Understanding the defect liability period definition in Malaysia is crucial for property buyers and developers alike. This period plays a significant role in ensuring that any construction defects discovered after the handover of a property are addressed appropriately. In this article, we will explore what the defect liability period (DLP) means, its duration, the legal obligations of developers, and the rights of buyers under Malaysian law.
What Is the Defect Liability Period?
The defect liability period is a specific timeframe after the delivery of vacant possession during which the developer remains responsible for repairing any defects in the property. This period is a legal safeguard for buyers, ensuring that any construction-related issues are rectified without additional cost to them. The defect liability period definition in Malaysia is governed primarily by the Housing Development (Control and Licensing) Act 1966 and the standard Sale and Purchase Agreement (SPA) under Schedule G and H of the Housing Development (Control and Licensing) Regulations 1989.
Legal Framework Governing the Defect Liability Period in Malaysia
In Malaysia, the defect liability period is legally mandated under the Housing Development Act and its accompanying regulations. These laws are designed to protect homebuyers from being left with defective properties post-handover. The SPA outlines the terms and conditions of the DLP, including the duration, types of defects covered, and the procedures for making a claim.
Duration of the Defect Liability Period
The standard duration of the defect liability period in Malaysia is 24 months from the date of delivery of vacant possession. This means that for two years after receiving the keys to the property, the buyer can report any defects to the developer for rectification. However, this period may vary in commercial or non-residential developments, depending on the terms of the SPA.
- For residential properties: 24 months (standard under Schedule G and H)
- For commercial properties: Subject to terms in the SPA
- For government projects: May vary depending on contract terms
Types of Defects Covered During the Defect Liability Period
Not all issues are considered defects under the DLP. The types of defects typically covered include:
- Structural cracks in walls or ceilings
- Water leakage from roofs or plumbing systems
- Faulty electrical wiring or fixtures
- Defective doors, windows, or locks
- Poor workmanship or finishing
Cosmetic issues or damages caused by the buyer after handover are usually not covered. It is important to report defects as soon as they are discovered to ensure timely rectification.
How to Make a Defect Claim
To initiate a defect claim during the defect liability period, the buyer must notify the developer in writing. This can be done via email, letter, or through the developer’s customer service portal. The notice should include:
- Details of the defect
- Photographic evidence
- Location of the defect within the property
- Date of discovery
Upon receiving the notice, the developer is required to carry out the necessary repairs within 30 days. If the developer fails to do so, the buyer may engage a third-party contractor to fix the defect and claim the cost from the developer.
Developer’s Obligations During the Defect Liability Period
Under the defect liability period definition in Malaysia, developers have a legal duty to repair any defects reported within the DLP. Their obligations include:
- Responding to defect notices within a reasonable time
- Carrying out repairs within 30 days of notification
- Ensuring that repairs are done to a satisfactory standard
- Reimbursing buyers for repairs done by third parties if they fail to act
Failure to comply with these obligations can result in legal action by the buyer or intervention by the Tribunal for Homebuyer Claims.
Buyer’s Rights Under the Defect Liability Period
Buyers are entitled to a defect-free property and have the right to request rectification of any issues during the DLP. Their rights include:
- Submitting multiple defect claims within the 24-month period
- Withholding a portion of the purchase price as a retention sum
- Engaging third-party contractors if the developer fails to act
- Filing a claim with the Tribunal for Homebuyer Claims
Retention Sum and Its Role in the Defect Liability Period
The retention sum is a portion of the purchase price (usually 5%) held back by the buyer’s solicitor or stakeholder until the end of the DLP. This sum acts as a financial incentive for the developer to fulfill their obligations. If the developer fails to rectify defects, the retention sum can be used to cover the cost of repairs.
Common Challenges Faced During the Defect Liability Period
Despite the legal protections in place, buyers often face challenges such as:
- Delayed response from developers
- Disputes over whether an issue qualifies as a defect
- Poor quality of repair work
- Difficulty in engaging third-party contractors
Understanding the defect liability period definition in Malaysia helps buyers navigate these challenges more effectively and assert their rights.
Role of the Tribunal for Homebuyer Claims
The Tribunal for Homebuyer Claims provides an accessible and affordable avenue for resolving disputes related to housing defects. Buyers can file a claim for up to RM50,000 without needing a lawyer. The tribunal can order the developer to carry out repairs or compensate the buyer for losses incurred.
Importance of Inspection Before and After Handover
Conducting a thorough inspection before accepting vacant possession is essential. Buyers should also perform periodic checks during the DLP to identify any latent defects. Hiring a professional inspector can help uncover issues that may not be visible to the untrained eye.
Tips for Buyers to Maximize the Defect Liability Period
- Document all communications with the developer
- Keep a defect log with dates and photos
- Submit defect claims promptly
- Follow up regularly to ensure timely repairs
- Understand your rights under the SPA and Housing Development Act
Case Study: A Real-Life Example of a Defect Claim in Malaysia
In a recent case in Selangor, a buyer discovered water leakage in the ceiling six months after moving in. The buyer submitted a defect claim with photographic evidence. The developer responded within two weeks and completed repairs within 30 days. However, the issue recurred, and the buyer filed a second claim. After repeated failures, the buyer engaged a third-party contractor and claimed the cost from the developer using the retention sum. This case illustrates the importance of understanding the defect liability period definition in Malaysia and taking timely action.
Conclusion: Managing Expectations During the Defect Liability Period
The defect liability period definition in Malaysia provides a vital safety net for property buyers. However, it is not a guarantee of perfection. Buyers should remain proactive, informed, and realistic about the scope of the DLP. By understanding their rights and responsibilities, buyers can ensure that their property is maintained to a satisfactory standard. Managing expectations and maintaining open communication with developers are key to a smooth post-handover experience.
