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New Property Handover Procedures in Malaysia: Step 1

Step 1 : Delivery of Vacant Possession (VP)


The Delivery of Vacant Possession (VP) marks a critical step in the property handover process in Malaysia. It signifies that the property has been completed and is ready for inspection, although it may still require minor defect rectifications.


 

What is Included in the VP Process?


When the developer issues a VP notice to the buyer, it typically includes:

  1. Certificate of Completion and Compliance (CCC)

    • Signed by a certified architect or engineer.

    • Certifies that the property is safe and suitable for occupation.

  2. Inspection Notice

    • A formal request to schedule an inspection date for the buyer to check the property.

  3. Keys and Access Cards

    • These are handed over to the buyer to allow access to the property and its facilities.

 

Timelines for Property Handover


Under the Housing Development Act (HDA), the developer must deliver the property within the following timeframes:


  • Landed Properties : 24–36 months from the signing of the Sale and Purchase Agreement (SPA).

  • Strata-Titled Properties (e.g., condominiums) : 36–48 months from the SPA date.


In addition to the unit itself, developers must complete the common facilities (e.g., gyms, pools, parking lots) within the stipulated timeline based on the property type.

 

Liquidated Ascertained Damages (LAD)


If the developer fails to meet the agreed timeline, buyers can claim Liquidated Ascertained Damages (LAD).

  • LAD terms are typically detailed in the SPA.

  • This serves as compensation for delays, calculated based on the agreed rate and the duration of the delay.


Example : For every day the property handover is delayed beyond the timeline, the buyer may be entitled to a specific amount as stipulated in the SPA.

 

Buyer’s Checklist for VP


To ensure a smooth VP process, buyers should:

  • Verify the Certificate of Completion and Compliance (CCC).

  • Inspect the property for defects and compile a list for rectification (commonly known as the defect liability period).

  • Ensure all promised common facilities are on track for completion.


This first step in the handover process ensures the buyer transitions smoothly into their new property while protecting their rights under Malaysian property laws.

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