Progressive Billing in Malaysia: the Schedule H Payment Stages, Stage 1 to Stage 5
If you buy a condo or serviced apartment that is still being built, you do not pay the price in one go. The Schedule H sale and purchase agreement contains a payment schedule (the Third Schedule), and you pay each instalment as construction reaches that stage. The percentages are fixed by law; the developer cannot change them.
In one line: 10% on signing, 65% across the construction stages, 17.5% when you collect the keys, 2.5% when the strata title is handed over, and a final 5% paid at vacant possession and held by the developer’s lawyer, released 2.5% at 8 months and 2.5% at 24 months.
How much is each stage under Schedule H?
| Stage | When it is due | % |
|---|---|---|
| 1 | On signing the agreement | 10 |
| 2(a) | Work below ground level, including the foundation | 10 |
| 2(b) | Structural framework of your unit | 15 |
| 2(c) | Walls of the unit, with door and window frames in place | 10 |
| 2(d) | Roofing/ceiling, electrical wiring, plumbing (without fittings), gas piping (if any) and internal telecommunication trunking and cabling | 10 |
| 2(e) | Internal and external finishes, including wall finishes | 10 |
| 2(f) | Sewerage works serving the building | 5 |
| 2(g) | Drains serving the building | 2.5 |
| 2(h) | Roads serving the building | 2.5 |
| 3 | Vacant possession, with water and electricity ready for connection | 17.5 |
| 4 | At vacant possession, when the developer hands over the transfer instrument and the original strata title | 2.5 |
| 5 | Paid at vacant possession and held by the developer’s lawyer as stakeholder: 2.5% released after 8 months, 2.5% after 24 months | 5 |
| Total | 100 |
Source: Third Schedule of Schedule H, Housing Development (Control and Licensing) Regulations 1989, as amended by P.U.(A) 106/2015 with effect from 1 July 2015.
When is each stage 2 instalment due?
Each time a stage is completed, the developer sends you (and your bank, if you have a loan) a written notice. You have 30 days from receiving it to pay.
The National Housing Department’s guidance for buyers makes two points: a developer may not collect any money before the sale and purchase agreement is signed, and every progress claim must be supported by a certificate signed by the developer’s architect or engineer.
Why is the last 5% held back?
It protects you during the 24-month defect liability period. If a defect from workmanship or materials appears and the developer does not fix it within 30 days of your written notice, you may repair it yourself and deduct the cost from the sum the lawyer holds (clause 30).
If you give the developer’s lawyer a copy of your notice before the 8-month or 24-month mark, the lawyer cannot release that tranche until the developer’s architect certifies the repair is done. See our guide to the defect liability period.
Is landed property (Schedule G) any different?
Landed homes use the Schedule G agreement. The percentages are identical: 10% on signing, 65% across stages 2(a) to 2(h), 17.5% at vacant possession, 2.5% with the title, and 5% held as stakeholder. What differs are the stage descriptions (2(a) is the house foundation, for example) and the delivery deadline: 24 months from signing under Schedule G, 36 months under Schedule H (some condo projects state 48 or even 60 months, so check the project). Our guide to the SPA compares the two forms.
What if the developer delivers late?
Under clause 25 of Schedule H the statutory form gives the developer 36 months from the agreement to hand over vacant possession; some condo projects state 48 or even 60 months, and your own agreement governs. Past the deadline in your agreement, the developer pays you liquidated damages at 10% a year on the purchase price, calculated day to day, which you may deduct from unpaid instalments. Common facilities also have a completion deadline, failing which damages run at 10% a year on the last 20% of the price (clause 29).
What if you pay late?
After the 30 days, a late payment charge runs on the unpaid instalment at 10% a year, calculated day to day (clause 10). Our guide to late payment interest covers that, plus late charges on home loans, maintenance fees and quit rent.
Not sure which stage your purchase is at, what the next instalment is, or when the 5% retention is released? Send me your agreement and the latest billing notice and I’ll check it with you.
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Related
- Defect liability period: what you can claim
- Late payment interest on property in Malaysia
- Buying an under-construction property
Sources
- Housing Development (Control and Licensing) (Amendment) Regulations 2015, P.U.(A) 106/2015, official text on the National Housing Department website: Third Schedule of Schedule H, clause 10 (late payment), clause 25 (delivery), clause 29 (common facilities), clause 30 (defect liability); Third Schedule of Schedule G. Document
- Board of Architects Malaysia (LAM), General Circular 2/2017 (25 May 2017): English wording of the Schedule G and H stages. Document
- National Housing Department, "Tips Kepada Pembeli Rumah": no payment before the agreement; progress claims must carry an architect’s or engineer’s certificate. Page
The above reflects the statutory form of agreement. The agreement you sign governs your purchase. Last verified: 11 October 2026.
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