The SPA Process in Malaysia, Step by Step (2026 Guide)

What is the SPA process in Malaysia? The sale and purchase agreement (SPA) is the contract that turns an accepted offer into a binding sale. For a subsale home it usually runs 3–4 months from signing to keys: a 10% deposit at signing, stamping within 30 days, then the balance paid within about 3 months. For a new-launch condo the statutory SPA (Schedule H) gives the developer up to 36 months to hand over (as of October 2026).

This guide walks through both, step by step, and shows where the costs fall.

How long does the SPA process take?

Subsale timings are market practice and depend on what your SPA says; consents can add one to two months or more (Donovan & Ho). New-launch periods are set by the Housing Development (Control and Licensing) Regulations (MahWengKwai & Associates, via Mondaq).

Subsale: the SPA step by step

Step 1: Offer and earnest deposit

Once you agree a price, you sign a letter of offer and pay an earnest deposit, commonly 2–3% of the price, usually held by the agent as stakeholder. The offer normally gives 14–21 days to sign the SPA; miss it without an agreed extension and the seller may keep the earnest deposit.

Step 2: Sign the SPA and pay the balance deposit

Your lawyer and the seller's lawyer agree the draft. At signing you top the deposit up to 10%. Read the clauses on the completion period, extension and late-payment interest, who pays what (quit rent, assessment and maintenance are usually apportioned), and whether the unit is sold with a tenant or with vacant possession.

Step 3: Stamping and the 3% retention

Instruments signed in Malaysia must be stamped within 30 days of execution (as of October 2026, EdgeProp's LHDN stamping guide). The big bills are the stamp duty on the transfer (MOT) and on your loan agreement; from 1 January 2027, property transfers move to LHDN's self-assessment system. Our stamp duty and legal fees guide has the rates and worked examples, and the calculator runs them for any price.

Your lawyer also retains 3% of the price (7% if the seller is not a citizen or PR) and pays it to LHDN for the seller's RPGT, as explained in our selling guide.

Step 4: Loan and consents

Your bank issues a letter of offer, then you sign the loan documents. Depending on the unit, the seller's lawyer may need the developer's consent (no strata title yet) or state consent (some leasehold land, and every foreign purchase). Foreign buyers should read our guide for foreign buyers.

Step 5: Completion and keys

The balance is due within the completion period, commonly 3 months after the conditions are met, often with a short extension at an interest charge set in the SPA. Your bank pays off the seller's loan first, the balance goes to the seller, and the keys are handed over. If you fail to complete even after the extended date, the seller can usually terminate and forfeit the 10% deposit.

New launch: what is different?

Check the project before you pay

Use KPKT's TEDUH portal (teduh.kpkt.gov.my) to check the developer's licence, the advertising and sales permit (APDL), approved selling prices and whether a project is flagged as delayed or abandoned (as of September 2026, Malay Mail).

Booking fee and signing

Developers often ask for a booking fee, but the regulations bar anyone from collecting payments outside the statutory SPA, and the first 10% is payable when you sign (EdgeProp). If you do pay one, keep the receipt: the Federal Court held in *PJD Regency* (2021) that the delivery period for late-delivery damages runs from the date the booking fee was paid (Mondaq).

Vacant possession and late delivery

Under Schedule H the developer must deliver a condo within 36 months (24 months for landed homes under Schedule G). If it is late, you are entitled to liquidated damages of 10% a year of the price, calculated daily until vacant possession (Universiti Malaya).

Defects after handover

The defect liability period is 24 months from vacant possession. Report defects in writing; the developer has 30 days to fix them. If it does not, you can give notice of your repair cost and recover it from the sum held by the stakeholder; unresolved claims up to RM50,000 can go to the Homebuyer Claims Tribunal within 12 months after the defect period ends (as of October 2026, EdgeProp).

Who pays for what?

The first-home stamp duty exemption depends on the SPA date, which matters with the wider exemption proposed in Budget 2027 for SPAs from 1 January 2027.

Looking at units in Mont Kiara, Damansara Heights or Desa ParkCity? Browse our current listings and WhatsApp us; we will walk you through the timeline for a specific unit.

FAQ

How much deposit do I pay when signing an SPA in Malaysia?

10% of the price in total. For a subsale this is usually a 2–3% earnest deposit at the offer plus the balance at SPA signing; for a new launch the 10% is due on signing the statutory SPA.

Who keeps the 3% retention sum?

The buyer's lawyer holds 3% of the price (7% for a non-citizen seller) and pays it to LHDN against the seller's RPGT. Any amount above the tax due is refunded to the seller.

What happens if the developer delivers the condo late?

Under the Schedule H SPA you can claim liquidated damages at 10% a year of the purchase price, calculated daily from the end of the 36-month period until vacant possession is delivered.