The defect liability period (DLP) in Malaysia is 24 months from the date you take vacant possession under the standard Schedule G and H Sale and Purchase Agreements. During the DLP you report defects in writing and the developer repairs them, generally within 30 days of your notice. A 5% stakeholder sum held by the developer’s solicitor supports the process and is typically released in two 2.5% portions, around 8 and 24 months after vacant possession.
Collecting your keys is the start of ownership, and the defect liability period is the built-in warranty that covers the first two years. Understanding how the defect liability period Malaysia buyers receive actually works helps you use it well: what counts as a defect, how to report it, how long repairs normally take, and what to do with items that appear months after you move in. This guide is written for owners at new JB projects such as Causewayz Square and The Asteriaz, but the rules are the same for any licensed developer project under the Housing Development Act. If you are still preparing for handover day itself, start with our vacant possession checklist.
What is the defect liability period in Malaysia?
The defect liability period is a fixed window after handover during which the developer is responsible for repairing defects in your unit and the building. For housing sold under the statutory SPA formats, it is 24 calendar months from the date the purchaser takes vacant possession.
The 24-month period applies to both landed homes (Schedule G) and strata units such as condominiums and serviced apartments (Schedule H). It has been the standard since the regulations were amended in the late 2000s to extend the earlier, shorter period, and it gives owners two full rainy seasons to observe how the unit performs.
Key points to remember:
- The clock starts on the date of vacant possession, which may be the date stated in the VP notice process even if you collect keys later.
- It covers defects, shrinkage and faults arising from defective workmanship or materials, or from the unit not being built according to approved plans and specifications.
- Your rights are written into the SPA you signed, so your copy of the SPA is the reference document. Our guide to reading your SPA shows where this clause sits.
DLP timeline at a glance
Most owners find it helpful to see the whole two years as a timeline with a few natural checkpoints.
| Time after vacant possession | What typically happens | Owner action |
|---|---|---|
| Day 0 | Keys collected; DLP begins; 5% stakeholder sum held by developer’s solicitor | Inspect using a checklist and submit your first list in writing |
| Within ~30 days of each notice | Developer’s team carries out repairs | Give access, then re-check each item |
| Months 1–6 | Items that only show with daily use appear (drainage, sealant, door alignment) | Report new items in writing as you find them |
| Around month 8 | First 2.5% of the stakeholder sum is normally released if no unresolved notice is pending | Submit any outstanding items before this point |
| Months 9–22 | Monitor after heavy rain and long-term use | Do a full walk-through around month 20 |
| Around month 24 | DLP ends; second 2.5% normally released subject to outstanding defects | Make sure your final list is submitted before expiry |
The stakeholder releases are conditional: a defect notice served before the release date and not yet made good can hold back the relevant portion until the architect certifies the repair. This structure keeps both sides aligned towards finishing items properly.
What counts as a defect, and what does not
A defect is a fault in the construction, materials or finishing that the developer delivered. Normal wear and tear, damage from renovation, and items you added yourself are not covered.
Usually covered during the DLP
- Water seepage or leaks from pipes, windows, wet areas or the external envelope.
- Cracks in walls, ceilings or floor finishes beyond fine surface lines.
- Hollow or loose tiles, lifting floor finishes, poorly fixed skirting.
- Doors and windows that do not close, lock or seal properly.
- Faulty electrical points, wiring or distribution board components supplied by the developer.
- Poor drainage gradient causing water to pool in bathrooms or balconies.
- Fittings that do not match the SPA specification.
Usually not covered
- Damage caused by your renovation contractor, such as drilling through pipes or chipping tiles.
- Items you installed yourself: built-in carpentry, extra lighting, air-conditioners, water filters.
- Normal wear and tear, misuse or lack of basic maintenance.
- Appliances under their own manufacturer warranties, which you claim from the brand instead.
Grey areas, such as fine hairline lines that appear as a building settles, are best handled by photographing them with a date and reporting them if they widen or recur.
How to report a defect during the DLP
Report defects in writing, with photos and clear locations, through the channel the developer provides. A clear written record makes the process quick and fair for everyone.
- Use the official channel: the developer’s defect form, customer service email or online portal. Keep the acknowledgement.
- Be specific: room, position and description for each item, with a close-up and a wide photo.
- Group items: submit a consolidated list rather than one item at a time, so repairs can be scheduled in one or two visits.
- Arrange access: agree appointment dates; if you live in Singapore, authorise a family member or property manager to open the unit.
- Re-check and sign off: inspect each item after repair and confirm in writing which are complete.
Under the standard SPA process, the developer is expected to repair defects within 30 days of receiving your written notice. Many developers now run digital defect portals with photo uploads and status tracking, which makes the process transparent and convenient for overseas owners.
Following up repairs, including common-area defects
Most defects are resolved directly between the owner and the developer’s customer service team. If an item takes longer, a calm, documented follow-up is usually all that is needed, and the SPA sets out a clear next step.
