I found this at iproperty:

It happened that during the process of doing the purchase, he didn't want to go through agents (saying that he wanted to save the fee to agents). He trusted the vendor, in fact the vendor was his friend, so he paid him the booking and the bla bla bla close to RM7K, cash! After signing the S&P, during the process of transferring and and waiting for the bank disbursement, they finally found that the vendor was actually declared bankrupt, thus none of his property what so ever can be transacted. So my friends RM7K is gone.

Thanks for your advice

I assume the S&P is drafted by his lawyer? Maybe a good idea is to get your own lawyer too to counter check?

but if you buy from developer, it is their lawyer, right?

I bought a house from someone who seems very nice. i asked them if the place can smell the stinks from the oxidation pond or not? they told me "of course nolah!"... then after I moved in, got smell once in awhile, and sometimes could get quite serious too.

never trust the seller's words easily lo, if i may advice...