It does not matter if you are a first homeowner or a serial Real Estate Investor, there is always a thrill in first receiving the keys to your new home especially if the deal is sweet and the wait is long.
As exciting as receiving the keys to your new house seems, it is not all sunshine and rainbows. There are several things that you have to be aware of. Especially when it comes to what is needed during the handover, what kind of “warranties” are you given, what is the procedure and how soon can you get your house to be habitable?
Hence, here is a general guide on what to do upon receiving the keys to your new home.
1. Delivery of Vacant Posession
Vacant Possession is a legal term used to indicate that a property is in a competent state where it is safe, fit, and ready to be occupied. It is the process of handing over the house keys by the developer to the buyer upon receiving the Certification of Completion and Compliance (CCC).
If you bought a new property, the vacant possession is estimated to be delivered within 36 months from the date of signing the Sales and Purchase Agreement (SPA). If the property is not delivered with the agreed time, then you have the right to claim for late delivery through the Liquidated Ascertained Damages (LAD).
If you bought a subsales unit from the previous owner, you can expect to receive the Vacant Possession (VP) earlier. The earliest you can expect to receive the proper handover is 3-month depending on the payment of balance purchase price for the property and the Agreed Apportionments.
If the property you bought is a leasehold unit, then do expect the earliest handover period to be 6-month because of the additional layer of approval from the local authorities.
Check out this link if you want to understand the implications of leasehold and freehold.
With that said, it is usual for you to receive notice of vacant possession for primary purchases when the property is around 70% completed. The notice is issued from the developer in order to set a date for the delivery of your vacant possession.
Once the property is properly completed, you are then required to turn up at their sales office and officially collect the keys to your new property.
Again, there will also be times when the handover is delayed. If the developer fails to get an approval of extension from the local authorities, then you, the buyer, can claim for LAD. Before you do take things to court, it is best for you to check with a lawyer if your situation fulfills the requirements of a LAD.
2. Ensure your home has a Certificate of Completion and Compliance (CCC)
The Certificate of Completion and Compliance (CCC), also known as Form F, is a certificate to declare that a building is safe and fit for occupation. It is only issued after ensuring that all designs and constructions are in accordance and complying to conditions set by local authorities.
In other words, CCC is a self-regulated and self-certified process that deals with the technical elements of building construction to ensure that none of the safety aspects is compromised. It is endorsed by a registered member of the Malaysian Board of Architects (LAM) and is part of the requirement in the SPA.
Compared to the older system known as Certificate of Fitness for Occupation (CFO), the CCC system is more effective, transparent and less room for corruption.
The Certification of Completion and Compliance (CCC) is typically issued after the following six components of the construction are confirmed.
- Confirmation on roads and drainage.
- Confirmation of electrical supply from Tenaga Nasional Berhad (TNB).
- Confirmation of water supply from relevant water authorities such as Indah Water.
- Confirmation by Jabatan Perkhidmatan Pembentungan for the connection to sewage treatment plants or mains.
- Clearance from Fire and Rescue Department (BOMBA) for the active fire fighting systems (except for residential home that are less than 18 m high).
- Clearance from Department of Occupational Safety and Health (OSHA) for the machinery and lift systems (if applicable).
The Certificate of Completion and Compliance (CCC) is an essential element of the Sales and Purchase Agreement (SPA). It is an offence for a building to be occupied before the CCC is issued. Hence, purchasers should check for the CCC before accepting the Vacant Possession (VP).
3. Check your new home for construction defects
Now that you are aware of the official process of a handover, you should also know that you will be required to sign several documents after receiving the new house keys.
These will be the Purchaser Handover Form which includes a general list of the fixtures, appliances, and built-ins that comes with your home. It is important to know once you sign these documents, the clock on the Defect Liability Period (DLP) begins running.
What is a Defect Liability Period (DLP)?
The Defect Liability Period, under the Malaysian Housing Development Act (HDA), serves as a “warranty period” that lasts for 24 months starting from the delivery date of Vacant Possession (VP) whereby the keys are handed over to the homeowners and purchaser handover form is signed.
During this period, your first priority is to check for any defects, damages, faulty workmanship, and report the issues to the developer. The same goes for if any irregularities from the SPA are detected. The report filed will then be attended to by the developer at no cost.
It is important to compare the construction details stated in your Sales and Purchase Agreement (SPA) against the actual built of your new home. Once the details matches, the next priority is to check for functionality and defects.
On a side note, it is according to the HDA that the DLP only protects developments and residential properties. This includes condominium, serviced apartments, landed properties and Small Office Home Office (SOHO).
It does not protect against commercial units such as offices, retail lots, Small Office Versatile Office (SOVO) and Small Office Flexi Office (SOFO).
What to look out for during the Defect Liability Period?
Generally, a joint inspection will be scheduled with the developer’s representative when the VP is handover to you. But the allocated slot is usually not more than an hour. During this time, you will want to run through the details stipulated in the SPA against the actual built of the house.
