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Developer Ignoring Your Defects for 3 Months? Malaysia Handover Checklist + Using the 5% Retention (PDF)

On a RM500,000 home, RM25,000 sits with the developer's lawyer. Sifu shows what to check room by room on key day, how to report within 8 months, and the "30 + 14 day move" to get your repair money back.

DecisionsBy the PropertySifu EditorialUpdated November 202612 min
The Sifu truth: the short answer

Key collection day is not the end of buying a home. It is the day you start settling accounts with the developer.

In Malaysia, handover inspection in one line: within the 24-month defect period, and especially the first 8 months, report every defect to the developer in writing; not fixed in 30 days, fix it yourself under the contract and claim it from the lawyer.

When you buy a new home from a developer in Malaysia, you get a 24-month defect liability period from vacant possession (VP). Workmanship and material defects that show up in that time are the developer's legal duty to fix. But if you do not report them in writing, he does not have to move.

Think you have paid everything? On a RM500,000 home, RM25,000 (5% of the price) is still held by the developer's lawyer. Miss the 8-month window and half of it can be released on schedule.

Think refusing the keys puts pressure on him? 14 days after the handover notice, you are treated as having taken the keys anyway, and the clock still runs.

Think all you can do is wait? The standard contract (Schedule G and H) gives you the "30 + 14 day move": 30 days to fix, then 14 more; still nothing, you fix it and claim it from the lawyer. Still stuck? The Homebuyer Claims Tribunal: up to RM50,000 a claim, RM10 to file.

Got the keys, and the nightmare started?

In October an owner vented on Threads: 3 months after key collection, not one reported defect had been fixed.

In September another had it worse: the water tank was drained for cleaning, the waterproofing under it had failed, and the ceiling below already had a ring of water stains.

In Cheras a new condo was handed to management last November, then a pipe burst and a whole floor flooded. 271 people liked the post, all asking the same thing: who is responsible now?

No wonder people search for a "new home handover inspection checklist pdf". We have made one. Print it, take it to the unit and tick.

PDFDownload the printable handover checklist (PDF, A4, English)

Refuse the keys until it is fixed and the developer is stuck? It is the opposite

Many buyers think refusing the keys puts the developer under pressure.

The contract has already done the developer's maths: 14 days after the handover notice you are treated as having taken possession, whether you go or not. Stay away and you only waste your own 24 months.

The right move: collect, inspect straight away, report in writing straight away. Before you sign, remember 3 things:

  • No water or power, no inspection. Legal handover needs a Certificate of Completion and Compliance (CCC) and connectable utilities. Anything you could not test, write "utilities not connected, not tested".
  • Signing for the keys is not signing off on defects. If the form says "unit in good condition", we suggest adding "subject to inspection".
  • Inspect, report, then renovate. Once a contractor drills a wall, the developer can blame the crack on the renovation.

Bring: the printed checklist, a coin, a phone charger, a bucket of water, coloured masking tape, a torch.

Half a day, a bucket of water and a coin: the room-by-room checklist

Tick as you go. Found something? Tape it and take two photos: one that shows which room, one that shows the defect.

WhereWhat to check
Entrance and main door
  • Door opens, closes and locks smoothly with every key handed to you
  • Door frame: no gaps, dents, scratches or rust; door closer and peephole work (if supplied)
  • Digital lock, letterbox and unit number plate (if supplied)
Living and dining
  • Walls flat, no cracks, even paint with no patches or drips
  • Every light and fan point works
  • Skirting fixed, no gaps at corners
Kitchen
  • Sink: fill and drain; no drips under the sink
  • Cabinet doors and drawers line up and close (if supplied)
  • Hob, hood and appliance points (if supplied); floor trap drains
Bedrooms
  • Doors and locks; wardrobe doors and drawers (if supplied)
  • Air-conditioner points and drain pipe outlets in place
  • Sockets, switches, walls and ceiling as in the other rooms
Bathrooms
  • Pour a bucket of water on the floor: it should run to the floor trap with no pooling
  • Toilet flushes and refills; no water at the base
  • Basin and taps: no leaks underneath; water heater point
  • Silicone around basin and shower unbroken; exhaust fan or window works
Balcony and yard
  • Pour water: floor slopes to the drain, no pooling
  • Railing firm, no rust; sliding door runs smoothly, locks, seals intact
  • Outside wall: no cracks or peeling paint
Electrical
  • Test every socket with a phone charger or socket tester
  • Each switch turns on the right light
  • Distribution board: circuits labelled; press the trip-switch test button
  • Doorbell, TV, data, aircon and water heater points
Plumbing and water test
  • Open all taps: pressure normal, water runs clear
  • Close every tap and watch the water meter: if it still turns, there is a hidden leak
  • All floor traps drain
Windows and glass
  • Every window opens, closes and locks
  • Glass not cracked or scratched; rubber seals not peeling
  • No gaps or light between frame and wall
Ceiling, walls and floor tiles
  • Tap every floor and wall tile with a coin: a hollow sound means a hollow tile; mark it with tape
  • Tiles level, grout lines even, no chipped or cracked tiles
  • Ceiling: no water stains or cracks, especially under bathrooms and the water tank
  • Wall cracks: note where, how long and how wide
Things to record on the day
  • Car park bay number(s) match your SPA
  • Number of keys, access cards and remotes received
  • Water and electricity meter readings, with a dated photo
  • Date of the developer's vacant possession letter and the defect-report channel they gave you