Friendly follow-up first
Send a short written reminder that lists the outstanding item numbers, the date of your original notice and photos. Ask for a proposed repair date. Busy handover periods in large projects can mean a queue, and a clear consolidated list helps the team schedule your unit.
The SPA’s self-repair mechanism
The standard SPA also provides a structured option: if the developer has not carried out the repair within 30 days, the purchaser may give written notice of the intention to carry out the work, together with the estimated cost, and after that notice period may arrange the repair and recover the cost from the developer, or from the stakeholder sum held by the developer’s solicitor. It is sensible to notify the solicitor holding the stakeholder sum while items are outstanding.
Tribunal for Homebuyer Claims
For the rare cases that cannot be settled directly, the Tribunal for Homebuyer Claims offers a low-cost route for claims of up to RM50,000, with a filing fee of RM10. Claims generally need to be filed within 12 months of the relevant date, such as the expiry of the defect liability period, so it helps to keep your records organised throughout the DLP.
Common property defects: lobby, facilities and car park
Defects in common areas such as lifts, corridors, the pool deck or car park are also covered during the DLP, but they are reported through the management body rather than by individual owners.
In a new strata building, the developer’s management team usually runs the building at first, followed by a Joint Management Body (JMB) and later a Management Corporation (MC) once strata titles are issued and owners take over. For a project with extensive facilities, such as the 29 podium facilities and the Level 60 sky deck at Causewayz Square, owners benefit when residents report common-area items to the management office promptly, so they can be compiled and followed up as a group.
Renovating during the DLP: how to protect your warranty
You can renovate during the DLP, but it is wise to inspect and report defects first, and to keep a clear record of the unit’s condition before works begin.
- Report first, renovate second: submit your initial defect list and ideally have the main items fixed before contractors start.
- Photograph before works: a dated photo set of each room helps separate original defects from renovation damage.
- Avoid altering wet areas early: waterproofing in bathrooms and balconies is part of what the DLP covers; hacking tiles can make it hard to claim later.
- Follow management rules: renovation permits, deposits and working hours are set in the house rules.
- Keep contractor records: invoices and scope of work show what was changed and by whom.
For investors furnishing a unit to rent out, a sensible sequence is: inspection, first repairs, light furnishing, then tenant move-in. Our rental yield guide helps you factor furnishing into your return calculations.
What to watch for at each stage after moving in
Some items only show after daily use or heavy rain, so observing in stages helps you catch them within the DLP.
- First month: bathroom drainage, toilet refill, water heater connections and the area under the kitchen sink.
- After the first heavy rain: window frames, balcony door sills and external-facing wall corners and ceilings for water marks.
- After air-conditioning and appliances are installed: drips around piping sleeves and any breaker trips; issues from your own installations go to your installer, original wiring and provisions are covered by the DLP.
- Final six months: a full walk-through between months 18 and 22 to re-check earlier items and spot new ones.
DLP for investors with tenants in the unit
If you rent out your unit soon after handover, the DLP still protects you; you simply need a clear arrangement with your tenant so that defects are reported promptly and access for repairs is easy.
Put it in the tenancy agreement
Add a short clause asking the tenant to report leaks, faulty fittings or other issues to you in writing within a few days, with photos. Include a reasonable access clause for repair appointments. Tenants generally appreciate a landlord who responds quickly, and early reports help you submit items to the developer well within the DLP.
Separate tenant damage from defects
A move-in inventory with dated photos, signed by both you and the tenant, makes it easy to tell original construction defects apart from later wear or damage. This keeps conversations with the developer’s team simple and factual.
Use a property manager if you are overseas
For Singapore-based owners, a local property manager can handle tenant reports, coordinate the developer’s repair visits and update you with photos. This is especially useful for dual-key or triple-key layouts with more than one tenant, such as the units described in our Celestz triple-key rental guide.
With good records from day one, a rented unit can move through the DLP as smoothly as an owner-occupied one.
A simple DLP record-keeping system
The single most useful habit during the DLP is keeping everything in one place. A simple folder, physical or digital, should hold:
- A copy of the SPA and the VP notice showing the vacant possession date.
- Your original inspection list with photos and the submission acknowledgement.
- Each later report, with dates and the developer’s responses.
- Repair appointment confirmations and your sign-off notes.
- A calendar reminder at month 7, month 20 and month 23 to review outstanding items.
With this in place, the DLP becomes a straightforward process that protects the quality of your home and its long-term value. If you would like help preparing for handover or setting up a rental plan for your JB unit, WhatsApp us.
Sources
- EdgeProp: Comprehensive overview of the defect liability period (24 months from VP)
- StarProperty: Dealing with defects (30-day repair, self-repair notice, stakeholder sum)
- MHub: VP and handover billing (5% stakeholder, releases at 8 and 24 months)
- EdgeProp: Five things you need to know about the Tribunal for Homebuyer Claims
- Mah Weng Kwai & Associates: Rights and obligations of developers and purchasers
This guide is general information, not financial advice.