Hey guys,

Here is the problem...
one years ago on 2014 Feb.
We pay a Rm10K booking fees on a newly launched property in Penang.
The agent explained to us it is a COMMERCIAL title apartment and to be finished by 2018.
and there would be NO 6% GST incurred on top of house's price.

We applied loan and signed loan offer letter from Maybank.

After 1 years, we are informed to sign the S&P.
It catch us surprise:
1) The property is delay to 2020 to be finish
2) There will be 6% GST to be charged on top of house price
3) This project haven't got approval from government
4) Facilities reduced
5) maintenance fess not mentioned in SPA

When we ask to cancel our booking due to false advertised to this project. we have been informed only could claim back 50% of booking fees. Besides, we will have to pay a penalty to Maybank to cancel the loan offer as well.

This i my first house and do no have much idea to handle this problem
Any wise man could give us some advice?

Developer:
Cosmopolitan
Subsidiary company to develop:
Aspen Vintage
Project:
Urban Suite


This post has been edited by Aseanity: Feb 25 2015, 09:57 PM

Commercial title a bit jialat, i only know the bank loan part, yes upon signing loan document, if the deal is cancelled due to your part, Bank will penalty you with a certain amount of money, few thousand i think.

Personal advice : burn the few K & get yourself out of the mess, delayed project in good time sounds fishy to me.

This post has been edited by jolokia: Feb 15 2015, 05:53 PM

agree that you should cancel the booking as you may end up losing more by proceeding with the purchase.

Meantime contact the housing tribunal for advice.

I believe the developer has to return the full amount to you. In any case, developer are not allowed to collect booking fee until the SPA is signed. I know in reality this is not happening but the law is on your side . KNOW YOUR RIGHTS.

.

Thanks guys for your suggestion.
Just asking, whether anyone heard any case similar to my current condition and successfully claim back his deposit and loan offer penalty?

My 2 cent worth of opinion.
1. No license yet then how to market and sell the property? Don't even mention to sign spa. Check with your own lawyer and see if anything fishy here.
2. Regulation actually don't allow developer to "forfeit" money before signing any spa. More so if the is no approval from government yet.
3. I believe for now if you can prove that you use that property for residential purpose then should be exempted from gst. But then the developer must prove la. On top of that you should sign a schedule H/G(I don't remember already but is some schedule la).

Hope this help

Because this is commercial title, the developer is drafting the contract according to his favor.
1)your first point is valid, I am gonna argue from there.
2)I have signed in black and white in the purchase form when paying RM10K booking fees.so how?
3)It is pretty hard to judge for the waive of gst now as the current project haven't got approve by the authority

Go for housing tribunal. The form u sign before spa and before developer even got AP or advertisement permit, i believe no brouchere at all before this, so the form u signed should be just a simple letter of intend to purchase (some kind of similar form) and its not booking form. So, just fight for your right and discuss with developer. If they wish to burn your money, they would be in trouble if you make a complaint against them. So, just fight for it! Wish you all the luck!

I think I know which project you're referring to and quite a few people are planning to take action against the developer. I suggest you google the project's name and look for a discussion thread about it to get in touch with folks in a similar predicament.

Gonna look for authority and lodge report at TTPR

Yeah, I know about that. But would like to hear more advice from lowyat, every alternative to me is better.

Under Housing Development Act (HDA), developer is not suppose to connect any form of booking fee.
Some projects with commercial title is still under HDA. You can check from the spa.

i am not sure for commercial project that not under HDA, whether developer is allowed to collect booking fee or not.

The so called deposit is debit to the lawyer firm, technically the developer cant accept any booking fees so there is some "workaround" for them to charge you.

If the payment was made to lawyer then it should be known as Stakeholder's Fund, which I think they can't forfeit it?

Okay Bro, your Property is Commercial - so all the HDA rules such as A&P, Housing Tribunal is out the window.

So, you need to decide, you wanna proceed or walk away

If you walk away, must be prepared to lose part of your deposit

But for the Bank Letter of Offer, write a Letter to the Branch and CC to HQ and Bank Negara Malaysia that you wish to withdraw as you have been mislead by the Developer on the terms of the Sale and you do not wish to continue and you expect Maybank to waive all penalties cos

a) You were mislead - give full details on what terms was different

b) Have yet to sign any documents and Loan not drawdown - so no cost incurred

Remember to cc the Letter to BNM

since you know which project & developer, mind to share let all of us aware?
the developer/bad guy try to get away, post up this name it will benefit all of us.

I am no sure either. I hope there is some one who has background in law could answer this

This is the worst case scenario I think I have to prepared.

I was hesitating to disclose the project name and the developer as I still hope they can settle my problem in happiness.
Let me have one last call with the agent tonight, if they still do nothing. I will update in this topic for sure.

Agent problem

Well said.. . If commercial title, the project doesnt governed under HDA. Developer can start to sell once the building plan is approved.

You should clearly explain your "commercial title apartment" is what kind of apartment??? As my understanding is service apartment, if yes then it's cover under HDA. Not? Then it's not "Apartment" anymore.

was busy with CNY~~
I am still in the progress of claiming back my deposit( at least more than 50%)
I have lodge a report in tribunal. The officer is very friendly and the process is very simple.
You just have to submit your proof of deposit and wait within 120 days for the hearing session.
Beside, I updated the details of the project and developer.