1.

Standard SPA
Regulation 11(1) of the Housing Developer (Control and
Licensing) Regulations 1989 provides that every
contract of sale for the sale and purchase of a housing
accommodation together with the sub-divisional portion
of land appurtenant thereto shall be in the form
prescribed in Schedule G and where the contract of sale
is for the sale and purchase of a housing
accommodation in a subdivided building, in the form of
a parcel of a building or land intended for subdivision
into parcels, as the case may be, it shall be in the form
prescribed in Schedule H.
Regulation (2) provides that no person including parties
acting as stakeholders shall collect any payment by
whatever name called except as prescribed by the
contract of sale.
No developer is allowed to contract out of his
obligations under the law.
2. Developers duties under the SPA
The duties of the developer under the standard SPA can
be briefly described as follows:(Refer to Schedule standard SPA under
Development (Control & Licensing) Regulation.)

Housing

(a) To sell the property free from any restrictions and

encumbrances other than those conditions expressed or
implied affecting the title;
(b) Upon execution of the agreement, not to encumber the
property save with the prior approval of the purchaser; and
to undertake that the property shall be rendered free from
any encumbrance immediately prior to the handing over of
vacant possession of the building to the purchaser;

(c) To complete the construction of the house on time, as para

7 of the standard SPA (see Schedule G and H) states that
Time shall be the essence of the contract, in relation to all
provisions of this Agreement. For standard housing units,
the period of completion and handing over vacant
possession is 24 months (para 20 of Schedule G) while for
sub-divided buildings, the period is 36 months (para 24 of
Schedule H);
(d) To obtain the issuance of a separate document of title (para
10 of Schedule G), and in the case of a sub-divided
building, to obtain a separate strata title (para 10 of
Schedule H);
(e) To execute a valid and registrable memorandum of transfer
of the property to the purchaser (subject to the payment of
the purchase price by the purchaser);
(f)
To construct the building in good and workmanlike
manner in accordance with the description set out in the
Fourth Schedule to the agreement and in accordance with
the plans approved by the relevant authorities;
(g) To construct the infrastructure, including roads, driveways,
drains, culverts, water mains and sewerage plants serving
the housing project as a whole in accordance with the
requirements and standards of the relevant authorities, and
to maintain and upkeep the same (with the purchaser
having to contribute to the costs of such upkeep) until they
are taken over by the relevant authorities;
(h) To provide services, including refuse collection, cleaning of
public drains and grass cutting on the road reserves, from
the time of handing over of vacant possession until the
same is taken over by the relevant authorities (with the
purchaser having to contribute a fair proportion of the
cost);
(i) To lay all necessary water, electricity and sewerage mains
to serve the housing project, and to apply for the
connection of internal water, electricity, sanitary and gas
installation (if any) of the building to the mains but not
obliged to ensure that there is water and electricity flowing

into the building upon its completion (the effect of an

amendment in the Regulations in [1994].
(j) To comply with any written law for the time being in force
(a number of developers have been taken to court for
contravening several provisions of the Environmental
Quality Act 1974 and the Occupational Safety and Health
Act 1994);
(k) To apply for certificate of fitness (CF) of occupation and, to
ensure that there shall be no delay in the issuance of such
certificates, the developer is required to duly comply with
the requirements of the relevant authorities;
(l) To remedy defects, shrinkage and other faults during the
defects liability period (18 months after handing over
vacant possession of the building to the purchaser).
3. Certificate of Fitness of Occupation (CF)
The legal position with regards to the completion of the house,
vacant possession and the issuance of certificates may be
summed up as follows:(a) Within 24 months (36 months in the case of subdivided
buildings), the property bought by the purchaser must be
completed by the developer and handed over to the
buyer. Keys must be given to the purchaser.
(b) The developer is only required to ensure that water and
electricity supply is ready for connection which means
- Water and electrical fittings have been installed by the
developer;
- The fittings have been tested and commissioned by the
appropriate authority; and
- Supply is available for tapping into individual homes.
(c) Everything that needs to be done by the developer
must have been done to comply with the requirements of
the appropriate authority for the issuance of certificate of
fitness. But developer is not legally obliged.

 Category, conditions and restrictions laid down in ownership

shall in line with development order.
Additional Premium on variation of category. According to
Rule 14 of the Federal Territory of Kuala Lumpur Land Rules
1995, the value of the land means the market value of the
land at the time before the approval of the variation of
category or condition under s124 of the Code.