The Malaysian standard SPA has 47 clauses. Buyers argue about 3 of them — price, deposit, completion date. The other 44 include the ones that actually decide whether you get your deposit back if the developer misses vacant possession by 18 months, and whether the subsale seller can walk 3 weeks before completion. I'm Zac Ong, REN 64593, and I've sat through hundreds of Penang SPA signings — Schedule H for new launches, private-treaty subsale for existing stock. The mistakes I see repeat. This is the 21-point checklist I actually run before a client signs, split by clause where the new-launch and the subsale versions diverge.
Key takeaways:
- Two different animals. A Schedule H SPA (new launch, strata, from a licensed developer) is a statutory form under the Housing Development (Control and Licensing) Regulations 1989 — protections are baked in and cannot be watered down. A subsale SPA is a private treaty under the Contracts Act 1950 — every protection is negotiated. Do not read one thinking it's the other.
- New launch — the five that matter most: delivery date (cl. 25(1) — 36 months for Schedule H), LAD formula (cl. 25(2) — 10% p.a. of purchase price), common property VP (cl. 27), defect liability (cl. 30 — 24 months from VP), and progress-billing schedule (Third Schedule).
- Subsale — the five that matter most: completion date + automatic state consent extension, redemption of seller's existing loan, seller's title warranty, specific-performance clause (not just deposit forfeit), and the "as-is where-is" carve-outs.
- Foreign buyer, either side: Penang Island minimum is RM1,000,000 per unit (RM600,000 mainland), state levy is 3% island / 2% mainland on the full price, MOT/SPA stamp duty is a flat 8%, and state consent (COSA) takes 3–4 months. If your SPA doesn't extend completion for COSA, do not sign.
- The three I've seen buyers get burned on: missing COSA extension on subsale; verbal defect promises on subsale that don't survive completion; and the "sales gallery timeline" that isn't the SPA delivery date on new launches.
New launch (Schedule H) vs subsale (private treaty) — the structural differences
Before the checklist, understand which document you're reading, because the same word means different things in each.
Schedule H is Form H under the Housing Development (Control and Licensing) Regulations 1989, the subsidiary legislation under the Housing Development (Control and Licensing) Act 1966 ("HDA 1966"). It applies when a licensed housing developer sells a strata residential unit — most Penang high-rise new launches, in other words. (Landed HDA sales use Schedule G. Non-HDA landed uses Schedule I, non-HDA strata uses Schedule J — but a legitimate Penang new-launch condo you're likely to see is almost always Schedule H.)
Key structural facts about Schedule H:
- The wording is statutory. The developer's lawyer prepares the document, but they cannot change the clause language. Any purported variation that reduces buyer protection is void.
- Vacant possession must be delivered within 36 months of SPA signing (Clause 25(1)).
- Late delivery attracts LAD at 10% per annum on the purchase price, day-count from Day 37 of Month 37 until VP (Clause 25(2)).
- Defect liability period is 24 months from the date of VP (Clause 30). The developer must repair defects within 30 days of written notice, failing which the buyer may repair and deduct from the retention sum.
- A retention of 5% of the purchase price is held by the developer's stakeholder — half released 6 months after VP, half at the end of the 24-month DLP.
- Progress billings are the Third Schedule — a fixed cascade tied to construction milestones, not to time.
A subsale SPA is a private-treaty contract. There is no Schedule H. The Malaysian Bar and law firms use standard templates but every clause is negotiable — completion period, deposit, penalties, condition of unit, what the seller warrants, what happens if COSA takes 4 months instead of 3.
Structural facts about a subsale SPA:
- No 36-month delivery obligation — you are buying an existing unit; completion is typically 3 months + 1 month automatic extension from the date the SPA becomes unconditional.
- No 10% p.a. LAD — the standard remedy for buyer late payment is 8% p.a. interest on the outstanding balance; the standard remedy for seller default is forfeiture of the seller's equivalent deposit or specific performance, whichever the SPA specifies.
