How to Check a Developer's Background? 4 Free Ways to Avoid Abandoned Projects
An abandoned project is the biggest nightmare of buying property under construction. This teaches you to use official channels to check a developer's licence, blacklist records and past handover reputation for free — basic due diligence done in 10 minutes.
Published 5 July 2026 · by Lawrence Law
Buying property under construction essentially means handing a few hundred thousand ringgit to a company in exchange for a promise that “the property will be delivered in two or three years.” So checking the developer matters a hundred times more than viewing the show unit. The following 4 methods are all free.
Method 1: Check the licence — the KPKT website
Query the official system of the Ministry of Housing and Local Government (KPKT):
- Whether the developer holds a valid Developer’s License;
- Whether the project has an Advertising & Sales Permit;
- Whether both are valid for the current sales period.
A project selling without an AP — eliminate it straight away, no hesitation.
Method 2: Check the blacklist
The same KPKT system lets you check:
- Blacklisted developers;
- The list of problematic/delayed projects (projek terbengkalai / sakit).
The developer’s parent company or directors appearing in blacklist-related records is the strongest red alert.
Method 3: Check the “handover reputation” of past projects
- Search online for the names of the developer’s past projects + “delay” / “defect”;
- Look at the owners’ Facebook groups and Lowyat forums for past projects to see what real owners say;
- If you can, go and walk around their last completed project: the materials and maintenance state of the common areas are the true standard of this developer.
Method 4: Check the financial health (listed companies)
If it’s a listed developer, Bursa announcements and annual reports are all public: look at the debt level, unbilled sales, and the number of projects in hand. Developers under financial strain are usually the first to run into construction progress problems.
Bonus move: check the site
For a project already under construction, drive past every few months to check on progress. A project where the hoarding is always new and the tower crane never moves — think twice, no matter how cheap.
Before I recommend any project to a buyer, this set of due diligence is homework I always do. If you’re considering a project and aren’t sure whether the developer is reliable, send me the project name and I’ll tell you everything I know and everything I’ve found.
Frequently asked questions
What is the HDA? What protection does it give buyers?
The HDA (Housing Development Act) regulates how developers sell residential property: they must hold a Developer's License (DL) and an Advertising & Sales Permit (AP), buyers' money goes into a regulated HDA account, the SPA uses the statutory format, and delivery deadlines and late-delivery compensation are prescribed. Buying an HDA-protected project is the most basic line of defence for a buyer.
If a project is abandoned, what can a buyer do?
For a project already classified as problematic, you can follow the rehabilitation arrangements by the Ministry of Housing; this is exactly why you should check the developer's record before buying property under construction — after-the-fact remedies are far worse than avoiding it beforehand.
Does a small developer's project always mean you can't buy?
No. Plenty of small and mid-sized developers deliver both quickly and well. The key is: a complete licence, a record of on-time delivery on past projects, and no obvious red flags in their finances. Scale is only a reference; the record is the hard measure.
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