My developer delivered my house late. Can I claim liquidated damages (LAD) in Malaysia?

Buying a new home from a developer usually means waiting years for it to be built. When the keys arrive late, the law gives homebuyers a fixed form of compensation: liquidated ascertained damages, or LAD.

What is LAD and where does it come from?

Housing developers in Peninsular Malaysia are regulated by the Housing Development (Control and Licensing) Act 1966. Under its regulations, the sale and purchase agreement for residential property is in a statutory form: Schedule G for landed property and Schedule H for strata property such as condominiums. These forms set a period for delivering vacant possession and require the developer to pay LAD if it is late. Commonly cited periods are 24 months (Schedule G) and 36 months (Schedule H), but always check the dates in your own agreement.

How is LAD calculated?

KPKT gives this formula for LAD for late delivery of vacant possession:

Days of delay × purchase price × 10% ÷ 365

KPKT's example: a house priced at RM300,000 delivered 100 days late gives LAD of about RM8,219.18.

Your agreement may also provide separate LAD for late completion of common facilities in a strata development.

When does the delivery period start?

In PJD Regency Sdn Bhd v Tribunal Tuntutan Pembeli Rumah and other appeals (Federal Court, judgment dated 19 January 2021), the Federal Court upheld awards calculating LAD from the date the purchaser paid the booking fee, where it was paid before the agreement was signed, rather than from the agreement date. The Court also stated that vacant possession requires the architect's certification in the form of a Certificate of Completion and Compliance (CCC).

What this means for you depends on your dates and documents.

Where do I claim?

The Tribunal for Homebuyer Claims (Tribunal Tuntutan Pembeli Rumah, TTPR) under KPKT hears claims arising from the sale and purchase agreement between a homebuyer and a housing developer, including LAD. According to KPKT:

• its jurisdiction covers Peninsular Malaysia and Labuan only;
• the maximum claim is RM50,000 per claim, unless both parties agree in writing that the Tribunal may hear a larger claim;
• LAD and other claims under the agreement must be filed within 12 months of the CCC being issued;
• the same issue cannot be filed at the Tribunal and in the civil courts at the same time.

Claims above the limit, or outside the Tribunal's jurisdiction, go to court.

What are the steps?

1. Find your key dates: booking fee receipt, agreement date, delivery period, the vacant possession letter and the CCC date.
2. Calculate the days of delay and the LAD using the formula.
3. Write to the developer asking for payment of LAD, with your calculation. See the letter of demand guide.
4. If unpaid, file Form 1 (Statement of Claim) with the TTPR with the required documents, within the time limit.
5. Serve the sealed Form 1 on the developer as KPKT explains, and attend the hearing.
6. If you obtain an award and it is not paid, seek advice on enforcement.

Have a question about your own situation? Ask on WhatsApp

Example

Mr Lim signs a Schedule H agreement for a condominium priced at RM500,000. He receives vacant possession 200 days after the delivery date. Using KPKT's formula, LAD is 200 × 500,000 × 10% ÷ 365, about RM27,397. The developer offers a smaller "goodwill" sum. He writes back with his calculation and, when nothing is paid, files at the TTPR within 12 months of the CCC.

What should I prepare?

• the signed sale and purchase agreement;
• booking fee and payment receipts;
• the vacant possession letter and the CCC;
• all correspondence with the developer;
• your LAD calculation.

Common mistakes

• Missing the 12-month filing period.
• Calculating from the wrong start date.
• Signing a "settlement" or waiver form at key handover without reading it.
• Accepting keys without a CCC being issued, without getting advice.
• Filing the same claim in two forums.

When to speak to a lawyer

Speak to a lawyer if the developer disputes the dates, relies on an extension of time, asks you to sign a waiver, or if your claim exceeds RM50,000. You can contact us; every case depends on its facts.

Frequently asked questions

Can the developer refuse LAD because of a pandemic or other delay?

It depends on the agreement, any applicable law for the period and the facts. Get advice before accepting a reduced sum.

Does the Tribunal hear defects claims too?

Yes, KPKT lists technical claims such as defects in workmanship, generally to be filed within 12 months of the end of the defect liability period.

My property is in Sabah or Sarawak. Can I use the Tribunal?

KPKT states the TTPR covers Peninsular Malaysia and Labuan only. Different laws apply in Sabah and Sarawak.

Is LAD the same for commercial property?

No. The Tribunal covers residential housing, not commercial buildings. Commercial agreements depend on their own terms.

Is the Tribunal's award binding?

Yes. Failing to comply with an award is investigated by the National Housing Department, according to KPKT.

Sources & fact check

Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.

1. KPKT: Tribunal for Homebuyer Claims (TTPR) FAQ — jurisdiction, RM50,000 limit, 12-month filing periods, LAD calculation
2. Housing Development (Control and Licensing) Act 1966 (Act 118), AGC Laws of Malaysia

Fact-checked on 17 Oct 2026