Buying a home from a developer

Only licensed developers

No housing development can be carried on except by a housing developer holding a licence issued under the Act.

Housing Development (Control and Licensing) Act s 5(1)

A developer applies to the Controller for the licence. The Controller can grant it, with any conditions it sees fit, including how long it is valid, or refuse it.

Housing Development (Control and Licensing) Act s 5(3), (4)

Where your money goes

A licensed housing developer must open and keep a Housing Development Account with a bank or finance company for each housing development, and for each phase of a development built in phases.

Housing Development (Control and Licensing) Act s 7A(1), (2)

The developer must pay the purchase money from sales in the development into that account, and can withdraw money from it only as the regulations made under the Act allow.

Housing Development (Control and Licensing) Act s 7A(3), (4)

If the developer makes an arrangement with its creditors, has a receiving or adjudication order made against it, or goes into liquidation, the money in the account and the money held by the stakeholder goes to the official receiver, trustee in bankruptcy or liquidator, to be used for the purposes the regulations allow withdrawals for. Only what is left after all those payments are made, and after all the developer's liabilities and obligations under the sale and purchase agreements are fully discharged and fulfilled, is held as money belonging to the developer.

Housing Development (Control and Licensing) Act s 7A(5), (6)

The account is not required for a development where none of the homes will be offered for sale before the development is completed and its certificate of completion and compliance is issued.

Housing Development (Control and Licensing) Act s 7A(9)

Making a claim against the developer

A homebuyer can lodge a claim with the Tribunal, in the prescribed form and with the prescribed fee, for any loss suffered or any matter concerning their interests as a homebuyer under the Act.

Housing Development (Control and Licensing) Act s 16L

Subject to the limits in sections 16N and 16O, the Tribunal can decide a claim where the total amount of the award sought is no more than 50,000 ringgit. A claim can include loss or damage of a consequential nature.

Housing Development (Control and Licensing) Act s 16M(1), (4)

Subject to the exception below, the Tribunal can deal only with a claim based on a cause of action arising from the sale and purchase agreement between you and the developer, brought no later than 12 months from any of these dates:

• the date the certificate of completion and compliance is issued for the home, or for the common facilities of homes intended for subdivision, whichever is later
• the date the defects liability period in the agreement ends
• the date either side ended the agreement, if that happened before the certificate of completion and compliance was issued

Housing Development (Control and Licensing) Act s 16N(2)

A claim is not defeated because no sale and purchase agreement had been signed when the cause of action arose, if there was a previous dealing between you and the developer about buying the home.

Housing Development (Control and Licensing) Act s 16N(3)

Section 16N does not allow the Tribunal to deal with a claim arising from personal injury or death.

Housing Development (Control and Licensing) Act s 16N(4)

Except as the Act expressly provides, the Tribunal cannot deal with a claim to recover land or an interest in land.

Housing Development (Control and Licensing) Act s 16N(1)