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Housing Development (Control and Licensing) Act 1966

Akta Pemajuan Perumahan (Kawalan dan Pelesenan) 1966

Protects people buying homes from developers in Peninsular Malaysia: developers must be licensed, sale agreements must follow statutory forms, buyers get compensation for late delivery and free repair of defects, and claims can go to the Tribunal for Homebuyer Claims.

Housing Development (Control and Licensing) Act 1966 · Act 118
Akta Pemajuan Perumahan (Kawalan dan Pelesenan) 1966
Applies to: Peninsular Malaysia only (s 1(3)); Sabah and Sarawak have their own housing laws · Official text ↗
Key points
  • Only a licensed housing developer may carry out a housing development (s 5); developing without a licence carries a fine of RM50,000 to RM500,000, jail up to 5 years, or both (s 18).
  • Buyers' payments go into a Housing Development Account controlled by law (s 7A).
  • Sale and purchase agreements must follow the statutory forms: Schedule G (landed) and Schedule H (strata) under the 1989 Regulations; terms cannot be altered against the buyer.
  • Late delivery earns the buyer liquidated ascertained damages (LAD): under Schedules G and H, 10% a year of the purchase price, calculated daily.
  • Defects reported during the 24-month defects liability period must be repaired by the developer at its own cost.
  • The Tribunal for Homebuyer Claims hears buyers' claims up to RM50,000, generally within 12 months of the trigger dates in s 16N.

What this law covers

The Housing Development (Control and Licensing) Act 1966 (Akta Pemajuan Perumahan (Kawalan dan Pelesenan) 1966), often called the HDA, controls the business of building and selling housing in Peninsular Malaysia (s 1(3)). It is administered by the Ministry of Housing and Local Government (KPKT) through the Controller of Housing.

The Act and its main regulations, the Housing Development (Control and Licensing) Regulations 1989, protect purchasers (pembeli) who buy homes from developers, especially before the homes are built. They do not govern sales between private owners on the secondary market, which follow ordinary contract and land law: see Property and tenancy and the National Land Code.

Licensed developers and the Housing Development Account

  • Licence (lesen pemaju): no one may engage in housing development without a licence from the Controller (s 5). Doing so is an offence punishable by a fine of not less than RM50,000 and up to RM500,000, jail up to 5 years, or both (s 18).
  • Advertising and sale permit (permit iklan dan jualan): under the Regulations a licensed developer must also hold a valid permit before advertising or selling units. Check the licence and permit numbers, which must appear in advertisements.
  • Housing Development Account (Akaun Pemajuan Perumahan): the developer must open a special account for each project, into which buyers' payments are paid. Withdrawals are restricted to purposes allowed by law, such as construction costs (s 7A).
  • Duties of the developer: s 7 requires the developer, among other things, to display its licence, advertising and sale permit and latest audited balance sheet at its offices, and to keep proper accounts and records.

Statutory sale and purchase agreements: Schedules G and H

A developer must use the prescribed form of sale and purchase agreement (perjanjian jual beli, SPA):

  • Schedule G: landed homes (land and building, no strata title).
  • Schedule H: strata homes (condominiums, apartments and strata landed schemes).

The terms are fixed by law to protect buyers. A developer cannot change them to the buyer's detriment. Key protections include:

  • Payment by stages: you pay according to a schedule of payments tied to construction progress, certified by the architect, not up front.
  • Time for delivery: vacant possession must be delivered within 24 months (Schedule G) or 36 months (Schedule H) from the date of the SPA. Any extension of time must be approved in line with the Regulations.
  • Liquidated ascertained damages (ganti rugi tertentu dan ditetapkan, LAD) for late delivery: 10% a year of the purchase price, calculated day by day from the expiry of the delivery period until you get vacant possession. Under Schedule H there is also LAD for late completion of common facilities.
  • Defects liability period (tempoh liabiliti kecacatan): 24 months after vacant possession. The developer must repair defects you report in writing during this period at its own cost, within the time set in the agreement. If it fails, the agreement lets you carry out the repairs and recover the cost from the developer.

