Legal & SPA
New Condo Handover Guide: The 24-Month Defect Liability Period
A move-in and handover checklist for new condo owners in Malaysia: the 24-month Defect Liability Period, hiring inspectors, utility setup, and JMB coordination.
Quick summary
Quick answer
Best for
Risk level
Buyer action
| Best for | Owners of newly completed high-rise or landed residential properties in Malaysia navigating key handovers and defect claims. |
|---|---|
| Risk level | Moderate; conducting renovations before submitting defects can void developer warranties and lead to high out-of-pocket repair costs. |
| Buyer action | Hire a certified inspector, submit defect reports in writing, delay major renovations, set up utilities, and register with the building management office. |
The 24-Month Defect Liability Period (DLP) Rules
For properties protected under the Housing Development Act (HDA), a statutory 24-month Defect Liability Period begins the day you receive vacant possession. This period represents the developer's warranty for structural, plumbing, and aesthetic issues. Once you file a written defect report, the developer has 30 days to repair at its own cost; if it misses that window, you can rectify it yourself after a 14-day notice and claim the documented cost from the 5% stakeholder retention sum the developer's solicitors hold in escrow. The clock does not pause or extend, so you must act quickly to identify and document defects.
Hiring a Professional Inspector Before Renovation
Hire a professional building inspector, which typically costs RM500 to RM1,200 depending on unit size. They will detect hidden leaks, hollow tiles, and faulty wiring using specialized tools. Do not start renovation work until all primary defects are resolved. Renovation works can void the developer's liability for structural or plumbing defects.
Registering Utilities and Tariff Conversions
Set up utility accounts under your name, including electricity (TNB), water, and sewerage (Indah Water Konsortium). If you bought a SOHO or commercial-titled serviced apartment that is used for residential purposes, apply for residential tariff rates with TNB early, as commercial tariffs are significantly higher.
Connecting with the JMB/MC and Financial Health
Register with the management office and obtain the house rules. Get to know your Joint Management Body (JMB) or Management Corporation (MC) early. Request the latest audited maintenance fee and sinking fund financial statements. This helps you monitor if the building's maintenance funds are managed well from the start.
Buyer checklist
Upon receiving vacant possession keys, you have a statutory 24-month Defect Liability Period (DLP). Hire a professional inspector to submit defects in writing before starting renovations. Register your utilities early, convert commercial rates to residential if eligible, and connect with your JMB to review the building's financial health.
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| 1 | Secure vacant possession keys and note the exact date to track the 24-month DLP window. |
|---|---|
| 2 | Appoint a professional building inspector to audit the unit before beginning any renovation. |
| 3 | Submit all defect findings in writing with photo evidence and keep a copy of the submission. |
| 4 | Open TNB, water, and IWK accounts, and apply for residential tariff conversion if applicable. |
| 5 | Register with the JMB/MC, pay your security deposits, and request the building's financial reports. |
Common questions
Does the Defect Liability Period pause if the developer takes long to fix issues?
No. The 24-month DLP is a fixed window starting from vacant possession. Delays by the developer do not extend the overall period, which is why written, dated defect reports are critical.
Can I do minor renovations while waiting for defect repairs?
It is highly discouraged. If your contractor touches walls or plumbing, the developer can claim the defects were caused by your renovations, invalidating their repair obligations.
Lewis Chong
REN 69566 · IQI GlobalProperty advisor helping KL, JB, and Penang buyers make data-backed property decisions.
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Secure vacant possession keys and note the exact date to track the 24-month DLP window.
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Appoint a professional building inspector to audit the unit before beginning any renovation.
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Submit all defect findings in writing with photo evidence and keep a copy of the submission.
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Open TNB, water, and IWK accounts, and apply for residential tariff conversion if applicable.