HDA Homebuyer Rights
in Malaysia (Act 118 Guide)

This guide is for general information only and does not constitute legal advice. For matters involving litigation or complex disputes, consult a licensed Malaysian advocate & solicitor.

What is the Housing Development Act (Act 118)?

The Housing Development (Control and Licensing) Act 1966 (Act 118), together with the Housing Developers (Control and Licensing) Regulations 1989 (HDR 1989), is the principal statute governing the sale of residential property by housing developers in Malaysia. It is administered by the Ministry of Local Government Development (KPKT) and enforced through the Housing Controller. (Source: KPKT — Ministry of Local Government Development)

The Act requires every developer selling residential units to hold a valid Housing Developer Licence and Advertisement and Sale Permit before marketing any project. It mandates standardised Sale and Purchase Agreement forms (Schedules G and H) and establishes the Tribunal for Homebuyer Claims (TTPM) as the low-cost forum for resolving disputes. (Source: Act 118, sections 3, 5, 7)

Who is covered by the HDA?

Act 118 protections apply when all three conditions are met:

• The seller is a licensed housing developer (defined under Act 118, s.3).
• The property is a residential unit — house, condominium, flat or serviced apartment classified as residential.
• The transaction is a primary-market sale (developer-to-buyer direct), not a sub-sale between individuals.

Sub-sales (secondary market), commercial property, and sales by non-licensed vendors are governed by general contract law and the National Land Code 1965 rather than Act 118.

SPA statutory protections under the HDA

The HDR 1989 prescribes two mandatory SPA forms: Schedule G for landed residential property (terrace, semi-D, bungalow) and Schedule H for strata units (condominiums, flats, serviced apartments). Developers cannot deviate from these forms to reduce buyer rights. (Source: HDR 1989, Third Schedule, Schedules G & H)

Delivery timeline and Liquidated Ascertained Damages (LAD)

The statutory delivery timeline under HDR 1989 is:

• Landed property (Schedule G): Vacant possession within 24 months from SPA date.
• Strata property (Schedule H): Vacant possession within 36 months from SPA date.

If the developer misses these deadlines, the buyer is entitled to Liquidated Ascertained Damages (LAD) at the rate of 10% per annum on the SPA price, calculated daily from the contractual delivery date to the actual delivery date. (Source: HDR 1989, Sch G cl.13; Sch H cl.21)

LAD accrues even if the developer obtained a legitimate extension of time from KPKT, unless the buyer consented in writing. Buyers should write to the developer once the delivery deadline passes to preserve their LAD claim.

For more on the mechanics of LAD claims, see our guide on vacant possession and handover →.

Defect Liability Period — 24 months

From the date the developer hands over vacant possession, the buyer enters a 24-month Defect Liability Period (DLP). During this period the developer must, at its own cost, repair any defects, shrinkages or faults that appear in the unit or common property. (Source: HDR 1989, Sch G cl.14(2); Sch H cl.22(2))

• Defects must be reported in writing to the developer/contractor during the 24-month window.
• The developer has a reasonable time to rectify — typically 30 days for standard defects.
• If the developer ignores the notice or does a poor repair, the buyer may claim at TTPM (up to RM50,000) or the civil courts for larger amounts.
• Structural defects may also be covered under the CIDB statutory warranty for a longer period.

Always document defects with photographs, dates and written notices. See our guide on how to conduct a defect inspection → and common property defects in Malaysia →.

Tribunal for Homebuyer Claims (TTPM / HBA)

The Tribunal for Homebuyer Claims (TTPM), also known as the Housing Buyers Adjudication Tribunal (HBA), is established under Part VI of Act 118. It provides a low-cost, relatively fast adjudication forum for homebuyer disputes. (Source: Act 118, Part VI; KPKT TTPM portal)

For claims exceeding RM50,000, buyers must proceed via the civil courts (Magistrate, Sessions or High Court depending on the amount). A lawyer is recommended for court litigation.

Landed vs strata — Schedule G vs Schedule H comparison

The two statutory SPA forms differ primarily in delivery timeline and common-property obligations:

Other key developer duties under Act 118

• Housing Development Account (HDA): Developers must maintain a dedicated HDA. All progress payments from buyers must be deposited here and can only be withdrawn for project-related expenses. (Source: Act 118, s.7A; KPKT guidelines)
• Developer licence and ad permit: A developer must hold a valid licence and Advertisement and Sale Permit before marketing any project. Selling without these is a criminal offence. (Source: Act 118, ss.3–5)
• Insurance and performance bond: Developers must maintain adequate project insurance.
• Compulsory disclosure: The developer must disclose project details, developer particulars and financials to KPKT on application for the ad permit.

What the HDA does NOT cover

• Sub-sales (secondary market): Buying from a private seller is governed by the National Land Code 1965 and general contract law — no DLP or LAD protections.
• Commercial or industrial property: Act 118 applies only to residential units.
• Post-handover disputes between owners (e.g. neighbour leaks, JMC disputes): these fall under the Strata Management Act 2013 and the Strata Management Tribunal (SMT).
• Claims above RM50,000: Must be pursued at the civil courts, not TTPM.
• Renovation defects by your own contractor: Act 118 does not apply — your contractual remedy is against your own renovation contractor. See our guide on renovation defects and contractor disputes →.

Step-by-step: how to enforce your HDA rights

Homebuyer HDA protection checklist

• ✅ Verify developer holds a valid Housing Developer Licence and Ad Permit (check KPKT e-services portal).
• ✅ Read your SPA Schedule (G or H) — do not sign any addendum that reduces your statutory rights.
• ✅ Note the contractual VP deadline and set a calendar reminder 3 months before it expires.
• ✅ On key handover, do a thorough defect inspection and submit a written defect list to the developer.
• ✅ Track the 24-month DLP end date — all defect notices must be in writing before that date.
• ✅ Keep copies of all correspondence, receipts, photos and SPA documents permanently.
• ✅ For LAD claims, calculate daily LAD from the contractual VP date to actual delivery and send a demand letter promptly.

Buying a new property? Also read our guide on understanding the Sale and Purchase Agreement (SPA) →.

Sources & official references

• Housing Development (Control and Licensing) Act 1966 (Act 118) — Attorney General’s Chambers, Federal Legislation portal (laws.agc.gov.my)
• Housing Developers (Control and Licensing) Regulations 1989 (HDR 1989) — Third Schedule, Schedules G and H
• KPKT (Ministry of Local Government Development) — kpkt.gov.my; TTPM portal ttpm.kpkt.gov.my
• Tribunal for Homebuyer Claims (TTPM) — official filing procedures and award tables
• Housing Development Account guidelines — Bank Negara Malaysia and KPKT circulars