The progressive payment schedule for property in Malaysia

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

Details of the breakdown for the 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 Agreement 10 RM
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 Parcel 10 RM
(b) the reinforced concrete framework and floor slab of the said Parcel 15 RM
(c) the walls of the said Parcel with door and window frames placed in position 10 RM
(d) the roofing/ceiling, electrical wiring, plumbing (without fittings), gas piping (if any)and internal telephone trunking and cabling to the said Parcel 10 RM
(e) the internal and external plastering of the said Parcel 10 RM
(f) the sewerage works serving the said Building 5 RM
(g) the drains serving the said Building 5 RM
(h) the roads serving the said Building 5 RM
3 On the date the Purchaser takes possession of the said Parcel with water and electricity supply ready for connection to the said Parcel 12.5 RM
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 Building 2.5 RM
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 – 5 RM
(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 Parcel RM
(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 Parcel RM
TOTAL 100 RM


Examples of Monthly Instalment

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

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 house buyers

Liquidated Ascertained Damages payable to house buyers for lateness is delivering of vacant possession in 24 months (landed) or 36 months (strata) calculated three years from the date in the Sales and Purchase agreement.

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 house buyers

• 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 to.

This article first appeared in https://mypf.my

MyPF is on a mission to help simplify and grow Malaysians’ personal finances through financial education.