Also in: 中文 · Bahasa Melayu · Bahasa Indonesia
If the keys to your new launch are late, thedeveloper might actually owe you money. It is called liquidated ascertained damages, or LAD, and it is a statutory right most Malaysian buyers never claim. Here is how it works.
Your situation is different? Ask me on WhatsApp. I reply myself, usually the same day.
Ask Jason on WhatsAppThe developer’s legal deadline
For housing sold under the Housing Development Act, the statutory sale agreement sets how long the developer has to hand over vacant possession:
- 24 months for landed homes (Schedule G)
- 36 months for strata homes such as condominiums (Schedule H)
Some projects have longer periods, where the Minister has approved an extension. Always check the period written in your own SPA.
How LAD is calculated
Miss the deadline and LAD is triggered: 10% per year of the purchase price, counted day by day from the missed deadline until you actually receive your keys.
The clock may start earlier than you think
This surprises most buyers. In PJD Regency v Tribunal Tuntutan Pembeli Rumah (2021), the Federal Court held that the delivery period runs from the date you paid the booking fee or deposit, not just from the SPA date. That can add weeks or months to your claim.
| Example: RM600,000 condo (36-month period) | |
|---|---|
| Booking fee paid | 1 March 2021 |
| Delivery due (36 months later) | 1 March 2024 |
| Keys actually handed over | 1 September 2024 (184 days late) |
| LAD: RM600,000 × 10% × 184 ÷ 365 | about RM30,250 |
It is a right, but it is not automatic
LAD is set by statute, and the developer cannot simply talk its way out of it. But you have to claim it. Many developers pay LAD voluntarily at handover; if they don’t, or the amount looks wrong, you can file a claim:
- Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah): for claims up to RM50,000, filed within 12 months of the certificate of completion and compliance (CCC) or of the end of the defect liability period. The filing fee is minimal and you do not need a lawyer.
- The courts: for larger claims or cases outside the Tribunal’s limits.
Most buyers just accept the delay quietly and assume nothing can be done. That is costing people real money.
What to check today
- The date you paid your booking fee or deposit (find the receipt).
- The delivery period in your SPA.
- The date on your vacant possession notice.
- Whether the developer has already paid or offset any LAD, and how they calculated it.
Is your vacant possession overdue? Send me your SPA dates and I will help you review the timeline.
Sources
- AskLegal: your LAD clock started the day you paid the booking fee
- Allen & Gledhill: Federal Court on LAD from booking fee date
- Conventus Law: Minister’s power to extend delivery periods
General information checked on 29 September 2026, not legal advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).