Vacant Possession (VP) in Malaysia is the moment when you are handed the keys to your property and are ready to move in. If you have read our previous article on how to buy a house, you will find VP is placed at the end of the house hunting journey. The end of one journey means the start of another, which means it’s time to move in!

Requirement for Vacant Possession (VP)

You will first need to complete the purchase price balance payment following the payment schedule before being issued the Certificate of Completion and Compliance (CCC).

The CCC is a legal agreement that certifies that the property is safe and habitable.

The CCC requires the internal and external structure of the property to be sturdy, and the electricity and water supply is already connected and ready for use.

The development will be evaluated by a Malaysian Board of Architects representative, followed by the approval of CCC from the local council to verify that your house is qualified to move in.

Time of delivery

The delivery time for Vacant Possession (VP) starts from the signing date of the Sale and Purchase Agreement (SPA).

VP time of delivery from SPA:

Landed properties (terrace / semi-d): 24 months
High-rise properties (serviced apartment / condominium): 36 months

So assuming you signed a SPA for a new high-rise development on 01 January 2022, you should expect to receive your VP by 31 December 2025.

If the developer cannot deliver VP within the stipulated time frame, rest assured that you will be compensated for the late delivery. This compensation is often referred to as Liquidated and Ascertained Damages (LAD).

However, you should note there have been instances of extended VP periods, so it will be best to double-check with the developer.

Defect Liability Period

Once the developer has handed over the keys and you have acknowledged collecting the keys, this will mark the start of the Defect Liability Period (DLP), one of the safeguards from the Housing Development Act (HDA). You have up to 24 months to check, identify and inform the developers of the defects in your new property to get it fixed at the developers' expense (you don’t have to pay for it).

The defects you would commonly look out for are the floors, walls, piping, electrical switches, windows, and furnishing (if any). A few examples of defects would be cracks on the walls, dents on surface tops, misalignment in flooring, leaks in piping, and non-functioning electrical switches.