By Jason Lim, REN 84424 · IQI Realty · Checked on 5 November 2026
For buyers from Singapore, Indonesia, India, China and Malaysia signing for a Johor Bahru home, the short answer: a new launch from a licensed housing developer uses a statutory sale and purchase agreement (SPA), Schedule G for landed homes or Schedule H for strata, whose payments, delivery deadline, late-delivery damages and defect period are fixed by law. A subsale SPA is negotiated for each deal by the buyer’s and seller’s lawyers. In both you usually pay 10% when you sign; in a subsale the other 90% is commonly due about three months later.
Quick answer
- Two kinds of SPA: statutory Schedule G (landed) and Schedule H (strata) forms for licensed developers, current since 1 July 2015; subsale SPAs are drafted per deal.
- Deposit: 10% on signing in both. In a subsale, the 2–3% earnest deposit paid with your offer counts towards it.
- The other 90%: new launch, in construction stages, each bill due within 30 days; subsale, in one sum, usually about three months later, often with a one-month extension at interest.
- New-launch protections: handover within 24 months (Schedule G) or 36 months (Schedule H), damages of 10% a year of the price if late, and a 24-month defect liability period.
- Foreign buyers: Johor generally requires a minimum of RM1 million for most homes, the SPA should be conditional on state consent, and residential transfers carry 8% stamp duty since 1 January 2026.
What an SPA is and where it fits
The SPA is the main contract for buying property in Malaysia. It sets out the parties, property, price, payment, completion and handover, and what happens on default. It comes after the booking form (new launch) or the letter of offer (subsale), and before the transfer and loan documents your lawyer prepares from it.
| Point | New launch (licensed housing developer) | Subsale (buying from an owner) |
|---|---|---|
| Contract form | Statutory Schedule G (landed) or Schedule H (strata) | Agreement drafted for the deal |
| Who prepares it | The developer’s lawyer, on the prescribed form | One side’s lawyer drafts and the other side’s lawyer reviews |
| Can terms be changed? | No, the core terms are fixed by law | Yes, by agreement |
| How the 90% is paid | Progress bills as construction proceeds | One balance payment at completion, mostly by the buyer’s bank |
| Handover and delays | Deadline of 24 months (G) or 36 months (H); LAD if late | Whatever the SPA sets |
| Defects | 24-month defect liability period after handover | No statutory defect period; inspect first |
| Title at signing | Usually still the master title | Individual or strata title, or a master title with a deed of assignment |
New launch SPAs: Schedule G and Schedule H
In Peninsular Malaysia, Johor included, residential developers are licensed under the Housing Development (Control and Licensing) Act 1966, and its 1989 Regulations prescribe the SPA they must use. The current forms came in with the 2015 amendment (P.U.(A) 106/2015), in force from 1 July 2015. Schedule G covers land and building, such as terraces, semi-detached houses and bungalows on their own lots. Schedule H covers buildings or land to be subdivided into parcels: condos, apartments and landed schemes sold with strata title.
The core terms cannot be changed by agreement. In Ang Ming Lee (Federal Court, 26 November 2019), the court held that the Controller of Housing had no power to change a statutory Schedule H contract to give a developer more time.
The terms the law fixes
| Term | Schedule G (landed) | Schedule H (strata) |
|---|---|---|
| Paid on signing | 10% | 10% |
| Construction stages | 65% in eight stages, certified by the developer’s architect or engineer | Same |
| Paying each bill | Within 30 days of the developer’s written notice; late interest at 10% a year, counted daily | Same |
| Handover and title | 17.5% at vacant possession, 2.5% when the title is delivered | 17.5% at vacant possession, 2.5% with the strata title and transfer |
| Stakeholder sum | 5% held by the developer’s lawyer: half released 8 months after handover, half after 24 months | Same |
| Delivery deadline | 24 months from the SPA date | 36 months from the SPA date |
| Late delivery (LAD) | 10% a year of the price, from day to day | Same |
| Defect liability period | 24 months from handover; repairs due within 30 days of your written notice | Same, including defects in the common property |
On a RM1,000,000 home, LAD works out at about RM274 a day. My guides to the progressive payment schedule, claiming LAD for late vacant possession and defects found after the defect period go into more detail. For claims of up to RM50,000, buyers can also go to the Tribunal for Homebuyer Claims within 12 months of the completion certificate or of the end of the defect liability period, for a RM10 fee (iProperty, citing KPKT data of April 2026).
