I made a quick rough estimate.

Assuming you can get 90% MOF, 10%  = 48,000
S&P Stamp duty = 8600
S&P Legal fees = 3600
Loan legal fees = 2160

Misc = 500 -1000

Are you buying from developer or subsale?

What is the bank valuation of the property?
If lower than 480K then you need to put in more $$$.
Some banks charge valuation that exceed a certain amount.

Get a lawyer to deal with owner.

You can just draft out a simple letter stating that you're forwarding the sum of xxx via xxx bank draft/cheque being deposit for purchase of xxx property. And get him to sign at the bottom acknowledging receipt of it. No need to appoint a lawyer right now just to prepare that, as you're not even sure that you're going to purchase it at the moment.

PS: Don't pay your deposit via cash. Either via bank draft or cheque would be advisable.

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Added on February 20, 2011, 1:15 am

Your remedy would be to file a small claims suit at the Magistrates' Court. It entertains claims for less than RM5k. Normally the claimant would act in person, as the claim is small and there is no point appointing a lawyer. Your case will be heard before a Magistrate and you would have to prove your case against the vendor.

Based on what you've stated here, there was no agreement in writing by both parties to extend the time to execute the SPA after the 14 days had lapsed, right? It's only your word against her word. As such, it would fall back on the letter of offer to sell (the 'temporary agreement' which you're referring to). That agreement gives them the right to forfeit if you fail to meet the deadline. If you're going to go on those grounds, your chances are slim.
Your act of calling the chairman (not judge) stupid just for telling you the truth is seriously despicable.

Can be done. But just make sure that the completion date for the S&P is revised accordingly. Since the vendor wants to hold it until Oct 2011, then perhaps to push the completion date to 2 or 3 months + 1 month after that, hence the completion date would be December 2011/Jan 2012 and the extended completion date would be Jan 2012/Feb 2012 as the case may be.

With regard to the Bank, it would be best to check with your mortgage consultant if the Bank would allow that. Shouldn't be a problem