Consequently, you should inspect your home (at your own time) to check whether the workmanship is satisfactory, whether all the fixtures and appliances are in good working condition, and whether the property delivered is as promised by the developer within the DLP.
Based on my experience, it is best not to procrastinate. The faster you complete the inspection, the faster the issues are repaired since most developers run on a first come first serve basis. If you lodge the complaint only towards the end of your DLP, you might face the risk of having to pay the contractor if they are unable to schedule your unit into their list in time.
Well, if you are worried about not knowing what to check, fear not as the developer usually provides a Defect Complaint Form that lists the common areas of the house. With that form, you can inspect each area accordingly and mark out any problems that you may find.
And by any, I mean even the little problems that we all tend to ignore. For instance, scuff marks on the wall, misaligned flooring, etc.
Having said that, here are some of the tips on what to inspect during the DLP.
Doors, Sliding Doors, Windows, and Built-in Fixtures
- Check the door frames for any damages.
- Check the slidig doors and windows for the rubber seal.
- Open and close the doors, drawers, etc. to make sure there are no creaking sounds and that the hinges are properly connected.
- Open the windows as wide as possible and try locking the sliding doors to check whether they can be shut tightly.
- Inspect all keys to make sure that the keys given matches with the locks of your property.
- Observe for any chips, dents, scratches, and/or scuff marks on the surfaces of your built-ins.
- Check the staircase handrail for any loose parts.
Floor, Wall, Roof and Other Structural Components
- Check for any hollow floor and wall tiles by knocking lightly on it with a stick.
- Inspect for wonky surfaces by using a spirit measure to check whether the surface are leveled.
- Inspect the structural components of your house for any cracks, water stains, peeling of paints, etc.
- Check the roof for any damaged or missing roof tiles.
Electrical Components
- Check all power outlet to make sure that they are all working.
- Test all electrical appliances to ensure they are all in good working condition.
- Turn on the lights to check whether it is flickering and if there are any missing bulbs.
- Observe the property for any loose and/or exposed wiring.
- Get a licenced electrician to check the electrical panel to ensure all wiring are in place and safe for usage.
Plumbing and drainage
- Inspect all pipe fittings for any leakages.
- Check the toilet fixtures to know whether it functions and drains properly.
- Inspect the water pressure as to whether it is adequate for daily use.
- Turn on the water heater and leave it running to check whether it is in good working condition
Some of the basic tools that you might need while carrying out the inspections, other than a whole lot of time and patience, are such as:
- Masking tape or post-it notes (to mark the defects)
- Marker pen
- Camera
- Torthlight
- Measuring tape
- Spirit level
- Stepladder (to reach high places)
- Tapping rod or anything that is appropriate (to test the tiled floors and walls for any hollow gap)
- Your Sales and Purchase Agreement (SPA) (to compare the relevant specifications and measurements)
Once the inspection is completed, you will have to record the defects in an official manner and then submit the defects report to the developer. Remember to always get an acknowledgement receipt from the developer as proof of your submission.
After the submission of the defects list, the developer should take action for rectification works within 30 days. Nevertheless, if you do not get any response or receive a delayed response, then you can always write in an official letter of intent to have the defects repaired by yourself.
Get your own contractor if the developer fails to respond
If the developer fails to take action after 30 days of the defect list being submitted, you should start taking charge of the situation.
At this stage, you will want to engage at least 2 third-party contractors to provide quotes on the rectification works. Once you have the quote, submit it to the developer and wait for another 30 days.
If another 30 days have passed and the developer fails to act or respond, then you can engage the services of the third-party contractor. Upon completion of rectification works, submit a copy of the invoice to claim for reimbursement.
In the worst possible situation, you can make claims against the developer at the Tribunal of Homebuyer Claims Malaysia if the developer still refuses to reimburse the rectification works. Do note that these claims are limited to RM 50,000.
If the rectification work is expected to cost more than RM 50,000, it might be best to make demands against the developer or seek advice from relevant legal counsel before proceeding with a decision.
4. Get in contact with the management office
This step is more for homeowners with a strata-titled property.
So if you are the happy owner of a condominium, serviced apartment or landed property in a gated community, you might want to read this.
In strata properties, the well-being of the estate or gated community as well as the shared facilities and common areas are managed by the management office. Typically, the management is selected by the developer and known as the Joint Management Body. The formation of a Joint Management Body typically goes on for 2 years.
After 2 years or once the residential committee is set up, the estate will be taken care of by the Management Committee which consists of representatives from the owners elected through the Annual General Meeting.
Hence, there is no harm to know more people and familiarise yourself with the management’s working style. That way, it will be easier for you if you need to apply for any work permit for renovation/repair purposes or to pay your monthly maintenance fees and so on.
Besides, do take the initiative to enquire about the house rules for your building such as whether pets are allowed, the specifications for the grill installations, the colour scheme, etc.
Other than that, building sincere relationships are also important. Being friends with the management team may just make them more willing to help you out should you come across any problems in the future.
