My new house has defects. Should I go to the Tribunal for Homebuyer Claims or to court?

You have just collected the keys. Within weeks there are cracks in the walls, hollow tiles, a leaking roof and windows that will not close. The developer is slow to respond. You have two main routes: the Tribunal for Homebuyer Claims or a court action.

The defects liability period

The sale and purchase agreement sets a defects liability period after vacant possession, during which the developer must repair defects you report in writing within the time stated. Read your agreement for the period and the steps it requires. Report every defect in writing, keep copies, and photograph each one.

The Tribunal for Homebuyer Claims

The Tribunal is set up under the Housing Development (Control and Licensing) Act 1966 (s.16B).

• Amount: it can determine a claim where the total award sought does not exceed RM50,000 (s.16M(1)). The claim may include consequential loss (s.16M(4)).
• Larger claims: the limit can be exceeded if both parties agree in writing (s.16O), or you can abandon the excess to bring the claim within the limit (s.16P). Claims cannot be split to get under the limit (s.16Q).
• Basis: the claim must arise from the sale and purchase agreement between the homebuyer and the developer (s.16N(2)).
• Exclusions: no claims for recovery of land, inheritance disputes, goodwill or intellectual property (s.16N(1)), or for personal injury or death (s.16N(4)).

The 12-month windows

A claim must be brought not later than 12 months from one of these:

• the date of the certificate of completion and compliance for the house or the common facilities, whichever is later;
• the expiry of the defects liability period in the agreement; or
• the date the agreement was terminated before the certificate was issued (s.16N(2)).

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How the Tribunal works

• Each party may attend and be heard. Lawyers cannot appear unless the Tribunal finds complex legal issues and severe financial hardship; then both sides may be represented (s.16U(2)). A company can be represented by a full-time employee (s.16U(3)).
• If a claim is filed with the Tribunal, the same issues cannot be taken to court between the same parties unless the court case started first or the Tribunal claim ends without a decision (s.16R).
• An award is final and binding and deemed an order of the Magistrates' Court or Sessions Court, enforceable accordingly (s.16AC).
• Failing to comply with an award within the time specified is an offence, with a fine of RM10,000 to RM50,000, imprisonment of up to two years, or both, plus a daily fine for continuing offences (s.16AD).

When court is the better route

A court claim for breach of contract may suit you better when:

• the repair cost and losses are well above RM50,000 and the developer will not agree to the Tribunal hearing it;
• the 12-month windows have passed;
• you also claim against other parties, such as a contractor or consultant; or
• the claim includes personal injury.

A breach of contract claim in court is generally subject to the six-year limitation period in the Limitation Act 1953 (s.6(1)(a)). Damages follow section 74 of the Contracts Act 1950: loss arising naturally from the breach.

What should I do first?

1. List every defect with photos and dates.
2. Notify the developer in writing within the defects liability period.
3. Keep a record of the developer's responses and any repairs.
4. Get a building surveyor's or contractor's report and repair quotations if the developer fails to repair.
5. Diarise the 12-month deadline for a Tribunal claim.

Example

A homebuyer reports cracks and roof leaks in writing during the defects liability period. The developer does not repair them. Within 12 months of the end of that period, the buyer files a claim for RM40,000, the cost of repair according to a contractor's quotation. The Tribunal awards that sum.

Common mistakes

• Repairing the defects yourself before notifying the developer.
• Reporting defects only by phone.
• Missing the 12-month Tribunal deadline.
• Splitting a large claim into small claims.

When to speak to a lawyer

Speak to a lawyer if the defects are serious or costly, the Tribunal deadline has passed, or several parties may be responsible. See our civil litigation page; you can also contact us.

Frequently asked questions

Can I go to the Strata Management Tribunal instead?

Defects in common property of a strata development can also be raised there, subject to the Housing Development Act provisions. Disputes between a buyer and developer under the agreement usually go to the Tribunal for Homebuyer Claims.

Can I claim for alternative accommodation while repairs are done?

Consequential loss can be included in a Tribunal claim (s.16M(4)). You must prove it with documents.

What if the developer is wound up?

Claims against a company in liquidation are made through the liquidator. Take advice early.

Sources & fact check

Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.

1. Housing Development (Control and Licensing) Act 1966 (Act 118), AGC Laws of Malaysia
2. KPKT: Tribunal for Homebuyer Claims (TTPR) FAQ — jurisdiction, RM50,000 limit, 12-month filing periods, LAD calculation
3. Contracts Act 1950 (Act 136), AGC Laws of Malaysia
4. Limitation Act 1953 (Act 254), including section 6, AGC Laws of Malaysia

Fact-checked on 18 Oct 2026