Most Malaysian property buyers collect their keys on Vacant Possession day, walk through the unit for ten minutes, and sign the acceptance form. That is a mistake that can cost you thousands of ringgit. The Defect Liability Period exists specifically to protect you — but it only works if you know what to look for, how to document it, and what to do when your developer ignores your complaints. The 24-month clock starts ticking the moment you receive VP. After that, you are on your own.
This guide covers every defect category you should inspect, how to file a proper defect report, your legal rights under CIPAA 2012 and the Housing Development Act, when to hire a professional inspector, and what recourse you have when developers refuse to act.
What Is the Defect Liability Period (DLP)?
The DLP is a contractual window — typically 24 months from the date of Vacant Possession (VP) — during which the developer is legally obligated to repair any defects in your property at no cost to you. This period is embedded in the standard Sale and Purchase Agreement (SPA) prescribed under the Housing Development (Control and Licensing) Act 1966 (HDA) and its regulations.
For strata properties (condos, serviced apartments), the DLP applies to both your individual unit and common property areas. For landed properties, it covers the house and any common infrastructure within the development.
The legal basis:
| Legislation | Relevance |
|---|---|
| Housing Development Act 1966 | Prescribes the DLP in Schedule G (landed) and Schedule H (strata) SPAs |
| Strata Management Act 2013 (Act 757) | Covers common property defects for strata developments |
| CIPAA 2012 (Act 746) | Construction Industry Payment and Adjudication Act — provides adjudication remedy for construction payment disputes |
| Contracts Act 1950 | General contractual enforcement of SPA terms |
The DLP is not a courtesy from the developer. It is a legal obligation. Every day you delay inspecting is a day closer to losing your right to free repairs.
What Qualifies as a Defect?
A defect is any fault in workmanship, materials, or design that causes the property to fall short of the standard reasonably expected under the SPA. The key categories:
Structural Defects
These are the most serious. They affect the building's integrity.
| Defect | What to Look For |
|---|---|
| Structural cracks | Cracks wider than 0.3mm, diagonal cracks near windows/doors, cracks running through multiple floors |
| Uneven flooring | Use a marble or spirit level — any visible slope or rocking when you step |
| Sagging beams/slabs | Visible deflection in ceiling slabs, especially in car parks and corridors |
| Column damage | Exposed rebar, honeycomb concrete, spalling |
Water-Related Defects
The single most common defect category in Malaysian condos. Tropical humidity and heavy rainfall expose waterproofing failures fast.
| Defect | Where to Check |
|---|---|
| Water seepage | Ceiling corners, walls adjoining bathrooms of upper units, window frames |
| Waterproofing failure | Bathroom floors (pour water and check if it pools or drains), balcony edges |
| Plumbing leaks | Under sinks, behind toilet cisterns, washing machine area connections |
| Pipe condensation | Exposed pipes in utility areas — look for drip marks and mold |
| Roof leaks (landed) | Attic space, ceiling stains, around chimney/vent penetrations |
Finishing Defects
Less critical structurally but common and fixable within the DLP.
| Defect | What to Look For |
|---|---|
| Tiling issues | Hollow tiles (tap each tile — hollow sound means poor adhesion), uneven grout lines, cracked tiles |
| Paint defects | Bubbling, peeling, uneven coverage, visible brush/roller marks, water stains |
| Door alignment | Doors that do not close flush, gaps between door and frame, handle/lock malfunctions |
| Window issues | Windows that do not seal properly, difficulty opening/closing, water entry during rain |
| Cabinet damage | Warped panels, misaligned hinges, peeling laminate |
Electrical and Mechanical Defects
| Defect | What to Check |
|---|---|
| Faulty wiring | Switches that do not work, buzzing from outlets, tripped breakers |
| Socket issues | Test every socket with a phone charger or tester — dead sockets are common |
| Aircon points | Ensure drainage pipes are properly routed and power points are wired |
| Exhaust fans | Run every fan — check for noise, vibration, weak suction |
Defects vs Wear and Tear
This distinction matters because developers will try to classify defects as wear and tear to avoid repair obligations.
| Category | Developer Responsible? | Examples |
|---|---|---|
| Defect | Yes | Cracked tiles from day one, water seepage from poor waterproofing, faulty wiring |
| Wear and tear | No | Scuff marks from moving furniture, paint fading from sunlight over 18 months, minor scratches on flooring from daily use |
| Latent defect | Yes (even after DLP) | Structural issues hidden during DLP that manifest later — e.g., foundation settlement causing cracks after 3 years |
The test: if the problem exists because of poor construction or materials, it is a defect regardless of when it appears. If it results from the owner's use or natural aging, it is wear and tear.