- No statutory defect liability period. Sold "as-is where-is" unless you negotiate a written repair clause.
- No retention sum. Once completion happens, the seller has your money and you have the keys.
- State consent (COSA) for foreign buyers must be handled by a specific SPA clause — the standard template often does not include a strong one, and this is the single clause I most often ask the seller's lawyer to redraft.
So on a new launch you're protected by law; on a subsale you're protected by what your lawyer negotiated. That is the frame for every check below.
The 21 checks — every clause I actually walk through with a client
1. Parties, IC/passport numbers, company registration
What to check. Names must match the IC / passport / SSM registration exactly, including middle names. For companies, verify the Sdn Bhd is not struck off (SSM search — RM10, takes 5 minutes).
Why. A single wrong character on a passport number stalls state consent for weeks. A struck-off Sdn Bhd cannot legally hold title.
New launch nuance. Developer's SSM number should match the licence and advertising permit (see check 2).
Subsale nuance. If the seller is a company, check the beneficial owner declaration under the AMLA regime — your lawyer will ask.
2. Developer licence and Advertising Permit (APDL) — new launch only
What to check. The SPA must reference the developer's Housing Developer's Licence and Advertising Permit and Sale Licence (APDL) — both issued by KPKT. Verify both are current on the KPKT (Ministry of Housing and Local Government) public register.
Why. Signing an SPA before APDL issuance is a red flag — the project may not yet have approvals to sell. Buyers deposits paid pre-licence sit in a legal grey zone.
New launch nuance. Non-negotiable. The licence and permit numbers should also appear on every printed marketing piece.
Subsale nuance. Not applicable.
3. Property description — title, land title, tenure
What to check. Master title number (or strata title number if issued), lot number, mukim, district, state. Then tenure (freehold vs leasehold — if leasehold, expiry date) and land title class (residential vs commercial vs commercial-HDA). Cross-check with a fresh title search (RM50–100, done by your lawyer at the Penang Land Office).
Why. I have seen buyers sign an SPA believing they were buying a freehold residential unit and discover — mid-COSA — that the master title was leasehold or commercial. Both change the deal materially.
New launch nuance. Master title only — strata title issues years after VP. Ask the developer for the reference approval numbers (development order, planning permission).
Subsale nuance. If the strata title has issued, the property description is on the individual strata title. If not (many Penang subsales), the sale is a transfer of beneficial interest via Deed of Assignment, not a Memorandum of Transfer — which changes the completion mechanics.
4. Purchase price, deposit structure, mode of payment
What to check. Total price in figures and words (they must match). Booking fee, earnest deposit, and the 10% at SPA. Where the money is paid (developer's HDA account for new launch; stakeholder's client account for subsale).
Why. Money paid to the wrong account is a real problem to unwind. Developer HDA accounts are ringfenced under HDA s.7A; a payment outside that account is not the same protection.
New launch nuance. Booking fee usually 2–5%; 10% at SPA less booking fee; payments must go to the developer's HDA account — verify the bank details on the SPA against the letter from the developer's finance department, not against WhatsApp.
Subsale nuance. 3% earnest deposit on booking, balance to 10% at SPA — paid to the seller's solicitor as stakeholder. Never pay a subsale deposit directly to the seller.
5. Delivery date / vacant possession clause
What to check. For Schedule H: Clause 25(1) — within 36 calendar months from the date of this Agreement. For subsale: the completion clause and the definition of "completion date".
Why. This is the clause LAD/late-interest is measured against. Get the date wrong and you lose the remedy.
New launch nuance. The 36 months runs from SPA date, not from the sales-gallery launch. Do not accept "based on our typical 30-month build" — the SPA number is what you'd sue on. Sources: Housing Development (Control and Licensing) Regulations 1989, Schedule H, Clause 25.
Subsale nuance. Standard is 3 + 1 months from SPA becoming unconditional. Confirm the trigger — is it the SPA date, the state-consent-obtained date, or the loan-approval date? This drafting matters more than the number.
