Hi sifu-sifu,

I am a newbie in this property world and am looking to purchase my first house.

Having done my shopping around I've finally found a property that I like. I made my booking, paid the booking fee and I was really surprised when I saw the booking forms (and other ancillary docs that the developer asked me to sign).

For example, the property is 1 million, and the agent told me there will be 8% discount with 5% cash back upon VP and I only need to make 2% down-payment. Sounds like a good deal to me. However on the booking form i stated that the purchase price is 1 million and I will need to make 10% down-payment for 100k. The agent explained that this is common practice in the industry so that the bank will give me higher loan. Isn't this obviously a fraud?

I don't feel comfortable signing the booking form at all, which I understand will be used for the loan application. Call me naive but I was expecting the discounts and rebates clearly written on the booking form. The agent gave me a side letter from the developer stating all the discounts and rebates that I entitled for the purchase, but this was obviously not being disclosed to the bank.

I understand that the banks are probably well aware of these practices and turning a blind eye to it but I am still risking myself from committing fraud (or at least dishonest?) for getting higher loan since there is an underlying duty for us to inform the financier the actual nett selling price?

I am kindly struggling now as I am not willing to sign an inaccurate document but I also really like this property. I obviously can't afford the 100 k down-payment so I think i have to give up on this property if I am not willing to subscribe to this practice.

My friends (property agents and conveyancing lawyers) told me if I am unable to accept such practice then most likely i just have to spend a few years to save money and buy sub-sale as almost all developing projects subscribe to this kind of practice.

Any advice please?

Read here ..

https://forum.lowyat.net/topic/4999576

Standard practice

You can't afford the down-payment but you like such high down-payment's unit, that's the only way to help you to purchase it as early as you can, actually this is a 3 side win situation.

Of cause for the one who able to afford the down payment, it's actually makes no different for them. This way is to help people who can't afford high down-payment like you.

This post has been edited by khoocheekit: Aug 13 2020, 11:04 AM

Why not to sign? Everything just on paper just help you to own. Why developer able offer for you such a high discount because they over markup the price, huge discount good for you, agent developer and bank. This just a business.