Before you decide to buy a new house or any kind of property in Malaysia, ensure that the housing developer - if buying "off-plan" has a license and it is still valid and check the housing developer has an advertisement and sales permit and that it is still valid.

Malaysia Property Types

For new landed property in Malaysia such as bungalows, semi-detached houses and terrace houses, the expected date of completion is normally 24 months from the date of signing of the Sales and Purchase Agreement and for new subdivided building such as condominiums, flats, apartments and townhouses, the expected date of completion is 36 months. Buyers are advised to obtain from the Malaysian property developer sales literature with all relevant information about the project such the development's license number, and advertisement and sales permit.

Buying Land in Malaysia

Buyers need to know whether the land is:

• Freehold land (held in perpetuity)

• Leasehold land (check the number of years left on the lease)

• Malay Reserve land (has restrictions and not suitable for overseas buyers)
  
  * The status of the land can be checked at the Land Office or the State Land Registrar.

Important Information When Buying Malaysian Property

For new or 'off-plan' properties the following information should be checked:

• The Malaysian Propery Developer's licence number and the expiry date;

• The advertisement and sales permit number and the expiry date;

• The name and address of:

i.   The licensed Malaysian property developer
ii.  Authorised agents (if any)
iii. Those holding power of attorney (if any)
iv. The project management company (if any)


Check List

• Has the land has been mortgaged to the bank for a loan?

• Location description

• Building materials specification(s)

• Size of building amenities and services

• The name of the housing project (if any)

• Expected date of completion

• Price of each type of house

• Number of units for each type

• The reference number of the approved plan

• The name of the local authority

First Payment

Normally the first payment of a deposit of 10% must be made upon signing of the Sales and Purchase Agreement (SPA). Please ensure that the date of signing of the SPA and the date of the first payment are the same. Be aware that the housing developer is not allowed to collect any form of payment without a Sales and Purchase Agreement being signed.

Architect's Certification

Make sure any demand by the Malaysian real estate developer for installment payments is supported by a certificate duly signed by an architect or a certified engineer.

Interest on Late Payments

If the buyer or end financier for the buyer fails to pay the developer of the property in Malaysia the progressive payment/installment within 21 working days from the date of the written notice of payment from the developer, the buyer will usually be charged an interest of 10 per cent per annum on the installment not paid.

Termination of the Sales and Purchase Agreement (SPA)

Be aware that failure to make the progressive payment or interest charged on late payment for a period of more than 28 days will give the developer the right to terminate the Sales and Purchase Agreement. The developer must serve the notice in writing by registered post of its intention to terminate the SPA.

Infrastructure Maintenance

Buyers of property in Malaysia will normally pay the cost of maintaining the infrastructure from the date of vacant possession till the date the responsibility is taken over by the local authority or management corporation (in the case of a subdivided building).

(Infrastructure is defined as roads, driveways, drains, sewerage, pipelines and sewerage tanks for the housing development or buildings).