6. Liquidated Ascertained Damages (LAD) — the developer's late-delivery cost
What to check. For Schedule H, Clause 25(2) — LAD at 10% per annum on the purchase price, calculated day-by-day from the day after the 36-month deadline until VP is delivered.
Why. A 6-month delay on an RM1.5M unit costs the developer roughly RM75,000. That's your money, not a favour. Track it.
New launch nuance. Some developers try to sneak "revised completion date" side letters. A variation that reduces LAD is void — do not sign side letters that purport to extend the SPA date.
Subsale nuance. LAD does not apply — instead the SPA typically has an 8% p.a. interest clause on unpaid balance, both ways.
7. Common property vacant possession — new launch only
What to check. Schedule H Clause 27 — the common facilities (pool, gym, lifts, gardens) must be ready and habitable at VP of the individual unit. Not "will be ready in 6 months".
Why. VP of a bare unit in a building without lifts running is not VP. This is under-litigated; buyers accept keys and stop the clock.
New launch nuance. Insist on a written "common property completion" confirmation with the VP notice.
Subsale nuance. Not applicable — the common property is already commissioned.
8. Defect Liability Period (DLP)
What to check. For Schedule H: Clause 30 — 24 months from the date of VP. The developer must repair defects within 30 days of written notice.
Why. DLP is the buyer's only mechanism to force post-VP repairs at the developer's cost.
New launch nuance. Notify defects in writing (email is fine; keep the timestamp). If the developer misses the 30-day window, you may repair and deduct from the 5% retention. Sources: Schedule H, Clauses 30 and 34; HDA 1966 s.16N (Tribunal jurisdiction).
Subsale nuance. No statutory DLP. The unit is bought as-is. If the seller warrants specific repairs (a leaky bathroom, a broken split unit), that must be a written clause conditional on completion — verbal promises after signing are unenforceable.
9. Retention sum — new launch only
What to check. Schedule H Third Schedule — 5% of purchase price held by the developer's solicitor as stakeholder, released 2.5% at 6 months post-VP and 2.5% at end of DLP.
Why. This is what pays for defect repairs the developer won't do.
New launch nuance. Do not agree to a "5% released to developer at VP" variation. A stakeholder must hold it, not the developer.
Subsale nuance. Not applicable.
10. State consent (COSA) — mandatory for foreign buyers
What to check. The SPA must be conditional on obtaining state consent (COSA) for a foreign purchaser, and completion must automatically extend for the COSA duration (I ask for up to 6 months — 3–4 months is typical but there's variance).
Why. Penang is a "designated state" — every foreign purchase needs written consent from the State Authority under the National Land Code. If your SPA does not extend completion for COSA, and the seller refuses a variation, you can be in technical default before COSA even issues. This is the clause I most often see missing on subsale SPAs, and it's the single most expensive omission.
New launch nuance. Schedule H itself doesn't handle COSA — it's usually a Special Condition at the back of the document. Read it. Sources: National Land Code (Revised 2020) s.433B; Penang State Authority guidelines on foreign property purchase, state consent portal.
Subsale nuance. If missing, ask the seller's lawyer to add: "Completion Date shall be extended by the number of days between the SPA date and the date the State Authority issues consent under section 433B of the National Land Code, without penalty or interest to the Purchaser."
11. Foreign purchase floor and levy
What to check. Purchase price ≥ RM1,000,000 if the property is on Penang Island, ≥ RM600,000 on Seberang Perai (mainland). Penang foreign-buyer levy of 3% (island) / 2% (mainland) on the full purchase price, payable on submission of the COSA application.
Why. Below the floor, COSA will be refused — the SPA collapses and deposit refund becomes a fight.
New launch nuance. Some developers advertise units at RM950,000 to Malaysians and RM1,050,000 to foreigners — that's a legitimate structure; verify the SPA price for a foreign buyer is above the floor.
Subsale nuance. The floor still applies. I've seen foreign buyers try to buy a RM950,000 subsale unit and the deal simply cannot complete — the seller can be persuaded to price up to RM1,000,000, but the buyer then also pays the levy on the higher price. Model it before signing.
