Hi property gurus,

Want to get some insights from you guys.

Here is my situation.

I was interested in a property and signed the Agreement to Purchase (Booking Form), and paid the earnest deposit (~RM 20K). The clause on Earnest Deposit refund:

"This offer is subject to bank loan approval of 15 (fifteen) working days. In the event the Purchaser is unable to obtain bank loan, the earnest deposit of
RMxxx shall be fully refunded to the Purchaser free of interest within 7 (seven) working days upon receipt from the Purchaser of bank loan rejection
letter"

I have gotten a loan rejection letter from ONE bank and also decided that I do not want to proceed with the deal (so i do not want to try other banks). I submitted the Loan Rejection letter to the agent + Vendor's lawyers. The loan approval deadline (15 working days) is already due, and the refund due date (7 working days) is due tomorrow.

Today, the agent told me:
- That vendor has not authorized the agent to refund my deposit
- The vendor is asking me to apply loan from a second bank.

My questions:
- Does the agent require vendor's authorization to refund my deposit?
- The time window for loan application / earnest deposit refund is almost due -- can they make such requests to me??

What do you think is happening here, and what do you guys recommend for me to proceed?

You can argue there was no mentions how many banks you should apply .. So you can withdraw voluntarily

You can tell them that you will be bringing the case to housing board and the way they are treating you is by which is not acceptable

The agent act on the instructions of the principal (the seller) in respect of collecting or refund of earnest deposit.

Based on the clause stated, the principal cannot instruct the buyer to make a second application.

If buyer cannot resolve the refund, he can initiate legal action against the seller and the agency for breach of agreement to sell.


On the side note ....

Think properly before buying else you are wasting everybody time. The seller would have missed another interested buyer after you ! The agent wasted his time 'closing' the deal.

If a buyer is serious, he will make a second application.

Take this as a lesson that it is never easy to request for any refund.

i have experience in this, i spent some time to get 2 rejection letters to fulfill the conditions of the developer to get back my deposits. They took months to make the refund to me. The refund description also put wrong name.

May I know if the booking form specifically stated that you need to provide 2 rejection letters from the banks,

My layman's concern would be if you apply for 2nd loan and deadline for loan approval has passed, would the seller telan your deposit due to your not able to get loan within 15 days?

Check back on the Booking Form (under agency booking form?), if the clause have stated, then they must refund, must make sure u have the copy that owner have signed the form as well

The clause is stated in my original post. It did NOT state that i need 2 rejection letters.


The 15-day deadline just passed.

Yup, everybody (me, agent, seller) has a copy

Wasted everyone’s time with your attitude.

was mentioned upfront when i made the booking, i think it was on the booking form.

My lawyer advised me that there is a risk I might not get Strata Title because of Restriction in Interest issue. That's why I'm not keen anymore.

This post has been edited by snafu: May 15 2022, 12:47 PM

If is not stated bumi unit, there is no issue regarding title transfer but will need extra 2 - 3 months to complete the transaction.

If you are a bumi buying a bumi unit, the time frame will also be as above.

If the agent's advertisement didnt mention transfer restriction (leasehold) or didnt inform you prior to signing the booking form, then you should hold the agent accountable.

Leasehold properties are not always bad.

Realistic if Malay sell Non Bumi unit to Non Malay, possible to drag longer above 6 months on top of normal transfer time.
Pejabat Tanah sure reject you one or two time one, reason with to protect Malay property.
Need keep appeal and pay penalty.

If buyer can wait and if is good price, let the seller sort it out. It is his responsibility to make sure the title is transferable and to pay whatever penalty.

This post has been edited by mini orchard: May 17 2022, 02:37 PM

For this case the property is still under Master Title and who knows when the Strata will be out. By then, I doubt the Seller would be involved anymore?

When the SnP is signed, the seller or lawyer will apply to the developer for consent to transfer to the buyer when the strata title is issue later. Once approved, it does not involved the seller anymore. When the title is ready, the developer will contact the buyer.

So many properties transaction have gone through similar procedures and your case is NOT the first or last. It doesnt matter the property is freehold or leasehold.

If the developer doesnt give consent, then the SnP is consider aborted and any payment to be refunded to buyer.

Your case has not reach SnP stage, so is premature to say developer's consent will not be given UNLESS as stated earlier, a non bumi buying a bumi unit, then is clear case consent will normally be rejected.

That is the answer as per your posting UNLESS there other things not mentioned.

My conclusion ....

You regreted buying the property for whatever personal reasons OTHER than the title transfer issue and you are finding a way to abort the deal.

An experienced lawyer will not give such advise to a client.

On the side note ....

I concluded buying a master title property recently and wrote to the developer for consent and they have no objections.



This post has been edited by mini orchard: May 18 2022, 07:33 AM