What is the progressive payment schedule for buying a new property under construction in Malaysia?

 

The Housing Development Act (HDA) 1966 was updated with Housing Development Amendment Act (HDAA) 2012 that came into effect on June 1, 2015.

 

Details of the breakdown for progressive payment for Schedule G & H are as below:-

Schedule G is for landed residential while Schedule H is for strata residential.

There is no schedule for commercial properties thus less protection for buyers.

 

SCHEDULE OF PAYMENT OF PURCHASE PRICE

Instalments Payable%Amount
1.Immediately upon the signing of this Agreement10RM
2.Within twenty one (21) working days after receipt by the Purchaser of the Vendor’s written notice of the completion of:-
(a) the work below ground level including piling and foundation of the said Building comprising the said Parcel10RM
(b) the reinforced concrete framework and floor slab of the said Parcel15RM
(c) the walls of the said Parcel with door and window frames placed in position10RM
(d) the roofing/ceiling,electrical wiring, plumbing (without fittings), gas piping (if any)and internal telephone trunking and cabling to the said Parcel10RM
(e) the internal and external plastering of the said Parcel10RM
(f) the sewerage works serving the said Building5RM
(g) the drains serving the said Building5RM
(h) the roads serving the said Building5RM
3.On the date the Purchaser takes possession of the said Parcel with water and electricity supply ready for connection to the said Parcel12.5RM
4.Within twenty-one (21)working days after receipt by the Purchaser of the written confirmation of the Vendor ‘s submission to and acceptance by the Appropriate Authority of the application for subdivision of the said Building2.5RM
5.On the date the Purchaser takes vacant possession of the said Parcel as in item 3 and to be held by the Vendor ‘s solicitor as stakeholder for payment to the Vendor as follows –5RM
(a) two point five per centum (2.5%)at the expiry of six (6)months after the date the Purchaser takes vacant possession of the said ParcelRM
(b) two point five per centum (2.5%)at the expiry of eighteen (18)months after the date the Purchaser takes vacant possession of the said ParcelRM
TOTAL100RM

 

Monthly Instalment Interest Calculation

RM400,000 at 90% loan rate at 4.40% for first 10% released in month with 30 days

400,000 x 10% x 4.40% x 30 / 365 = 144.65

Examples of Monthly Instalment

1m at 90% loan rate at 4.30%

 

600k at 90% loan rate at 4.35%

400k at 90% loan rate at 4.40%

 

LAD Late Delivery Payment to Housebuyers

Liquidated Ascertained Damages payable to housebuyers for lateness is delivering of vacant possession in 24 months (landed) or 36 months (strata) calculated 3 years from date in S&P.

LAD: 10% per annum on purchase price for period of delay

Notes:

  • Complaint must be submitted within 12 months from CCC
  • Developers for residential properties can apply to extend delivery by another 12 months.
  • Caution: Do NOT sign any documents that waive your rights to LAD which have been practiced by certain unscrupulous developers.

If you face difficulties getting your keys, contact the Housing Tribunal (TPPS)

 

What Developers are No Longer Allowed to Promise Housebuyers

  • Developer Interest Bearing Scheme (DIBS)
  • Free legal fees
  • Projected monetary returns/gains/rentals
  • Claim panoramic views
  • Travel time to nearby destinations
  • Other information developer cannot genuinely lay proper claim

 

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