Booking fees and when the clock starts
Under the statutory form the first payment is the 10% on signing, and Regulation 11(2) bars anyone from collecting payments the contract does not prescribe. Many developers still take a booking amount, and in PJD Regency (Federal Court, 2021) late-delivery damages were counted from the booking fee date, not the later SPA date. Pay it only into the developer’s company account and keep the receipt. My booking fee refund guide covers what to do if you change your mind.
Projects that are not covered
In August 2025 the housing minister told Parliament that the Act does not cover commercial projects such as shop lots and offices, and some JB SOHOs and serviced apartments sit on commercial land. If the SPA is not on Schedule G or H, the contract alone sets the stages, deadlines and damages. A draft Real Property Development Act was at its final drafting stage in July 2026; until it is in force, the 2015 forms apply. Before you book, check the developer’s licence and advertising permit on KPKT’s TEDUH portal, as the ministry urged in September 2026, and see how I verify projects.
The lawyers in a new launch
The developer’s lawyer prepares the SPA and acts for the developer. You can appoint your own lawyer to read it and explain it. The statutory terms will not change, but your lawyer can check your unit’s details: parcel or lot number, area, car park bays, price, the SPA date against any booking date, and extra documents such as a deed of mutual covenant.
Subsale SPAs: negotiated for each deal
A subsale SPA is written for the deal in front of it, so the terms can be negotiated. A lawyer acts for only one side, and each side pays its own lawyer. Use your own lawyer, not the seller’s.
Money and timeline in a typical subsale
| Stage | Typical timing | What happens |
|---|---|---|
| Letter of offer | Day 0 | Earnest deposit of 2–3%, held by the agency or a lawyer as stakeholder |
| SPA signed | Usually 14 to 21 days later | You top up to 10% and pay the first legal fees |
| RPGT retention | Within 60 days of the disposal date | From the price, your lawyer pays LHDN 3% if the seller is a Malaysian citizen or permanent resident, 7% if the seller is a foreigner |
| Approvals | Weeks to months | Loan documents; developer or landowner consent if still on master title; state consent for foreigners and some leasehold titles |
| Completion | About 3 months from the SPA, or from the last consent | Your bank and you pay the 90% balance; the seller’s loan is redeemed |
| Extended completion | Often 1 more month | Interest at the rate in the SPA on the unpaid balance |
| Vacant possession | After the balance is paid, as the SPA sets | Keys, access cards and a joint inspection |
A simple subsale often takes three to four months; a foreign buyer’s, five to six, because of state consent. Many SPAs allow extra time without interest for delays that are not the buyer’s fault, such as land office delays or problems with the seller’s title. My guide to making an offer on a subsale home covers the letter of offer, and subsale property risks covers what can go wrong.
What each lawyer does
- Your lawyer: searches the title for charges, caveats and restrictions; drafts or reviews the SPA; stamps documents; applies for consents; and registers the transfer.
- The seller’s lawyer: gets the seller’s loan redemption statement, confirms quit rent, assessment and utility bills are paid, and releases the money once the transfer is registered or consent obtained.
- Master title units: without a strata title, the sale goes by deed of assignment with the developer’s consent, and the transfer is completed later. See my strata title guide.
About to sign an SPA in JB?
Tell me the project, whether it is a new launch or subsale, and the price. I’ll tell you which SPA form applies, the usual timeline and the questions to put to your lawyer before you sign.
WhatsApp JasonKey clauses to read before you sign
Ask for the draft a few days early. In a subsale, these are where the negotiation happens.
- Parties and property. Names and IDs, title number, lot or parcel, area and tenure, matching the title search.
- Price and deposit. The amount, who holds it as stakeholder and when it is released.
- Conditions. Loan approval, state consent and developer consent, each with a deadline and a refund if it fails.
- Completion. When the clock starts, the extension period, the late-interest rate and which delays stop the clock.
- Vacant possession. The date, the condition, the list of fixtures and furniture, and whether a tenant stays on.
