SPA signed but VP 1 year away - Options to cancel?
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 Mar 7 2024, 01:52 PM
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#1
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4,954 posts Joined: Jul 2010  
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QUOTE(Najibaik @ Mar 4 2024, 10:24 AM) you still can cancel but you will lose 20% due to construction already past 40% 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. |
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Mar 7 2024, 02:24 PM
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#2
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Senior Member
4,954 posts Joined: Jul 2010
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QUOTE(Jingle91 @ Mar 7 2024, 02:19 PM) 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? But where did you get the 20% figure from? 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 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. |
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Mar 7 2024, 02:38 PM
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#3
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Senior Member
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QUOTE(Jingle91 @ Mar 7 2024, 02:30 PM) Sorry, I was not the one mentioned this 20% figures. My bad, quoted the wrong person. 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. I think it is very difficult to get developer's consent in my friend's case because there are many unsold and unbuilt units. |
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Mar 7 2024, 08:30 PM
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#4
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QUOTE(Najibaik @ Mar 7 2024, 08:13 PM) all types of houses under HDA Is it mentioned anywhere, say in S&P? I remember only seeing 10%. |
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