Buying a Subsale Property? There’s No Warranty Waiting for You

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When you buy a new launch, the developer must fix defects that appear during the defect liability period. Buy a subsale home instead, and none of that applies to you. What you see on inspection day is what you are buying. In this short video I explain why, and how to protect yourself.

“As is, where is”

Subsale property is sold as is, where is. There is no defect liability period, and no developer is obliged to fix anything after you move in. The seller has no duty to repair defects unless your agreement says so.

Caveat emptor: buyer beware

The seller is not required to point out problems. Your job is to find them before you sign, not after. Courts have generally upheld this: if you did not inspect properly, that is on you, not the seller. The main exception is fraud, where the seller actively lies about or hides a defect. An honest gap in your inspection is not enough.

What can pass to you with the keys

• Hidden defects: leaking pipes, roof or window seepage, termites, faulty wiring, cracks behind cabinets.
• Unpaid bills: maintenance and sinking fund arrears, quit rent, assessment tax and utilities, unless the agreement makes the seller settle them.
• Title problems: caveats, charges or restrictions on the title that delay or block the transfer.
• Tenants: an existing tenancy that does not end when you expected to move in.
• Unapproved renovations: changes the local council never approved.

Protect yourself before the Offer to Purchase

Your leverage exists before you sign the Offer to Purchase and pay the earnest deposit, not after.

1. Get a proper inspection. View in daylight, and after rain if you can. Run every tap, flush every toilet, switch on every light and air-conditioner. For older landed homes, consider a professional inspector, especially for termites and roofing.
2. List every fixture you expect to get: air-conditioners, water heaters, kitchen cabinets, lights, curtains. If it is not written down, don’t assume it stays.
3. Put repair requests in writing. Problems raised verbally mean nothing later. Anything the seller agrees to fix must go into the Offer to Purchase and the sale and purchase agreement.
4. Check the paperwork. Ask the management office for outstanding maintenance charges; your lawyer will search the title and apply for any state consent needed (for leasehold land and foreign buyers).

Subsale can still be a great deal

You can see exactly what you are buying, move in within months, often pay less per square foot, and check real rental demand in the building. But the protection a new launch gives you automatically, you have to build in yourself, up front.

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Looking at a subsale unit in JB? Message me for a pre-purchase inspection checklist, and I will tell you what to ask the seller and what should go into the agreement.

Sources

• Mah Weng Kwai & Associates: common challenges in sub-sale transactions
• VCC Law: guide to buying secondary market property
• iProperty: the defect liability period and subsale homes

General information checked on 29 September 2026, not legal advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).