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How to Conduct a Defect Inspection
DIY Inspection Checklist
You do not need a professional for the initial inspection. Bring these tools:
- Spirit level (or a marble for floor slope testing)
- Flashlight (check dark corners, under cabinets)
- Phone camera (document everything)
- Blue painter's tape (mark defect locations)
- Bucket of water (test floor drainage in bathrooms and balcony)
- Phone charger (test electrical sockets)
- Step stool (inspect ceiling areas)
Work room by room. Do not rush. A thorough inspection of a 1,000 sqft unit takes 2-3 hours.
When to Hire a Professional Inspector
Professional defect inspectors typically charge between RM500 and RM1,500 depending on property size and scope.
| Property Type | Typical Cost | When It Is Worth It |
|---|---|---|
| Condo < 1,000 sqft | RM500 - RM800 | If you are not confident identifying structural or waterproofing issues |
| Condo 1,000 - 2,000 sqft | RM800 - RM1,200 | Recommended for investment properties — defects affect resale value |
| Landed property | RM1,000 - RM1,500 | Highly recommended — roof, foundation, and drainage are harder to inspect yourself |
| Penthouse / duplex | RM1,200 - RM1,500+ | Multiple levels and large roof areas increase risk |
A professional inspector will provide a detailed report with photos, severity ratings, and repair recommendations. This report carries more weight when filing formal complaints with the developer.
How to find one: Look for inspectors registered with the Board of Engineers Malaysia or who are CIDB-certified. Ask for sample reports before hiring. Companies like Inspect My Property, Property Defect Inspector, and HomeDNA operate nationwide.
How to File a Defect Report with Your Developer
Step 1: Document Everything
Take clear photos and videos of every defect. Include:
- Wide-angle shot showing the room/location
- Close-up of the specific defect
- Measurement reference (ruler, coin, or tape measure next to cracks)
- Date stamp on your photos
Step 2: Submit the Defect Report
Use the developer's official defect report form if one was provided at VP. If not, write a formal letter. Include:
- Your full name and unit number
- SPA reference number
- VP date and DLP expiry date
- List of defects with descriptions, locations, and photo references
- Request for inspection and repair timeline
Send via registered mail (Pos Malaysia AR Registered) so you have proof of delivery. Also email a copy and keep the read receipt.
Step 3: Follow Up
Developers are required to respond within 30 days of receiving your defect report. If they do not:
- Send a reminder letter via registered mail referencing your original report
- Copy the letter to the Joint Management Body (JMB) if the common property has defects
- Document the lack of response — dates, attempts, and any verbal communication
Step 4: Escalate
If the developer ignores your report or refuses to repair, you have multiple avenues.
Your Legal Rights: What to Do When the Developer Refuses
Tribunal for Homebuyer Claims
This is your first and most cost-effective recourse. The Tribunal for Homebuyer Claims operates under the Housing Development Act 1966 (established via 2002 amendment to the HDA).
| Feature | Detail |
|---|---|
| Filing fee | RM 10 per claim |
| Maximum claim | RM 50,000 per claim |
| Time to hearing | Typically 30-60 days from filing |
| Legal representation | Not required (and not typically allowed — you represent yourself) |
| Binding? | Yes — the award is enforceable as a court order |
| Who can file? | Purchasers of residential property from licensed developers |
The RM50,000 limit is per claim. If your defect repairs exceed this, you will need to pursue a civil suit instead.
CIPAA 2012 Adjudication
The Construction Industry Payment and Adjudication Act 2012 (Act 746) provides an alternative dispute resolution mechanism. While primarily designed for construction industry payment disputes (for work done under written construction contracts), it can be relevant where defect rectification involves payment claims. Note: CIPAA specifically covers payment for work done or services rendered — tortious or other non-payment claims fall outside its scope.
Civil Suit
For claims exceeding RM50,000, or for situations where the Tribunal does not have jurisdiction (e.g., commercial properties), a civil suit in the Magistrate's Court, Sessions Court, or High Court is the route.
KPKT Complaint
You can also lodge a complaint with the Ministry of Housing and Local Government (KPKT). KPKT has the power to investigate developers and, in extreme cases, revoke developer licenses under the Housing Development Act 1966. This does not directly get your defects fixed but creates regulatory pressure.
