Developer Charges at Key Collection in Malaysia: What You Pay at Vacant Possession and What to Question

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By Jason Lim, REN 84424 · IQI Realty · Checked on 14 November 2026

A developer’s key collection notice usually comes with a list of payments. The short answer: under the statutory sale and purchase agreement (SPA) for new homes, you pay the 17.5% vacant possession instalment (usually released by your bank), four months of service charges and sinking fund in advance for a strata unit (six months of services contribution for a Schedule G landed home) and your water, electricity and gas meter deposits. Access-card and renovation deposits come from the by-laws. Anything else needs a written basis.

What “key collection” means under the SPA

Most residential new launches in Johor use the statutory forms in the Housing Development (Control and Licensing) Regulations 1989, as amended from 1 July 2015 by P.U.(A) 106/2015: Schedule G for landed homes with individual titles, Schedule H for condos and strata landed schemes. Key collection is when the developer hands you vacant possession (pemilikan kosong).

• Conditions (Schedule H, clause 27(1)): a Certificate of Completion and Compliance (CCC), the parcel’s strata title issued, water and electricity ready for connection, everything due under the agreement paid and agreed variation works done. Schedule G clause 26(1) has the same list without the strata title.
• Deemed handover: 30 days after the developer’s notice is served, you are treated as having taken vacant possession, keys collected or not (clause 27(3) of Schedule H, 26(3) of Schedule G).
• Why it matters: service charges, the defect liability period and stakeholder releases all run from vacant possession.

My guides to the CCC, strata titles and the SPA explain these conditions in more depth.

The charges, item by item

Item	Where it comes from	Who sets the amount	Refundable?
Vacant possession instalment (17.5%)	Third Schedule of Schedules G and H	Fixed share of the price	No; part of the price
Unpaid earlier bills plus late interest	Clause 10 of Schedule H (10% a year, day to day)	The SPA	No
Advance service charges and sinking fund (strata)	Schedule H clause 19: first four months in advance	The developer’s budget by share units; sinking fund 10% of charges in the developer period	No; you are paying for the months ahead
Advance services contribution (landed, Schedule G)	Schedule G clause 20: first six months in advance	A fair share set by a quantity surveyor, architect or engineer appointed by the developer	The unused balance comes back when the local authority takes over
Water, electricity and gas meter deposits	Schedule H clause 22(2), Schedule G clause 21(2)	Ranhill SAJ, TNB and the gas supplier	Yes, when the account is closed, less final bills
Access cards, car park transponders, renovation deposit	The building’s by-laws and house rules	The management body	Deposits usually yes, under the house rules
Stamp duty and registration on the transfer	Stamp Act 1949; Schedule G clause 30(2) puts them on the buyer	LHDN and the land office	No

1. The 17.5% vacant possession instalment

The largest item. With a loan, your bank pays it directly against the developer’s notice; cash buyers pay within 30 days. Handover also requires everything else due to be paid, so clear older progress bills and late interest first. The 2.5% title instalment and 5% stakeholder sum come later; see my progressive payment guide.

2. Advance service charges and sinking fund (condos and strata landed)

From vacant possession, Schedule H clause 19 makes you pay the charges and sinking fund contribution, the first four months in advance and later payments one month in advance. In the developer’s management period, the Strata Management Act 2013 sets the sinking fund at 10% of the charges, lets the developer collect only after opening separate maintenance and sinking fund accounts, makes it pay charges on unsold units and caps late-payment interest at 10% a year (as Kuala Lumpur City Hall’s strata FAQ summarises the Act). How the rate is set is in my guides to maintenance fees and the sinking fund and share units.

3. Landed homes: the services contribution

For a Schedule G terrace, semi-D or bungalow, clause 20 makes the developer provide the services the local authority requires until the authority takes them over. Buyers contribute a fair share, six months in advance and then monthly in advance. The demand should come with a statement of services and costs, and the unused balance is refunded after the takeover. Gated schemes on strata titles follow Schedule H instead, sometimes with a deed of mutual covenant.

