Collecting the Keys in Malaysia: A Vacant Possession Checklist for Payments, Inspection, Utilities and Service Charges

The developer’s notice to take vacant possession is where collecting your keys begins. From that point the defect liability period, service charges, quit rent and assessment, and the release of the lawyer’s retention all start to run. Doing these things in order saves a lot of trouble later.

What to check when the notice arrives

Under the agreement, the developer may only hand over when these conditions are met (Schedule G clause 26, Schedule H clause 27):

• the certificate of completion and compliance (CCC) has been issued;
• for a strata unit, the strata title has been issued (otherwise the developer needs a written certificate from the Controller of Housing first);
• water and electricity are ready for connection;
• you have paid everything due under the agreement up to this stage.

Stage 3 (17.5%), Stage 4 (2.5%) and Stage 5 (5%, held by the developer’s lawyer) fall due at vacant possession. If you have a loan, the bank releases them against the developer’s notice. Our SPA guide sets out every stage.

Two things worth knowing:

• Not collecting the keys still counts. Thirty days after the developer’s notice, you are treated as having taken vacant possession whether or not you collected the keys (Schedule G clause 26(3), Schedule H clause 27(3)).
• Late-delivery damages are due now. If the developer delivers after the deadline in the agreement, it must pay the liquidated damages when it gives the notice; if it does not, you may deduct them from money you still owe (Schedule H clause 25(3)).

What to inspect on key day

The yardstick is the Fourth Schedule (building description) of the agreement: the structure, walls, roof, doors, windows, floors, sanitary fittings and electrical installation the developer committed to. Anything built differently, or any defect in workmanship or materials, falls within the defect liability period.

Photograph every problem and note where it is. Then give written notice to the developer under the defect liability procedure, with a copy to the developer’s lawyer. Our guide to the defect liability period covers how to write the notice and what to do if the developer does not repair within 30 days.

What to pay within 30 days of collecting the keys

• Meter deposits: payable within 30 days of the developer’s notice (Schedule H clause 22(2)). You then open your own accounts with TNB and the water operator; their published deposit rates apply.
• Service charges: the National Housing Department’s buyer guidance notes that strata buyers typically pay one month’s deposit and three months in advance at handover, and the sinking fund (10% of the charges) also starts then. The developer must give you a completed statement of charges showing how the figure is worked out (Fifth Schedule).
• Quit rent and assessment: these become yours from vacant possession or transfer of the parcel, whichever is earlier (Schedule H clause 21). The assessment account also has to be transferred into your name; see our guide to assessment and quit rent after buying.

When do you receive the title?

Stage 4’s 2.5% is tied to the title. Once a strata title is registered in your name, the developer must hand over the original within 30 days (Schedule H clause 28(3)). After that, an official land search confirms you are the registered owner.

Dates to note

Related

• Defect liability period: using the 24 months
• Assessment and quit rent after buying
• The JMB, the MC and owners’ meetings

Sources

1. Housing Development (Control and Licensing) (Amendment) Regulations 2015, P.U.(A) 106/2015 (National Housing Department): Schedule G clause 26; Schedule H clauses 21, 22, 25, 27 and 28 and the Third, Fourth and Fifth Schedules. Document
2. National Housing Department, "Tips Kepada Pembeli Rumah": one month’s deposit and three months’ advance service charges at handover. Page
3. Strata Management Act 2013 (Act 757), ss.17 and 18 (copy hosted by Perbadanan Putrajaya). Document

The above reflects the statutory form of agreement and published government guidance; the inspection checks are general practice. The agreement you sign governs. Last verified: 12 October 2026.