Sale and Purchase Agreement in Malaysia: Schedule G vs Schedule H, Delivery Period, LAD and the Payment Schedule
When you buy a new property from a licensed developer in Malaysia, the sale and purchase agreement (SPA) is not drafted by the developer. Its form is prescribed by law: Schedule G for landed homes and Schedule H for strata units such as condos and serviced apartments. How you pay, when you get the keys, what the developer owes you if it is late and how long defects are covered are all fixed in that agreement. Knowing these clauses tells you exactly what rights you are holding.
In one line: Schedule G (landed) gives the developer 24 months from signing to deliver; Schedule H (strata) gives 36 months, although some condo projects state 48 or even 60 months, so check the project. Late delivery costs the developer 10% a year of the purchase price, day by day. You pay 10% + 65% + 17.5% + 2.5% + 5%, and defects are covered for 24 months after handover.
Schedule G vs Schedule H: what is the difference?
| Schedule G (landed) | Schedule H (strata) | |
|---|---|---|
| Used for | Terraced, semi-detached and detached homes sold with the land | Condos, serviced apartments and other strata parcels |
| Delivery period (statutory form) | 24 months from signing (clause 24) | 36 months from signing (clause 25) |
| Late delivery damages (LAD) | 10% a year of the purchase price, day by day, from the deadline until you take vacant possession | |
| Conditions for handover | Certificate of completion and compliance (CCC); water and electricity ready (clause 26) | CCC; strata title issued; water and electricity ready (clause 27) |
| Payment | 10% on signing, 65% by construction stage, 17.5% at vacant possession, 2.5% with the title, 5% held by the developer’s lawyer | |
| Defect liability period | 24 months from vacant possession (clause 27) | 24 months from vacant possession (clause 30) |
| If you pay an instalment late | 10% a year, day by day, from 30 days after the notice (clause 10) | |
Delivery period: 24 months, 36 months or longer?
In the statutory forms, a landed home must be delivered within 24 months of signing and a strata unit within 36 months of signing. The clock starts on the date of the agreement, not when construction starts.
Not every condo project runs on 36 months. In practice some condo projects state 48 months in their agreement, and some state 60 months, depending on the project. Before you sign, turn to the delivery clause, read how many months it actually says and work out roughly when you would get the keys. A date given verbally by a sales team counts for nothing; the agreement is what counts.
What does the developer owe you if it delivers late?
Under clause 24 of Schedule G and clause 25 of Schedule H, a developer that misses the deadline must pay you liquidated and ascertained damages (LAD) at 10% a year of the purchase price, calculated day by day from the deadline to the day you take vacant possession.
Illustration: a RM600,000 unit delivered 90 days late → RM600,000 × 10% × 90 ÷ 365 ≈ RM14,794.52.
The developer must pay the LAD when it gives notice to take possession; if it does not, you may deduct it from any instalment still owed. Your right to claim accrues on the day you take vacant possession (clause 25(4)).
On strata projects the common facilities, such as the pool and clubhouse, also have a deadline. If they are late, damages run at 10% a year on the last 20% of the price (Schedule H clause 29).
Illustration: RM600,000 price, facilities 90 days late → RM600,000 × 20% × 10% × 90 ÷ 365 ≈ RM2,958.90.