12. Stamp duty — MOT and SPA
What to check. Two stamp duties: on the SPA itself (nominal, RM10), and on the Memorandum of Transfer (MOT) at title transfer. For a foreign buyer, MOT stamp duty is a flat 8% on the higher of purchase price or market value. (The tiered 1–4% scale you may have read is the citizen rate.)
Why. An RM1.5M unit — foreigner pays RM120,000 MOT stamp duty, citizen pays RM44,000. A 3x difference is enough to blow a cash-in budget.
New launch nuance. MOT triggers on strata title issuance, which can be 2–5 years after VP. Plan the cash flow for that future date.
Subsale nuance. If strata title has issued, MOT stamp duty is paid at completion — much sooner. Budget it as cash-in at completion, not later.
13. Loan clause — the "conditional on financing" protection
What to check. A clause allowing the buyer to terminate without penalty if the bank declines the loan within a specified window (usually 90 days for a subsale).
Why. Foreign buyers face ~70% LTV in Malaysia — sometimes less depending on nationality and profile. If you assumed 80% and only got 65%, you need a way out that doesn't cost you the 10%.
New launch nuance. Schedule H includes a limited loan-approval clause (Clause 5) — read it. Some developers add "developer refinancing" packages; those are not the same as a bank loan and don't count for the clause.
Subsale nuance. Not standard — must be negotiated in. On a hot listing the seller may refuse. If refused, the deposit becomes at risk from Day 1.
14. Progress billings vs completion payment
What to check. For Schedule H: the Third Schedule payment cascade — 10% at SPA, then milestone-linked billings (foundation, structural, roof, internal, external, common areas, VP), retention held to 5%.
Why. Payments are on billings, not on time. If the developer bills you before the milestone is genuinely complete, you can — and should — refuse until the architect's certificate is issued.
New launch nuance. Retain the architect's Form F stamped certificates for every billing. Your bank will need them for progress drawdown.
Subsale nuance. Not applicable — one payment at completion.
15. Seller's warranties — subsale only
What to check. The seller warrants: valid title, unit free of encumbrances (or specifying the existing charge to be redeemed), no adverse notices, no undisclosed maintenance fee arrears, no pending JMB/MC dispute, and vacant possession delivered at completion.
Why. Otherwise the buyer inherits problems — I've seen a subsale complete with RM18,000 of unpaid maintenance fees the buyer had to settle to get the strata roll updated.
New launch nuance. Not applicable — the developer's obligations are statutory.
Subsale nuance. Ask for a JMB/MC statement of account dated within 14 days of completion, and a fresh title search on completion day.
16. Redemption of seller's existing loan — subsale only
What to check. If the seller has an outstanding mortgage, the SPA must specify: (a) redemption sum obtained from seller's bank within a defined window, (b) balance purchase price paid direct to seller's bank first (redemption), then remainder to seller, (c) discharge of charge registered before or with the MOT.
Why. If the redemption paperwork lags, MOT cannot register — the buyer has paid but doesn't own the unit. This is where 3-month completions become 5-month completions.
New launch nuance. Not applicable.
Subsale nuance. Insist on redemption statement issued within 14 days of SPA, not "at completion". Delay here is the most common cause of subsale completion slippage in Penang.
17. Vacant possession — condition of delivery
What to check. For new launch: unit finished per the specification, snag list documented, common facilities operational. For subsale: unit as-inspected on the day of SPA signing (minus fair wear and tear), all seller belongings removed, fixtures and fittings as listed.
Why. VP with the seller's old washing machine still in place is not clean VP.
New launch nuance. Schedule Third Schedule — VP is triggered by developer's written notice; buyer has 14 days to take vacant possession. Do the defect inspection in that window.
Subsale nuance. Attach a fixtures and fittings inventory to the SPA. Photograph the unit at signing. What's not in writing walks with the seller.
