I already bought — now the project is Sick / Late. What are my rights?
Your SPA and your loan remain in force — do not stop paying instalments on your own initiative.
Your key rights: LAD damages once the delivery date in your SPA passes, the Homebuyer Claims Tribunal for claims up to RM50,000, and a problem-project confirmation letter from JPN you can use to negotiate loan restructuring with your bank.
Bank instalments — do I keep paying?
Your housing loan is a separate contract with the bank; the developer's delay does not cancel it. Stopping payments unilaterally can damage your credit record. The step KPKT records: buyers in Sick-status projects can request a problem-project confirmation letter from the National Housing Department and present it to their bank to negotiate instalment restructuring.
LAD: late-delivery damages
The statutory SPA (Schedule G/H, Act 118) sets late-delivery damages calculated on the purchase price at the rate in the agreement. It starts only after the delivery date in your SPA passes — Sick status before that date does not yet qualify. Keep every document and receipt.
Where to report and claim
- The developer, in writing — request the revised schedule and progress records.
- The National Housing Department's e-aduan — project status complaints, officially recorded.
- The Homebuyer Claims Tribunal — claims up to RM50,000, no lawyer needed.
- Claims above the tribunal limit — through the courts; get a lawyer's advice.
When does it count as abandoned?
When there is no significant site activity for 6 consecutive months (or the developer is wound up / admits inability), confirmed by the Minister under S.11(1)(c) of Act 118. The process differs after that — see steps for buyers in abandoned projects.
Facts and official channels only, not legal advice. Every case differs — for court action or loan restructuring, consult your lawyer and your bank.
Frequently asked questions
Can I cancel my purchase because the project is sick?
Sick status by itself is not an automatic ground for cancellation. Termination rights depend on your SPA terms and specific circumstances — get a lawyer's advice before acting.
How long before I can claim LAD?
LAD starts the moment the delivery date in your SPA passes without handover. Before that date, site delays do not yet qualify.