hi bosses,

I know that this topic was brought up by forumers few years ago (in 2012 as I searched in forum lowyat). But I would like to get fresh advise from you guys about my case. here's below the info:

SPA price: 300k - undercon prop
Downpayment: 0 - 10% rebate by developer
booking fee: 1k
legal fees: 0 - all by developer (approx 6k)
prop type: SOHO - under HDA

today the SPA is stamped. Loan not yet disbursed.

And here's the problem.
I am cancelling the purchase for some personal reason. However, developer sent me a letter asking that I will need to pay:
- 10% of SPA price
- legal fees
- booking fee 1k forfeited.

I have a problem to understand why I need to pay 10% of SPA price. I do not think I found any cancellation clause in SPA.
Is this normal to pay 10% for HDA property for cancellation after SPA stamped?

I really need your advise here.

If any information required, I can tell in details.

Thanks.

the rebates are not spelt out in the SPA, thus it is assumed that once u sign the SPA, you have paid 10% (check 3rd schedule , 1st item states 10% payable upon signing the agreement)

thus it's not wrong if developer state u need to forfeit/pay 10% of the SPA price.

However in your case, the 10% consists of your RM1k booking fee & the rebate given by developer. In short, it means that you just forfeit rm1k of your own money.

I'm sure there is a separate discount letter from the developer to say that the rebate is not for cash value bla bla bla so technically you'll need to fork out and 'return' back to developer the rebate.

If you refuse to pay (the 10% + legal fees), technically the developer can sue you to claim back that money.

However in practice it is not common for a developer to do so.

Hi thanks for your reply.

I've checked the SPA again and yes found out it is clearly written about forfeit of 10% off SPA price.
I've called the lawyer today (the lawyer firm is the same as developer), and she did mentioned the same.

the 10% rebate is mentioned in the Offer To Purchase Form and signed by myself and returned to them during the earlier buying process.

I've asked the lawyer about this, she did mentioned that this 10% is considering if the property has been bought by myself. So the 10% is not applicable in this case.

Could you help to advise if I would need to take this point as part of my negotiation process with developer?

I do have 10% rebate. I dont know how this can be used for negotiation (since the lawyer said this is not applicable).

Thanks for your advise.

also I have the understanding that the rebate only be applicable if I complete the SPA. Complete means I serve the SPA until VP.
Not sure if my understanding is correct.

your understanding is correct.

which is why i said:-

ur deposit will be forfeited,

there will be charges on loan agreement

good luck

Hi bosses,
Pardon me for tumpang-ing this old thread. Trying to cancel a signed and stamped SPA for an under construction property that came with rebate. Loan hasn't been disbursed. In addition to forfeiting the deposit already paid, developer is insisting for an additional payment, totalling to 10% of SPA price for the property. Unfortunately, I won't be able to fork out this huge sum. Any advice from bosses on how I may navigate this? Thanks very much in advance.

total rebate how much?

how much actual money u paid?

what's the stage of construction now? below or above 50% completion?

tbh you'd have alot more to pay (legal fees, revocation fee, bank cancellation penalty).