Legal & SPA
Defect Liability Period (DLP): Holding Developers Accountable
Learn what the Defect Liability Period (DLP) covers under HDA, how to document and report defects, and what to do if the developer fails to fix them.
Quick summary
Quick answer
Best for
Risk level
Buyer action
| Best for | Homeowners of newly completed residential properties under HDA who want to ensure their unit's defects are repaired for free. |
|---|---|
| Risk level | Time-sensitive warranty period, critical compliance needed |
| Buyer action | Hire a professional inspector immediately after vacant possession, submit a detailed written defect report with photos, and track the 24-month end date diligently. |
What is the Defect Liability Period (DLP)?
Under HDA-regulated Schedule G (for landed property) and Schedule H (for strata property) Sale and Purchase Agreements (SPAs), the Defect Liability Period is a statutory warranty period. During this window, which lasts for 24 months (2 years) starting from the date of Vacant Possession, the developer is legally mandated to rectify any structural or workmanship defects at no cost to the buyer. This represents a powerful consumer-protection mechanism unique to HDA residential properties.
What is Covered and What Voids the Warranty?
The DLP covers physical defects arising from poor workmanship, substandard materials, or deviation from the SPA specifications. This includes wall cracks, water leakages, uneven flooring, malfunctioning fixtures, and loose tiles. However, it does not cover damage caused by the buyer's own renovations, normal wear and tear, or alterations made to the original structure. If you renovate before defects are resolved, the developer can easily claim your contractor caused the damage, voiding your claim.
The Critical Importance of Documented Evidence
When inspecting your unit, do not rely on verbal discussions or casual phone calls with the developer's site office. You must document every defect with clear, high-resolution photographs, write them down on the official defect form, and submit them formally. This creates a binding paper trail. Many buyers choose to hire a professional building inspector — typically RM500 to RM1,200 for a unit — who uses specialized tools to detect hidden issues like hollow tiles, electrical wiring errors, and internal piping leaks.
DLP vs. LAD and the Homebuyer Tribunal
It is important not to confuse DLP with Liquidated Ascertained Damages (LAD). LAD compensates you for late delivery of vacant possession, whereas DLP is about the quality of what was delivered. You can claim both if your unit was delivered late and has defects. Once you file a written defect notice, the developer has exactly 30 days to repair at its own cost; if it misses that deadline, you must serve a 14-day notice of intent before rectifying the defect yourself and claiming the documented cost from the 5% stakeholder retention sum the developer's solicitors hold in escrow. For claims up to RM50,000, you can escalate to the Tribunal for Homebuyer Claims (TTPR) — a fast-track statutory body — within 12 months of the DLP's 24-month expiry, without requiring expensive civil litigation.
Buyer checklist
The Defect Liability Period (DLP) is a statutory 24-month warranty after vacant possession for HDA residential properties. It covers structural and workmanship issues, but buyer renovations can void it; failures to rectify can be escalated to the Homebuyer Tribunal (TTPR).
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| 1 | Verify that the property is protected under HDA Schedule G or Schedule H. |
|---|---|
| 2 | Mark the exact date of Vacant Possession to calculate the 24-month DLP expiry. |
| 3 | Conduct a comprehensive room-by-room defect inspection before starting any renovation. |
| 4 | Submit a formal written defect list with clear photographic evidence to the developer. |
| 5 | Follow up on the progress of repairs and do not sign the rectification clearance until satisfied. |
Common questions
Does the 24-month DLP pause or extend if the developer takes months to repair a defect?
No, the DLP clock runs continuously from the date of vacant possession and does not pause. You must ensure all defects are reported in writing within the 24-month window. If repairs are delayed past the deadline, your prior written submissions remain legally enforceable.
Can I hire my own contractor to fix the defects and bill the developer?
Yes, but you must follow the strict legal procedure. Under HDA contracts, you must first give the developer 30 days written notice to repair. If they fail, you can obtain a cost estimate, give a second 14-day notice, and only then proceed to fix it yourself and claim the cost from the developer's stakeholder lawyer.
Lewis Chong
REN 69566 · IQI GlobalProperty advisor helping KL, JB, and Penang buyers make data-backed property decisions.
Related reading
Use one buyer framework across different news.
The Defect Liability Period Guide: A New-Launch Guide to the HDA
The 24-month Defect Liability Period under the Housing Development Act, the 5% Stakeholder Sum, the LAD penalty for late delivery, and your deadline to claim defects.
Lewis Conclusion
Get the 36 months vs 24 months confusion straight before you argue with anyone: your defect warranty is 24 months regardless of whether you bought landed or strata, full stop. The moment you receive your vacant possession notice, hire a certified building inspector before touching a single renovation, since renovating first can void your warranty and you'll have thrown away your only real leverage. Remember the 5% Stakeholder Sum is your financial leverage over the developer during the DLP; track the two release dates, 8 months post-VP, and DLP expiry, and make sure any defects you've reported are actually addressed before those tranches are released, since once the developer's fully paid, their incentive to fix things drops sharply. And if you discover a serious latent defect after the 24-month DLP has technically ended, you're not automatically out of options; you may still have up to 6 years from vacant possession to pursue a claim under the Limitation Act 1953, so don't assume DLP over means no recourse, it just means a different, harder legal path.
The Rebate Trick That Could Get Your Loan Flagged As Fraud
Developer packages that inflate the SPA price and rebate the difference to cover your downpayment can breach BNM lending rules and trigger LHDN stamp duty audits.
Lewis Conclusion
I always ask developers for the nett price in writing and confirm the bank is financing against that number, not the gross figure on the SPA cover page.
Sinking Fund Guide: What High-Rise Buyers Must Inspect
Strata high-rises require a sinking fund for major repairs under the Strata Management Act 2013. A chronically underfunded reserve will lead to large special levies.
Lewis Conclusion
I've seen too many buyers look only at the gym and pool, ignoring the sinking fund. Under the Strata Management Act, this fund is mandatory. For subsale, I check the AGM minutes to see if owners are default-happy — a 30% default rate on maintenance fees means the building is slowly dying. For new launches, if the developer offers a suspiciously low RM0.25/sqft fee, expect a rude 40% jump within two years of JMB takeover.
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Verify that the property is protected under HDA Schedule G or Schedule H.
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Mark the exact date of Vacant Possession to calculate the 24-month DLP expiry.
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Conduct a comprehensive room-by-room defect inspection before starting any renovation.
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Submit a formal written defect list with clear photographic evidence to the developer.