Payment schedule under Schedule H (strata)
| Stage | When it is due | % |
|---|---|---|
| Stage 1 | On signing the agreement | 10 |
| Stage 2(a) | Work below ground level, including the foundation of the building | 10 |
| Stage 2(b) | Structural framework of your parcel | 15 |
| Stage 2(c) | Walls of the parcel, with door and window frames in place | 10 |
| Stage 2(d) | Roofing/ceiling, electrical wiring, plumbing (without fittings), gas piping (if any) and internal telecommunication trunking and cabling | 10 |
| Stage 2(e) | Internal and external finishes, including wall finishes | 10 |
| Stage 2(f) | Sewerage works serving the building | 5 |
| Stage 2(g) | Drains serving the building | 2.5 |
| Stage 2(h) | Roads serving the building | 2.5 |
| Stage 3 | Vacant possession, with water and electricity ready for connection | 17.5 |
| Stage 4 | At vacant possession, when the developer hands over the transfer documents and the original strata title | 2.5 |
| Stage 5 | Paid at vacant possession and held by the developer’s lawyer: 2.5% released after 8 months, 2.5% after 24 months | 5 |
| Total | 100 |
Payment schedule under Schedule G (landed)
| Stage | When it is due | % |
|---|---|---|
| Stage 1 | On signing the agreement | 10 |
| Stage 2(a) | Foundation of the house | 10 |
| Stage 2(b) | Structural framework of the house | 15 |
| Stage 2(c) | Walls of the house, with door and window frames in place | 10 |
| Stage 2(d) | Roofing, electrical wiring, plumbing (without fittings), gas piping (if any) and internal telecommunication trunking and cabling | 10 |
| Stage 2(e) | Internal and external finishes, including wall finishes | 10 |
| Stage 2(f) | Sewerage works serving the house | 5 |
| Stage 2(g) | Drains serving the house | 2.5 |
| Stage 2(h) | Roads serving the house | 2.5 |
| Stage 3 | Vacant possession, with water and electricity ready for connection | 17.5 |
| Stage 4 | At vacant possession, when the developer has delivered the original title registered in your name | 2.5 |
| Stage 5 | Paid at vacant possession and held by the developer’s lawyer: 2.5% released after 8 months, 2.5% after 24 months | 5 |
| Total | 100 |
Each time a stage 2 milestone is reached, the developer sends you (and your bank, if you have a loan) a written notice supported by a certificate from its architect or engineer, and you have 30 days to pay. The National Housing Department also states that a developer may not collect any money before the agreement is signed. Our guide to progressive billing goes through each stage.
What if you do not collect the keys?
Under clause 26(3) of Schedule G and clause 27(3) of Schedule H, once 30 days have passed after the developer’s notice to take possession, you are treated as having taken vacant possession, whether or not you actually collected the keys. For a strata unit, outgoings such as quit rent, assessment and service charges become yours from vacant possession or transfer of the parcel, whichever is earlier (Schedule H clause 21). The 24-month defect liability period also starts from that date.
What else should you check in the agreement?
- The developer’s licence number, stated at the top of the agreement; the developer warrants that the licence is valid (Schedule G clause 22, Schedule H clause 23).
- The approved plans attached, which show where your unit is and how large it is.
- The Fourth Schedule building description: structure, walls, roof, ceiling, windows, doors, ironmongery, wall and floor finishes, sanitary fittings and plumbing, electrical installation and internal telecommunication cabling. Anything delivered differently falls within the defect liability period.
- Who pays legal fees and stamp duty: each side pays its own lawyer, and the buyer pays stamp duty and registration fees on the agreement and the transfer (Schedule G clause 30). Our buying costs guide shows how much to set aside.
Looking at a project and want to know how many months its agreement allows for delivery, what late delivery would pay you, or which payment stage you are at? Send me the project name or your agreement and I’ll go through it clause by clause.
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Related
- Progressive billing: the Schedule H payment stages
- Defect liability period: what you can claim
- 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: Schedule G clauses 22, 24, 26, 27 and 30 and the Third and Fourth Schedules; Schedule H clauses 10, 21, 23, 25, 27, 29 and 30 and the Third Schedule. Document
- National Housing Department, enforcement FAQ (updated 7 October 2023): no payment before the agreement is signed. Page
- National Housing Department, "Tips Kepada Pembeli Rumah": progress claims must carry an architect’s or engineer’s certificate. Page
- Condo projects whose agreements state 48 or 60 months: Simon’s own review of local project agreements. Each project’s agreement governs.
The above reflects the statutory form of agreement. The agreement you sign governs your purchase. Last verified: 11 October 2026.
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