The situation is like this SPA signed in 2021, VP maybe by end of 2024 or early 2025. After alot of thought the location of the project just doesn't work for many of us in the house hold.

We want to let go. What are the options and what is the impact to us as SPA signatories?

I've read about the 10% penalty with that bank but am assuming that's not the only hurdle. 10% would be way too much for us in which case we'd be force to take VP and just rent, wait out the 5 year lock-in period before trying to sell the unit.

Thank you!

This post has been edited by DinoBuaya: Mar 3 2024, 09:12 PM

you signed SPA in 2021 and you want to cancel now (2024)?

Very unlikely you can do that, I guess the construction is mostly done and the bank has disbursed most of the loan amount.

Just wait for VP and put it up for sale.

Lock in period? This is a rumahwip? Congrats you got an under market price investment unit. More often than not it should be cash flow positive with such a purchase.

rumah selangorku or rumahwip?

sign SPA 2021 but want cancel now 2024... thats very long thought process

no choice u gotta take VP then if not staying, can consider renting out to locals ONLY

you still can cancel but you will lose 20% due to construction already past 40%

If RumahWip I thought you can't sell for 10 years from SPA signed date?

Please calculate the penalty imposed is worth for you to cancel or not....

Personally...
I just wait for VP & then sell them off

Best talk to your lawyer regarding the specifics of your contract. Maybe got potential buyer, and can add them as a nominee

If any restriction to sell maybe can consult your lawyer/bank for exit plan. Maybe can consider to go into auction?

Apply to Agensi Kaunseling & Pengurusan Kredit (Agensi Kaunseling dan Pengurusan Kredit (AKPK)

Is this 20% specifically for rumah WIP type of house or applicable to other houses too? AFAIK, I only see the 10% penalty in S&P if purchaser breaks contract.

If construction already past 40%, mean his loan account already paid out significance progressive payments to developer, shouldnt this be counted as his liability as well? Will developer so kind pay back the progressive payments that they received from buyer's loan account with their own money?

Just worry that he will need to pay 10% penalty on SPA price to terminate contract + disbursement already paid by bank from his loan account + % penalty rate to terminate his loan earlier before lock in period, if he choose to terminate the spa during construction

But where did you get the 20% figure from?

Thinking back, I only remember my S&P mentioned 10% penalty but I cannot recall what the loan agreement says about breaking contract before VP.

I'm interested in this because someone I know is stuck in this dilemma - his biz isn't doing too well and he's having a hard time paying the progressive payments, let alone full payment when the time comes. He's thinking of giving up.

How about the progressive payments that have already been paid to developer from his loan account? Will developer so nice to pay back the bank after received his penalty payments?

Sorry, I was not the one mentioned this 20% figures.

I know the SPA did mention on penalty rate, either 10% or 15% of SPA. But it didn't mention on how to settle the progressive payments received from bank if construction started.

Guess TS really need to check with his lawyer clearly as I saw all said by paying certain % of penalty but without mentioning on the loan disbursed amount.

For your friend, maybe he can ask developer on whether he can sell the under construction unit and whether developer insist on back to back transfer for MOT. But I guess the price will be very low too.

My bad, quoted the wrong person.

I think it is very difficult to get developer's consent in my friend's case because there are many unsold and unbuilt units.

all types of houses under HDA

Is it mentioned anywhere, say in S&P? I remember only seeing 10%.

so, managed to cancel?

so, managed to cancel?