My friend purchase a 2nd hand house in quite good location. She paid booking, signed letter offer from bank and as well as SPA. Before that she had informed the owner that she'll be withdraw money from EPF to pay the 1st 10%. The owner agreed to wait even after signing SPA but she has one month to do so.

When she asked the owner about MOT because EPF need it with SPA then only she's able to withdraw to pay the owner.
However the owner is in the processing of transfering MOT from developer and it would take one month to do so. Owner's lawyer sent my friend a form called 14A. To her dismay, EPF rejected because the form 14A need to be stamped by land officer.

So according to owner's lawyer, unless she's able to pay the remaining 1st 10% using her own saving then the transition will be smooth. Otherwise owner will be having a big risk that is ; losing the property and as well as the 1st downpayment if my friend just in case she refuse to pay her after withdraw from EPF. Then if this is going to court case, according to the lawyer, my friend will have high possibility to win which frightened the owner.

And now, the owner doesn't want to proceed the selling unless she comes out with the remaining 1st 10% cash.But my friend doesn't have that big amount of cash.
The lucky part is there's no penalty and forfeited by lawyer and the estate agent.But afraid the bank will charge her penalty becasue she has signed the offer letter.

Now What should be done? Terminate the buying or ??? She's so depressed...

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Thanks so much to take time to reply.
It is because the seller's property title is still with developer and because my friend wanted to withdraw from EPF to fund her downpayment that's why the complicated started. According to lawyer the only solution is to pay the downpayment first then only withdraw from EPF..and she managed to settle by borrowing money

Buyer has signed an agreement to purchase and pay earnest deposit. And request :
1. Lower buying price
2. tenancy/rental must be revert to new buyer upon signing SPA

Seller agree to these 2 conditions and signed the agreement.

Now buyer want to withdraw and try to stop the cheque issue. As I know is buyer's earnest deposit shall be forfeited. Now what cation can be taken agaisnt the buyer? Please advice.

It is a letter offer by buyer to seller.Not yet enter Sales&Purchase Agreement.
The problem is the buyer stop the cheque issued which estate agent banked in.
In the agreement stated if buyer does not want to proceed to sign SPA then the earnest deposit shall be forfeited.
But now the buyer has ordered the bank to stop the cheque.So nothing to forfeit....
In this case what can the seller and estate agent do to claim back the earnest or proceed with the signing SPA???