Purchasing a house or investing in real estate can be stressful if you are not familiar with the correct steps of finding the right property at the right locations, getting a lawyer to finalize the contract, and dealing with banks to get your loan approved. But once everything is sorted out, you will begin to ask yourself, “When do I get the keys and what should I do next?”
After two to three year of waiting, you finally receive a call to pick your keys to your new house. This is a moment full of emotions and excitement having watched the house being built over time from scratch. But hold up! Before you plan to throw a housewarming party, you need to complete the following steps that will help you thank yourself in the future.
Here is the simple guide on the process of receiving the keys to your new house.
Step 1 – Delivery of Vacant Possession
Vacant Possession (VP) refers to the condition of property where it is fully completed but not fit to be occupied. Delivery of Vacant Possession usually happens between 24 to 36 months from the initial down payment for the property and after the SPA is signed. This is when the property is ready to be handed to you. By this time, the construction work has ended and you are ready to move in.
Developers are obligatory by law to obtain a certificate which certifies that the building is ready for water and electricity connection before issuing VP. Moreover, common facilities that you are entitled to will have to be completed within 36 months. In the event where the developer fails to adhere to the timeline, homebuyers will be compensated for 10% of the purchase price per annum.
However, most of the homebuyers are not aware of the right procedures during the Vacant Possession (VP). Many homebuyers have the wrong perception about their new purchases and do not understand the procedure of Vacant Possession.
To elaborate, when the property is 70% completed, you will receive a letter from the developer asking you for a date to take the Delivery of Vacant Possession. When the property is finally completed, you will need to collect it at their sales office. On the same day of collection, you will receive a copy of the Certificate of Completion and Compliance (CCC). Once VP is issued, the time of the Defects Liability Period (DLP) has also started.
Step 2 – Certificate of Completion and Compliance
Formerly known as the Certificate of Fitness (CF), the CCC is a document released by the local authority council that declares a property is completed and is safe to stay in. This document is also endorsed by a registered member of the Malaysian Board of Architects.
Legally speaking, when you take possession of the property, make sure that your house has already been granted a CCC which stated in the Sales and Purchase Agreement.
An example of the CCC is shown below:
Step 3 – Sign a form when you receive the key
When you meet the developer to take delivery of vacant possession, you will need to sign several documents to mark your acceptance of keys to your new property. Once you sign the documents and write down the date, the Defect Liability Period for your property immediately begins.
The set of documents will include a simple list of electrical sockets, appliances, lighting fixtures, and other built-ins.
Step 4 – Defect Liability Period (DLP)
After obtaining the VP, you should then proceed with an on-site inspection. Malaysia requires developers to give homebuyers 18 to 24 months of DLP. The Defect Liability Period can also be thought of as the “warranty” period. It covers any defect due to workmanship and material on the developer’s cost.
Make sure that you thoroughly check every corner that conforms to the descriptions in your SPA. Here’s a list of the areas you should pay close attention to – doors, floor tiles, window and sliding doors, stairs, bathroom, walls, electricity supple, piping, and water supply.
Bonus Tip: Visit your new property when it is raining heavily to see if there are any leakages.
Developers will provide you a Defect Complaint Form that lists the common areas in the house. Use it to mark down any defects you may find. Even if you think it is a tiny problem, mark it down for the developer to check so that you will not have to bear the cost to fix it later on.
Bear in mind that no buildings are considered to be “Defects Free” upon handing over. It is the responsibility of every homebuyer to get their house inspected and submit the defects lists to the developer during the handover period.
Here is a list of items to bring along when inspecting your new house:
- Masking tape – Stick it at places where cracks or defects are found
- Marker pen (red) – To write the type of damage on the masking tape
- Paper – List down all the damage and their locations to keep track of them
- Camera – To take pictures of the defects and show as proof
Step 5 – Maintenance Fees, Sinking Funds and Taxes at the Management Office
After the delivery of VP, you will have to start paying maintenance fees and sinking funds. The maintenance fees are used to repair and maintain amenities such as air conditioning, clubhouse, landscaping, swimming pool, guardhouse, security guards, and common corridors that require constant upkeep to achieve a tip-top condition.
Sinking fund, on the other hand, is collected for big upgrade and high-cost activities like the replacement of fixture, repainting the building, and purchase of a movable asset for common properties. When you sign the property handover form, you will need to pay for the first 3 months of property maintenance.
Besides these, you will also need to pay taxes on your property. Get in touch with the management team for assistance on the monthly maintenance fees, sinking fund collection as well as the rules and regulation of the property.
Step 6 – Apply for utilities
Typical utilities applications include:
- Electricity supply: TNB New Account Application
- Water supply: SYABAS Water Supply Application (Kuala Lumpur, Putrajaya & Selangor)
- Gas supply (if piped in): Gas Malaysia Natural Gas Supply Application
- Internet: TM UNIFI New Account Application
Step 7 – Interior Designs
After sorting out the major items with developers and the management office, it is now time to focus on the interior of your house. Check out the other articles that show the best color for your living room and how to utilize small space:
- Read More : Make Your Home Smarter With These 7 Smart Home Devices
- Read More : 10 Designer-Approved Ways to Make Your Home Look Expensive But Aren’t
- Read More : 4 Tips To Create A Minimalist Living Room
- Read More: 6 Clever Ways to Maximize Your Space in a Tiny House
Step 8 – Enjoy Your New Home
Congratulations and welcome to your new house. You will find out that there are many service providers out there that help you to design your home. Bear in mind that it is important to do a background check before jumping into conclusion. By now, you will know that even after Delivery of Vacant Possession and collecting the keys, there is still a lot of work to be done before your housewarming party!