Schedule G, H, I, J in Malaysia - Why Are They So Important - PropertyGuru Malaysia

2/22/22, 1:42 AM Schedule G, H, I, J In Malaysia: Why Are They So Important?
| PropertyGuru Malaysia
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What Is Schedule G, H, I, J And Certificate

Of Fitness All About?
31 March 2021 • 5 mins read
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To safeguard homebuyers, the Sale and Purchase Agreement (SPA) contains a

special schedule that is issued according to the type of property you choose
and the purchase method (whether it's the sell-then-build, or the build-then-
sell).
No, we're not testing if you know your alphabet. We just want you to know your
rights, and protect yourself when you're buying your home!
It's not exactly a smooth sailing process, and can quickly become tedious and
confusing, especially for first-time buyers who don’t have enough knowledge
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https://www.propertyguru.com.my/property-guides/what-is-schedule-g-h-i-j-certificate-of-fitness-34566#:~:text=1) Schedule G,be issued to the ho… 1/9
2/22/22, 1:42 AM Schedule G, H, I, J In Malaysia: Why Are They So Important? | PropertyGuru Malaysia
According to HDA, a housing development should only be “engaged in, carried on,
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 undertaken or caused to be undertaken” by a property developer who has a
license that was issued in accordance to the Act.
When you buy your home from a developer, chances are that you haven’t seen the
bricks and mortar yet, but have only seen words on documents. It's the norm in
Malaysia for developers to sell their units during the construction phase.
There might be a chance that you were promised 'heaven on earth' during the
purchase by the developer, but your completed home turns out to be delayed AND
an utter disappointment.
This is when the HDA will have your back! Basically, the Act ensures developers
deliver according to their promises, by completing the project on time and
delivering it as the marketing materials have stated.
But, What Sort Of Issues Do Homeowners Generally

Face?
According to the House Buyers Association (HBA), the most common complaints
received from buyers who aren't satisfied with their completed units, are property
defects and the way they're rectified.
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The HBA has said that construction defects can range from very complex
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structural issues (which threaten the integrity of buildings), to simple things
related to aesthetics. Often, there are several existing defects.
One essential point to look at when buying your home will be the authenticity of
the developer. The track record is as important, if not more, as the other elements
buyers normally look into when they are property hunting.
A thorough background check must be made in terms of the development's site

and the developer’s credibility. You should also make sure they have their
Advertising Permit and Developer’s License (APDL), which is basically like a
permission from the local housing ministry.
It's stated under the Housing Development (Control and Licensing) Regulation
1989 (HDR) that no advertisement or sale can be made by any licensed housing
developer without first getting the APDL.
In order to acquire that, developers must submit the approved building plans,

proposed advertisements, and other crucial information on the development. So,
by checking this permit, buyers can be assured that the developer is genuine!
The Sale and Purchase Agreement (SPA)

One of the more complex bits for homebuyers, is going through the Sale and
Purchase Agreement (SPA). What is this 'SPA', and why is it so important?
This agreement basically covers the who, what, when, where, why, and how of the
purchase. It's extremely important for you to read everything properly, and
understand it, before signing the paper. Because once you've signed, there's no
turning back!
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To safeguard buyers, there are different Schedules for SPA under Regulation 11 of
the HDR, which are issued according to the type of property and its purchase
method. It states that:
Every contract of sale and purchase of a housing accommodation

together with the subdivisional 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, it shall be in the form prescribed in Schedule
H.
Every contract of sale for build then sell for a housing

accommodation together with the subdivisional portion of land
appurtenant thereto shall be in the form prescribed in Schedule I and
where the contract of sale for build then sell is for the sale and
purchase of a housing accommodation 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 J.
Sounds complicated? Don't worry, we're going to break it down into simpler terms
below:
1) Schedule G
towards This
the same.
is for the sale and purchase of landed properties (both land and building),
which is delivered in a ‘sell then build’ (STB) concept.
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The property units under this category are sold under individual titles,
titles, which will
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be issued to the homebuyer. When you complete the purchase, the plot of land
AND building will be under your name.
2) Schedule H
Remember this, H is for 'high-rise'! This schedule is important for those who wish
to buy and stay in strata properties (building and land intended for subdivision
into parcels), also in the STB concept.
It involves more complications than the earlier Schedule G, as it includes the

ownership of common properties, and your rights to it.
Common properties are the spaces that you share with other owners within the
compound of the development, such as the swimming pool, lounge, gardens,
corridors, car parks, and pathways.
3) Schedule I
Schedule I is for the sale and purchase of a landed property which is bought
through a different model: ‘build then sell’ (BTS) concept.
So, under this Schedule, buyers can actually see the fully completed unit before
deciding
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the Schedule
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This schedule will be for the purchase of strata property delivered through that
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 very same BTS concept.
Schedules I and J materialised after the amendments made to the HDR in 2007.
Under that amendment, the Government introduced the BTS 10:90 delivery
concept through the statement of the statutory agreements of the Schedules I
and J.
In this concept, you're only required to pay 10% of the purchase price on the date
of signing of the SPA with the developer, while the balance 90% is to be paid after
completion of the property.
This completion involves receiving the Certificate of Completion and Compliance