Landed homes also check: the water tank base and the ceiling under it, the roof gutters, the drains outside.

PDFDownload the print version (PDF): tick boxes per room, the 30 + 14 day steps and a defect log

Think cracks are the big worry? Leaks are what burn your money

Cracks are visible, everyone photographs them. Failed waterproofing hides until the first big storm or the first time the tank is drained.

And it picks its moment: often right after the defect period ends. In October 2026 the National House Buyers Association and Nippon Paint surveyed owners whose defect period had ended:

Source: the HBA and Nippon Paint survey as reported by EdgeProp (21 October 2026) and FMT (29 October 2026). The main areas were external walls, bathrooms and balconies.
You might thinkWhat the survey found
Leaks are an old-building problemNearly 9 in 10 owners whose DLP had ended had waterproofing problems afterwards
Once the DLP is over, you are in the clearAmong those affected, 3 in 4 saw the problems immediately or within 12 months after the DLP ended
A few hundred ringgit will fix itAmong those affected, more than 4 in 10 spent over RM5,000, and about 1 in 7 spent over RM10,000
One repair and it is doneAmong those affected, more than 3 in 4 needed two or more attempts or still had the problem
You can deal with it later4 in 5 did not act when they first saw the signs
Catch it within 24 months and the RM5,000 is the developer's bill. After that, it is yours. So do the bathroom and balcony water tests first, then ceiling stains, and only then hollow tiles and paint.

Is RM250 to RM500 for an inspector worth it?

Doing a 3-bedroom condo yourself takes half a day, squatting and tapping tile after tile. Many people give up halfway.

The hollow tiles and waterproofing you miss become yours the day the defect period ends. For landed homes, big units, no time, or a unit you will rent out, we suggest hiring one.
Prices as published on each company's website on 2 November 2026. We have no tie with these companies; they are listed only to show the going rate.
Inspection company (published price)CondoLandedCosts extra
Home Inspection MalaysiaRM250 minimumRM500 minimumScope lists thermal imaging, leak and damp testing, wiring
inspectorbangunan.com600 to 2,000 sq ft RM400; 2,000 to 3,000 sq ft RM500 (apartment 600 to 1,000 sq ft RM300)RM500 (600 to 1,000 sq ft) to RM950 (4,000 to 5,000 sq ft)Water ponding test RM50 per toilet (upper level); tank area RM100; power supply RM100
TO Property InspectionFrom RM300From RM300Not listed
RightPlaceHandover inspection from RM500 per unit (excl. tax)SameNot listed

Going rate: condo about RM250 to RM500, landed RM500 to RM950. Ask: do they tap every tile? Water-test every bathroom? Come back to re-check after repairs?

Reported 3 months ago and the developer is still playing dead? Use the 5% retention in your SPA to make him move!

Most owners do not know this: on a RM500,000 home, RM25,000 (the 5% retention, or stakeholder sum) is locked in the developer's lawyer's account, and the developer cannot touch it.

Report every leak and hollow tile in writing within the golden first 8 months after key collection, and until they are fixed the matching half stays held, released only when the developer's architect certifies the repairs.

Remember the "30 + 14 day move":

  1. Report in writing (day 0): email, registered post or a screenshot of the developer's app, saying where each defect is, with photos.
  2. No action after 30 days? Get a quote from an outside contractor, then send the developer a final 14-day notice.
  3. Still nothing after day 44? Hire someone yourself, then take the receipts straight to the lawyer and get your money out of that RM25,000. The lawyer has 14 days to pay.

This is a right the national standard contract (Schedule H) gives you. You do not have to beg anyone.

Still stuck? The Homebuyer Claims Tribunal: up to RM50,000 a claim, RM10 to file, no lawyer needed; file within 12 months after the defect period ends.

Tempted to name and shame online? Do not. See what buyers can and cannot do in a developer dispute.

