A Better Way to Hold Developers Accountable
Imagine this: You see a beautiful advertisement for a new condo. It shows a stunning view of KLCC, a luxury swimming pool, and a huge shopping mall just downstairs. Excited, you book a unit, only to realize later that your actual view is blocked by another building, the “shopping mall” is just a row of small shops, and the swimming pool is much smaller than advertised.
Many Malaysians have faced this disappointment. Until now, there was little they could do about it without going through a long and expensive court case. But that is about to change. The government is working on new rules that will make it easier for buyers to take action against developers who make misleading promises in their advertisements.
What’s Changing?
Right now, if a developer fails to deliver what is written in the Sale and Purchase Agreement (SPA), buyers can take them to the Tribunal for Homebuyer Claims for compensation. But if the misleading promise was made in an advertisement or a brochure—not the SPA—then the buyer has no legal protection.
The new amendments to the Housing Development (Control and Licensing) Regulations will change this. Soon, all promotional materials—brochures, advertisements, press statements—will be legally binding. If a developer makes a promise in an ad, they must deliver it, or they can be taken to the tribunal for compensation.
This means:
✅ If an ad promises a lake view, but your unit faces a wall, you can make a claim.
✅ If the developer says there will be a shopping mall, but only builds a few small shops, you can take action.
✅ If they promise branded kitchen fittings but give you cheap alternatives, they can be held accountable.
Why Is This Important?
For years, developers have been using clever marketing tricks to make their projects look better than they really are. Many homebuyers have spent their life savings on properties that turned out to be very different from what was advertised.
One case in 2022 involved 122 homebuyers who sued a developer for misrepresentation. The developer had advertised a luxurious mixed-use development with a hotel, a shopping mall, and a central park. But after waiting years, the buyers realized the promised features were missing. The court ruled in favor of the buyers, awarding them RM50,000 each—but it took 3½ years of legal battles to get justice.
With the new rules, buyers won’t have to go through such a long fight. They can bring their complaints straight to the tribunal and get compensation much faster.
How Will This Affect Real Estate Agents?
These changes don’t only impact developers—they also affect real estate agents. Many agents promote projects using their own marketing materials, creating fancy videos, posters, and ads that sometimes exaggerate or misrepresent the project.
Under the new law:
- If an agent promotes a project with misleading claims, buyers can take action.
- Developers may hold agents accountable for false advertising.
- Agents must be extra careful with what they promise in their marketing.
This means real estate agents need to double-check all marketing materials and make sure everything they say about a project is 100% accurate. Otherwise, they could face legal trouble along with the developers.
A Step Towards More Transparency
To help buyers, the government is also improving the Teduh website (https://teduh.kpkt.gov.my). This platform allows buyers to:
✅ Check the approved advertisements for every project.
✅ Track project progress and make sure construction is on schedule.
✅ Verify property prices and Bumiputera status.
If a developer changes the details after getting approval, buyers can report them. This will help keep the property market more transparent and honest.
What Should Buyers Do Now?
With these changes coming soon, buyers must be smart when choosing a property:
✔ Always compare the advertisement with the official details on Teduh.
✔ Save copies of all brochures, ads, and marketing materials—these will be useful if you need to file a claim later.
✔ Ask for written confirmation from the developer before making a purchase.
Conclusion
This is a huge win for Malaysian homebuyers. No more empty promises. No more misleading ads. Developers and agents will have to be more honest in their marketing, making the property market fairer for everyone.
For those in the real estate industry, this is a wake-up call. Agents must ensure their advertisements are accurate and truthful, or they could face serious consequences.
With stricter rules and a more transparent system, buying a property in Malaysia is about to become much safer for homebuyers.
Disclaimer: This article is based on news reports from New Straits Times, The Star, and EdgeProp. For the latest updates, refer to official government announcements or legal professionals.
