Which project?

have u signed the loan already? have seen a case that developer charging back the legal fees few k and call off the deal. i think to cancel the loan also got penalty and worst is draw down been made.

once loan is approved, buyer cannot rely on 'cant secure loan' and escaped scott free.

lucky for buyer. if the foundation already done, penalty is 20% + penalty.

time to be nice to both lawyer and developer given that this is a mid low cost home.

really lucky.. but already signed spa most probably loan also 'secured' dy.
1. cant use this as excuse again
2. might impose penalty from bank
3. if draw down dy, the damage would be higher cos paid to developer acc dy.

S&P is a legal binding contract; unless the vendor is generous and kind, unlikely to allow buyer to breach contract without penalty. doubt judge would allow "10% rebate" in lieu of 10% penalty.


This post has been edited by icemanfx: Dec 3 2018, 10:59 PM

Hi, just want to follow up on this post. Have the poster of this question receive any invoice of additional charges?

Actually I have the same case. I only pay booking fee where all other cost are beared by the developer.

Now I would like to cancel the S&P and the loan agreement and the lawyer issue me an additional RM10K abortive fee for this.

I called the lawyer, and they said they have paid the stamped duty etc to LHDN and somebody gonna take that bill.

Please help me guys. I really dont know what to do now.

Regards

Yes, you need to pay up for that or negotiate with the developer about it.

However, bank will also penalize you for aborting it after signing S&P and loan agreement, normally 1% of the loan amount and blacklisted by that particular bank.

That's why don't rush anything after loan approved. There is no downside for delaying the signing of LO, banker can hold up LO for up to 2 months to wait approval of buyer signing the LO.

Should it be the developer responsibility to pay for that as I have double confirm with the SA before proceeding and I have the conversion between us. Else he was being misleading to us as a purchaser.

For the bank wise, the loan application has been cancel. So there is no charges from the bank side.

Please advise.

better lost deposit then serving entire life of bad debts

I assume you mean the SA communicate with you about the legal fees of SPA and LA are free. They are free because they are borne by developer if you completed the purchase without abortion.

If you abort the purchase after the legal fees are charged, then wouldn't it be charged on you since you are the one who abort the purchase? I would advice you to go through the booking documents, normally they are written black and white, crystal clear.

For bank wise, no charges probably because you abort the purchase before first drawdown, right? Anyway, better check again with banker to see if there is any consequence from the bank side.

Yes I initiate the abortion.

But before hand I have consulted my SA, and he mentioned it will only be a RM1K charges and no more others. Thats why we proceed.

So now the lawyer given a RM10K charges directly to me.

Alamak.

Any consequences if I dont pay this cost? Please advise.

I mean the lawyer comes from a law firm...

I don't think its a good idea to not pay them since it's easier for them to initiate a lawsuit on you.

What SA said could be penalty from developer side, not including from the lawyer side.

Speak to the SC or whoever arranged the lawyers about this.

I had the same thing happen to me, except mine was through houzkey. I applied and before signing anything (but after the spa was done) I decided to back out.

a month later the lawyer billed us with an abortive fee of 8k. I checked with the bank consultant about it and he said we shouldn't have been charged. they asked for screenshot of the message asking for the fee to investigate.

never heard anything from them since then.

This post has been edited by nev_90: Mar 19 2021, 11:06 AM

supposely it can be aborted without any incuring charges.

just few 8 months ago was supposed to purchase a semi-D factory from ecoworld, loan approved signed. SNP was done but havent sign.

it was MCO and then we didnt want to proceed with the SNP even though loan from hong leong was already approved. no penalty or of such sorts.

Of course no penalty, in fact LO is just LO, before signing SPA and LA, even if you abort won't incur charges.

Burn 3.9k better than you pay for something you dislike. So sign snp ady?

Hi, when u say u would like to "cancel " S&P and loan agreement, mean u did SIGN on the both documents?

Normally developer or their lawyer would not dare to charge buyer if the buyer didn't sign any document to formalise the deal.

The status of this case is according to lawyer, they already paid stamp duty to lhdn means the SPA and LA have already been stamped.

Free of charge for aborting SPA and LA after docs stamped? I don't think so.

Yeah, spa and la have been signed and stamped.

Before I proceed to switch to another unit, we did consulted the SA and their credit department for any additional charges.

I dont deal with the lawyer directly, all through the developer as they assigned everything.

I have concern on any additional charges from the lawyer and banker as well. But the developer told me not to worry and proceed with the new booking.

What should I do now? Can anyone advise me.. Im so helpless.

I cannot afford the abortive fee.

Please advise.

When you mention "developer told you not to worry", do u mean staff from their office or just their sales staff or in worse case, external sales agent?

My advice to u is now quickly go to developer office ask them to explain, if they promise you no fees will incur, then they can ask their lawyer to reverse the invoice.

When SPA and Loan agreement are stamped, mean the deal are officially done. Now I am more worry on the "stamp duty" mentioned by your lawyer. If they are referring to duty on MOT, then this can explain why the bill go up to over 10k, foresee more to come. If that is the case, that mean you are the current owner of this unit. (Stamping fee for SPA is just RM10, no big concern)

I still don't understand by how you can switch unit even after all documents are stamped. If Developer really promise you it is doable and should be free of charge, then ask them to settle the bill for you.

Start keeping all conversation record with the developer office, told them if this can not be settled as per what they promise you, u will consult HDA for advice. HDA is very helpful and they have lawyer on volunteer basis to assist house buyer.

Ur case is really "weird" to me, so hope u can take initiative to engage with developer office immediately for clear clarification

Good luck