Short answer: If a developer delivers vacant possession late, a buyer under the standard prescribed sale and purchase agreement is entitled to liquidated damages at 10% a year of the purchase price, counted daily from the end of the delivery period until the buyer takes possession. The delivery period depends on the type of property. This is a summary of one law firm’s published explainer, not legal advice, so check your own agreement and ask a lawyer.
Last verified: 27 October 2026, based on a 2020 law firm article. Rules and the Tribunal claim limit may have changed since, so confirm with a lawyer or the Ministry of Housing before you rely on this.
How long does a developer have?
Under the Housing Development (Control and Licensing) Act 1966 and its regulations, buyers of new homes in licensed projects sign a prescribed agreement. Developers cannot contract out of its terms.
| Type of agreement | Typical use | Delivery period (from the sale date) |
|---|---|---|
| Schedule G | Land and building (landed homes) | 24 months |
| Schedule H | Land intended for subdivision into parcels (strata, such as condos and serviced apartments) | 36 months |
How the liquidated damages work
- Rate: 10% a year of the purchase price.
- Counted: daily, from the end of the delivery period.
- Stops: when you take vacant possession.
- Deemed delivery: 14 days after the developer gives written notice asking you to take possession, whether or not you move in.
- Common facilities (strata): the developer has 36 months to complete them. If late, damages of 10% a year apply to the last 20% of the price.
Example (illustrative): For a RM600,000 strata unit delivered 6 months late, 10% a year is RM60,000 a year, or about RM164 a day, so roughly RM30,000 for about 183 days. Your actual amount depends on your agreement and the dates.
Can the developer get an extension?
According to the explainer, the Controller of Housing cannot extend the vacant possession deadline, and an extension granted does not remove the buyer’s right to damages.
If the developer does not pay
A buyer can claim through the court or the Tribunal for Homebuyer Claims. The explainer says the Tribunal cannot hear claims above RM50,000 and that the time limits are short (12 months for Tribunal claims, counted from specific dates such as the certificate of completion and compliance or the end of the defect liability period). A 2024 news report says a higher limit of RM250,000 was proposed but did not say it had taken effect.
What to do as a buyer
- Keep every letter and notice, and note the sale date and the delivery deadline in your agreement.
- Check whether your agreement is the prescribed Schedule G or H form.
- Do not ignore a handover notice: deemed delivery can start 14 days after it.
- Talk to a lawyer before signing any waiver or settlement with the developer.
- Do your homework before you pay: see project due diligence, the red flags to check before you pay and buying costs.
FAQ
How much compensation do I get for late delivery in Malaysia?
Under the prescribed agreement, 10% a year of the purchase price, counted daily after the delivery period ends, as summarised in a 2020 law firm article.
How long does a developer have to deliver a condo?
The same article gives 36 months from the sale date for Schedule H agreements and 24 months for Schedule G landed agreements.
Can I claim without a lawyer?
Small claims can go to the Tribunal for Homebuyer Claims, but it has a monetary limit and time limits, so seek advice first.
Sources: MahWengKwai: FAQ on liquidated damages for late delivery, EdgeProp: Raising housing tribunal’s claim limit. Checked 27 October 2026.