- Outgoings. Quit rent, assessment, maintenance, sinking fund and utilities, apportioned to the completion date.
- Default. If the buyer defaults, the deposit is usually forfeited; the Federal Court held in 2019 that a reasonable deposit can be forfeited without proof of actual loss. If the seller defaults, remedies can include a refund with agreed compensation, damages or a court order for specific performance.
- Restrictions. Leasehold expiry, land-use category, any restriction in interest needing consent, and strata by-laws.
- Costs. Who pays which legal fees, and stamp duty, which the buyer normally pays on the transfer.
There is no general cooling-off period once you have signed, so raise questions before, not after. If you are buying a condo, also check the building’s management before the SPA.
Signing, stamping and costs
Legal fees for the SPA follow the Solicitors’ Remuneration Order 2023, in force since 15 July 2023: 1.25% of the first RM500,000 (minimum RM500) and 1% of the next RM7 million. The loan agreement carries its own fee, and service tax and disbursements are added.
| Item | Malaysian buyer | Foreign buyer |
|---|---|---|
| Stamp duty on the transfer (MOT) | 1% of the first RM100,000, 2% to RM500,000, 3% to RM1 million, 4% above | 8% flat on residential property from 1 January 2026 |
| Stamp duty on the loan agreement | 0.5% of the loan | 0.5% of the loan |
| SPA legal fee (scale) | 1.25% of the first RM500,000, 1% of the next RM7 million | Same scale |
| Example: RM1,000,000 home | MOT RM24,000; SPA fee RM11,250 | MOT RM80,000; SPA fee RM11,250; plus the Johor state levy |
- 30-day deadline. Documents signed in Malaysia must be stamped within 30 days; documents signed abroad, within 30 days of reaching Malaysia (EdgeProp, October 2026).
- Self-assessment. Property transfers without a JPPH valuation are due to move to self-assessment from 1 January 2027; in 2026 a property transfer may still need formal assessment, usually handled by your lawyer.
My guides to legal fees, stamp duty in 2026 and hidden buying costs, and the buying costs calculator, add everything up. The legal steps of buying in Johor show how the SPA fits with the loan and transfer.
Foreign buyers: consent and the SPA
- Minimum price. Foreigners can generally buy Johor residential property only from RM1 million, with exceptions such as designated zones (New Straits Times, April 2026). See my guide to Johor’s minimum price and foreign quota.
- State consent. Your lawyer applies for approval under section 433B of the National Land Code. The SPA should be conditional on consent, with a refund of your deposit if it is refused. Consent often adds one to two months, sometimes more.
- Levy. Johor revised its levy on foreign purchases from 1 July 2025, reported as 3% with a minimum of RM30,000, and a RM50,000 minimum applies to serviced residences below RM1 million (The Star, June 2025; Halim Hong & Quek, October 2025). Your lawyer confirms the amount.
- New launches. Ask how consent will be applied for, and what happens to your 10% if it is delayed or refused.
Bank Negara’s foreign exchange notices allow non-residents to open ringgit accounts, subject to each bank’s checks, which helps you pay deposits and bills on time; see paying for Johor property from abroad. For MM2H, I coordinate with a MOTAC-licensed MM2H agent and handle the property side; approval is decided by the authorities. Start with the MM2H eligibility checker.
This is general information, not legal advice; ask your lawyer to explain your SPA before you sign.
Where to buy if this matters to you
- JB new launches: projects sold on Schedule G or H.
- Iskandar Puteri: Medini, Puteri Harbour and EduCity, with new launches and subsale condos.
- JB Sentral and Bukit Chagar: high-rise homes near the CIQ and the RTS Link station.
- Mount Austin: an established family area with many subsale homes.
- Permas Jaya and Senibong: east-side waterfront strata and landed projects.
- Bukit Indah and Gelang Patah: landed and strata homes towards the Second Link.
Compare areas on my JB property map, or weigh the two routes in new launch vs subsale.
More Johor living guides: Buying your first home in JB · Vacant possession checklist · Avoiding property scams in JB · Home loans in Johor Bahru 2026
Frequently asked questions
What is the difference between a new launch SPA and a subsale SPA?