5. Apply for utilities
After you received the keys to your property, it is not just about moving in, unpacking, and renovating the place to make it feel more like home. There are also other matters such as getting in touch with the relevant companies to apply for your home’s utility.
Typically, the developers will get you to pre-sign all registration forms related to the utilities. Ideally, utilities supply such as water, electricity and sewerage is registered by the time you receive your new house keys.
In some cases, that may not be the case and this is what you should do.
How to connect your electricity supply?
In order to connect your electricity supply, you must first register with the nearest electricity company for an active electric line. In Malaysia, there are 3 widely known electricity companies – Tenaga Nasional Berhad (TNB) for Peninsular Malaysia, Sarawak Energy Berhad (SEB) for Sarawak, and Sabah Electricity Sdn Bhd (SESB) for Sabah.
The process and documents required may differ depending on where you stay however the general guidelines are as follow:
Application for Property from Primary Purchase
- Hire an electrical contractor (for electrical load below 100kVA) or an electrical consutant engineer (for electrical load above 100kVA) that is registered with the relevant authorities to assess your property and help submit the electricity application on your behalf.
- Fill up the relevant application forms and attach it with a copy of your identification papers, registration certificate and proof of property ownership or occupancy.
- Pay the essential charges such as the deposit, connection fee and stamp duty.
- Wait for your application to be approved.
Application for Property from Secondary Purchase
The application process for secondary purchases is slightly easier since the property already has an existing electricity line from the previous owner. Hence, all you need to do is to reconnect the electricity line.
- Apply for your electricity to be reconnected at the nearest electricity company.
- Prepare all necessary documents such as a copy of your identification document, proof of ownership – land title, duly stamped SPA or proclamation of sale.
- Pay the essential charges such as the stamp duty and reconnection fee.
- Wait for your application to be approved.
Further to that, application for the reconnection of electricity line can be done without hiring an electrical contractor or electrical consultant engineer if the service cable and premise’s meter board are still in good condition.
If you are buying over a really old property, maybe you want to get an expert to check the property’s internal wiring if it is in good working condition.
How to connect your water supply?
The process and documents required to apply for your water supply may differ depending on the respective water company in your state. However, the general documents in which buyers of both primary and secondary purchase can anticipate to prepare are as follow:
- A copy of identification document.
- A copy of the CCC.
- A copy of the land title, tax assessment, land tax.
- Stamp duty of RM10.
- A copy of your tenancy agreement (applicable only for tenants).
- The water bill and account statement of the property (if applicable).
How to set up your sewerage services?
Generally, homeowners of new developments should not have to worry about their sewerage services since the sewerage connection is already installed prior to the delivery of Vacant Possession (VP). If the property is custom-built, it is important to engage the local sewerage services.
In Malaysia, the public sewerage system is managed by Indah Water Konsortium (IWK) except for Kelantan, Johor Bahru, Sabah, and Sarawak that are maintained by their own local authorities.
The procedures to apply for sewerage serviced from IWK are as follows.
- Apply for the sewerage services via the IWK website or their office.
- Bring along a copy of your SPA.
- Pay the fees (will vary depending on the type of property and services to provided by IWK).
- Apply for a change of ownership to reconnect the water supply (only applicable if you purchased a subsale property that already has an existing connection to the IWK system).
How to connect your cooking gas supply?
Today, most newer residential developments in Malaysia do not come ready with internal gas pipes. Instead, residents will have to use a propane gas cylinder or induction stove which is significantly more affordable than having Gas Malaysia service.
Nonetheless, if you bought over an older property with a built-in gas pipe, then you want to read on.
Piped gas is supplied by Gas Malaysia to areas such as the Federal Territory of Kuala Lumpur, Ampang, Cyberjaya, Damansara, Ipoh, Bayan Lepas, Georgetown, and Sungai Petani. Hence, if you live in these areas, then you can opt to apply for piped gas supply – either natural gas or liquefied petroleum gas with Gas Malaysia.
To know more, feel free and head over to Gas Malaysia’s website.
6. Plan your spaces
Once you have sorted out the paper works and rectification works, here comes the fun part.
Design your spaces!
When it comes to planning your spaces, it is not just about how the arrangement of the furniture or the colours of the wall. There are also a few areas in which you need to consider before you start moving in.
- Air-cond installation.
Some units does not come with built-in AC.
Hence, you will need to hire an aircon installer to plan out the power needs, the location to mount the compressors and check with the management regarding the route to channel your AC discharge pipe before any installation is conducted. - Lighting, fans and power outlets.
Most of the properties are usually delivered with exposed wiring points.
With that said, you have all the freedom to plan your lighting and fan layouts to achieve the ambience you want for your home. Once there is a vision of how the space looks like, that’s where you start analysing for strategic locations to install additional power outlets. - Safety grille design and installation.
For individual titled properties, there is not much to consider in terms of the regulations for installing safety grille. However, for strata properties, you are required to get the specification for the safety grille design and colour from the management.
Final Words
I am glad this article was helpful in answering some of the queries that you may have.
Do check out my other articles that will help you along your homeownership journey.