Common Defects in Malaysian Condos: What the Data Shows
Based on industry reports and professional inspector findings, the most frequently reported defects in Malaysian condos rank as follows:
| Rank | Defect Category | Frequency | Typical Repair Cost (Developer's Expense During DLP) |
|---|---|---|---|
| 1 | Waterproofing failures | Very High | RM2,000 - RM8,000 per affected area |
| 2 | Tiling defects (hollow, cracked) | High | RM500 - RM3,000 depending on area |
| 3 | Paint defects | High | RM300 - RM1,500 per room |
| 4 | Door/window alignment | Medium-High | RM200 - RM800 per unit |
| 5 | Plumbing leaks | Medium | RM500 - RM2,000 per incident |
| 6 | Electrical faults | Medium | RM300 - RM1,000 per circuit |
| 7 | Cracked walls/ceilings | Medium | RM500 - RM3,000 depending on severity |
| 8 | Floor level/slope issues | Low-Medium | RM1,000 - RM5,000+ if re-screeding required |
Waterproofing is the chronic problem in Malaysian construction. The combination of heavy tropical rainfall, construction shortcuts on waterproofing membrane application, and concrete curing issues means nearly every condo development has at least some water-related defect reports. If you are inspecting a new condo and find zero waterproofing issues, inspect again after the first monsoon season.
Timeline: When to Inspect
Do not wait until month 23 of your DLP to file your first report.
| Timeline | Action |
|---|---|
| VP Day (Day 1) | Conduct initial inspection or schedule professional inspector within 2 weeks |
| Month 1 | Submit defect report to developer |
| Month 3 | Follow up on outstanding repairs; conduct second walkthrough |
| Month 6 | Inspect for defects that emerge over time (waterproofing typically shows after first heavy rain season) |
| Month 12 | Mid-DLP comprehensive re-inspection |
| Month 18 | Final inspection — any new defects must be reported now |
| Month 22-23 | Verify all reported defects have been repaired; file final report if any remain |
| Month 24 | DLP expires — developer obligation ends for reported defects; unreported defects become your problem |
File your first defect report within 30 days of VP. Developers prioritize early reports because they still have contractors on site. By month 18, the contractors have moved on and getting repairs done is much harder.
Defect Inspection for Investment Properties
If you are buying property for rental income, defect inspection has a direct financial impact:
- Unresolved defects reduce rental value. A unit with water stains on the ceiling or hollow tiles will rent for less — or attract lower-quality tenants.
- Defects create maintenance costs. A plumbing leak that should have been fixed for free during the DLP will cost you RM500-2,000 out of pocket after it expires.
- Defects affect resale value. Buyers doing due diligence will commission their own inspection. Unresolved structural defects can kill a sale.
For investment properties, the professional inspection fee of RM500-1,500 pays for itself many times over. Treat it as a cost of due diligence, not an optional extra.
Key Contacts and Resources
| Resource | Contact / Link |
|---|---|
| Tribunal for Homebuyer Claims | KPKT — file online or at state offices |
| KPKT complaint | Ministry of Housing and Local Government |
| CIDB (Construction Industry Development Board) | Construction industry regulation |
| Board of Engineers Malaysia | Engineering professional standards |
| Malaysian Bar Council | Lawyer verification and legal disputes |
Checklist Summary
Before signing anything on VP day:
- [ ] Inspect every room, including storeroom and utility areas
- [ ] Test all electrical sockets, switches, lights, and fans
- [ ] Run water in every tap, flush every toilet, check for leaks
- [ ] Test floor drainage in all wet areas
- [ ] Check tile adhesion (tap test) across all tiled surfaces
- [ ] Open and close every door and window — check alignment and seals
- [ ] Inspect walls and ceilings for cracks, stains, and paint defects
- [ ] Check flooring with a level — any slope or unevenness
- [ ] Photograph and label every defect found
- [ ] Submit formal defect report within 30 days via registered mail
The DLP is one of the strongest consumer protections in Malaysian property law. Use it. The developer has already priced defect repairs into the selling price — you are simply claiming what you paid for.
Related Reading
- How to Buy a House in Malaysia: Step-by-Step
- Maintenance Fees & Sinking Fund: What Investors Must Know
Sources
- Housing Development (Control and Licensing) Act 1966 — Schedule G & H — KPKT
- Strata Management Act 2013 (Act 757) — Common property defects
- CIPAA 2012 (Act 746) — Asian International Arbitration Centre
- Tribunal for Homebuyer Claims — KPKT (RM 10 filing fee, max RM 50,000 per claim)
- KPKT — Ministry of Housing and Local Government
- National House Buyers Association (HBA) — Buyer rights advocacy