The corridor pipe burst. Who should report it? Everyone thinks someone else will

Common areas fail most often for a simple reason: every owner assumes someone else will report it, nobody does, and the defect period runs out.

For condos, the standard contract covers the whole building and common areas, not just your unit: corridors, lift lobbies, pipes, the roof. The JMB or MC must report these to the developer in writing within the defect period.

What you can do: photograph it, date it, hand it to management, and ask at the general meeting: was it actually reported?

Leak started after 24 months. Just accept it? Not always, but it gets expensive

Once the defect period ends, the developer would love you to think you are on your own.

Defects you could not see at handover that show up later are called latent defects. The 30 + 14 day steps no longer apply, but the law still does:
  • A ruling on your side: in 2026 the Court of Appeal in the Sime Darby Property (Bukit Jelutong) case held that the end of the defect period does not end the developer's liability for latent defects.
  • Time limits: generally 6 years; since 1 September 2019, latent damage gets up to 3 more years from discovery, capped at 15 years.
  • The cost: lawyers, expert reports, court. Far more than the tribunal.
The cheapest move: just before the defect period ends, water-test the whole home and check every ceiling again.

Who this guide cannot help

  • Subsale homes: the previous owner carries no defect liability.
  • Projects outside the Housing Development Act: for example SOHO or SOVO approved as offices, which use the developer's own contract.
  • Build-then-sell projects: they use Schedule I and J; the numbers here come from Schedule G and H.
  • Sabah and Sarawak: they have their own housing laws.

Sifu helps: from key collection to getting your repair money back

  • The checklist and tool list before you collect
  • Your inspection results in the format the developer's defect form wants
  • Drafting the 30-day notice, the 14-day notice and the payment demand to the lawyer
  • Your 8-month, 24-month and tribunal deadlines worked out

We are not lawyers or an inspection company. Using PropertySifu costs you nothing; how we work: PropertySifu's model.

Was this guide helpful?

Frequently asked questions

Can I refuse to collect the keys until defects are fixed?

You can stay away, but it does not help. The standard SPA treats you as having taken VP 14 days after the developer's notice whether or not you collect the keys, so the DLP starts anyway. Collect, inspect at once and report in writing.

The developer only lets me report through an app. Is that written notice?

The SPA asks for written notice. When you use the app, save a dated screenshot of every report and also email the list to the developer, so you can prove the date.

Who holds the stakeholder sum, and how much is it?

The developer's lawyer holds 5% of the price. 2.5% can be released 8 months after VP and 2.5% after 24 months; if you reported defects before then, the lawyer waits for the developer's architect to certify the repairs before releasing that half.

Can I renovate while waiting for repairs?

Better not. Once renovation starts, the developer can blame defects on your contractor. Inspect, report, get repairs re-checked, then let the renovation team in.

How much can the Tribunal award?

Up to RM50,000 per claim, with a RM10 filing fee, filed within 12 months after the DLP ends. Larger claims go to court.

The leak started in year three. Can I still go after the developer?

The 30-day SPA steps no longer apply, but latent defects can still be pursued under ordinary law: generally 6 years, with up to 3 more years from discovery for hidden damage and a 15-year outer limit. It needs a lawyer and costs much more.

Sources and limits

DLP, 30 days, 14 days, the 5% stakeholder sum (2.5% at 8 months and at 24 months), deemed VP after 14 days, CCC and utilities at VP: the Schedule G and H forms of the Housing Development (Control and Licensing) Regulations 1989 (2007 amended text, gazette pages hosted by the National House Buyers Association); Halim Hong & Quek, 31 December 2024, confirms the stakeholder arrangement. Tribunal limit RM50,000, RM10 fee, 12 months: Richard Wee Chambers guide (2022); a 2024 draft proposed RM250,000, and we found no passed amendment as of 2 November 2026. Latent defects: Halim Hong & Quek, 15 April 2026 (Court of Appeal, Sime Darby Property case); limitation: Mah Weng Kwai & Associates. Waterproofing survey: EdgeProp 21 October 2026 and FMT 29 October 2026 (HBA and Nippon Paint, sample size not disclosed); Malaysiakini 9 December 2025 (Nippon Paint and MIPFM). Inspector prices: each company's website, 2 November 2026. Owner stories are from public Threads, Xiaohongshu and Facebook posts, paraphrased without names. This is general information, not legal advice; for an actual dispute, speak to a lawyer first.

Collecting keys soon, or reported defects and nobody came? Tell Sifu

Send us your handover letter date and your defect reports. We work out your deadlines, draft the notices and organise your defect list.

The defect period is only 24 months. After that, it is your bill.

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