Dear All,

i paid booking fee on 5 weeks ago to the agent for 2nd hand condo,
before i pay the booking fee, i ask the agent whether i can get back my booking fee if the bank reject my loan and he said yes if i can prove it.

that's a clause on the "Offer to Purchase agreement" :


i apply housing loan from hsbc and standard Chartered within 1 week.
but after 4 week then only the bank told me my application is rejected.

may i know can i get back earnest / booking deposit in case i really fail to get loan from bank?
now i just apply loan from CIMB, Alliance and Public bank.
hopefully can appove on next week.

so my question is here:
am i really can't get back my booking fee even my loan was rejected by bank ?

if it's true then i think it's really unfair to the buyer...
if the buyer loan is rejected by bank.
it's mean the buyer is not a rich person.
but a "not rich / poor" people like us have the bear the rick of "non-refundable booking fee"!

before this i already try to ask the bank whether i'm qualify to gain housing loan,
coz i was afraid i'm not qualify to apply.
but bank said must get the "Offer to Purchase agreement" before they verify you applicable or not.

This post has been edited by marcusee: Feb 22 2010, 10:00 PM

If the refund policy is not stated in the agreement or receipt. Your money is 'colder than water'.

U made a mistake, why u want to apply loan from HSBC & SC? Foreign banks have limited resources locally, thus they cater only to medium & upper class clients.

If u need a rough idea of loan amount u qualify. Very simple. What's your nett take home income (after deducting EPF, SOCSO, TAX)? Then multiply by 35%. Go to any local bank & request for a loan repayment chart (it might be available at their website).

From the chart, you roughly can estimate the amount u probably qualify. Who's needs an agreement? Be honest & don't think so highly (of yourself).

I did put a clause in the offer letter stated that booking fees shall be refunded if the loan is rejected. However, the agent did tell me that i have 21 days to get the loan done. My loan application was approved in 3 days, what took yours to long?

that's a clause on the "Offer to Purchase agreement" :


By reading this clause, it sounds like it is not refundable even if you fail to get a loan.

35% of my income is totally more then the monthly installment.
i was even willing the pay for 30% of the downpayment after the bank saying that 15% of downpayment is difficult for my loan application after 1 week of application.
that's why i was thinking my application should be no problem.

the reason my application rejected is due to my company registration less then 2 year.
and i never apply for any loan, so they dun know whether i'm a good borrower or not.

so my advise for whom may want to buy any property is:
1. must apply more then 2 bank expecially local bank.
2. get black and white to make sure the booking fee is refundable if bank loan rejected.

Think from the owner perspective...

You waited 4 weeks for the dude to get his loan. You pushed away 10 other potential buyer of the house cos the house is 'booked'.
Now you know that the dude application fails, you try to get back the 10 potential buyer only to finds out that they have purchased elsewhere.

4 weeks is way too long. That is another month of installment added to owner's cost.

not all agents and owners are good enough to put this clause....i think for doing so, if your booking fee is refundable, the agent does not get commission at the end....

i think it is best to check your credit status before you place a deposit...

I did put the clause black and white in the letter. The agent & owner has no objection about it.

Means you're self-employed?

If yes, sole proprietor/partnership or sdn bhd? Bank use a different formula to derive the income for self-employed.

To be honest, it can vary from one agent to another. Some might allow, while others do not.

I've seen both.

best thing to avoid this situation is ask the agent if its refundable if the loan is rejected before u sign the booking form, or letter of intend. and make sure they put in the clause in the appropriate wording in the letter.

Usually when a buyer were to ask for this offer on returning back the full amount of earnest deposit due to the bank loan rejection,
It will be a smarter way to add in the claus to the Letter of Offer ( the closed deal form aka )

If its not stated and it is only verbally said by the agent

Abit tough only if the agent is a fair person.

P/s - and i had most of the cases where buyers not sure about their loan and as im the agent i do write it down for them on the Letter of Offer.
Cos i dont like misunderstanding between my buyer seller and especially the company due to the earnest deposit of the case will be refunded.

Is it a norm developer asking for the balance of 10% to be paid within 7 days of the deposit? I submitted my loan application the day i paid the deposit..Don't you think it's too tight? loan approval would take normally 1 week+ right? There's a clause saying it can be forfeited if fail to do so...