18. Insurance and risk transfer
What to check. When does risk pass to the buyer? For Schedule H, at VP. For subsale, at completion — but you need building insurance from Day 1 of possession, and contents insurance separately.
Why. A fire between key handover and insurance activation is the buyer's problem.
New launch nuance. Developer maintains block insurance until VP; buyer's mortgagee insurance kicks in at VP — verify with your bank.
Subsale nuance. Building insurance is via the JMB/MC block policy. Confirm the block policy is current and the buyer is noted as the new owner within 30 days of completion.
19. Default and remedy — both sides
What to check. What happens if buyer defaults on a progress billing or completion payment? What happens if seller/developer defaults on delivery? Are the remedies specific performance (order to perform) or damages (money) or both?
Why. A subsale SPA with only "deposit forfeit" as buyer's remedy for seller default is weak — if the market has moved up 20%, the seller happily forfeits the deposit and re-sells. You want specific performance as an option, not just money.
New launch nuance. Statutory — LAD is fixed at 10% p.a., termination rights are in Clause 25(3) and 25(4).
Subsale nuance. The most under-negotiated clause. Ask for: 8% p.a. interest on late payment either way, specific performance available to either party, forfeiture only as a Purchaser's election (not automatic).
20. Dispute resolution and jurisdiction
What to check. Which court, which law, which language of proceedings? For HDA disputes, the Tribunal for Homebuyer Claims (up to RM50,000, no lawyer required) is fast and cheap for smaller matters.
Why. A properly worded dispute clause saves months in a defect fight.
New launch nuance. HDA claims can go to the Tribunal for Homebuyer Claims under HDA 1966 s.16B — faster and cheaper than the courts for claims under RM50,000. Larger disputes go to the High Court, Penang. Sources: HDA 1966 ss.16A–16Y.
Subsale nuance. Standard jurisdiction is the High Court of Malaya, Penang Registry. Some SPAs specify arbitration under AIAC rules — cheaper only if the parties actually cooperate.
21. Special conditions and side letters
What to check. Every special condition at the back of the SPA. Every side letter, term sheet, marketing brochure, price list attached as an appendix.
Why. The special conditions section is where the developer or seller reserves whatever they think you didn't read carefully. Freebies (SPA legal fees, free furniture, "10% off" packages) are usually here with conditions.
New launch nuance. Developer rebates and freebies must be documented in the SPA or a duly stamped side letter, not just in a WhatsApp screenshot. If a bank sees an undisclosed rebate, the loan margin will be adjusted downward.
Subsale nuance. Any seller-fix-before-completion items must be here with a completion condition — "seller shall repair the leak in Bedroom 2 to Purchaser's reasonable satisfaction prior to completion".
Deposit clauses — do you actually get it back?
If the developer misses VP by 18 months (Schedule H)
Under Schedule H clause 25(2), the developer owes you LAD at 10% p.a. on the full purchase price for the period past 36 months. On a RM1.5M unit, an 18-month delay is roughly RM225,000 owed to you.
But your deposit is not "returned" — the unit is still being delivered, just late. LAD is a compensation, not a rescission. Rescission (deposit back, deal cancelled) is only available if delay is so extreme it triggers total failure of consideration, which in Malaysian practice is usually 24+ months late plus the developer having stopped work. Case-by-case, and your lawyer files.
In practice: most Penang high-rise developers pay LAD by deducting it from the last progress billing. A few contest it. Bring the Form F certificates, the SPA date, and the VP notice date — the arithmetic is not disputable, only the excuses are.
If the subsale seller withdraws 3 weeks before completion
Standard subsale SPA remedy for seller default: forfeit an amount equivalent to buyer's 10% deposit to the buyer, as liquidated damages. So the buyer gets back their 10% deposit plus the seller pays another 10% — you're up 10% and out of the deal.
But that only works if the SPA is drafted that way. Some SPAs allow the seller to "withdraw without penalty" if a specified condition fails. Check clause 21 (default) and clause 22 (rescission) of your subsale SPA carefully.