4. Water, electricity and gas meter deposits

Both forms make the buyer pay the meter deposits within 30 days of the developer’s notice and make the developer bear all other connection costs. The utilities set the deposits, not the developer:

• Electricity (TNB): a security deposit of two months’ estimated usage, plus RM10 stamp duty; for a new home, an Energy Commission-registered electrical contractor applies. The deposit comes back, less final charges, when you close the account (myTNB, checked November 2026).
• Water (Ranhill SAJ): the deposit depends on the type of premises and is not published as one figure. A licensed plumber applies for new homes.
• Sewerage (Indah Water): billed on the Ranhill SAJ bill in Johor; send Indah Water a copy of your SPA.

Some condos use one bulk water meter and bill residents through management. My moving-in and utilities guide lists the documents each utility asks for.

5. Access cards, transponders and renovation deposits

These come from the building’s by-laws and house rules, not the SPA, and vary by building; I have found no national scale. Ask for the house rules and keep the receipts. See my guides to condo by-laws and access cards and renovation permits.

6. Title-stage costs

Under Schedule H clause 12 the developer applies for strata titles and prepares the transfer documents at no extra cost to you. Stamp duty and registration fees on the transfer are the buyer’s (Schedule G clause 30(2) says so expressly), arranged by your lawyer. From 1 January 2027, transfers not needing a JPPH valuation move to stamp duty self-assessment (LHDN, page updated 28 August 2026); see my stamp duty guide and self-assessment guide.

An illustration: cash to plan for on a RM1 million condo

Item	Assumption	Amount	Who pays
Vacant possession instalment	17.5% of RM1,000,000	RM175,000	Your bank, if the loan covers it
Service charges	1,100 sq ft at an assumed RM0.35 per sq ft a month = RM385	RM1,540 (4 months)	You
Sinking fund	10% of charges = RM38.50 a month	RM154 (4 months)	You
Electricity deposit	Two months of an assumed RM200 monthly usage, plus RM10 stamp duty	RM410	You
Water deposit, access cards, renovation deposit	Set by Ranhill SAJ and the house rules	Ask for the figures	You

Here you pay roughly RM2,100 yourself plus the water, card and renovation deposits; the bank handles the RM175,000. Moving, furniture and insurance come on top; see my hidden costs guide and the buying costs calculator.

Charges that deserve a second look

Regulation 11(2), as amended in 2015, says no person, including stakeholders, may collect any payment the statutory contract does not prescribe. By-law and utility deposits have their own basis, but the developer should be able to point to a clause, by-law or utility rule for every item.

• “Administration”, “processing” or “key handling” fees. Ask which clause allows them. If none, ask your lawyer before paying.
• Utility “connection” or “installation” charges. The forms limit the buyer to the meter deposits; other connection costs are the developer’s.
• More than four months of advance charges on a Schedule H unit, or charges dated before your vacant possession date.
• Fees for consent to sell before strata title. In a 2022 commentary, the National House Buyers Association noted that the Court of Appeal found a flat 1% consent fee unreasonable and a nominal RM500 fee fair (KAB Corporation v Master Platform, 2019).
• SOHOs and serviced apartments on commercial land. The housing minister told Parliament in August 2025 that Act 118 does not cover commercial projects, so your contract alone may set the charges. A draft Real Property Development Act was in final drafting in July 2026 (Bernama), not yet law. See my commercial-title guide.

If a disagreement isn’t resolved, write to the developer, ask your lawyer, or go to KPKT or the Tribunal for Homebuyer Claims for SPA disputes; for charges after handover, the Commissioner of Buildings at your council or the Strata Management Tribunal. If handover is late, see late delivery and LAD.

Key collection day checklist

1. Before the day: get the itemised charges, house rules and utility arrangements in writing, and confirm your bank has paid the 17.5%.
2. Bring: IC or passport, the notice, the SPA, payment proofs and, for a representative, an authorisation letter or power of attorney.
3. Pay against receipts: only to the company account named in the notice.
4. Record the handover: keys, cards and transponders received, meter readings, the vacant possession date and dated photos of every room.
5. Report defects in writing: defects reported within 24 months of handover must be repaired within 30 days of your notice. Use my defect inspection checklist, and for problems after that period, the latent defects guide.
6. Afterwards: open the utility accounts, insure your contents (see home insurance) and file the key documents (see property documents to keep).

