensation, or legal remedies. Don’t wait until it’s too late.

📞 Contact Messrs Lui & Bhullar today for a Free consultation.

• 📧 Email: general@luibhullar.com

• 📞 WhatsApp: +60143000960 / +60143000970