Housing Development (Control and Licensing) Act 1966 · Updated to 2 Mar 2016 · Part III · Duties of a Licensed Housing Developer
7A. Licensed housing developer to open and maintain Housing Development Account
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Licensed developers must pay purchase money into a housing development account for each development or phase. Withdrawals are only allowed as regulations permit. In bankruptcy or liquidation, this money is not the developer's property. Breaches carry a fine of two hundred and fifty thousand ringgit to five hundred thousand ringgit, and possibly up to three years in prison.
Summary · Drafted with AI, checked against the official text on 30 Sep 2026.
Subject to subsection (9), every licensed housing developer shall open and maintain a Housing Development Account with a bank or finance company for each housing development undertaken by the licensed housing developer.
licensed housing developer
“licensed housing developer” means any housing developer licensed under section 5 to engage in or carry on or undertake a housing development and includes the holder of any power of attorney of such housing developer duly created under the Powers of Attorney Act 1949;
Where a housing development is to be developed in phases, the licensed housing developer shall open and keep a Housing Development
housing development
“housing development” means to develop or construct or cause to be constructed in any manner whatsoever more than four units of housing accommodation and includes the collection of moneys or the carrying on of any building operations for the purpose of erecting housing accommodation in, on, over or under any land; or the sale of more than four lots of land or building lots with the view of constructing more than four units of housing accommodation;
Account under subsection (1) for each phase of such housing development.
The licensed housing developer shall pay into the Housing
Development Account of a housing development the purchase moneys received by the licensed housing developer from the sale of housing accommodation in the housing development and any other sum of money which are required by regulations made under this Act to be paid into the
housing accommodation
“housing accommodation” includes any building, tenement or messuage which is wholly or principally constructed, adapted or intended for human habitation or partly for human habitation and partly for business premises and such other type of accommodation as may be prescribed by the Minister from time to time to be a housing accommodation pursuant to section 3A;
Housing Development Account.
Housing Development Account
“Housing Development Account” means an account opened and maintained by a licensed housing developer pursuant to section 7A;
The licensed housing developer shall not withdraw any money from the Housing Development Account except as authorized by regulations made under this Act.
Subject to paragraph (6)(b), all moneys in the Housing
Development Account and all moneys held by the stakeholder shall, notwithstanding any other written law to the contrary, be deemed not to form part of the property of the licensed housing developer in the event—
stakeholder
“stakeholder” means any solicitor holding moneys as stakeholder for payment to a housing developer pursuant to sale and purchase agreements in respect of a housing development which the housing developer is engaged in, carries on or undertakes or causes to be undertaken;
the licensed housing developer enters into any composition or arrangement with his creditors or has a receiving order or an adjudication order made against him; or
the licensed housing developer, being a company, goes into voluntary or compulsory liquidation.
Upon the happening of any of the event referred to in subsection (5)—
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the moneys in the Housing Development Account and moneys held by the stakeholder shall vest in the official receiver, trustee in bankruptcy or liquidator as the case may be, to be applied for all or any of the purposes for which moneys in the
Housing Development Account and moneys held by the stakeholder are authorized by regulations made under this Act to be withdrawn; and
any moneys remaining in the Housing Development Account and moneys held by the stakeholder, after all payments have been made pursuant to paragraph (a) and all liabilities and obligations of the licensed housing developer under the sale and purchase agreements in respect of the housing development have been fully discharged and fulfilled, shall be held by the official receiver, trustee in bankruptcy or liquidator, as the case may be, as money belonging to the licensed housing developer to be applied in accordance with the law relating to bankruptcy of or the winding-up of a company.
Notwithstanding any other written law to the contrary, all moneys in the Housing Development Account and moneys held by the stakeholder shall not be garnished until all liabilities and obligations of the licensed housing developer under the sale and purchase agreements in respect of the housing development have been fully discharged and fulfilled.
Subject to the Banking and Financial Institutions Act 1989 and the
Islamic Banking Act 1983, the Minister may, if he thinks necessary, appoint an approved company auditor to investigate the books, accounts and transactions of a Housing Development Account and the licensed housing developer shall pay all expenses incurred hereto.
company
“company” means any company incorporated, formed or registered under any written law for the time being in force in Malaysia relating to companies, and includes any body corporate established under any written law in force in Malaysia;
This section shall not apply to any housing development carried on by a licensed housing developer where all the housing accommodation in the housing development will not be offered for sale and purchase before the completion of the housing development and the issuance of certificate of completion and compliance.
certificate of completion and compliance
“certificate of completion and compliance” means the certificate of completion and compliance given or granted under the Street, Drainage and Building Act 1974 and any by-laws made under that Act certifying that the housing accommodation has been completed and is safe and fit for occupation but does not include partial certificate of completion and compliance;
Any housing developer who contravenes or fails to comply with this section shall be guilty of an offence and shall, on conviction, be liable to a fine which shall not be less than two hundred and fifty thousand ringgit
housing developer
“housing developer” means any person, body of persons, company, firm or society (by whatever name described), who or which engages in or carries on or undertakes or causes to be undertaken a housing development, and in a case where the housing developer is under liquidation, includes a person or body appointed by a court of competent jurisdiction to be the provisional liquidator or liquidator for the housing developer;
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but which shall not exceed five hundred thousand ringgit and shall also be liable to imprisonment for a term not exceeding three years or to both.
Licensed housing developer for the purpose of sections 7, 8, 8A, 11 and 12