(CCC) as well as the Vacant Possession (VP) which shows that the building is
indeed ready for delivery to the purchaser on full settlement.
CCC Or CFO?
We know, yet another bunch of acronyms! Basically, the Certificate of Completion
and Compliance (CCC) tells you that your home is safe, and you can stay in it with
complete peace of mind.
The CCC
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commitment to Occupation (CFO) issued
ensuring the security by Local
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By continuing 2007. this website, you are giving consent
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The amendment of the Street, Drainage, and Building Act was made to stipulate
that:
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A Principal Submitting Person (PSP) must sign the CCC to confirm that the
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 project has obtained the Building Plans' approval from a Local Authority.
Is completed and has met all statutory requirements with regards to health
and safety aspects.
Is ready to be occupied with all essential utility services connected.
The PSP can only be either a Professional Architect or a Professional Engineer

with a Practising Certificate, depending on the type of building involved.
Relevant Guide
Homebuyer’s FAQ Guide to
the Certificate of…
BONUS: Liquidated Ascertained Damages (LAD)

Remember to keep an eye out for this clause! It's one of the most important ones
to look out for, as it ensures you receive a compensation, in case the developer
doesn’t deliver what has been promised.
The LAD is designed to cover any predicted losses which might occur as a result
of a project overrunning or being delayed.
Relevant Guide
How Much LAD Am I Able
To Claim And How Will It…
It Pays To Know Your Stuff!

As a homebuyer, especially if you are a first-time owner, it's crucial to have a
comprehensive knowledge about the signing of the SPA and the relevant
Schedule involved. After all, it's there for your own safeguarding!
Type Of What It’s For

Schedule
For landed properties (land and buildings).

Schedule
We've updated our privacy policySell-then-build (STB) concept.
to reflect our commitment to ensuring the security of your data. Please check
G Units are sold under individual titles, sothis
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land/building will giving
be
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For high-rise properties.
Schedule Sell-then-build (STB) concept.
H Units are sold under strata titles, which means sharing ownership
of common spaces on the property ie. carparks, swimming pools,
multipurpose halls, etc.
For landed properties bought under a different model.

Schedule Build-then-sell (BTS) concept.
I Buyers are able to see the completed unit before they purchase.
For purchase of strata-titled properties.

Schedule Build-then-sell (BTS) concept.
J You will need to pay 10% of the purchase price when you sign the
SPA and the remaining 90% once the property is completed.
When it’s completed, you’ll also receive the Certificate of
Completion and Compliance and Vacant Possession .
It's also advisable for you as a buyer to check out everything related to the
property you intend to purchase to avoid regrets, should any complications arise in the future.
Make sure you're aware of the additional 'hidden charges' that come with buying
a home, you wouldn't want to be caught off-guard and realise that you're going to
be overspending from your carefully planned budget!
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2/22/22, 1:42 AM Schedule G, H, I, J In Malaysia: Why Are They So Important?

What Is Schedule G, H, I, J And Certificate

To safeguard homebuyers, the Sale and Purchase Agreement (SPA) contains a

Accept & Close

But, What Sort Of Issues Do Homeowners Generally

Accept & Close

A thorough background check must be made in terms of the development's site

In order to acquire that, developers must submit the approved building plans,

The Sale and Purchase Agreement (SPA)

Accept & Close

Every contract of sale and purchase of a housing accommodation

Every contract of sale for build then sell for a housing

It involves more complications than the earlier Schedule G, as it includes the

Accept & Close

This completion involves receiving the Certificate of Completion and Compliance

The PSP can only be either a Professional Architect or a Professional Engineer

BONUS: Liquidated Ascertained Damages (LAD)

It Pays To Know Your Stuff!

Type Of What It’s For

For landed properties (land and buildings).

Accept & Close

For landed properties bought under a different model.

For purchase of strata-titled properties.

Accept & Close

CTOS Score Malaysia:

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