A new launch from a licensed developer uses a statutory form, Schedule G (landed) or Schedule H (strata), whose payments, delivery deadline, late-delivery damages and defect period are fixed by law. A subsale SPA is negotiated by the buyer’s and seller’s lawyers for that deal.
How much deposit do I pay when signing an SPA in Malaysia?
Usually 10% of the price. In a subsale, the 2 to 3% earnest deposit paid with the letter of offer counts towards it, and you pay the balance when you sign.
How long is the completion period in a subsale SPA?
Commonly about three months from the SPA date, or from the last consent if the unit is on a master title or the buyer is a foreigner, often with a one-month extension at an interest rate set in the SPA. A foreigner’s subsale often takes five to six months in total.
Can I negotiate the terms of a Schedule H SPA?
No, not the core terms. The payment stages, 36-month delivery period, late-delivery damages and 24-month defect period are prescribed by law; in 2019 the Federal Court held that even the Controller of Housing could not change them.
Can a foreigner sign an SPA for a Johor property before state consent?
Yes. Foreign buyers usually sign first, with the SPA conditional on Johor state consent under section 433B of the National Land Code and a refund if consent is refused. Johor generally requires a minimum price of RM1 million for most homes.
What happens if I back out after signing the SPA?
In a subsale, if you fail to complete, the seller can usually terminate and keep the 10% deposit. There is no general cooling-off period, so ask your lawyer before you sign.
Signing an SPA in Johor Bahru?
Tell me the project or address, new launch or subsale, your budget and where you are buying from. I will explain the SPA type, timeline, cash needed at each step and points to raise with your lawyer. You can also book an appointment for a viewing or showroom visit, or a Zoom consultation if you are abroad.
Sources: Housing Development (Control and Licensing) (Amendment) Regulations 2015, P.U.(A) 106/2015, gazetted 1 June 2015, in force 1 July 2015; Allen & Gledhill, on the Federal Court ruling in Ang Ming Lee, 22 January 2020; AskLegal, LAD and the booking fee date after PJD Regency, accessed November 2026; The Star, “Time to legalise booking fees?”, 7 June 2026; EdgeProp, Housing Development Act to be amended to cover sick commercial projects, 18 August 2025; Bernama, “Draft Real Property Development Act in final stage, says Nga”, 31 July 2026; Malay Mail, KPKT urges buyers to check TEDUH, 7 September 2026; iProperty, guide to the Tribunal for Homebuyer Claims (citing KPKT data of April 2026), accessed November 2026; EdgeProp, “What is a Sales and Purchase Agreement (SPA) in Malaysia”, 15 October 2026; StashAway, sale and purchase agreements in Malaysia, 19 October 2026; PropertyGuru, features and provisions of an SPA, accessed November 2026; iProperty, a conveyancer on what to check before signing the SPA, updated July 2021; Donovan & Ho, cash flow and timing of a sub-sale purchase by foreigners, updated March 2024; Low & Partners, how long a sale and purchase takes to complete, updated August 2026; LHDN, Tanggungjawab Pelupus dan Pemeroleh (responsibilities of disposer and acquirer), updated 26 June 2026; Donovan & Ho, “Increased tax retention for foreign sellers”, February 2018, updated March 2024; Skrine via Mondaq, “Federal Court Restates The Law On Deposits And Damages Clauses”, 21 November 2019; Richard Wee Chambers via Conventus Law, “The Solicitors’ Remuneration Order 2023”, 15 September 2023; LHDN, Garis Panduan Pengenaan Duti Setem, First Schedule, Stamp Act 1949, 30 June 2026; Skrine, “Proposed Amendments to the Stamp Act”, 24 November 2025; EdgeProp, LHDN stamping guide 2026, 22 October 2026; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026; The Star, “Johor looking to raise levy on property purchases by foreigners”, 19 June 2025; Halim Hong & Quek, on Johor’s legal and tax framework for foreign acquisitions, 6 October 2025; Bank Negara Malaysia, Consolidated Foreign Exchange Policy Notices, in force 1 October 2025
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 5 November 2026, not legal, tax or financial advice. Laws, fees and practice change; confirm with your lawyer, LHDN and the Johor land office before you sign.