Awards must be made within 60 days 🗓️
Once the hearing begins, the tribunal is required to deliver its award within 60 days where practicable.
The tribunal must also give written reasons for its decision under section 16AA of the HDA 1966. A “non-speaking award” — one with no reasons — can be challenged by judicial review and quashed by the High Court.
8 types of awards available 👨⚖️
- Pay money: Order one party to pay the other
- Refund money: Return price paid under SPA
- SPA Compliance: Order developer to fulfil promises
- Compensation: Money for loss or damage suffered
- Variation of SPA: Wholly or partially
- Interests & Costs
- Dismissal
The award is final and binding. 📜
Once the tribunal makes its award, it is final and binding on all parties. It carries the same force as an order from a Magistrate’s Court or Sessions Court — meaning it can be enforced through the courts just like a court judgment.
Similarly, if parties reach a negotiated settlement during proceedings, the tribunal records it — and that settlement also becomes a binding award.
What if the developer ignores the award? 🧐
- Criminal offence
Failing to comply with a tribunal award within the specified period is a criminal offence under section 16AD of the HDA 1966.
- Penalty on conviction
Fine of minimum RM10,000 up to RM50,000, or imprisonment up to 2 years, or both.
- Continuing Offence
An additional fine of up to RM1,000 per day for every day the non-compliance continues after conviction. Compliance
You don’t always have to fight it out 🤝🏻
Before proceeding to a full hearing, the tribunal will assess whether the dispute can be resolved by settlement.
If both parties agree, the settlement is recorded and given the force of a tribunal award — binding and enforceable.
If settlement isn’t possible, only then does the tribunal proceed to determine the dispute. Lawyers are generally excluded from hearings unless complex law is involved and one party faces severe financial hardship.
Country Garden Danga Bay Sdn Bhd v Tribunal Tuntutan Pembeli Rumah & Anor [2022] 5 CLJ 173, FC – The covered balcony case 🪟
Facts:
- Buyer claimed developer gave him a unit with an open balcony instead of the covered balcony shown in the display model.
Held:
- Federal Court ruled the tribunal had no jurisdiction — the covered balcony was not a term in the SPA. The tribunal can only act within the four corners of the SPA.
Lesson for homebuyers
What you saw in the showroom means nothing unless it is written into the SPA. Always check your SPA carefully before signing.
Lakefront Residence Sdn Bhd v Tribunal Tuntutan Pembeli Rumah & Anor (and 3 Other Appeals) [2023] 1 LNS 2146, CA – The switched air-conditioner case 🌀
Facts:
- SPA promised centralised AC. Developer unilaterally switched to split units — placing outdoor compressors inside buyers’ kitchens without consent.
Held:
- The tribunal had jurisdiction. The CACS was a term in the SPA’s approved plan — and even if in the deed of mutual covenant, it was part of the same transaction. Buyers won compensation for relocation costs.
Lesson for developers & homebuyers
Developers cannot unilaterally change SPA specifications — and if it is in the approved plan, the tribunal has jurisdiction.
Remeggious Krishnan v SKS Southern Sdn Bhd [2023] 4 CLJ 36, FC – Can you file two claims? 🗂️
Facts:
- Buyer filed two separate tribunal claims against the same developer: one for defective ceiling height (RM40,000) and one for the manner of delivery (RM49,832).
Held:
- Federal Court held both claims were allowed. “Same matter” means the same issue or type of claim — not the same property. Technical and non-technical matters are separate claims.
Lesson for homebuyers
If your complaints fall under different categories, you may file them separately. The RM50,000 cap applies per claim — not cumulatively.
Outlet Rank (M) Sdn Bhd v Malayan Banking Bhd & Anor [2013] 1 LNS 554, HC – Tribunal or civil court? 🏛️
Facts:
- Buyers sued developer in the High Court for late delivery. Developer argued the tribunal had exclusive jurisdiction, so civil courts could not hear the case.
Held:
- The tribunal does not have exclusive jurisdiction. It is only an alternative forum. Buyers may choose to go to civil court — unless they have already filed at the tribunal first.
Lesson for homebuyers
You have a choice. But once you file at the tribunal, you cannot also file in court on the same issues simultaneously.
Summary
1️⃣ If it’s not in the SPA, the tribunal likely cannot help you.
2️⃣ Approved building plans attached to the SPA count as SPA terms.
3️⃣ You can file separate claims for different types of defects.
4️⃣ The tribunal is not your only option — civil courts remain open to you.
5️⃣ Act fast — you only have 12 months from CCC or end of defect liability period.
For further information, please contact us at Miranda & Samuel:
- Dato’ George Miranda (george@mirandasamuel.com)
- Joy Sam Jia Qian (joy@mirandasamuel.com)
- Alisyah Maisarah (alisyah@mirandasamuel.com)
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– By George Miranda, Joy Sam Jia Qian, Alisyah Maisarah –
This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.