Before signing, compare your SPA with the official form. Your conveyancing lawyer should explain each clause.

Tribunal for Homebuyer Claims

Part VI sets up the Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah, TTPR) (s 16B), a low-cost forum for homebuyers (including later buyers from the first purchaser) (s 16A) against licensed developers.

  • Limit: claims up to RM50,000 (s 16M). A bigger claim can be heard if both sides agree (s 16O), but you cannot split one claim into several (s 16Q). Proposals to raise the limit were discussed in 2024, so check the current figure before filing.
  • Typical claims: LAD for late delivery, the cost of repairing defects, refunds, and other breaches of the SPA.
  • Time limit: the claim must be brought within 12 months of the relevant date under s 16N, such as the issue of the certificate of completion and compliance (CCC), the end of the defects liability period, or the termination of the SPA. Courts have held that for defect claims the 12 months run from the end of the defects liability period.
  • Excluded: recovery of land, disputes over wills and inheritance, goodwill and intellectual property (s 16N(1)).
  • Lawyers: not allowed unless the Tribunal finds complex issues of law and one party would suffer severe financial hardship without one; then both sides may be represented (s 16U).
  • Award: where practicable within 60 days of the first hearing day (s 16Y). Orders can include payment, refund, compliance with the SPA, compensation for financial loss, and interest of up to 8% a year. Awards are final (s 16AC). Failing to comply is an offence (s 16AD).

See also Tribunals.

Abandoned projects

If a developer cannot meet its obligations to buyers, stops building, or runs its business against buyers' interests, the Minister may give directions under s 11. These include ordering the developer to put things right, appointing an adviser, directing a company to take over and complete the project, petitioning for winding up, or certifying the project as abandoned (projek terbengkalai) (s 11(1)(ca)). KPKT generally treats a project as abandoned where construction has stopped for a continuous period, commonly six months or more, and it is not completed within the SPA period.

Once a project is declared abandoned, KPKT may blacklist the developer and its directors, who then cannot apply for new licences. The government runs rehabilitation programmes to revive abandoned projects with a new developer. Buyers in an abandoned project should:

  • contact KPKT's housing department and register as affected buyers;
  • keep all payment records and correspondence;
  • check with their financier about loan interest during the delay;
  • get legal advice before signing any rehabilitation or settlement agreement.

Recent changes and where to go

Tribunal provisions were added to the Act in 2002 and the claim limit later raised to RM50,000. The current Schedules G and H date from the 2007 amendments to the Regulations, which also extended the defects liability period to 24 months. In 2025 KPKT announced a review of the Act, including tougher action against blacklisted developers and possibly bringing some commercial projects within the Act. Check the latest position before relying on details.

  • Complaints about a developer: KPKT, Housing Department.
  • Money claims up to RM50,000: Tribunal for Homebuyer Claims.
  • Larger or complex claims: the civil courts. See Civil process and Getting legal help.

Laws cited on this page

Act 118Housing Development (Control and Licensing) Act 1966 · Akta Pemajuan Perumahan (Kawalan dan Pelesenan) 1966Official text
Act 136Contracts Act 1950 · Akta Kontrak 1950Official text

Listed automatically from the federal Acts named on this page. All laws of Malaysia →

Key sections

ProvisionWhat it says, in plain words
s 1(3)The Act applies only in Peninsular Malaysia.
s 5No housing development without a licence from the Controller.
s 7Duties of a licensed housing developer, such as displaying its licence and permit and keeping proper records.
s 7ADeveloper must open and maintain a Housing Development Account for buyers' payments.
s 11Minister's powers to protect purchasers, including taking over the project or certifying it as abandoned (s 11(1)(ca)).
s 16A"Homebuyer" includes a later buyer from the first purchaser.
s 16MTribunal's limit: claims up to RM50,000.
s 16NExcluded matters and the 12-month time limit for claims.
s 16UNo lawyers at the Tribunal, unless complex law and severe financial hardship.
s 16YTribunal awards: payment, refund, compliance, compensation, interest up to 8%.
s 16ADFailing to comply with a Tribunal award is an offence.
s 18Offences of developing without a licence: fine RM50,000–RM500,000, jail up to 5 years, or both.
Regulations 1989, Schedules G & HStatutory sale and purchase agreements: delivery in 24/36 months, LAD at 10% a year, 24-month defects liability period.

