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Before you sign: What every first-time homebuyer must know

21 Apr 2025, 12:00 AM
Before you sign: What every first-time homebuyer must know
Before you sign: What every first-time homebuyer must know
Before you sign: What every first-time homebuyer must know
Before you sign: What every first-time homebuyer must know
Before you sign: What every first-time homebuyer must know

By Yasmin Ramlan

SHAH ALAM, April 21 — Buying your first home is seen as a milestone of success, but for many Malaysians, it is a risky process of potential costly mistakes.

While some buyers chase too-good-to-be-true listings, others let the pressure of decision push them into deals they don’t fully understand. The result? Regret, stress, and in the worst case, homes that are poorly located or not suited for long-term living. It’s a journey with hidden dangers and costly missteps.

The April 1 Putra Heights gas pipeline explosion, which damaged surrounding homes, forced many to confront uncomfortable truths about Malaysia’s rapid urban development and the common mistakes homebuyers make, as well as how crucial location, infrastructure safety, and environmental awareness are when choosing a property.

“If it seems too good to be true, it probably isn’t,” senior real estate negotiator Natasha Gideon told Media Selangor.

Natasha, better known by her Instagram handle @‌MarieJualKondo, emphasised the importance of understanding property terms, staying informed about market prices, and being alert to hidden risks that may not be immediately apparent in property listings.

“If it’s a landed terrace house with a RM400,000 price tag in Subang, it’s probably going to be a (fake) listing for a property in Nilai or something. Knowing terms, market prices and trends helps,” she said.

[caption id="attachment_397251" align="aligncenter" width="1280"] An aerial view of structures damaged by the April 1 Putra Heights gas pipeline fire, seen during the mega cleanup in Kampung Kuala Sungai Baru, Subang Jaya, on April 12, 2025. — Picture by MOHD KHAIRUL HELMY MOHD DIN/MEDIA SELANGOR[/caption]

Natasha said many first-time homebuyers fall into the trap of trying to find a perfect home that ticks every box, but the truth is, compromise is part of the process.

She highlighted that buyers often overlook long-term needs, like future family plans or daily commutes, and instead focus on price tags or quick move-in options.

“A lot of buyers also look at price rather than location. Buying a house because it’s RM300,000 but 50km from work may not be worth it in the long run. Identify what makes your life easier, especially as a first-time homebuyer.

“Your first home isn’t usually your dream home. That comes later when you make money off your first home: sell it, use the profit to put a downpayment on your second home or dream home,” she said.

Speaking about location-related safety concerns, she said buyers today are more aware of natural disaster risks and often ask questions about the vicinity to high-tension cables, properties close to hills, and safety measures in place to prevent incidents similar to the Highland Towers tragedy in 1993, where one of the three apartment blocks collapsed due to a major landslide, killing 48.

Natasha cautioned against relying on others, especially for those who rush or are pressured into purchases, such as entering joint loans that later limit their ability to buy other properties.

“Our parents lived in an era where you could afford a landed property so I hear a lot of parents encouraging their kids to buy landed properties, but a lot of them end up buying landed properties too far from work and regret it after,” she said.

[caption id="attachment_299223" align="aligncenter" width="1200"] Image for illustration purposes only. — Picture via iSTOCK[/caption]

Be ready to walk away

Meanwhile, property lawyer Nurul Shafiqah Suhaimi from Messrs Baharum, Suhaimi & Hisham said that when buying a house directly from a developer, the most important document is the Sale and Purchase Agreement (SPA).

According to Shafiqah, this legally binding contract is the “master agreement” that governs everything, from delivery timelines to building specifications, and it’s not something buyers should ignore.

“The agreement should have specific terms and conditions and should not be vague. Look out for schedule G (landed) or H (strata) in the agreement.

“Do not sign the SPA if you are not sure of the terms. Ask the lawyer in charge to explain in detail.

“Since the developer’s SPA was prepared one-sided, in which the buyer cannot change the terms, you have to decide for yourself whether to go through with it and sign the agreement or cancel it if you are not agreeable to the terms,” she said.

“Don’t feel pressured to sign. Look out for clauses on date of delivery, compensation for late delivery, specifications of the building, as well as the warranty terms,” Shafiqah added.

She also highlighted crucial aspects that buyers should look into, including safety, especially after the Putra Heights gas pipeline blast.

[caption id="attachment_397297" align="aligncenter" width="1200"] A view of the crater left behind by the April 1 gas pipeline fire, as seen in Putra Heights, Subang Jaya on April 12, 2025. — Picture by HARUN TAJUDIN/MEDIA SELANGOR[/caption]

Can you sue if safety risks weren’t disclosed?

When asked whether buyers can take legal action if risks aren’t disclosed, Shafiqah said yes, as omitting any mention of risk does not mean it doesn’t exist.

“Not all risk is in plain sight and foreseeable. As long as the accident happened due to negligence of the developers, there’s always room for legal action,” she said.

Shafiqah said while Malaysia’s housing laws do provide some transparency, developers must use government-regulated SPA formats and cannot change materials or layouts without written consent.

However, she added that there could still be blind spots, such as workmanship.

“The building will undergo an inspection from the authorities to give clearance for the CCC (Certificate of Completion and Compliance) or CF (Certificate of Fitness for Occupation of Building), but there’s always a gap or grey area when we look at the workmanship.

“Since it is impossible to really pick a fight on workmanship, but if it is too severe and causes a safety risk, it is worth a fight with the developers,” she said.

Before signing anything, Shafiqah urged buyers to do background checks on the developer.

“Do SSM (Companies Commission of Malaysia) search and bankruptcy search if needed. If you happen to know the title number, do a land search. It’s all online. If it seems fishy, then beware,” she said.

[caption id="attachment_381638" align="aligncenter" width="1200"] A house and vehicles partially inundated after several days of heavy rain and floods, at Kampung Lati in Wakaf Bharu, Kelantan, on November 29, 2024. — Picture by BERNAMA[/caption]

She added that these steps are crucial to ensuring buyers do not enter into a risky contractual relationship with a company they know little about.

“Buying a house from a developer and signing the SPA with them means we agree to be in a contractual relationship with them, so we must trust them.

“To trust, we must know them, and to know them, we must do a thorough check. Don’t simply trust advertisements. Do your due diligence,” she said.

On April 7, Housing and Local Government Minister Nga Kor Ming urged prospective homebuyers to verify developers’ licensing status on the Teduh website before making a purchase.

At the 14th Annual Affordable Housing Projects Conference, he revealed that his ministry has blacklisted 109 property developers for failing to comply with housing regulations, including not submitting development status and audit reports.

He said the ministry in 2024 had issued 471 notices with fines totalling RM9.03 million, and in the first two months of 2025, 56 compounds were issued, amounting to RM1.25 million.

Disclaimer: The above responses are specifically in the context of buying a house directly from a developer and do not apply to sub-sale transactions. All views expressed are based on the lawyer’s personal opinion as a practising legal professional and do not constitute legal advice to any individual or case.

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Media Selangor Sdn Bhd, a subsidiary of the Selangor State Government (MBI), is a government media agency. In addition to Selangorkini and SelangorTV, the company also publishes portals and newspapers in Mandarin, Tamil and English.