Malaysia

Protecting home buyers vs. serving developers: A balancing act

Image Credits: UnsplashImage Credits: Unsplash
  • The Housing Development Act (HDA) provides critical protections for home buyers, including defect liability periods and requirements for developer authorization.
  • Legal recourse is available for buyers facing issues such as project delays and non-compliance with the Sale and Purchase Agreement (SPA).
  • Buyers should carefully evaluate developer incentives and engage real estate attorneys to safeguard their investments.

The real estate market is a dynamic and often contentious arena where the interests of home buyers and property developers frequently clash. On one side, developers aim to maximize profits and expedite project completions. On the other, home buyers seek security, transparency, and value for their investments. This article delves into the intricate balance between safeguarding home buyers and serving developers, highlighting the legal frameworks, challenges, and practical advice for navigating this complex landscape.

The Housing Development Act (HDA) in Malaysia is a pivotal piece of legislation designed to protect home buyers. It mandates that developers obtain proper authorization, including an Advertising Permit and Developer's License (APDL), before launching projects. This ensures that only credible developers can market their properties, thereby safeguarding buyers from potential fraud and substandard developments.

One of the critical protections under the HDA is the defect liability period. This period, typically 24 months from the delivery of vacant possession, requires developers to address any defects in the property. Common issues such as uneven tiles, paint cracks, and leaking pipes must be rectified at the developer's expense, providing buyers with peace of mind and assurance of quality.

Legal Recourse for Home Buyers

Despite these protections, home buyers often face challenges when developers fail to meet their obligations. Delays in project completion, non-compliance with the Sale and Purchase Agreement (SPA), and latent defects are common issues. The HDA stipulates that developers must deliver vacant possession within 24 months for landed properties and 36 months for strata-titled properties. Failure to do so can result in legal action by buyers, who can claim liquidated damages for late delivery.

John Chan, a partner at MahWengKwai & Associates, emphasizes the importance of legal recourse for buyers: "Taking legal action is a serious step, but it is sometimes necessary to ensure that developers fulfill their contractual obligations. The courts provide a vital avenue for buyers to seek justice and compensation".

Developer Incentives: A Double-Edged Sword

Developers often use incentives to attract buyers, such as rebates, free legal fees, and furnished units. While these offers can be enticing, they may mask underlying issues. For instance, incentives can inflate property prices, leading to potential financial risks for buyers if the market value drops. Buyers should carefully evaluate these offers and consider their long-term implications.

The Role of Real Estate Agents

Real estate agents play a crucial role in bridging the gap between buyers and developers. They offer expertise, access to a broader range of properties, and negotiation skills that can benefit buyers. However, buyers should be cautious and ensure that agents act in their best interests, not just to close a sale.

Practical Tips for Home Buyers

Engage a Real Estate Attorney: Legal expertise is invaluable in navigating the complexities of property transactions. An attorney can ensure that the SPA adheres to legal standards and protect buyers' interests.

Conduct Thorough Inspections: Before finalizing a purchase, buyers should conduct detailed property inspections to identify any defects or issues that may require attention.

Understand Your Legal Rights: Familiarize yourself with the HDA and other relevant laws to understand your rights and the protections available to you as a home buyer.

The balance between safeguarding home buyers and serving developers is delicate and requires ongoing vigilance. Legal frameworks like the HDA provide essential protections, but buyers must remain proactive and informed. By engaging legal experts, conducting thorough inspections, and understanding their rights, home buyers can navigate the real estate market with greater confidence and security.


Real Estate United States
Image Credits: Unsplash
Real EstateJuly 30, 2025 at 11:00:00 PM

How the US housing market is contributing to a decline in birth rates

The American housing market has long been a symbol of stability, aspiration, and generational advancement. But today, it has become a structural obstacle—suppressing...

Real Estate World
Image Credits: Unsplash
Real EstateJuly 29, 2025 at 2:00:00 PM

Rents rise again as Hong Kong lived-in home prices hit five-month high

Hong Kong’s housing market continues to show signs of cautious recovery, with lived-in home prices rising for a third consecutive month in June...

Real Estate United States
Image Credits: Unsplash
Real EstateJuly 27, 2025 at 11:00:00 PM

Why buying a home in 2025 feels impossible

If you’ve opened Zillow lately and laughed—or cried—at the home prices, you’re not alone. Welcome to the 2025 housing market, where everything feels...

Real Estate United States
Image Credits: Unsplash
Real EstateJuly 24, 2025 at 1:00:00 AM

Why land banking in real estate is reshaping U.S. housing

On the surface, the U.S. homebuilding market is sending mixed signals. Builders are slashing prices and sweetening deals to preserve volume in a...

Real Estate Singapore
Image Credits: Unsplash
Real EstateJuly 17, 2025 at 1:00:00 PM

What Singapore’s rental rejections reveal about racial bias

You don’t forget the feeling of being turned away from a place you were ready to call home. Sometimes the message is delivered...

Real Estate World
Image Credits: Unsplash
Real EstateJuly 16, 2025 at 11:00:00 AM

China’s housing market sees sharpest decline in 8 months

China’s home prices just logged their fastest drop in eight months. That stat’s not surprising anymore—but it still matters. It’s not just about...

Real Estate World
Image Credits: Unsplash
Real EstateJuly 11, 2025 at 11:30:00 PM

Why land and property still anchor China’s economic transition

The headlines are clean: China is moving past its property-addicted economy. The era of endless land auctions and debt-funded development is, allegedly, behind...

Real Estate World
Image Credits: Unsplash
Real EstateJuly 7, 2025 at 5:00:00 PM

Is the Hong Kong property market recovery real or optical?

At first glance, Hong Kong appears to be regaining economic ground. Equity indices have climbed, capital markets are stirring, and according to PwC,...

Real Estate Singapore
Image Credits: Unsplash
Real EstateJuly 5, 2025 at 1:00:00 AM

Singapore residential real estate market value 2024 rises to 26th globally

Singapore’s rise to 26th place in global residential real estate value, up four spots from 2019, is more than a point of national...

Real Estate
Image Credits: Unsplash
Real EstateJuly 4, 2025 at 11:00:00 AM

UK first-time buyers shift focus to regional cities

The assumption that the pandemic would permanently reset Britain’s housing geography—from dense cities to tranquil coastlines—was premature. New data shows that first-time buyer...

Real Estate Singapore
Image Credits: Unsplash
Real EstateJuly 4, 2025 at 10:30:00 AM

Selling a private home now comes with higher stamp duties and a longer 4-year holding period

In an era when major economies are racing to stimulate demand in sluggish property markets, Singapore is deliberately tightening its grip. On July...

Housing United States
Image Credits: Unsplash
HousingJuly 2, 2025 at 1:00:00 PM

Why 2025 may be the right time to buy—and how to prepare

Rising home prices. High mortgage rates. Low inventory. For years, these were the three walls trapping homebuyers. But in 2025, the housing market...

Load More