My Friend just sign SPA on this Year Jun 2025, but she now want to cancel, how much penalty will incurr? she only pay 2% for the down payment which is around 15k.

Better ask the sales person directly for the right answer

Generally, any cancellation of SPA will incurred a penalty of 10% of the purchase price. In tis case, the penalty will be 75k.

Whether the developer allows depends on their goodwill and the stage of completion of the property.

If the buyer oredi signed the Loan Agreement, it makes cancellation more difficult esp if the bank oredi disbursed part of the loan sum to the developer.

The LA is between borrower(buyer) & bank and money partially disbursed to the developer is the responsibility of the borrower to repay. Is then buyer responsibility to claim the money from the developer.

Assuming the bank haven't disburse the loan sum, and if termination of LA is allow, there will also be penalty incurred.

Lastly, there will also be legal fees and other purchase expenses from the developer and bank.

This post has been edited by mini orchard: Sep 20 2025, 07:30 AM

Repeat.

This post has been edited by mini orchard: Sep 20 2025, 07:05 AM

She said the bank not yet disburse money to developer, as per agreement said is pay 10% of the SPA price, but she said she try to ask Developer just forfeit 2% downpayment which around 16k to developer and she willing bear the lawyer fee, not just pending developer reply her.

if pay 10% which 75k i ask her just continue buy, when VP just rent out or sell. 75k penalty too high already

Once sign SnP will be difficult a not only you have to deal with developer, you also need to deal with bank side. Better to just continue with the house purchase.

Usually if construction progress before 50%, will penalty 10% spa price
if construction above 50%, will penalty 20%

The Developer has probably not recognized this sale yet. Since only the booking fee is paid, that's all the developer can keep. But to be sure, has your friend had the signed & stamped SPA returned to them? With developers signature included? If not, then developer has definitely not recognized this sale.

Typically a developer will only recognise the sale for a loan buyer if: 1) 10% has been settled (via payment and rebate), 2) SPA has been signed and stamped, 3) Loan LOA documents received.

My advices would be to ask the conveyancing lawyer that handled your friends case.

Ps: you cannot cancel a Sales & Purchaser agreement, you can only cancel a booking. SPA will need to be terminated or revoked.

The loan should be easy enough to get out of as there has been no draw down yet.

Sort this out quickly before the developer issues billing to bank, if draw down happens, your friend will be stuck.

As mentioned abv
If SnP s signed and stamped, get her to ready 10% if really want to cancel.
++ If Loan agreement is stamped, she likely need to pay Loan penalty(2%-3% of loan amont) too Check with lawyer(1st) and bank(2nd) on this

This post has been edited by taitianhin: Sep 22 2025, 01:32 PM

She said the Developer not yet billing to Bank, but she said the developer keep not reply her. maybe developer want to drag her?

If the project is not fully sold, likely the developer will not agreed to the termination. They will rather let the buyer deal with their bank. If buyer borrower don't make any payments to the bank, it will then proceed to auction off the property on VP.

Every unsold unit is a financial burden to the developer. All construction costs have to borne by them until they find a buyer.

Normally forfeit for the downpayment only. now call to bank hold for loan first

Why paid & bank loan approved already suddenly don't want to buy?

Maybe, but speak to lawyer who handled the SPA.

the laywer email her the lawyer fee + RPGT around 12k, and lawyer said developer can charge her 10% of penalty which is 79k , so 79k + 12k = 91k, so i just ask her continue to buy if like that. because initial she think only forfeit downpayment + bank penalty, but at the end need pay developer 10%

ya, u are like, the developer reply her said if my friend insist to cancel they will charge 10% from SPA price + the lawyer fee and RPGT around 12k. dont know is threaten or what. hahaha, but i ask my friend just continue to buy. once get VP rent it out or sell it.

But most likely is true if follow the proceduce need to pay 10%, since SPA is signed. but most of buyer are just cancel loan, even lawyer fee they will ignore as well. because in this case is Developer got the right to chase for 10%. but in the end going , havent yet see any developer chasing to court yet, maybe anyone meet can share too .. because developer will facing illegal part given rebate too.

of course is depend of my experience and some of the developer even refund the deposit as well. because many of cases are signing spa with cash term, but in the end buyer no pay for 10%. then also cancel like normal only.