Picture Source: Quality Guidebook for Homeowners by CIDB Malaysia

Tricky affair

Home buying can be a tricky one if you are unaware of your rights as a homebuyer. One of the issues that you need to be informed about is defects assessment. Brand new houses are prone to imperfections such as cracks, ill-fitting, and chipped paints. It is crucial to know how to go about the issues related to defects to ensure you get the most out of your deal.

There are two types of flaws when it comes to new property namely, patent defects and latent defects.

Patent defects are unhidden defects that can be easily identified during reasonable inspection while latent defects are the hidden ones that go unnoticed initially. Potential defects cause havoc after some time which can result in severe complications.

Your new home should be free from significant patent and latent defects to ensure maximum utilisation of the space. If at all there are defects at your new place, you can get the developer to rectify the said defects.

Know your rights

If your developer does not cooperate with you, you can refer to the Housing Development (Control & Licensing) Act 1966 (Act 118) & Regulation which stipulates that the purchaser can demand for rectification of any defect, shrinkage or other faults found in the building within the Defect Liability Period (DLP).

According to the Defect Liability Period Clause (‘DLP Clause’) of the Sale & Purchase Agreement, you should get the developer to rectify the defects or even get your contractor to remedy the flaws in the event the developer refuses to attend to your complaint.

The procedure for the defects rectification is as follows: Start with preparing a list stating all the defects and send the list with a written request to the developer to repair and make good of the defects.

If the developer fails to make good of the defects within 30 days from the date of

receipt of your notice, you are entitled to carry out the rectification works or hire your contractor to do so after giving another 30-day notice to the developer informing them of your intention to make good the defects on your own and the cost to carry out the works (‘Written Notice’).

Upon the rectification of the defects, you are entitled to claim the rectification cost from the developer or/and the stakeholder who is holding the last 5% of the purchase price. Pending the rectification works being carried out within the stipulated period, you are advised to give notice to the stakeholders’ lawyer to withhold release of any part of the retained (stakeholders) monies.

Want to know more? Download the “Quality Guidebook for Homeowners” by CIDB Malaysia here.