Compelling Specific Performance of Contracts in Malaysia | What to Do If the Developer Delays Handover?

You’ve paid the deposit, secured the loan, and signed the contract—yet you still can’t get the keys to the property?

Beyond seeking monetary compensation, there is another legal remedy known as “Specific Performance.”

Here’s the breakdown 👇

1️⃣ What is Specific Performance?

It involves asking the court to order the developer or seller to:
“Since you agreed to sell the property to me, you must honor the contract. You promised to hand over the keys, so you must deliver them.”

It goes beyond mere compensation; it compels the other party to fulfill the specific obligations promised in the contract.

2️⃣ Why is this particularly suitable for real estate cases?

A house is not an ordinary commodity. The specific unit you purchased was likely chosen after multiple viewings and careful consideration. Within the same building, units on different floors or with different orientations can vary significantly in value.

Money cannot always serve as a substitute for that specific property.

3️⃣ What are the requirements for the application?

1️⃣ A valid Sale and Purchase Agreement (SPA)
2️⃣ The buyer has fulfilled their obligations (payment made or loan arranged)
3️⃣ The property is ready for actual handover

4️⃣ When is this application not suitable?

❌ The property is not yet completed → Seeking compensation is more appropriate
❌ The property has been transferred to an unsuspecting third party → Claiming damages from the original seller is more appropriate
Specific performance is not automatically granted; it depends on the circumstances and evidence.

5️⃣ What should the buyer do?

1️⃣ Keep all documents (SPA, proof of payment, bank documents, chat logs)
2️⃣ Do not delay (if the property is resold to another party, the situation becomes more complex)
3️⃣ Consult a lawyer on whether seeking specific performance is appropriate

If your developer keeps delaying the handover, don’t just ask, “How much compensation can I get?” Also ask, “Can I still get the specific property I purchased?”

⚠️ Disclaimer: This content provides general information on Malaysian law and is for reference purposes only.