Foreign and overseas buyers

The rules are the same for foreigners, but the 30-day clock matters more when paying from abroad. Keep a ringgit balance in Malaysia and appoint someone to collect and inspect if you cannot fly in (see managing JB property from overseas). In Johor, foreigners can generally buy only from RM1 million with few exceptions, need state consent and pay a flat 8% stamp duty on residential transfers since 1 January 2026; see my Johor foreigner rules. For MM2H, I coordinate with a MOTAC-licensed MM2H agent; approval rests with the authorities.

Where to buy if this matters to you

Handover charges differ by building, not area, so I check project by project. Start with these guides:

• New launches in Johor Bahru: projects under construction.
• Iskandar Puteri: newer condos and strata landed schemes near the Second Link.
• Mount Austin: family condos and landed homes.
• JB Sentral and Bukit Chagar: city-centre high-rises near the RTS Link station.
• Permas Jaya and Senibong: east-side waterfront condos.
• Bukit Indah and Gelang Patah: west-side condos and landed estates.

Compare them on my JB property map.

More Johor living guides: Condo running costs in JB · Moving in: utilities and internet · Defect inspection checklist · Maintenance fee and sinking fund · Interest on late progress payments · IBS and precast homes

Frequently asked questions

What do I pay the developer at key collection in Malaysia?

Under the statutory SPA: the 17.5% vacant possession instalment (paid by your bank if you have a loan), any unpaid earlier bills, advance service charges and sinking fund (four months for strata units) or a six-month services contribution for Schedule G landed homes, and the water, electricity and gas meter deposits.

How many months of maintenance fees can a developer collect in advance?

Under Schedule H clause 19, the first four months of charges and sinking fund are paid in advance, then one month in advance each time. Schedule G clause 20 sets six months in advance for the landed services contribution.

Do I pay maintenance fees if I have not collected my keys?

Usually yes. Thirty days after the developer serves the notice to take vacant possession, you are treated as having taken it, whether or not you collect the keys, and charges run from then.

Who pays for water and electricity connection in a new home?

The buyer pays the meter deposits for water, electricity and gas (if any) within 30 days of the developer’s notice. Under the 2015 statutory forms, the developer bears all other connection costs.

Can a developer charge an administration fee at key collection?

Regulation 11(2) bars anyone from collecting a payment the statutory contract does not prescribe. Ask which clause, by-law or utility rule supports each item. If there is none, check with your lawyer before paying.

Are key collection deposits refundable?

Utility deposits come back, less final bills, when you close the account, and access-card and renovation deposits are usually refundable under the house rules. Advance service charges and the sinking fund are payments for the months ahead, not deposits.

Collecting keys to a new home in JB?

Tell me the project, your unit and the date on your notice. I will help you check the charges list against your SPA and the house rules, plan the cash you need, and arrange the defect inspection if you are abroad. You can also book an appointment, or a Zoom consultation if you are overseas.

Sources: Housing Development (Control and Licensing) (Amendment) Regulations 2015, P.U.(A) 106/2015, Schedules G and H (clauses 10, 12, 19–22, 26–27, 30), in force 1 July 2015, checked November 2026; P.U.(A) 106/2015, copy published by DBKL (regulation 11(2) amendment), checked November 2026; Strata Management Act 2013 (Act 757), copy published by DBKL, checked November 2026; DBKL, FAQ on financial management and accounts of strata buildings, August 2023; myTNB, Get electricity, checked November 2026; myTNB, Security deposit, checked November 2026; Ranhill SAJ, Application for water supply, checked November 2026; Ranhill SAJ, Customer charter, checked November 2026; Indah Water Konsortium, Domestic customers, checked November 2026; LHDN, Stamp Duty Self Assessment System (STSDS), last updated 28 August 2026; The Vibes, National House Buyers Association commentary on administrative fees, 14 September 2022; Utusan Malaysia, KPKT studying a bill to protect buyers of commercial premises, 27 August 2025; Bernama, “Draft Real Property Development Act in final stage, says Nga”, 31 July 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 14 November 2026, not legal or financial advice. Your SPA, the building’s by-laws and the developer’s notice govern; confirm each charge with your lawyer, the developer and the utilities before you pay.