Think your defect warranty ends at 24 months? Worth double-checking. Recent case law says it is not that simple, especially for hidden structural problems.
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Ask Jason on WhatsAppWhat the defect liability period covers
Every new home sold under the Housing Development Act comes with a defect liability period (DLP) of 24 months from the date you receive vacant possession. During that window, the developer must repair defects you report, at its own cost. That part everyone knows.
The common misconception
Most owners assume that once the 24 months pass, the developer is off the hook entirely. For obvious defects you should have spotted and reported, that is largely true. But hidden defects are different.
The 2024 court decision
In Badan Pengurusan Bersama Tropicana Bay Residence @ Penang World City v Mutiara Metropolis Sdn Bhd & Ors [2024] MLJU 1948, the court held that a developer can still be liable for latent defects that appear after the DLP has ended, where they result from poor workmanship or substandard materials. The developer’s argument that the DLP and the certificate of making good defects gave it complete protection was rejected.
Visible vs hidden defects
| Obvious (patent) defects | Hidden (latent) defects | |
|---|---|---|
| Examples | Cracked tiles, leaking taps, uneven paint, faulty doors | Weak foundations, structural cracking, concealed waterproofing or piping failures |
| When to act | Report within the 24-month DLP | Can surface years later and may still be claimable |
| How | Defect list to the developer | Legal claim, usually with an expert report |
What to do if something structural appears
- Document it: photos, dates, and how it has changed over time.
- For strata property, tell your management body (JMB or MC); common-property defects are usually pursued collectively, as in the Tropicana Bay case.
- Get a qualified engineer or building surveyor to assess the cause.
- Speak to a lawyer promptly. Legal time limits apply, and the clock can start from when the damage is discovered.
Don’t assume your rights ended just because the DLP did. If something structural shows up later, it is worth a proper legal check, not a shrug.
Buying a subsale instead? The rules are very different: see Buying a subsale? There’s no warranty waiting for you.
Found a serious defect after the DLP? Tell me what you are seeing and I will point you in the right direction.
Sources
- HHQ: developers’ liability for latent defects beyond the DLP (December 2024)
- Global Law Experts: latent defects beyond the DLP
- VCC Law: liability of a developer after the DLP
General information checked on 29 September 2026, not legal advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).