What Is It

Liquidated Ascertained Damages (LAD) is a contractually agreed compensation that a homebuyer is entitled to claim from a developer if the delivery of vacant possession (VP) or completion of common facilities of a residential property is delayed beyond the date specified in the Sales and Purchase Agreement (SPA).

Who Is Eligible

  • Buyers of residential properties under the Housing Development Act (HDA) (individual or strata properties with Schedule G or Schedule H SPAs).
  • The developer failed to hand over the keys (Vacant Possession) within the contracted period (typically 24 months for landed properties or 36 months for strata properties).

    • How to Calculate LAD

    LAD is calculated at a daily rate of 10% per annum of the property purchase price, starting from the expiry date of the delivery period up to the date the buyer receives the Notice of Vacant Possession: $$\text{LAD Amount} = \text{Purchase Price} \times 10\% \times \frac{\text{Number of Days Delayed}}{365}$$

    Required Documents

  • Sales and Purchase Agreement (SPA): Copy of the stamped agreement.
  • Notice of Vacant Possession (VP): Official letter showing the date keys were ready for collection.
  • Certificate of Completion and Compliance (CCC): Document certifying the building is safe to occupy.
  • Payment Receipts: Proof of progressive payments made to the developer.
  • Demand Letter: Copy of the official demand letter sent to the developer for LAD.

    • Step-by-Step Procedure

    1. Send Demand Letter: Draft and send an official demand letter to the developer calculating the LAD and requesting payment. 2. Prepare Tribunal Forms: If the developer refuses to pay or ignores the letter, and the claim is under RM50,000, file a claim at the Tribunal for Homebuyer Claims (TTPR). 3. Submit Form 1: Complete Form 1 online via the KPKT e-Home portal, print 4 copies, and pay the filing fee. 4. Serve Form 1: Serve a copy of Form 1 to the developer's registered office via AR Registered Post or personal service. 5. Attend Hearing: Both parties must attend the TTPR hearing. No lawyers are allowed to represent either party. 6. Award Enforcement: The Tribunal will issue an Award (decision). The developer is legally bound to pay within the timeframe specified in the Award (typically 30 days).

    Cost & Processing Time

  • Cost: Filing fee at TTPR is RM10.
  • Processing Time: TTPR hearings are usually scheduled within 40 to 60 days of filing. Awards are delivered immediately at the end of the hearing.

    • Where to Apply

  • Tribunal Perumahan dan Pengurusan Strata (TPPS): Online portal (ehome.kpkt.gov.my) or physical counters at KPKT Putrajaya / State branches.

    • Important Notes

  • Claims must be filed within 12 months from the date of the CCC or the expiry date of the defect liability period (DLP) specified in the SPA.
  • If the claim value exceeds RM50,000, the buyer must file the claim in the Civil Courts instead of the TTPR, unless both parties sign a written agreement to submit to the Tribunal's jurisdiction.