The bigger risk is not withdrawal, it's stalling — the seller doesn't say no, they just don't sign the redemption statement, don't respond to lawyer's letters, and let the completion date pass. Your SPA needs a specific performance clause with 8% p.a. interest on the outstanding balance during any seller-caused delay. Otherwise your only remedy is a court order months away, and meanwhile the market moves.
State consent + foreign buyer clauses — what a Penang SPA must contain
Every foreign purchase of Malaysian property in a designated state (Penang is one) requires written consent from the State Authority under section 433B of the National Land Code (Revised 2020). The Penang consent process is administered by PTG (Land Office) with the State Executive Council decision — realistic timeline is 3–4 months from filing (owner decision, 2026-08-25). The 4–8 weeks figure some sites still quote is outdated.
Your SPA — new launch OR subsale — must have all four of the following:
- The SPA is conditional on state consent — no completion / no MOT until consent issues.
- Completion date automatically extends for the COSA period without penalty or interest.
- Foreign purchase floor and levy are the buyer's responsibility — priced above the floor, levy calculated on full price (3% island / 2% mainland).
- Refund of deposit if consent is refused — full refund of all sums paid, with no forfeit, if the State Authority declines consent through no fault of the buyer.
If any of these four is missing on a subsale, ask for a redraft. This is not negotiable — it's the biggest deposit-risk clause in any Penang foreign-buyer subsale.
Sources: National Land Code (Revised 2020) s.433B; Penang State Government foreign purchase guidelines.
Vacant possession + Defect Liability Period — what "24 months from VP" actually means
For Schedule H under HDA 1966, the DLP is 24 calendar months from the date of vacant possession (Clause 30). The clock starts the day the developer issues the VP notice — not the day you inspect, not the day you move in.
What that means practically:
- Log defects in writing — email is fine. Include unit number, date, description, photos. The 30-day repair clock starts from written notice.
- The developer's 30-day window — if they don't fix within 30 days, you may repair yourself and deduct from the 5% retention sum. The retention is held by the developer's solicitor as stakeholder, released 2.5% at 6 months post-VP, 2.5% at end of DLP.
- After 24 months — DLP ends, but the developer remains liable for latent defects discovered later (structural, hidden), subject to the 6-year contract limitation period. Sources: Housing Development (Control and Licensing) Regulations 1989, Schedule H, Clauses 27, 30, 34; HDA 1966 s.16N.
On a subsale, none of this applies. No DLP, no retention, no repair obligation. The unit is bought as-is. Any repair commitment from the seller must be a written SPA clause with a completion condition, not a verbal promise.
The three clauses I've seen buyers get burned on in Penang
1. Missing state consent extension on subsale. Buyer is a Singaporean, seller is local Malaysian. SPA drafted with "completion within 3 + 1 months" — no COSA extension. Consent takes 4.5 months. Buyer is deemed in default at Month 4 despite doing everything right. Deposit at risk; only saved because the seller agreed to a variation for a fee. Never sign a foreign-buyer subsale SPA without the COSA extension clause.
2. Verbal defect promise on a Batu Ferringhi subsale. Sea-front condo in Batu Ferringhi, 2010-vintage strata unit. Seller verbally agrees to fix the corroded sliding door track before completion. Nothing in writing. Buyer completes; seller has moved to KL and stops answering calls. Repair cost: RM4,200. Not a bank-breaker, but a preventable loss — a written pre-completion condition would have cost nothing to include.
3. "Sales gallery timeline" vs SPA delivery date on a new launch. Tanjung Tokong high-rise. Marketing said "keys in 30 months". SPA said 36 months (Schedule H standard). Delivery took 41 months from SPA. Buyer LAD claim: 10% p.a. on the 5-month overrun — roughly RM62,500 on an RM1.5M unit. Developer initially claimed the "revised completion date" letter they'd sent in year 2 varied the SPA. It didn't — a variation reducing LAD is void under HDA. LAD paid in full after the lawyer's demand. The SPA date is the number that matters, not the marketing.