Worked examples

Example 1: Condominium delivered late

Facts. Farah signed a Schedule H SPA for a RM480,000 condo in Cheras on 1 March 2022. Vacant possession was due by 1 March 2025 but was given only on 1 September 2025, six months late.

The law. Schedule H allows 36 months for delivery and LAD at 10% a year of the purchase price, calculated daily. Six months is about RM480,000 × 10% × 184/365 = about RM24,200.

Outcome. Farah can ask the developer to pay or offset the LAD. If it refuses, she can file at the Tribunal for Homebuyer Claims within 12 months, as the amount is below RM50,000.

Example 2: Leaking roof in a new terrace house

Facts. Mr Wong received the keys to his terrace house in Kajang in January 2025. In June the roof leaks. He notifies the developer in writing, but nothing is done for three months.

The law. Under Schedule G the developer must repair defects reported during the 24-month defects liability period at its own cost. If it does not, the agreement lets the buyer repair and recover the cost.

Outcome. Mr Wong should get quotations, give the developer a final written notice, then repair and claim the cost at the Tribunal, within 12 months after the defects liability period ends.

Example 3: Developer asks for 30% up front

Facts. A sales agent tells Devi she can get a discount if she pays 30% of the price before signing the SPA for an uncompleted house in Seremban.

The law. Payments for a project under the Act must follow the schedule of payments in the statutory SPA and be paid into the Housing Development Account (s 7A). The developer must hold a licence and an advertising and sale permit.

Outcome. Devi should refuse to pay outside the schedule, check the licence and permit with KPKT, and report the agent if the developer is pressing for payments the form does not allow.

Example 4: Project stops halfway

Facts. Work on a housing project in Kuantan has stopped for 9 months. The developer is not answering buyers.

The law. The Minister may act under s 11, including certifying the project as abandoned and directing another company to take over.

Outcome. Buyers should register with KPKT, gather their documents and seek advice before signing any rehabilitation deal.

Examples are simplified illustrations with invented names; real cases turn on their own facts.

Questions & answers

Does the Act apply if I buy a house from a private owner?

No. It protects buyers from licensed housing developers. A sale between private owners is governed by the contract, the Contracts Act 1950 and the National Land Code.

How do I calculate LAD for late delivery?

Under Schedules G and H, LAD is 10% a year of the purchase price, calculated day by day from the end of the delivery period (24 months for landed, 36 months for strata) until vacant possession is delivered.

How long is the defects liability period?

24 months after you receive vacant possession under the current Schedules G and H. Report defects in writing during this period and keep copies.

What is the deadline for the Tribunal for Homebuyer Claims?

Generally within 12 months of the trigger date under s 16N, such as the issue of the CCC, the end of the defects liability period, or termination of the SPA. For defects, courts have held the 12 months run from the end of the defects liability period.

Can I use a lawyer at the Homebuyer Tribunal?

Usually not. Under s 16U lawyers are allowed only if the case involves complex legal issues and a party would face severe financial hardship without one; then both sides may have lawyers.

Does the Act apply in Sabah or Sarawak?

No. It applies only in Peninsular Malaysia. Sabah and Sarawak have their own housing development laws.

How do I check a developer is licensed?

Look for the developer's licence and advertising and sale permit numbers in its advertisements, and verify them with KPKT.

All questions & answers → · Ask your own →

This page explains the general position in Malaysia (last reviewed October 2026). It is not legal advice — check the current law and get advice on your own facts.

Sources

Renting and buying propertyStrata Management Act 2013National Land Code (Revised 2020)Tribunals and alternatives to courtContracts Act 1950

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