Costs to plan for at SPA signing — a checklist within a checklist
Foreign buyer on Penang Island, an example unit at RM1.5M:
| Item | Amount | When paid |
|---|---|---|
| 10% down (less booking fee) | RM150,000 | SPA date |
| SPA legal fees (~1%) | RM11,750 | SPA date |
| SPA stamp duty | RM10 nominal | SPA date |
| Loan agreement legal + stamp | ~RM12,500 | SPA date + drawdown |
| State levy (3% island) | RM45,000 | COSA application (~1 month) |
| MOT stamp duty (8% foreign) | RM120,000 | Title transfer (years later on new launch, at completion on subsale) |
| Total cash outside the loan, subsale | ~RM339,260 | Over ~6 months |
| Total cash outside the loan, new launch | ~RM219,260 up front + RM120,000 at title | Split over years |
For a citizen buyer, the two big numbers change: no 3% levy (RM0), and MOT stamp duty ~2–3% on the tiered scale (RM44,000 on RM1.5M) rather than 8%.
Model this at signing, not at completion. Every buyer surprise I've cleaned up would have been avoided by looking at this table before signing.
Frequently asked before signing — quick answers
Do I need a lawyer? Can't I use the developer's / seller's lawyer? You need your own. The developer's / seller's lawyer acts for them and has fiduciary duty to their client, not you. A separate buyer's conveyancing lawyer costs ~1% of the price and pays for itself the first time they flag a Special Condition you didn't want.
Can I sign the SPA remotely from overseas? Yes — via video call with your conveyancing lawyer, then courier the wet-ink original. Some Penang law firms handle this monthly for foreign buyers. Plan for a 5–7 day courier round-trip.
How long from SPA signing to keys — new launch vs subsale? New launch: 36 months to VP (Schedule H maximum), plus 2–5 years to strata title issuance. Subsale: 3–4 months to completion (plus COSA time for foreigners).
What if the developer goes bust mid-construction? You are a creditor. HDA 1966 s.7A ringfences the HDA account, but progress billings already drawn are typically deployed. This is why licensing checks (check 2) matter — a licensed developer with a track record beats a "special vehicle" with a first project, all else equal.
Related reading
- Buying property in Penang as a foreigner — the full process — RM1M floor, state consent, MOT, RPGT, MM2H.
- Penang new-launches directory — every current Schedule H project we cover.
- Penang subsale directory — private-treaty stock, listed and filtered.
- Glossary — SPA, Schedule H, MOT, COSA, LAD, DLP defined.
- 11 Brook Residences (Batu Ferringhi) — review — a subsale example, worth reading with this checklist open.
- Andaman at Quayside (Tanjung Tokong) — review — how a well-drafted subsale plays.
Sources
- Housing Development (Control and Licensing) Act 1966 — HDA 1966, ss. 7A, 16A–16Y, 16N. Federal legislation, Attorney General's Chambers of Malaysia.
- Housing Development (Control and Licensing) Regulations 1989 — subsidiary legislation, Schedules G, H, I, J. Schedule H clauses referenced: 5 (financing), 25 (VP + LAD), 27 (common property), 30 (DLP), 34 (retention).
- National Land Code (Revised 2020) — s.433B (state consent for foreign purchase).
- Penang State Government — foreign purchase guidelines, minimum price thresholds, state levy rates.
- Ministry of Housing and Local Government (KPKT) — Housing Developer's Licence and APDL public registers.
- Tribunal for Homebuyer Claims — HDA 1966 ss.16A–16Y, RM50,000 jurisdiction.
This is a checklist, not legal advice. Every SPA is different, and Penang land-office practice evolves. Before you sign, sit down with a Penang-licensed conveyancing lawyer — 45 minutes with the SPA in front of both of you is the best money you'll spend on the deal.
If you're weeks away from signing and want a second pair of eyes on the SPA and price, that's what I do. WhatsApp me with the project name and I'll tell you honestly whether the clauses match the deal you think you're getting.
— Zac Ong, REN 64593, PropNex Penang